Veritone, Inc. Q4 FY2024 earnings call

• Ryan Steelberg discussed the divestiture of VeritoneOne to focus on AI software, strengthening the balance sheet and reducing debt servicing. • Key wins included CBS News renewal, Veritone Data Refinery launch, and progress in commercial (e.g., VDR growth) and public sectors (e.g., IDEMS expansion). • Mike Zemetra covered financials, noting cost savings of over $17 million in 2024, reducing the global workforce by 15%. • The company emphasized strategic progress in AI solutions, with a focus on enterprise-wide AI adoption and unstructured data management.

Full-year 2024 revenue was $92.6 million, down 7% year-over-year. Software products and services decreased $7.4 million or 10.8%, while managed service revenue of $31.6 million was flat year-over-year. Q4 2024 revenue from continuing operations was $22.4 million, down $4.7 million from Q4 2023, primarily due to a decline in software products and services driven by commercial enterprise. ARR in Q4 2024 was $58.8 million, with 81% from subscription-based customers. Total new bookings were $13.2 million, down year-over-year. Gross revenue retention was above the ninetieth percentile.

• Fiscal Q1 2025 revenue expected between $23-$24 million. • Full-year 2025 revenue guidance $107-$122 million (midpoint 24% growth year-over-year). Non-GAAP net loss expected between $27 million (midpoint 46% improvement). • Public sector expected to grow 100%-150% year-over-year. • VDR pipeline over $5 million. Non-GAAP gross margins projected 71%-73% in 2025, potentially higher with higher revenue.

• Potential impact of government spending scrutiny and budget cycles on federal contracts. • Initial lower margins for Veritone Data Refinery until it matures. • Dependence on key partnerships and macroeconomic conditions affecting Veritone Hire growth.

Q: When do consumption customer headwinds fully abate?

A: Mike Zemetra said Q1 2024.

Q: Any disruption from administration turnover in federal contracts?

A: Ryan Steelberg said no impact on 2025 guide as current deployments are against 2025 dollars.

Q: Difference in IDEMS offering vs previous public safety revenue?

A: Ryan Steelberg explained IDEMS is a suite of applications expanding the portfolio, leading to larger contracts and more revenue.

Q: Breakeven on cash operating standpoint?

A: Mike Zemetra said earliest in back half of 2026.