Veritone, Inc. Q3 FY2025 earnings call

• Balance sheet: Completed agreement to retire term debt, repurchase 50% of convertible debt, reducing annual debt service burden from over $14M to ~$800k.
• Operating model: Aligned with AI Software Products & Services, aiming for operating profitability in late 2026.
• Q3 Results: Revenue $29.1M, up 32% YoY. Software Products & Services up 55%, excluding Veritone Hire >200% growth. VDR pipeline >$40M, 100% QoQ growth. Public Sector closed 82 contracts, pipeline ~$218M.
• Partnerships/Contracts: VDR secured new customers including hyperscalers. AI applications signed 27 commercial agreements, expanded with CBS. Public Sector added 30 new agencies.

Veritone delivered revenue of over $29 million for the third quarter, a 32% year-over-year increase. Software Products & Services, including VDR, grew by 55% during the quarter, with excluding Veritone Hire, it surging over 200%. VDR's pipeline and bookings exceed $40 million, a 100% quarter-over-quarter growth. Public Sector closed 82 contracts from new and existing customers, with a pipeline approaching $218 million. International pipeline exceeds $28 million. Revenue breakdown: Q3 revenue $29.1M, up 32% YoY, driven by $8.1M increase in Software Products & Services offset by $1M decline in Managed Services.

• Q4 2025: Revenue expected $33.4M-$39.4M (63% increase at midpoint), up >75% YoY in Software Products & Services. Non-GAAP gross margins 61%-60%. Non-GAAP net loss $1.5M-$5M.
• Fiscal 2025: Revenue $109M-$115M, non-GAAP net loss $31.6M-$26M.

• Government shutdown impact on federal contract timelines.
• Macro environment affecting Managed Services and Veritone Hire.
• Dependence on successful execution of VDR and other growth initiatives.

Q: About Q4 revenue guidance ranges, what drives the high and low ends?

A: Timing and velocity of large VDR deals and public sector Fed deals.

Q: How is VDR pipeline growth driven and will you expand go-to-market?

A: Represent both buy and sell sides of AI training data, plan to strategically expand sales force.

Q: Public Sector growth with government shutdown?

A: Short-term blip, negligible long-term impact on growth.

Q: Strategy for Veritone Hire?

A: Stable business, important for cash flow, open to options.