Veritone (VERI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $31.0 million, up 11% year-over-year, driven by Broadbean acquisition and strong managed services, with a record AI software pipeline and major contracts including a multi-year NCAA agreement.

• Completed restructuring in Q2, reducing global workforce by up to 14%, with full benefits expected in H2 2024 and targeting $13M in annualized cost savings.

• Expanded AWS partnership, signed strategic collaborations with Creative Artists Agency and Tennis Australia, and continued strong momentum in public sector, media, and entertainment.

• Integration of Broadbean completed, unifying Veritone Hire and expanding international customer base.

• Formal process underway to divest a non-software asset, expected to generate substantial cash for debt reduction and operations.

Financial highlights

• Q2 2024 revenue was $31.0 million, up 11% year-over-year; Software Products & Services revenue was $15.6 million (+11% YoY); Managed Services revenue was $15.4 million (+11% YoY).

• Non-GAAP net loss improved 47% year-over-year to $6.9 million; non-GAAP gross margin rose to 78.8%, up from 72.2% in Q2 2023.

• Loss from operations narrowed to $17.7 million from $28.2 million year-over-year; net loss for Q2 2024 was $22.2 million.

• ARR was $67.9 million, with SaaS ARR comprising 72% of the total; total new bookings reached $14 million, up 67% year-over-year.

• Cash and cash equivalents were $46.0 million as of June 30, 2024.

Outlook and guidance

• Q3 2024 revenue guidance: $34–$35 million; non-GAAP net loss expected between $2.6–$4.0 million.

• Full-year 2024 revenue guidance: $136–$142 million, up 9% at midpoint; non-GAAP net loss expected between $11–$16 million, a 61% improvement over 2023.

• Cash flow positive on a non-GAAP basis targeted as early as Q4 2024.

• Management is evaluating equity financing, debt, and further restructuring to address liquidity needs.

• The planned asset sale is expected to generate substantial cash, but there is no assurance of completion.