BusinessWire

Veritone Beats Top- and Bottom-Line Guidance with Record Q3 2020 Financial Results

  • Record Revenue of $15.7 Million, Up 18% Sequentially and 23% Year over Year
  • Grew aiWARE SaaS Solutions Revenue to $3.4 Million, Up 43% Year over Year
  • Recognized Revenue of $0.4 Million and Bookings of Over $1.0 Million from New Veritone Energy Solutions
  • Increased Gross Profit to $11.2 Million, Up 30% Year over Year
  • Improved GAAP Net Loss to $11.0 Million, a 22% Increase Year over Year
  • Posted Non-GAAP Net Loss of $4.3 Million, an Improvement of 56% Year over Year
  • Recorded First Time Non-GAAP Net Income from Core Operations of $0.4 Million, an Improvement of 111% Year over Year

COSTA MESA, Calif.--(BUSINESS WIRE)--Veritone, Inc. (NASDAQ: VERI), a leading provider of artificial intelligence (AI) technology and solutions, today reported results for the three months ended September 30, 2020.


Veritone reported record revenue of $15.7 million for the third quarter of 2020, reflecting record contributions from Advertising and aiWARE SaaS Solutions. GAAP net loss was $11.0 million and non-GAAP net loss was $4.3 million, improving $3.2 million and $5.4 million, respectively, compared with the third quarter of 2019.

“Across the board, the team performed with skill and agility, helping our customers improve their businesses and build resilience in these challenging times through the adoption of our cutting-edge artificial intelligence solutions, anchored by our powerful aiWARE platform,” said Chad Steelberg, Chairman and CEO of Veritone. “Third quarter revenue increased by 23% year over year and 18% sequentially. Our momentum was boosted by our timely and well received move into aiWARE solutions for energy, which complement our growing presence in the media and entertainment and government, legal and compliance markets.”

Ryan Steelberg, President of Veritone added, “Our team performed extremely well in the third quarter, with revenue from each vertical exceeding the expectations we had coming into the quarter. The 43% year-over-year growth in our aiWARE SaaS business reflects both our increasing traction in the government, legal and compliance markets and initial revenue from the energy market. Both of these markets hold enormous potential for Veritone, and we are driving hard to meet the increasing demand for our solutions.”

Recent Business Highlights

  • Launched Veritone Energy, a suite of AI solutions aimed at increasing grid reliability to support utilities’ integration of renewable energy sources, and maximizing their profitability.
  • Added GovQA to the growing list of technology and channel partners targeting U.S. Government customers and state and local law enforcement agencies with aiWARE.
  • Completed and announced the integration of aiWARE with George Jon’s Kits, accelerating the rapid discovery of actionable evidence critical to eDiscovery processes.
  • Renewed and expanded relationship with CBS News with a new multi-year license agreement.

Fourth Quarter 2020 Business Outlook

  • Revenue is expected to be in the range of $16.0 million to $16.4 million, representing a 30% increase year over year at the midpoint.
  • Non-GAAP net loss is expected to be in the range of $4.5 million to $4.0 million, representing a 47% improvement year over year at the midpoint.

Financial Results for Third Quarter Ended September 30, 2020

Revenue was a record $15.7 million, compared with $12.8 million in the third quarter of 2019. The growth reflects a 43% increase in aiWARE SaaS Solutions, including revenue from the Company’s new energy solutions, and a 39% increase in Advertising, reflecting contributions from both VeriAds and Veritone One, offset in part by a 13% decrease in aiWARE Content Licensing and Media Services due primarily to lower licensing activity resulting from the cancellation of sporting events because of the pandemic.

Loss from operations was $11.0 million, a substantial improvement compared with $16.2 million in the third quarter of 2019. The $5.2 million improvement was driven primarily by a $2.6 million increase in gross profit due to the higher revenue level and cost savings on efficiencies realized from enhancements to the Company’s aiWARE operating system, coupled with a $2.7 million decrease in operating expenses, particularly in the areas of personnel and professional services, due largely to the cost reduction initiatives implemented in the fourth quarter of 2019.

GAAP net loss was $11.0 million, or $0.40 per share, an improvement of $3.2 million compared with $14.2 million, or $0.64 per share, in the third quarter of 2019. Non-GAAP net loss was $4.3 million, or $0.15 per share, compared with $9.6 million, or $0.43 per share, in the third quarter of 2019. The $5.4 million improvement in Non-GAAP net loss was driven by the Company’s Core Operations, which improved $4.4 million to Non-GAAP net income of $0.4 million, compared with a Non-GAAP net loss of $3.9 million in the third quarter of 2019, and by Corporate, which improved $1.0 million to a Non-GAAP net loss of $4.7 million.

As of September 30, 2020, the Company had cash and cash equivalents of $54.3 million, including $34.2 million of cash received from Advertising clients for future payments to vendors, and no long-term debt.

Conference Call

Veritone will hold a conference call on Monday, November 9, 2020 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its results for the third quarter of 2020, provide an update on the business, and conduct a question and answer session. To listen, please join the webcast or dial-in. To avoid a wait, if dialing in, please pre-register or call in 20 minutes in advance.

Preregister*:

http://dpregister.com/10148666

Live audio webcast:

investors.veritone.com

Domestic call number:

1-844-750-4897

International call number:

1-412-317-5293

Call ID:

10148666

* Callers who pre-register will be emailed upon registering a conference pass code and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. If you have any difficulty connecting with the conference call, please contact LHA at 415-433-3777.

A replay of the audio webcast will be available on the Company’s website approximately one hour after the call ends. Additionally, a telephonic replay of the call will be available through November 23, 2020:

Replay number:

1-877-344-7529

International replay number:

1-412-317-0088

Replay ID:

10148666

About the Presentation of Supplemental Non-GAAP Financial Information

In this news release, the Company has supplemented its financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial measures: “Non-GAAP net loss,” and “Non-GAAP net loss per share.” Non-GAAP net loss is the Company’s net loss, adjusted to exclude interest expense, provision for income taxes, depreciation expense, amortization expense, stock-based compensation expense, and certain acquisition, integration and financing-related costs. Non-GAAP net loss should not be considered as an alternative to net income (loss), operating income (loss) or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. The items excluded from Non-GAAP net loss, as well as a breakdown of GAAP net loss, non-GAAP net income (loss) and these excluded items between the Company’s core operations and corporate, are detailed in the reconciliations included following the financial statements attached to this news release. Other companies (including the Company’s competitors) may define Non-GAAP net loss differently.

Core Operations consists of the Company’s aiWARE operating platform of software, SaaS and related services; content, licensing and advertising agency services; and their supporting operations, including direct costs of sales as well as operating expenses for sales, marketing and product development and certain general and administrative costs dedicated to these operations. Corporate principally consists of general and administrative functions such as executive, finance, legal, people operations, fixed overhead expenses (including facilities and information technology expenses), other income (expenses) and taxes, and other expenses that support the entire company, including public company driven costs.

In addition, following the financial statements attached to this news release, the Company has provided additional supplemental non-GAAP measures of gross profit, operating expenses, loss from operations, other income (expense), net, and loss before income taxes, excluding the items excluded from non-GAAP net loss as noted above, and reconciling such non-GAAP measures to the applicable GAAP measures.

The Company presents this supplemental non-GAAP financial information because management believes such information to be important supplemental measures of performance that are commonly used by securities analysts, investors and other interested parties in the evaluation of companies in its industry. Management also uses this information internally for forecasting and budgeting. These non-GAAP measures may not be indicative of the historical operating results of Veritone or predictive of potential future results. Investors should not consider this supplemental non-GAAP financial information in isolation or as a substitute for analysis of the Company’s results as reported in accordance with GAAP.

About Veritone

Veritone (NASDAQ: VERI) is a leading provider of artificial intelligence (AI) technology and solutions. The company’s proprietary operating system, aiWARE™, powers a diverse set of AI applications and intelligent process automation solutions that are transforming both commercial and government organizations. aiWARE orchestrates an expanding ecosystem of machine learning models to transform audio, video, and other data sources into actionable intelligence. The company’s AI developer tools enable its customers and partners to easily develop and deploy custom applications that leverage the power of AI to dramatically improve operational efficiency and unlock untapped opportunities. Veritone is headquartered in Costa Mesa, California, and has offices in Denver, London, New York, and San Diego. To learn more, visit Veritone.com.

Safe Harbor Statement

This news release contains forward-looking statements, including without limitation statements regarding the Company’s expected growth potential in the government, legal and compliance and energy markets; and the Company’s expected total revenue and Non-GAAP net loss in the fourth quarter of 2020. In addition, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “plan,” “should,” “could,” “estimate” or “continue” or the plural, negative or other variations thereof or comparable terminology are intended to identify forward-looking statements, and any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements speak only as of the date hereof, and are based on management’s current assumptions, beliefs and information. As such, the Company’s actual results could differ materially and adversely from those expressed in any forward-looking statement as a result of various factors. Important factors that could cause such differences include, among other things, the impact of the economic disruption caused by COVID-19 pandemic on the business of the Company and that of its existing and potential customers; the Company’s ability to achieve broad recognition and customer acceptance of its products and services; the Company’s ability to continue to develop and add additional capabilities and features to its aiWARE operating system; the development of the market for cognitive analytics solutions; the ability of third parties to develop and provide additional high quality, relevant cognitive engines and applications; the Company’s ability to successfully identify and integrate such additional third-party cognitive engines and applications onto its aiWARE operating system, and to continue to be able to access and utilize such engines and applications, and the cost thereof; as well as the impact of future economic, competitive and market conditions, particularly those related to its strategic end markets; and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Certain of these judgments and risks are discussed in more detail in the Company’s Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s objectives or plans will be achieved. The forward-looking statements contained herein reflect the Company’s beliefs, estimates and predictions as of the date hereof, and the Company undertakes no obligation to revise or update the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events for any reason, except as required by law.

 

VERITONE, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

As of

 

 

September 30,

 

 

December 31,

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

$

54,315

 

 

$

44,065

 

Accounts receivable, net

 

17,470

 

 

 

21,352

 

Expenditures billable to clients

 

20,108

 

 

 

10,286

 

Prepaid expenses and other current assets

 

5,116

 

 

 

5,409

 

Total current assets

 

97,009

 

 

 

81,112

 

 

 

 

 

 

 

 

 

Property, equipment and improvements, net

 

2,499

 

 

 

3,214

 

Intangible assets, net

 

12,086

 

 

 

16,126

 

Goodwill

 

6,904

 

 

 

6,904

 

Long-term restricted cash

 

855

 

 

 

855

 

Other assets

 

229

 

 

 

315

 

Total assets

$

119,582

 

 

$

108,526

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Accounts payable

$

21,268

 

 

$

17,014

 

Accrued media payments

 

41,226

 

 

 

26,664

 

Client advances

 

13,767

 

 

 

9,080

 

Other accrued liabilities

 

7,643

 

 

 

6,978

 

Total current liabilities

 

83,904

 

 

 

59,736

 

Other non-current liabilities

 

1,251

 

 

 

1,379

 

Total liabilities

 

85,155

 

 

 

61,115

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

Common Stock

 

28

 

 

 

26

 

Additional paid-in capital

 

302,321

 

 

 

279,828

 

Accumulated deficit

 

(267,979

)

 

 

(232,489

)

Accumulated other comprehensive income

 

57

 

 

 

46

 

Total stockholders' equity

 

34,427

 

 

 

47,411

 

Total liabilities and stockholders' equity

$

119,582

 

 

$

108,526

 

 

VERITONE, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 

AND COMPREHENSIVE LOSS

 

(in thousands, except per share and share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue

$

15,718

 

 

$

12,805

 

 

$

40,890

 

 

$

37,200

 

Cost of revenue (exclusive of amortization shown separately below)

 

4,553

 

 

 

4,196

 

 

 

11,566

 

 

 

11,725

 

Gross profit

 

11,165

 

 

 

8,609

 

 

 

29,324

 

 

 

25,475

 

 

 

71

%

 

 

67

%

 

 

72

%

 

 

68

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

5,255

 

 

 

6,081

 

 

 

15,116

 

 

 

17,921

 

Research and development

 

3,587

 

 

 

5,473

 

 

 

10,673

 

 

 

18,250

 

General and administrative

 

11,950

 

 

 

11,899

 

 

 

34,836

 

 

 

35,228

 

Amortization

 

1,346

 

 

 

1,352

 

 

 

4,040

 

 

 

3,515

 

Total operating expenses

 

22,138

 

 

 

24,805

 

 

 

64,665

 

 

 

74,914

 

Loss from operations

 

(10,973

)

 

 

(16,196

)

 

 

(35,341

)

 

 

(49,439

)

Other (expense) income, net

 

(4

)

 

 

184

 

 

 

(108

)

 

 

446

 

Loss before provision for income taxes

 

(10,977

)

 

 

(16,012

)

 

 

(35,449

)

 

 

(48,993

)

Provision for (benefit from) income taxes

 

36

 

 

 

(1,815

)

 

 

41

 

 

 

(1,799

)

Net loss

$

(11,013

)

 

$

(14,197

)

 

$

(35,490

)

 

$

(47,194

)

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

$

(0.40

)

 

$

(0.64

)

 

$

(1.31

)

 

$

(2.26

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

27,593,315

 

 

 

22,345,122

 

 

 

27,162,880

 

 

 

20,882,293

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(11,013

)

 

$

(14,197

)

 

$

(35,490

)

 

$

(47,194

)

Unrealized gain on marketable securities, net of income taxes

 

-

 

 

 

-

 

 

 

-

 

 

 

48

 

Foreign currency translation gain (loss), net of income taxes

 

6

 

 

 

(31

)

 

 

11

 

 

 

(8

)

Total comprehensive loss

$

(11,007

)

 

$

(14,228

)

 

$

(35,479

)

 

$

(47,154

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VERITONE, INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

September 30,

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net loss

$

(35,490

)

 

$

(47,194

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

4,816

 

 

 

4,337

 

Deferred income taxes, net

 

-

 

 

 

(1,821

)

Warrant expense

 

102

 

 

 

-

 

Change in fair value of warrant liability

 

200

 

 

 

(7

)

Provision for doubtful accounts

 

291

 

 

 

54

 

Stock-based compensation expense

 

13,698

 

 

 

16,049

 

Other

 

 

 

 

(19

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

3,535

 

 

 

156

 

Expenditures billable to clients

 

(9,822

)

 

 

(3,472

)

Prepaid expenses and other current assets

 

(131

)

 

 

(953

)

Accounts payable

 

4,254

 

 

 

(5,282

)

Accrued media payments

 

14,562

 

 

 

3,189

 

Client advances

 

4,687

 

 

 

15,057

 

Other accrued liabilities

 

708

 

 

 

1,447

 

Other liabilities

 

(128

)

 

 

31

 

Net cash provided by (used in) operating activities

 

1,282

 

 

 

(18,428

)

Cash flows from investing activities:

 

 

 

 

 

 

 

Proceeds from sales of marketable securities

 

 

 

 

13,614

 

Proceeds from the sale of equipment

 

56

 

 

 

 

Capital expenditures

 

(61

)

 

 

(282

)

Intangible assets acquired

 

 

 

 

(477

)

Acquisition of businesses, net of cash acquired

 

 

 

 

(883

)

Net cash (used in) provided by investing activities

 

(5

)

 

 

11,972

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from common stock offerings, net

 

6,517

 

 

 

17,302

 

Proceeds from loan

 

6,491

 

 

 

 

Repayment of loan

 

(6,491

)

 

 

 

Proceeds from the exercise of warrants

 

2,100

 

 

 

 

Proceeds from issuances of stock under employee stock plans, net

 

356

 

 

 

722

 

Net cash provided by financing activities

 

8,973

 

 

 

18,024

 

Net increase in cash, cash equivalents and restricted cash

 

10,250

 

 

 

11,568

 

Cash, cash equivalents and restricted cash, beginning of period

 

44,920

 

 

 

38,776

 

Cash, cash equivalents and restricted cash, end of period

$

55,170

 

 

$

50,344

 

 

VERITONE, INC.

 

REVENUE DETAIL (UNAUDITED)

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2020

 

 

2019

 

 

2020

 

 

 

 

2019

 

Advertising

$

8,764

 

 

$

6,291

 

 

$

21,803

 

 

 

 

$

17,847

 

aiWARE SaaS Solutions

 

3,351

 

 

 

2,350

 

 

 

9,461

 

 

 

 

 

7,781

 

aiWARE Content Licensing and Media Services

 

3,603

 

 

 

4,164

 

 

 

9,626

 

 

 

 

 

11,572

 

Revenue

$

15,718

 

 

$

12,805

 

 

$

40,890

 

 

 

 

$

37,200

 

 

VERITONE, INC.

 

RECONCILIATION OF NON-GAAP NET LOSS TO GAAP NET INCOME (LOSS) (UNAUDITED)

 

(in thousands)

 

 

 

 

Three Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

 

Core
Operations(1)

 

 

Corporate(2)

 

 

Total

 

 

Core
Operations(1)

 

 

Corporate(2)

 

 

Total

 

Net loss

 

$

(1,670

)

 

$

(9,343

)

 

$

(11,013

)

 

$

(6,024

)

 

$

(8,173

)

 

$

(14,197

)

Provision for (benefit from) income taxes

 

 

 

 

 

36

 

 

 

36

 

 

 

 

 

 

(1,815

)

 

 

(1,815

)

Depreciation and amortization

 

 

1,480

 

 

 

130

 

 

 

1,610

 

 

 

1,346

 

 

 

276

 

 

 

1,622

 

Stock-based compensation expense

 

 

627

 

 

 

4,484

 

 

 

5,111

 

 

 

678

 

 

 

4,058

 

 

 

4,736

 

Change in fair value of warrant liability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(57

)

 

 

(57

)

Machine Box contingent payments

 

 

 

 

 

 

 

 

 

 

 

160

 

 

 

 

 

 

160

 

Machine Box earn-out fair value adjustment

 

 

 

 

 

 

 

 

 

 

 

(79

)

 

 

 

 

 

(79

)

Non-GAAP Net Income (Loss)

 

$

437

 

 

$

(4,693

)

 

$

(4,256

)

 

$

(3,919

)

 

$

(5,711

)

 

$

(9,630

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

 

Core
Operations(1)

 

 

Corporate(2)

 

 

Total

 

 

Core
Operations(1)

 

 

Corporate(2)

 

 

Total

 

Net loss

 

$

(7,819

)

 

$

(27,671

)

 

$

(35,490

)

 

$

(19,246

)

 

$

(27,948

)

 

$

(47,194

)

Provision for (benefit from) income taxes

 

 

 

 

 

41

 

 

 

41

 

 

 

 

 

 

(1,799

)

 

 

(1,799

)

Depreciation and amortization

 

 

4,190

 

 

 

626

 

 

 

4,816

 

 

 

3,499

 

 

 

843

 

 

 

4,342

 

Stock-based compensation expense

 

 

1,716

 

 

 

11,982

 

 

 

13,698

 

 

 

2,132

 

 

 

12,662

 

 

 

14,794

 

Change in fair value of warrant liability

 

 

 

 

 

200

 

 

 

200

 

 

 

 

 

 

(7

)

 

 

(7

)

Warrant expense

 

 

 

 

 

102

 

 

 

102

 

 

 

 

 

 

 

 

 

 

Gain on sale of asset

 

 

 

 

 

(56

)

 

 

(56

)

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

9

 

 

 

9

 

 

 

 

 

 

 

 

 

 

Machine Box contingent payments

 

 

 

 

 

 

 

 

 

 

 

1,609

 

 

 

 

 

 

1,609

 

Machine Box earn-out fair value adjustment

 

 

 

 

 

 

 

 

 

 

 

(9

)

 

 

 

 

 

(9

)

Performance Bridge earn-out fair value adjustment

 

 

 

 

 

 

 

 

 

 

 

139

 

 

 

 

 

 

139

 

Non-GAAP Net Loss

 

$

(1,913

)

 

$

(14,767

)

 

$

(16,680

)

 

$

(11,876

)

 

$

(16,249

)

 

$

(28,125

)

(1)Core operations consists of the Company’s aiWARE operating platform of software, SaaS and related services; content, licensing and advertising agency services; and their supporting operations, including direct costs of sales as well as operating expenses for sales, marketing and product development and certain general and administrative costs dedicated to these operations.

 

(2)Corporate consists of general and administrative functions such as executive, finance, legal, people operations, fixed overhead expenses (including facilities and information technology expenses), other income (expenses) and taxes, and other expenses that support the entire company, including public company driven costs.

 

 

VERITONE, INC.

 

RECONCILIATION OF EXPECTED NON-GAAP NET LOSS RANGE

 

TO EXPECTED GAAP NET LOSS RANGE (UNAUDITED)

 

(in millions)

 

 

Three Months Ending
December 31, 2020

 

Net loss

($11.8) to ($11.3)

 

Provision for income taxes

 

Depreciation and amortization

$1.6

 

Stock-based compensation expense

$5.7

 

Non-GAAP net loss

($4.5) to ($4.0)

 

VERITONE, INC.

 

RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL INFORMATION (UNAUDITED)

 

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

GAAP gross profit

$

11,165

 

 

$

8,609

 

 

$

29,324

 

 

$

25,475

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP sales and marketing expenses

 

5,255

 

 

 

6,081

 

 

 

15,116

 

 

 

17,921

 

Stock-based compensation expense

 

(278

)

 

 

(281

)

 

 

(654

)

 

 

(795

)

Non-GAAP sales and marketing expenses

 

4,977

 

 

 

5,800

 

 

 

14,462

 

 

 

17,126

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP research and development expenses

 

3,587

 

 

 

5,473

 

 

 

10,673

 

 

 

18,250

 

Stock-based compensation expense

 

(172

)

 

 

(307

)

 

 

(593

)

 

 

(1,063

)

Machine Box contingent payments

 

 

 

 

(81

)

 

 

 

 

 

(1,600

)

Non-GAAP research and development expenses

 

3,415

 

 

 

5,085

 

 

 

10,080

 

 

 

15,587

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP general and administrative expenses

 

11,950

 

 

 

11,899

 

 

 

34,836

 

 

 

35,228

 

Depreciation

 

(264

)

 

 

(270

)

 

 

(776

)

 

 

(827

)

Stock-based compensation expense

 

(4,661

)

 

 

(4,148

)

 

 

(12,451

)

 

 

(12,936

)

Issuance of warrants

 

 

 

 

 

 

 

(102

)

 

 

 

Performance Bridge earn-out fair value adjustment

 

 

 

 

 

 

 

 

 

 

(139

)

Non-GAAP general and administrative expenses

 

7,025

 

 

 

7,481

 

 

 

21,507

 

 

 

21,326

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP amortization

 

(1,346

)

 

 

(1,352

)

 

 

(4,040

)

 

 

(3,515

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP loss from operations

 

(10,973

)

 

 

(16,196

)

 

 

(35,341

)

 

 

(49,439

)

Total non-GAAP adjustments (1)

 

6,721

 

 

 

6,439

 

 

 

18,616

 

 

 

20,875

 

Non-GAAP loss from operations

 

(4,252

)

 

 

(9,757

)

 

 

(16,725

)

 

 

(28,564

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP other (expense) income, net

 

(4

)

 

 

184

 

 

 

(108

)

 

 

446

 

Change in fair value of warrant liability

 

 

 

 

(57

)

 

 

200

 

 

 

(7

)

Interest expense

 

 

 

 

 

 

 

9

 

 

 

 

Gain on sale of asset

 

 

 

 

 

 

 

(56

)

 

 

 

Non-GAAP other (expense) income, net

 

(4

)

 

 

127

 

 

 

45

 

 

 

439

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP loss before income taxes

 

(10,977

)

 

 

(16,012

)

 

 

(35,449

)

 

 

(48,993

)

Total non-GAAP adjustments (1)

 

6,721

 

 

 

6,382

 

 

 

18,769

 

 

 

20,868

 

Non-GAAP loss before income taxes

 

(4,256

)

 

 

(9,630

)

 

 

(16,680

)

 

 

(28,125

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income tax provision (benefit)

 

36

 

 

 

(1,815

)

 

 

41

 

 

 

(1,799

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

 

(11,013

)

 

 

(14,197

)

 

 

(35,490

)

 

 

(47,194

)

Total non-GAAP adjustments (1)

 

6,757

 

 

 

4,567

 

 

 

18,810

 

 

 

19,069

 

Non-GAAP net loss

$

(4,256

)

 

$

(9,630

)

 

$

(16,680

)

 

$

(28,125

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing non-GAAP basic and diluted net loss per share

 

27,593

 

 

 

22,345

 

 

 

27,163

 

 

 

20,882

 

Non-GAAP basic and diluted net loss per share

$

(0.15

)

 

$

(0.43

)

 

$

(0.61

)

 

$

(1.35

)

(1) Adjustments are comprised of the adjustments to GAAP gross profit, sales and marketing expenses, research and development expenses and general and administrative expenses and other income (expense), net (where applicable) listed above.

 

Contacts

Company Contact:
Brian Alger, CFA
SVP, Corporate Development & Investor Relations
Veritone, Inc.
(949) 386-4318
investors@veritone.com

Investor Relations Contact:
Kirsten Chapman
LHA Investor Relations
(415) 433-3777
veritone@lhai.com


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