Veritone (VERI) 6th Annual Virtual Infrastructure Data Analytics Software & Cloud Communications Conference summary

Business overview and product offerings

• Specializes in AI solutions for unstructured data, especially audio and video, with a flagship platform called aiWARE serving over 3,200 enterprise customers across commercial and public sectors.

• Offers SaaS, API access, and consulting services, with high customer retention and mission-critical deployments in media, entertainment, and law enforcement.

• aiWARE provides end-to-end data ingestion, workflow, and application layers, supporting both proprietary and third-party AI models, including large language and multimodal models.

• Handles tens of millions of hours of audio/video data, with scalable solutions for both small and multi-million dollar contracts.

• Public sector business is rapidly expanding, now serving nearly 400 police agencies and entering federal markets like DOJ and DOD.

Financial performance and guidance

• Q3 GAAP revenue was about $22 million, with $14.7 million from software and $63 million in annual recurring revenue.

• Gross retention rate exceeds 90%, reflecting strong customer loyalty and recurring business.

• Fiscal 2024 revenue guidance is $92–93 million, with a non-GAAP net loss of $36.5–37.5 million.

• 2025 guidance projects over 30% revenue growth and up to 45% improvement in non-GAAP net loss, driven by the largest pipeline in company history.

• Revenue range for 2025 depends on timing and expansion of federal contracts and consumption-based business lines.

Strategic initiatives and new product launch

• Announced the Veritone Data Refinery (VDR), enabling licensing of premium audio/video content for AI model training, addressing a market shortage of high-quality training data.

• VDR leverages existing indexed content, offering a new revenue stream by licensing to third parties building large language and multimodal models.

• Pricing is typically based on hours or minutes of content, with revenue shared between Veritone and IP owners.

• VDR is positioned as a one-stop shop for both new and archival content, with high-quality, time-correlated datasets for advanced AI training.

• Market opportunity is significant, with parallels to companies like Shutterstock and Scale AI, and VDR expected to be a major growth driver.