Nasdaq:VERI
Veritone, Inc.
An AI-powered content automation platform helping media and enterprise organizations ingest, search, and analyze video, audio, and text assets at scale.
Key Metrics
Investment Thesis
Bull Case
Despite recent headwinds, Veritone possesses a unique niche in high-volume video analysis that few competitors can match; if the company can successfully pivot to a more sustainable SaaS model or secure large-scale government and enterprise contracts, it could regain profitability; the current depressed valuation offers a potential turnaround opportunity for investors willing to take on high risk.
Bear Case
The stock is risky given the company has recorded three consecutive years of declining revenue and consistent net losses exceeding $37M; with total liabilities nearing $185M against only $13.5M in shareholders' equity, the balance sheet is fragile and vulnerable to credit tightening or a prolonged downturn; continued heavy spending on general administration and marketing without corresponding top-line growth threatens long-term survival.
About Veritone, Inc.
Veritone Inc. provides an artificial intelligence platform that automates content ingestion, search, and analysis across video, audio, and text for media companies and enterprises. The company serves markets in sports, news, legal, and security sectors by enabling clients to efficiently manage vast digital asset libraries and generate actionable insights. Its proprietary technology leverages deep learning models to deliver scalable solutions for high-volume data processing tasks.
Analysis
Management Discussion
Recent financial performance highlights a challenging period with revenue contracting significantly from $149.7M in 2022 to $92.6M in 2024, while net losses narrowed slightly from -$58.6M to -$37.4M despite high operating expenses of $153.6M; the company burned through substantial cash reserves with a net change in cash of -$63.0M and ended the year with only $17.3M in cash and equivalents.
Industry Overview
The artificial intelligence and cloud computing sector is experiencing rapid expansion as enterprises seek to automate complex data processing tasks; however, the market is becoming increasingly crowded with well-funded incumbents that can offer integrated solutions at lower marginal costs; success in this space now requires not just advanced algorithms but also scalable infrastructure and strong customer retention strategies.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $149.7M | $127.6M | $92.6M |
| Cost of Revenue | $27.4M | $28.3M | $27.3M |
| Gross Profit | $122.3M | $99.3M | $65.4M |
| Operating Expenses | $160.3M | $191.6M | $153.6M |
| Operating Income | $-38.0M | $-92.3M | $-88.2M |
| R&D | $43.6M | $42.1M | $26.8M |
| G&A | $44.2M | $73.8M | $58.4M |
| Marketing | $51.3M | $52.0M | $39.8M |
| Stock-Based Comp | $19.1M | $10.8M | $8.1M |
| D&A | $22.5M | $26.1M | $28.5M |
| Depreciation | $1.3M | $2.4M | $4.5M |
| Amortization | $21.2M | $23.7M | $24.0M |
| Other OpEx | $21.2M | $23.7M | $28.5M |
| Non-Operating Income | $14.7M | $30.7M | $-12.0M |
| Pre-Tax Income | $-23.2M | $-61.7M | $-100.2M |
| Income Tax | $2.3M | $-3.0M | $-3.9M |
| Continuing Ops | $-25.6M | $-58.6M | $-96.3M |
| Discontinued Ops | $0 | $0 | $58.9M |
| Net Income | $-25.6M | $-58.6M | $-37.4M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-25.6M | $-58.6M | $-37.4M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $278.0M | $182.8M | $59.4M |
| Cash & Equivalents | $184.4M | $79.4M | $16.9M |
| Accounts Receivable | $56.0M | $69.3M | $32.0M |
| Prepaid Expenses | $15.2M | $14.5M | $10.5M |
| Other Current Assets | $22.3M | $19.6M | $0 |
| Long-Term Assets | $146.7M | $193.0M | $138.7M |
| PP&E (Net) | $5.3M | $8.7M | $10.1M |
| Goodwill | $46.5M | $80.2M | $53.1M |
| Operating Leases | — | — | $840.0K |
| Other LT Assets | $95.0M | $104.1M | $74.7M |
| Total Assets | $424.8M | $375.8M | $198.1M |
| Current Liabilities | $193.3M | $188.8M | $61.0M |
| Accounts Payable | $36.7M | $32.8M | $11.0M |
| Current Leases | — | $2.3M | $698.0K |
| Deferred Revenue | $19.0M | $15.5M | — |
| Other Current Liab | $137.5M | $138.3M | $49.2M |
| Long-Term Liabilities | $151.6M | $148.8M | $123.7M |
| LT Operating Leases | $1.5M | $308.0K | $150.0K |
| Other LT Liab | $150.1M | $148.5M | $123.5M |
| Total Liabilities | $344.9M | $337.7M | $184.6M |
| Shareholders' Equity | $79.9M | $38.1M | $13.5M |
| Paid-In Capital | $451.2M | $468.0M | $480.5M |
| Retained Earnings | $-371.3M | $-429.9M | $-467.3M |
| AOCI | $-76.0K | $-10.0K | $214.0K |
| Total L&E | $424.8M | $375.8M | $198.1M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-25.6M | $-58.6M | $-37.4M |
| Non-Cash Adjustments | $54.7M | $-12.5M | $16.7M |
| Working Capital Changes | $-25.4M | $-5.3M | $-4.0M |
| Cash from Operations | $3.7M | $-76.4M | $-24.7M |
| Capital Expenditures | $4.8M | $5.1M | $6.1M |
| Cash from Investing | $-12.1M | $-54.9M | $-1.6M |
| Debt Repayments | $380.0K | — | — |
| Cash from Financing | $-61.9M | $26.3M | $-37.1M |
| FX Effect | $0 | $0 | $405.0K |
| Net Change in Cash | $-70.3M | $-105.0M | $-63.0M |
| Beginning Cash | $255.6M | $185.3M | $80.3M |
| Ending Cash | $185.3M | $80.3M | $17.3M |
Frequently Asked Questions
How does Veritone, Inc. make money?
Core revenue is derived from the sale of Veritone Cloud™, a SaaS-based AI platform that automates content ingestion and analysis; licensing fees for proprietary IP and algorithms; and professional services including implementation, customization, and ongoing support contracts.
What are the main risks for VERI?
The company faces intense competition from larger tech giants like Microsoft, Google, and Amazon who are rapidly expanding their AI and cloud offerings; persistent net losses and a shrinking cash position raise concerns about liquidity and the ability to fund future growth without further dilution; rapid technological obsolescence could render its current AI models less competitive if it fails to innovate quickly enough.
What is VERI's competitive advantage?
Veritone holds a significant moat through its proprietary deep learning models trained on massive datasets of video and audio content; the company benefits from high switching costs as clients integrate their entire media workflow into the Veritone ecosystem; and its extensive patent portfolio protects its unique approach to content analytics and automation.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.