Veritone (VERI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $22.5M, down 7% year-over-year, with Software Products & Services at $14.5M and Managed Services at $8.0M, in line with preliminary outlook.

• Net loss narrowed to $19.9M from $25.2M in Q1 2024; non-GAAP net loss was $11.1M.

• ARR reached $58.7M from 3,156 customers, with SaaS representing 81% of ARR, up from 68% a year ago.

• Over 100 new and renewal software agreements were secured, including major commercial and public sector clients.

• VDR pipeline doubled to over $10M, expected to drive significant growth.

Financial highlights

• Q1 GAAP gross profit was $13.7M (61.1% margin), down 16% year-over-year; non-GAAP gross profit was $14.6M (65.1% margin), down 15%.

• Q1 operating loss improved to $21.6M, a reduction of $2.7M year-over-year.

• Managed services revenue was $8.0M, down 10.7% year-over-year.

• Total new bookings were $15.8M, up 22% year-over-year.

• Cash and cash equivalents at quarter-end were $16.1M.

Outlook and guidance

• FY 2025 revenue guidance is $104M–$115M, representing an 18% year-over-year increase at midpoint.

• Q2 2025 revenue expected between $23M and $25M; non-GAAP net loss expected between $9M and $8M.

• FY 2025 non-GAAP net loss expected between $30M and $20M, a 39% improvement at midpoint.

• Public sector revenue projected to grow 100%-150% year-over-year, with major deals expected in the second half.

• Non-GAAP gross margins expected between 65%-70% for 2025, with potential to reach 73% if revenue hits upper guidance.