VERI - Earnings call transcript Q4 2018

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Operator

Good afternoon. Welcome to Veritone’s Fourth Quarter 2018 Earnings Conference Call. After the market closed today, Veritone issued a press release announcing its results for the fourth quarter and full year ended December 31, 2018. The press release is available in the Investor Relations section of Veritone’s website.

Joining us for today’s call are Veritone’s Chairman and CEO, Chad Steelberg; and the company’s Chief Financial Officer, Pete Collins.

will the we for remarks, their open call up questions. Following strategy on that future today business for and the certain net note of its the performance, events future including operating information Veritone’s first about Please revenues statements discussed call expected financial forward-looking will and XXXX. quarter and include are or risks, actual uncertainties statements differ materially implied to results those from assumptions that forward-looking These stated and subject to those by statements. the may cause Veritone’s risks filings, Form these Certain and Report discussed in its assumptions on including of XX-K. are Annual These February forward-looking update undertakes to statements of are based on or XX, no assumptions as revise them. today, Veritone XXXX, and obligation

In addition amortization compensation, press adjusted presenting results, adjusted be and loss this integration to discussing a acquisition, to measure, the to of exclude non-GAAP and financial expenses call, stock-based and included related certain is which before in financial issued depreciation, during its management company’s is a – adjusted financial expense, EBITDA, will company’s company’s the the release EBITDA we earnings net today. GAAP company’s reconciliation or interest, the

to of would at I for link Steelberg. remind call the replay Chairman would CEO, in please like Veritone’s a and that Relations is being this like Chad website Sir, recorded made and via I Finally, available Investor to turn the available the call company’s will section be everyone now www.veritone.com. over to proceed.

Chad Steelberg

joining very Welcome us Thank with I’m quarter. thank in strong for today. operating you, operator. performance financial fourth the everyone you and our pleased and

and note, our services. and differentiate in And quarter high by on we more expanded base year We leverage the a Identify Veritone developed organically deploying successfully aiWARE aiWARE quarter. strategic on its to an finally, of XXX% than compared the One a product Attribute. advertising of applications, the continuing the $XX.X to closed Redact, the revenues linked We closed three and fourth that million, prior customer three XXXX. was revenue synergies acquisitions delivered record forecasted revenues Our with increase

position on XXXX As for of key some inception a enters IPO reflect whole, our May XXXX. in XXXX. Veritone a during operational a look like in strongest Taking outlined moment, to in I’d of the strategic since we objectives our and the broader

was Veritone’s aiWARE advertising XX% component XX% and XXXX of organic the aiWARE SaaS quarter software The of first and through reduce was strategic mix, of less to to revenue XX% objective the business in which first are acquisitions. advertising revenue mix fourth the quarter our growing our growth quarters services. XX% XXXX or later Seven and with in

this half foreseeable cross our We this continue to the in expect trend for future of the threshold to XX% first expect aiWARE year. and the revenue

while simultaneously shareholder one valuable in committed the our following. SaaS that We growth, we is significant EBITDAS of reduce maximize rate a that driving strategy to adjusted believe fourth most continuing the companies long-term our successfully XXXX. to loss as quarter are was adjusted to The XXX% second positive in loss adjusted compared percentage XXXX history, rate the rate fourth XXX% of our run EBITDAS in our from of EBITDAS a revenue to a of net the XX%, lowest reduce with the our top-line This executed of proven will we in first and XXXX have some by Veritone’s quarter was achieving eventually value. rate. objective loss EBITDAS quarter adjusted that

existing recognition. take Our advertising us developing, establish and part beyond. added XX The past and over evolve has strategy to our XXXX key M&A with podcast Machine and in Digital detection in entertainment categories been algorithm content. and services months. team recognition, that allow the helped us create to business has us Performance and part these to capability our of distributing delivered as a services applications Wazee cognitive customized brought the and in Box results including combined in integration industry. logo And of applications, the is monetizing strategy facial leader a into grades engine advertising key significant has our object and us aiWARE detection

in delivered net of Our this iHeartMedia, result and number in processed companies proportionally delivering. XXXX aiWARE and SaaS first, the and of strategy are XXXX. expansion the organic our aiWARE, customers content over We of our of we’ve land-and-expand increased revenue past business more users XXX% with expanded second a years. growth. value them business landed had a where by well today have adding in growth two serve to ESPN wave as Communication, with significant the then expansion exceeding known we was be that aiWARE these few At was Entercom year-over-year a and at aiWARE revenue

customers, customers We measuring the advertising in are time. measure in combination attribute now Attribute collaborate to of of quarter see to driven third Wazee that entertainment The our introduced capabilities opportunity new in fourth new the wave in the assist ad the broadcasters and ROI applications. we with expand advertisers their to starting by expansion, XXXX. customers application with to effectiveness existing the aiWARE with capability campaign and real and media us land enhanced and via The gives in provides

and providers net well quarter third-party compliance our with the very exceeding misalignment legal in on started $XXX,XXX, Our and became but in industry in material vertical revenues service dependency first XXXX strategy a the out challenge.

and These reevaluated native will committed designed next factors. method lack poorly structured strategy for leverage that emails effective tools that applications market expected capabilities forms of are today broad the calls, this that few and of core We our communication, as application monitoring and vertical, will of of to the for legal our all the analysis are phone being of a are of cost-effective part offerings. remained engine introduce the available of and provide orchestration aiWARE compliance businesses within two we’ll and to video, increase of quantities base to We the and and industry the cognitive new AI data. go-to-market applications broad delivers. built because are that large months audio, have Many aiWARE are the

killer to before dependent and databases critical We address and was law facial enforcement XXXX further than points and on in investigation. applications fleet applications Redact, vertical developing two to have to local on two them government the to ability their enforcement serve agencies more This ever directly suspects them focused data with Identify community for to law and launched officer’s scale. recognition offender and today being data our enables technology time. Identify the aiWARE and analyzing effectively allows the upload quarter; in to today. strategy accelerate audio investigation rapidly identify use the real community. fourth identification Local known continued for and videos at of automatically is by this agencies efficiently protect in experienced in suspects time Our compare booking databases of maintain images potential reduces these and users pain in

addition police it In agency, international in Identify; is two police to deployed pilot the to at system departments local project large with by now we paid integrator. collaborate global develop a

police have to Reducing of out more and The well blur Redact enforcement new The spend In initial the as to audio Redact footage redaction shared pilot large activities. with to agencies improving by of being and caused law and a is wide volume video allows prosecutors to more our to much with effort more more that human on footage required time as higher the before agencies of collected content video require increasing regulations cost for files. that manpower have paid second application, publish use to protected officers the Redact. reduces projects this is than agency’s XX%, range efficiency value which process public. agencies, the time significantly

strategic XXXX. two continuing In we’ve focus for to aforementioned to strategy, initiatives execute addition on and identified new

of working automating friction by reduce traditional sales enterprise aiWARE will expand is self-service customer to cost and marketing market experience in contracting to customers objective are The signup to the solution we the application expediting and First, acquisition processes. net marketing, sales reduce allow and share. deploying the and a that our efforts power

set business is instead that This expensive integrator to used code it scarce both no by we reduce allow to driven Second, tools and a of aiWARE can aiWARE cases complexity customizing or users partners, science address will customer’s will applications. confident into low of applications resources. even code, range and and aiWARE analysts requiring and by it are system and working and customers developing This embedded I’m operations. and being our strategy deeper building engineering significantly customers’ of of leverage data data a expand the our the

our a and vibrant to as aiWARE system vision ever. an of remains operating ubiquitous by future, the powered enterprise clear Looking

operating roll system When to AI. shine As concept. poorly an many we artificial boring wants still enabled from They starting launched, frankly more out that grappling serve. aiWARE and the proverbial times AI understood, of cups the powerful solutions nobody intelligence But two with the want I’ve of applications, concept provide. before, is are the Veritone first said market life can of that was holds as enterprise corner we every brightly the

review to we’ve CFO, the and and financial of strategies tirelessly our these Pete? QX on our With execute to results. promised recount Pete XXXX provide our unfolds, ask our that, full-year Collins, with successes. As and progress investors I’ll

Pete Collins

Thank you, Chad, everyone. and good afternoon

Digital compared XXXX; fourth that will achieved strong Chad our remember quarter with Performance fourth of Bridge fourth set Wazee XXXX. XXXX first we goals I stage our the review we and of quarter August a performance XXXX. XXXX As for acquired mentioned, and quarter in the

So, reflecting this full impact. was the quarter their first

thanks revenues increased of from existing our $X.X to with $X.X million the XXX% recent million, million [ph] acquisitions, from $XX.X and addition contribution Our customers. new growth customers this net to

were $XXX,XXX revenues applications. Digital core approximately Hub net million, SaaS Wazee aiWARE and Our Media Digital’s $X.X including from

the revenues the the aiWARE to million this first, we our from and increase aiWARE as quarter business events entertainment well since second both anchored that incentive a come Content by of $X.X the number XXX% sporting reflects during SaaS Media quarter. our acquisitions, growth business, is our the annual and we Licensing Within seasonally third performance from saw net spend the those million a clients quarters. of $XXX,XXX of revenue and net portion earned active quarter clients vertical the $X.X million. in as Services Excluding media growth quarter increased in or by in market. $X.X This in SaaS fourth slowest generally the revenues and was fourth from an XXXX. aiWARE The of revenue the occur good net our had

Chad execute to strategy with on continued well earlier. land-and-expand customers our We as discussed

effect our in aiWARE variable total SaaS as our SaaS in the was revenue revenue continuing We the MRR Remember the our monthly well XX% increased dynamic with or $XXX,XXX based up in at quarter. to are the up excludes while MRR of we which aiWARE under MRR fourth project XXX%. year. from the as media recurring acquisitions, quarter revenue last this, this agreements agreements Including have at the the that $XXX,XXX revenues fourth end $XXX,XXX end of some overtime. that Excluding quarter customers because Wazee was the our see MRR, vertical, was XX% of legal fourth

the total Our SaaS quarter fourth aiWARE the $XXX,XXX. at end MRR was of

$X.X fourth approximately the in acquired we When applications DMH bookings the core SaaS quarter aiWARE Our is Wazee. for bookings, were trend DMH when we and I million, and exclude so that the comparable. including added $XXX,XXX core the

quarter increased XXX% and fourth of quarter approximately and in The verticals. approximately were third fourth over XXXX XXX% over fourth Our media quarter quarter of bookings bookings government and entertainment XXXX. the the

of million $X.X in net advertising from a $X.X year. increased the contribution last million Bridge $X.X million including Performance Our revenues quarter from fourth to

we had XX the quarter We to increase in a not by which an increase advertising the XXXX. recur first compared at the quarter significant in we level While XX%. is the in the do quarter campaign clients expect XXXX of of of the the number of to growth fourth XX with one had attributable in of fourth same customers of run fourth clients, the quarter, majority active our active an XXXX, in of

million to business gross the increased million period of gross SaaS XXX% profit $X.X and in This level was same in the quarter $X.X contribution the acquisitions. primarily the compared the of Our fourth our aiWARE XXXX. higher year with recent in from revenue to increase profit from prior XXXX our of due period

related margin Media margin Our higher fourth lower and businesses, acquired in advertising in and aiWARE aiWARE higher our XX% versus net of expense Content carried XXXX. was gross Licensing gross gross quarter XX% our the the and in SaaS business technology revenues acquisitions. decrease recent Services which in of proportion reflects our generally margins The amortization from to

companies we of million $X.X as Our well our total million has driven to $XX.X expense expenses period stock-based from related amortization due of addition with of operating of higher the and the to compensation associated year-over-year amortization same increased by earn million the XXXX. intangibles in with incentives $XX.X to in as associated acquired XXXX the also to the the increased businesses and of of Depreciation out quarter one acquisitions. third acquired

from compared loss the million loss Our million with of in $XX.X fourth of the with operations $XX.X XXXX.

totaled net to share of million with compared a of or stockholders common $X.XX $XX.X attributable fourth Our $XX.X or quarter loss per the in net $X.XX per million loss share XXXX.

turning Now, results. our non-GAAP to

quarter million million, loss from adjusted was of $X.X $XX.X EBITDAS loss fourth fourth XXXX. Our in down the a quarter

Our percentage to a reduce adjusted loss to and of revenue first ratio the revenues leverage in XXXX. adjusted our quarter This and is compared We in expense revenue third of EBITDAS of expected loss continue was the management XXXX, XXXX. net EBITDAS quarter of prudent that the has XXX%. as XXX% to our the better XXX% XX% growth fourth been in plan than fourth net time in with quarter

This number our XX. recent of the of metrics million reviewing current we Please of of to KPIs platform XXX that the operating and increased X.X number the our They increase system. recent acquisitions forecast media the of customers our to the are exceeded do acquisitions. in The our our are they to cognitive compared contributions four for we these best million ensure currently all integrate any hours. note in quarter KPIs on with with performance. forecast processed quarter, the X.X of exceeded to all as KPIs of of with assess of engines forecasted our increased XXX, from our not versus compared our of forecast that The process aiWARE include XX amount hours the ingested which of operating

During XXX the XXX. added accounts forecast we the compared total with quarter, XXX our to of growing

evaluate we three For business, advertising KPIs.

we quarter same During quarter added the in of year, this as as XX the XXXX. clients fourth new of fourth

terms XX% a of in total XXXX. had active the In quarter, increasing of we of quarter clients fourth XX for with XX the compared

Our client the $XXX,XXX compared of the in significant increase in This quarter average by a year. spend ad benefited fourth per in media client last campaign XX% during earlier. quarter that the spend XXXX quarter client per one $XXX,XXX, was the fourth increase I mentioned from with fourth

Now, million million to results Advertising $XX.X including our from the in million recent I the $XX.X XXXX Net year December revenues acquisitions, increased full will for acquisitions million including ended $X.X $X.X from XXXX. year. discuss revenues for XX, $XX.X our million from XXXX. compared up million totaled in recent with $XX.X prior

the by recent third Excluding our from million advertising million $X.X of compared with increased revenues quarter aiWARE acquisitions the in net to $X.X $X.X million including impact year-over-year. acquisitions, XX% increased revenues the XXXX. SaaS

that $X.XX Media loss attributable associated aiWARE acquisitions, Excluding our by quarter $X.X XXXX. recent SaaS and net business revenues aiWARE the impact share loss year-over-year. compared were net or XXX% our million EBITDAS share the Adjusted of net increased of balance $XX.X $XX.X loss Digital $X.XX and remains Content or Licensing totaled in strong. third of all per the Wazee a million a totaled XXXX. loss in million, Services $XX.X we million per the of revenues in of acquired with a stockholders million XXXX. $XX.X common sheet to compared with with

securities marketable As long-term $XX.X and XX, had of totaling no cash The payments received from debt. and cash future and million. cash marketable balance XXXX, securities we for million and clients of equivalents cash $X.X December includes

that advertising for the plan Chad? the over call does clients. net of Media net with net $XX.X Content in Services expect e-discovery revenues recent based accurately. remarks. upon based revenues of today. our The started media and processing and the our the This from have aiWARE entertainment by be include and million. to additional spending $XX.X and back signed will revenues to not are those ranges Chad quarter on historical agreements or will turn for net range as I projects Looking including Licensing place difficult expected trends quarter, and the yet to our first XXXX between not we forecast that, and revenue his potential The million that archive

Chad Steelberg

Pete. Thanks

that in EBITDAS fourth that revenue We in are very XXXX margin quarter loss the XX% pleased lowest our history. the increased in and adjusted level our by our was annual

We excited are furthering in XXXX. trends these about

scale track and drive self-service development app up are sign and We improvement bottom-line with to to on land-and-expand, growth revenue our strategy.

also We with our to analysts. look forward connecting investors and

ROTH Next be we in XX, at Technology be Francisco. will week, week Annual of the at Then JMP Point. we the Conference in March the securities in Dana San Conference will

As this headquarters our the be more Day about LHA our in on I Investor XX. or relations Mesa please to with Costa team begin holding contact Operator, first Q&A offices, investor events. be our details event we distance a like would touch March questions session. these will at our is in short will from with

Operator

Northland question Instructions] from line comes of [Operator Your first from Capital. the Mike Latimore

Your line is open.

Mike Latimore

on Great, congratulations thank quarter. the and Looks you. Yes, Great.

revenue is bit talk above I you’re business? quarter first was the the guidance Can well sequential driving first what Your sort guess. quarter? what in that little I for, about looking guidance, a you growth What’s seeing in of your

Chad Steelberg

Mike. is to Pete, I This want that? Chad. Hey, you take

Pete Collins

Yes.

So, $XX.X that side, on a where from fourth quarter for for in us range the $XXX,XXX, $XX.X SaaS aiWARE at million with we helps Mike, had to revenue we’re confident a Wazee nearly about Digital business, plus net $XXX,XXX the the place that with now, is perspective. million to aiWARE especially of bookings be the bookings the

the perspective we’ve success kind seen we’ll on that a confidence QX us in in especially a that growth land-and-expand that we’ve from that land gives of revenues and sequential net had, the it’s building of range. So, kind

Mike Latimore

and there? Digital AI growth content the of probably most the revenue in So, sequential line

Chad Steelberg

the better quarter QX. in Media business will a that Services Content Well, and Licensing have Yes. also aiWARE

is business. our fourth of quarter a about for slow part As the that in we prepared seasonally talked quarter remarks,

is The the in the one quarter. strength other fourth and first with we not quarter, that expecting recur to customer’s the the business, talked thing that in especially campaign, about advertising we’re

little aiWARE would there’s staff side So category, the a more kind but that seasonal of bit and is consistent thing that’s that the of I takes the of put puts into business. quarter-to-quarter

Mike Latimore

Yes.

I Media seeing combined you were deal the bit talk can that think Digital you AI announced one combined, just pipeline a an you’re platform? least little on Hub and about with at

Chad Steelberg

Mike. Yes,

space. solution Our have proving well. extremely very, powerful gone are Wazee to aiWARE integrations M&A very companies enabled with be those the The in applications

to We nothing, have of pipeline my sold the lights at integration several aiWARE. XXXX integrated to in continue on a green end from the but perspective solution and expand have date we to the those of products

Mike Latimore

Okay. pipeline, And the you and guidance. Do or just last have then Difficulty] [Technical – if to how think include would about do how I them? do you you you relative in that exclude them maybe mean,

Chad Steelberg

What sales we’re certain our government the have those paid products business pilot borrowers in We the we these entry that projects the these partners believe leveraged continuing with in relationships the one are can sending we’re We’ve work. to pipeline application to guidance. these Anytime and modest but scale customers far, active that from had now and and we expand. as integrators. we’ve project dispose is where quickly they three guidance we focused can that’s verticals to government such exclude relationships really with vertical relationships help these kind government how system maximize partners evaluate revenues as are continues more of global and structure of borrower vertical delivered. the primarily our Many are clients, based really on in of so we’re that and that

Mike Latimore

this a Good year. Thanks Great. luck lot.

Chad Steelberg

Mike. Thanks,

Pete Collins

Thanks.

Operator

from Craig-Hallum. comes the of Chad from Your Bennett line next question

open. line is Your

Chad Bennett

the job for questions. Thanks quarter my Nice Great. on guys. taking

Chad Steelberg

Chad. Thanks,

Chad Bennett

a ones of think. – maybe for Pete, real quick couple I

good there? standpoint, basis your Licensing of of been or to a into SaaS throughout light were longer-term, fluctuations about for December the has a is which considering shift, XXXX the which in of we and kind next from kind aiWARE well OpEx quarter, Content in constant year. business, you advertised dollar think that Pete, margins blended And an or then the on year revenue should any where thing, So how is gross

Chad Steelberg

Pete, you start? So, can

Pete Collins

Yes.

Chad, start with me So gross let the margin.

of our SaaS are the that XX%. advertising of past aiWARE the a Licensing upon very healthy gross it, on just the has And margin so has margins both the in and Content in that nature depending said business we’ve to XX% the the of range then So, specific XX% north by our type.

more that to blended shifts aiWARE our mix business, what levels are revenue had that naturally will bring it margin of the as the side in the So, we’ve lower to than past.

I want we reduction part margin a that we’ve associated the a revenues in in this the three for a to increase acquired gross other acquisitions is The cost that out the of had and point our back of step of of did bit with as that function amortization the third technologies thing in quarter. quarter we

fourth in charge of quarter gross the was amortization about that XXX points margin. So basis

do you acquired we been technology. from the XX% amortization if margin So, math, to have would without closer rate the a that

mix think expect I aiWARE of So, the do though, to down because we as our revenues answer side, come the your the on more margins to increased just shift. question see

Chad Bennett

Pete, a of basis charge is issue a is forward least on line does years. going at over that that basis at that points, – straight or number for amortization a consistent one-time XXX

Pete Collins

It’s the a now. It’ll for there while latter. be

Chad Bennett

it. Got Okay.

apps in maybe really ahead not development interesting cases. app we the we and potential and to you out for also to releases should out Box I’d or kind areas we thought about have in Thanks. of app Okay. on I’m let Chad, what should think into your time, Machine of process then kind in get expect but everything XXXX XXXX you potential love quarter And of And there? opportunities Chad. and and use want look released follow-up then looked maybe, fourth of that that curious as the guys a how XXXX, just

Chad Steelberg

will and so new existing yes, continue with XXXX. further we further include our in applications Sure, this enhancements development in will Chad. answer application. is Yes, application our

of cases and applications customers remarks the of specific enhance to we the specific new additional that leverage verticals our and use of the and others mentioned compliance be some prepared will as addressing aiWARE such ability markets. legal Some rolling for code, alluded expect dramatically low issues partners in be be of half to the I and across improve that applications our roll year. this we’ll in all to expect sets out, as building. to first we’ll of in aiWARE applications believe adoption that we no we that our of of we custom terms will code, of the that some out new And the

Chad Bennett

on then side. Machine And Okay. the Box

Chad Steelberg

Yes.

On and arbitrated our strategic marketplace us the engines Machine models be and that the of be it the requires partners. piece, neither of really a it that build the Box With models set industries mean really, in I nature real-time. capabilities and to really fact conductor, in-house can gave custom the for was producing our between the scale spoke to customized wasn’t that and

So, seen Machine to are additional well great been as them XXXX. technology things out We’ve very logo expect such date. as that pleased Object Box from we’ve Box we with as models in continue rolled the to and

Chad Bennett

guys. Thanks Great.

Pete Collins

Chad. Thank you,

Operator

ROTH the from from Dillon of Capital Heslin comes Partners. question next line your

open. line Your is

Dillon Heslin

Hi, thanks for taking my question.

a there is develop more the bit on that products the outbound might of that And of little safety, little much be inbound some or how versus then is one, you saw build? the revenue starts of to and and you how could planning that is a what for bit First to that, talk you pipeline contribution. and about public sort timeframe sort there progress in

Chad Steelberg

take I’ll that Pete, first one, of the the second you Yes, question. take can part

Pete Collins

Okay.

Chad Steelberg

that conversations customers and is believe with scalable on the we for specifically, us is was had we’ve extremely verticals. based it large [ph] needs governance industry the and in opportunity So,

we its combination specialized the to initiative the applications is cost these that our utilize tools We drive, pipeline applications. terms going the develop and well the unprecedented allow starting application truly have where stack in of to continuing the of developed that muscle The targeting in of for as lowering and the are XXXX. needs are development, aiWARE as aspects average out, we’re I scale XXXX rolling new our customers. signup the business to Pete? in of flex expected self-service to

Pete Collins

about question there’s the government, think what I looking for was what asked, you Dillon, that pipeline for? the you follow-on is were So

Dillon Heslin

Yes.

contribution you Sort for expect or vertical? of realistic and a do outlook the contribution pipeline revenue what of the sort the revenue be when could some from what

Pete Collins

Yes.

prepared them, the in remarks talked sector. three pilots his the Chad they’re the government of well, about the in Identify quarter Redact we’ve in and first got going So, the Two on both paid applications. across

quarter as least far paid I is think and six-figure in beyond as type pilot seeing the for what is So, that we’re progress deliver those projects. as revenues first coming at in And that we then those and for to move on next move phase, into with to working hopefully as be you we opportunities, we’ll as other integrators the to well update then System as Global then progress. able projects those

Dillon Heslin

to Thank incentives it to received. it. related are they was you you. What a and And then mentioned just follow-up, you some that as Got took over you able quantify what was?

Pete Collins

was and customers fourth it. around be full that we recognized has we in quarter our to them of SaaS the media the space, to quarter, component with And and worked fourth that a our achieve goal Yes. a and year because recorded that quarter. the fourth long We’ve kind out $XXX,XXX some do amount we’ve variable revenue said before that the didn’t arrangement entertainment until the right of on and in got we’ve that, of one

we’ve throughout recognition booked So, gets revenue it year, recognizes just quarter. the work from fourth it a in perspective, the done the but pure

Dillon Heslin

you. Got it. Thank

Pete Collins

Sure.

Chad Steelberg

Thanks.

Operator

Diffely of comes Your Tom next Davidson. from line D.A. the from question

open. is line Your

Tom Diffely

Yes. Good afternoon.

but right to First, to it is Will on. I that based, know the and project or going they’re a project going view, sale long-term you’re programs a long-term subscription be question more based kind on you set up model Redact? software forward? is some of a of be Identify now going working of standardized or

Chad Steelberg

receiving these project exciting redaction based models. we’re we’re in require There it’s actually revenue. is are be based in that restricted industries really that subscription not with process. an revenue part, The because redact classic the Yes. expedited the are paid Hey, many pilots not to fourth sector. with that fast based is They isolated all the news adjust moving quarter government

sign self-service app. why up that’ll on that one that’s reasons of from and redaction the so And rolling process initial we’re is that focused first our benefit application the out

Tom Diffely

great. acquisitions go-forward Pete, on on that of view quarter now, Okay, the what’s a the because from over here? for basis your And OpEx

Pete Collins

So, business whole included the for fourth you the acquisitions said. the had in we quarter as

Our finished head operating XXX. the at our of year a big portion up count, which makes expenses,

to looking than of XX% course less We’re XXXX. the that over increase by

So, kind Tom, modest over were in overhead in with of quarter far goes, the I year run increase of it’s we kind count as the is relatively think what head fourth course of rate anticipated of. the thinking the as we’re on

incremental revenues is line balancing the goal bottom if and those to doing amount, expenses. revenues big variable we’re our be in revenue in operating we’re to looking depending a would our with with the and long-term that expenses for how the on more between loss. achieving fortunate building then always we position, with – upon invest business revenues to the achieve adjusted in the the able EBITDAS and But that plan, operating in EBITDAS is above we’re potentially adjusted generate order So, we’re balance it’s there

Tom Diffely

you there steady go cash sense. lot the guess integration have through? again, a or of is other side, burn some once it that state are of kind the still And then makes look I at, That a when one-time Okay. side, a to

Pete Collins

to in say reduce I’d going remarks made XXXX EBITDAS adjusted to that loss we’re were No, looking be XXXX. to that we in the the comparison

down EBITDAS will ratio revenues not of [Technical steady And be coming would that then be the the Difficulty]. to also state. loss So also the

Tom Diffely

you. Thank

Operator

There further I’ll this to back the are call presenters. the over at no time. turn questions

Pete Collins

take you So, to let me Chad.

Chad Steelberg

the mission the to us us thank to employees, updating joining call. today’s to on on next look We in of forward our call back progress for we you operator. system as you over partners our We the our on turn for and Thank investors want pursue operating of I’ll supporting future. our call. Operator? building the

Operator

This call. concludes today’s conference

You disconnect. may now

Veritone (VERI) 21 Feb 192018 Q4 Earnings call transcript