VERI - Earnings call transcript Q4 2019

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Operator

Thank you for standing by and welcome to the Veritone Fourth Quarter and Full Year 2019 Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised today's conference is being recorded. [Operator Instructions]

to Alger. conference like speaker to now Brian today, would hand over the your I you. Thank go Please ahead.

Brian Alger

Investors Senior available Corporate Good year quarter quarter the release conference The Alger, announcing and XXXX. and market ended yearend President on afternoon, welcome website. issued release section for press XXXX December call. to closed today, the of I'm XX, a Relations. results and our and Investor Development Veritone's the Veritone fourth Vice is After of press Brian fourth the

me today's Chad and Collins. Joining for Chairman call and Steelberg, CFO; are CEO; Veritone's Steelberg President; Ryan Pete

Following their we'll up questions. the call remarks, open for

and Please of and XXXX. the for future operating call its quarter note expected statements non-GAAP on the business about first discussed events forward-looking certain that today and net will financial strategy loss performance, net information including revenues include Veritone's future and

or results Certain its are the are Veritone's including materially Annual from These may that forward-looking SEC Form discussed risks, Report stated cause by assumptions statements uncertainties and XX-K. to filings, assumptions differ these and risks implied subject those actual in to on those of statements.

update undertakes forward-looking today March Veritone as statements assumptions, to no of obligation are revise and XXXX These X, based or them. on

the issued discuss release GAAP this net press non-GAAP to non-GAAP operating of measures During loss Reconciliations the actual expenses, are in we and present we corresponding call, financial will measures and these non-GAAP forecasted included and measures including today. adjusted EBITDAS.

revenue the accounting of ASC impact XXX immaterial. in of adopted Also, the We standard. the XXXX, we that determine XXX, recognition ASC adoption new was

XXXX. we XXXX recognition the our sheet emerging opening company, quarterly results at XXX. an revenue record not Because, So recorded we did our to prior ASC growth balance the an of we're standard in using beginning adjustment

ASC Our XXX. financial using prepared XXXX statements are annual

of quarter revenues. our As our combined adopting revenues XXXX immaterial, the and was net ASC fourth net impact XXX equal the from annual

be will recorded at replay link this www.veritone.com. everyone section made available call via is Investor would on website and I that like to company's remind our available Finally, being for the of

to CEO; Chad Steelberg. call like to I'd our turn over Now, the Chad? Chairman and

Chad Steelberg

joining XX% both Thank and report revenues contributions $XX.X you, Brian. today. year-over-year million, you grew that XXXX. everyone, businesses I'm organic of to to from XXXX in growth Veritone and we reflecting us thank in pleased three strong the acquired, the QX Welcome, for

to products, our During with established have that product platform we growth, partnerships, launched amazing critical of invested channel our focus our complete, of new the to and XXXX, to multiple advantage significantly In improving accelerate opportunities new we largely November, take we development development. profitability. revenue in our shifted discussed path while

to on expected our functional utilization, and capitalize of this, orders of pleased magnitude I'm we we’ve we our margins improved customer our teams speed, cases. and all driving areas. use aiWARE and implemented in and have improvements to to platform, scalability to efficiency and that that great and progress enabling a business number dynamic To made larger and compute enhancements these more of realigned maximize focus, deliver report

finished development customers. sequentially. XX% more our product drive helping our cycle, our Our increased accelerating business realignment and engagement up than XXXX, bookings is stats with Veritone far, by already to quarter best with

the levels, SaaS and high net and aiWARE business were our to $XX.X range, the grow. of quarter our record continues Our in pipeline revenues our fourth guidance both SaaS million at of with advertising end at

the are average recent reduced quarter, peak third XX%. profitability been aiWARE at projected. already upgrades Notably, by the end focus hours. producing yielding had our on savings, in compute the the is of achieving even with high processing costs cost higher our significant we range a daily Our of number initially savings From have

have recorded third $X.X million million. $X.X our our at below loss levels quarter we range XXXX. net QX guidance adjusted non-GAAP of sequentially, loss significantly the As since our EBITDAS QX down was the was a lowest result, And to

to Veritone ever. is us going its we giving losses continue on strongest great reduce question, Our initiatives confidence deliver results, that will footing Without to forward. continue our

Our in history, multi-year and in M&E and expect its quarters and we business market customers, that to our expanded strongest beyond. had we've just revenue new increase from SaaS revenues that SaaS with signed XXXX agreements significantly

that business the are in pipeline the In continued and both even addition us business expanding revenues, further activity opportunity from to its that will rapidly, off grow M&Es SaaS GLC eventually to compliance as government, base. strong in our eclipse, legal confidence growth, M&E and our our revenues giving our level revenues

revenue continues We've peers, times average. never prospects outpace business advertising margins been growth commission net our Veriton's to growth its two far about we bullish the are more industry digit Finally, and three with today. double than to

Now, President progress hand operational greater our Co-Founder; I would call to the like in to Ryan? Ryan, over discuss to our and detail.

Ryan Steelberg

Thank you, Chad.

bottom our go-to-market to gaining signs As already we development and as fronts. each efforts mentioned, seeing initiatives our engagement, accelerate product Chad both revenue result, customer on success seen line growth of business traction. our units, a our response of in have and In rapid are are improve more to our

we the by units. advertising as and our immediately, considerable deliver have realized leverage, savings quarter SaaS that strength More to our driven December revenue expect accelerates. business in growth we The both additional was

another grew record Our revenues built net delivered and SaaS our and quarter. XX%. strength X% advertising Sequentially, business its advertising revenues of QX grew

business and our for billings These business, two Strength increasing primary drivers and billings accounted XX% to for in our channels respectively. XX% and media of the QX. with digital podcast be gross XX% continue advertising by in sequentially advertising influencers gross

Bridge, network X,XXX highlighted that performance. advertising Bridge. Influencer potential VeriAds generated Influencer by well, had continued unique QX, In over Our influencers as digital show tremendous to

already had X,XXX the with over advertising for delivering So performance. influencers digital Bridge QX, already in we've up X,XXX over far sign unique program, Influencer

and We expect VeriAds revenue all Bridge acceleration meaningful our advertising XXXX. to growth drive of in see Influencer in

history. in revenues grew level in SaaS million the Veritone’s highest Our quarter, to $X.X the

projected November, exceptionally in had our were strong bookings December SaaS we quarter. in As the

reflects press portions filings non-variable SEC our table only and release and non-cancellable our the KPI of bookings. Our in

bookings revenue that Given over churn our nearly million. potential worth of it is the $XX with total SaaS that our and I customer inclusive portions QX cancellable think zero, of variable the is noting

land strategy to SaaS Our growth ago, bookings drive Two in iHeartMedia both on began years and continues our with limited working Veritone and business. revenue strength expand a basis.

this Over helping of the of efforts. intelligent iHeart extension the indexing, and engagement and stations the license in continued Veritone continue expanded processing nearly culminating content of iHeart grow, expansion its agreement. cognitively level agreement years, significant number XXX QX from will a to be stations, and with transformation ingesting, our Under digital has

our that largest media in contract over for TV M&E another in Canada, We we of into websites expanding execute intend XXX to positive of and Bell strategy in portfolio, announced our over markets. Along and SaaS has new licensed them noteworthy is throughout has Bell markets. XX company ROI. stations business XX Media, and dozen deliver line, Bell's This the the different as operation. same stations, expand radio aiWARE stations example TV radio land its a XXX we

In leverage live from with content use historical content, relevant of sports and and addition and of professional with enrich huge both we're to their minutes, within clips business our growing SaaS broadcasters, distributing identifying to archives aiWARE to teams, and which games networks current social our decades success media.

additional to and San engagement. we licensed teams that happy Giants interest workflows teams. our to has deals had discovery Francisco closed rapid In from teams media licensing further fan October, increased I'm the with to this AI-powered sport the just say, that engaged reported SaaS XX last prominent well. other we as two with U.S., now over professional We're and in week led

prospects this and level government activity confidence our the growth legal has QX, rapidly, been opportunity our of us close further expanding pipeline compliance the business. business and Since in giving in in

partners, contracts and are into Exact PRI, driving sales Deloitte, channel which our larger Microsoft, Data include Our funnel. increasingly

that produce partners Although, and right don't growth revenue number expect the of sheer that of markets today. contracts we have provide the the we these we're for fit addressing pipeline have business validation to in QX, registered, the massive our product meaningful these

customer QX, is in contracts rapidly. pipeline We the customers opportunities XX SaaS of market this have GLC executed beginning our growing new of and with new since

We have and period. trials customer during the initiated this same demos conducted XX market over XXX in

customer, Earlier customer XXX attendees. marketing co-presenting Microsoft what Police to-date. extensive registered Washington Microsoft and is another be to today, will partner largest to be Stevens is Veritone we the our our X, and co-hosted its that over webinar has PRI safety April webinar On public Department, with webinar American base. Lake the North

more for On FedRAMP our U.S. at Justice on the government CES quarter, platform, aiWARE is revenues partners additional federal certified from first in and detail funnel our side, say, the indicated we on to flow recognized we're and business very our March we bullish in forward fourth to as our Department look stage Government, the our of through providing opportunity Needless vectors. Investor on and upcoming to business, XX. GLC pipeline Day, multiple at our sales starting

year-on-year expected XX%. down sequentially, pattern. of content consistent normal Our seasonal its Though, delivered strong licensing growth as it business with was

than year-over-year discuss of CBS's one CBS XXXX. business our event where expect licensors, continue this library We with licensees vast in content. Recently, potential New we to of City, co-host leverage in growth came XX York to an News, how its more to

begun and monetize further of content leading digital to their number explore discussions podcasters licensing. a we've can how with they Additionally, through influencers,

customers all is this represent. course, entertainment currently sports and to we various the Of additive

$X path originally we to expected achieve Finally, realignment had on million improve business savings. to that to to of million annualized our our $X and initiatives profitability. communicated We

Our the we're at QX show high end those projections. results that of

revenues. dollars, significantly processing associated mentioned costs SaaS cloud compute reduced actual increase we a even Chad As in earlier, hours, our in and meaningful have with

in we've is initiatives levels, our further of summarize are new and our These pipeline expect at burn. significantly accelerating an growing deliver to cost the ongoing improvements at we business are reduced still rate, our cash future. and record them bookings To

Pete Collins XXXX, quarter fourth provide Pete? full will of and around the our now financial results financial and year for guidance. review details our

Pete Collins

I basis. earlier a such I'll good financial financial GAAP we Today, fourth and is Ryan, you, year XXXX. will afternoon, everyone. A today. full of issued corresponding of results for reconciliation press Except quarter the data, results on non-GAAP the discussing our Thank release for in results and our non-GAAP to information revenue today be review the

Our growth XX% revenues all of QX in net reflecting $XX.X to businesses. million, increased year-over-year our

we which business year-over-year to existing with customers This was customers. as growth by driven net revenues million. new continue vertical and $XXX,XXX land ever to and or entertainment XX% SaaS increasing its expand primarily $X.X media our aiWARE XX%, business our Our delivered highest grew quarterly

over that at the monthly of $XXX,XXX. fourth under Our aiWARE or recurring revenue effect X% to MRR, the quarter SaaS agreements quarter increased the third end

entertainment high Our of the aiWARE to media the in all-time $X.X of with bookings fourth increased SaaS and bookings million, quarter an in XX% the vertical. the sequentially, majority

podcasts licensing categories. increased reflecting our advertising $X.X media And content Our million. $X.X growth revenues to grew and million, services digital net in the XX% to and aiWARE net influencer revenues X%

fourth As zero $X.X net an our versus year, advertising When net revenues to QX, that clients from that spent note to comparing prior issues. regulatory million increased in its XX% the discussed, year. XXXX XXXX important quarter to of QX revenues year, QX this due prior the included it's of

revenues Excluding net this year-over-year. the prior the of grew in advertising consolidated by year, XX% impact our client

Our by over $X of total immediate by X% track million, the are which cost our initiatives, on reflecting million. operating our $XX.X expenses expenses to to reduce reduction impact decreased annual

in Our quarter operations loss XXXX. compared a improvement $X.X the fourth million, with quarter fourth $X.X was from the million

net with $X.X share per per year or $X.XX compared the million, for Our $X.X or prior loss share, was quarter. $X.XX million,

$X.X and expectations, adjusted better XXXX million with than of million significantly was our improvement loss EBITDAS of QX $X.X compared QX, in and in million QX XXXX. $X.X a marked Our

have this since noted, the Chad XXXX. the third we quarter lowest of recorded loss As is

full Machine three we and acquired Wazee Box. of the Turning quarter Digital, companies, Bridge results. Please third in that our year to XXXX, remember Performance

$XX.X in with an compared $XX.X $XX.X Our XXXX third net were increase in $X.X companies revenues in of we to XXXX. in of million, quarter million XX% XXXX. XXXX million net million acquired revenues compared The the of contributed XXXX,

organic the advertising of the XX%. basis, SaaS by an revenues On acquisitions, net XX%. net excluding and impact revenues increased aiWARE up were

$XX.X from or share, Adjusted $X.XX million $X.XX was share in net million, loss loss million was or with per in $XX.X compared Our XXXX. million $XX.X per XXXX. EBITDAS down $XX.X

$XX.X funded $XX.X our $XX.X through million. an operating at under including primarily we XXXX, the of facility. XXXX ATM of We issuance used issued from X.X stock prepayments net million ended proceeds cash our with of and activities equivalents We shares cash In million, advertising clients generated cash in and million. common net

ample decrease reach will as revenue to and alternatives. we In profitability, evaluate growth significant cash shift fall, actions so, as sources us believe reduce the a cash intend amount we made to each to have EBITDAS do our to last that we raise Chad's our continue highlighted of capital of pass significantly. we remarks, these to to we adjusted and the breakeven. We quarter, accelerate he implementing We need and loss flow available

to One is of resulting our shareholders. the objectives dilution to minimize

our to the guidance of quarter first regarding Turning XXXX.

delays We quarter. their have push clients of experienced coronvirus the by supply out a seen to which due in that chains, advertising in programs few outbreak, have had some disruption some first revenue, impact we likely the will advertising the expected in

anticipated we total the impact million net coronavirus, from the and the XXXX expect quarter of potential of to delays range Due the our uncertainties other revenues million. $XX.X now for first to to $XX.X surrounding

we're of to net range non-GAAP be $X.X million. loss to expect our the cost the of million $X.X since the saving end at initiatives, of high However, range in our we

Day ROTH Annual on to headquarters their Investor contact at we out in on or We XX. March encourage look directly arrange with events Alger. Costa Mesa meetings XX, connecting at or our investors To these person, investors brokers our Veritone to the forward respective Brian at in institutional and Conference March analysts, to reach and

At this the like begin time, we Q&A session. would Operator? to

Operator

you. question first Pat from instructions] Thank comes Walravens with Your Securities. JMP [Operator

Your open. line is

Patrick Walravens

congratulations you upgrade that margin what aiWARE start Chad, why that you if be sort and of with much and I Oh, a simplified gross we helps guys. to the of and helpful? would great. could guess, version maybe did really so you Thank

Chad Steelberg

just technology really building platform look for We took Absolutely. Yes. at a it after the fresh

more which new side, of in three in deployment to it saw us only process, continuous deployment, refactoring, that and enabled a not gives integration some access the we CICD years, really really and cloud is ongoing a helped operating that optimizations which costs but markets.

So pursuing. the essentially cloud we is start click lot private a not do for of for ability a customers the a only that which and to government deployment, expands one market have have ability But now now do to been on-prem opportunities deployed we which customers. the almost deployments, to prerequisite also we've

we've in revenue, also in the shifting cost our refactoring market upon our improvements of seeing done. savings great some all-in-all dynamics So, platform, favor based sizable the but

Patrick Walravens

$XX I great. really you it Okay, $XX million, SaaS being like, interesting. And do Can you -- revenue million about how thought then, potential was greater explain the than the comment

mean? a quarter a or year, that what does

Pete Collins

its Pat, Hey, Pete.

is what's that’s within overall potential cancellable we contracts our and not But, remember report So that, based more signed. were the when that it's also upon bookings, fixed.

included the the is what got the in upon from terms see revenue that’s potential variable, contract. cancellation excluded anything So, or over we based its life bookings, we've the but that of

Patrick Walravens

right. All

a that's So total contract value.

Pete Collins

Right.

Patrick Walravens

talking sales update And joint then the last with about some quarter, relationship and you you Can us guys that's efforts. how started on Microsoft going?

Ryan Steelberg

Yes. It's well. going very

more scripted and coming point, that's to co-sale to and its services of going learn Veritone is, about Microsoft all We really on webinar that's their webinar talking to why with participate important field of products bit primarily efforts large Azure. municipalities. in up. inviting Microsoft on so about little municipality And talked team, to which So, this a thousands this is been customers, this is has related sales our about after about presenting most the call with larger the

So, we're really excited about that.

lead and their XX,XXX people to large into is will a and outcome through webinar, larger. of team, sales ultimately we will be the educating Hopefully, that base. That sales quickly inside them able to that tap positive which

expect we starting partnership a in, partner. We're lot forward. registered been great of going deals good they've and coming So that from to see supportive a things

Patrick Walravens

to disruptions. in And less some through it's I More people this What as there's the some your supply play an on move know you working think business. business eye ad uncertainty, from Okay. epidemic? mentioned do Last keeping home, you one the travel, we chain you from on me. are How out? of coronavirus lot impact a but having likely

Chad Steelberg

Yes.

additional on our push outs who to I think some some touched clients, push disruptions more suffered chain we Essentially, ad in out from customers experience points. outbreak. already One the you And campaigns of business. high due in Veritone the business all advertising by the could have we've seen already supply

however, safety far with fully the public extend the see side, have customers cycles efforts. priorities coronavirus, the and their SaaS distracted as less in get some epidemic exposure the we much but U.S. higher hits we obviously direct sales as particularly, we On could of support

component, we're from the companies that. On home testing work seeing definitely with

great and here three offices. already. We phone in a sales already four of customer And engagements operates that organization happening different conferencing have our over the or video most is and

the customers, So, from in with engage very employees an towards our and little ongoing I terms impact operations standpoint, we of how our business. see

Patrick Walravens

you Thank much. great. Okay, very

Chad Steelberg

Sure.

Operator

Your comes Darren next question with ROTH Partners. from Aftahi Capital

is line Your open.

Darren Aftahi

taking Hey, my for guys, thanks questions.

basis points. like on of went a can the XXX as the points margin on looks gross non-GAAP improvement. just curious, basis follow-up or get First up progress kind we you XXX manifest of I'm topline, all theoretical we what's your going how does itself forward? about a continued into think non-GAAP that improvement? kind on of of kind cap margins gross as kind And It business

Pete Collins

this is Darren, say gross margin I'd Well, definitely going Pete, sustainable is improvement the

forward. mean, realized that delivered we're amounts perspective, to we've forward. larger there a platform and from even cost looking the the I lot some have a team Chad things going and save

though, you mix. that is just the product thing revenue need a One is of remember that gross the to also margin

for in overall, shifts, improve as see mix on gross able to margin. the to And overall be But we the so especially see as to the continue changes revenue scale we we'll opportunity, business. gross the margin

Chad Steelberg

QX, into we cost to-date, XXXX we've Darren, to range, get total XX% this QX, cost. is total versus to in on within able expect been apples-to-apples late began about QX, by our reduction Chad. this able been XX% We've compute basis, we in the bring but initiative actually since to improvements that peak

Pete Collins

QX, XXXX.

Chad Steelberg

XXXX, yes.

of tapping overhaul importantly, to a what it's the complete really the savings. close we've system. think don't in come potential terms more been in I But So, cost even is

to X.X you're reliability. up, is close to reliability Our

we experiencing through products far better deliver. are the services customers Our

all-in-all results. positive So, really

Darren Aftahi

That's your but you then helpful. you've bookings, quarter Thank said And the that commentary. you. SaaS was on had strongest

So comments. from I of want apart to take kind your

on M&E a and expect kind you see more the some side, government little in call said or building, impact skewed made legal but you your So the prior QX. it's that of to all first, compliance comments said basically and bit but don't later maybe then you in are

when down last kind your just could on you're where visibility M&E the excited more of kind bit you XX days non versus maybe and a you're seeing you and drill ago maybe had getting So of call? little

Ryan Steelberg

Yes.

deals registered an So to strategic for direct going more know our and proposals there being and which partners, both opportunity Without phase Microsoft are in seeing we're the detail, activity game partners, and government, legal these kind of through ultimately contracts and others. compliance, channel puts and plan. sort lead definitely where through lot sales a undervalued obviously we inclusive of into Deloitte, that's we so us of much

had if feature like That number answer you a on now scale questions that to that sort on product that going to can you're Microsoft you represented is is the So, increase and one for of products interest or unique of And Is else line. XX encourage you we that. relates it the look other webinar -- had over to now as there I participate and GLC? anybody any in of significant the agencies test hear X. we interested we product trials. police use April about volume from specifically, has seen in we've activity, Redact at of strong inception well the where

Chad Steelberg

municipalities, GLC a of a detail. a little that to the in what through we've that a that by translate the But have level get they Well, pursuing, for let award the been second, hearing across the contract go large are finish and been and actually local our we're both step deal we When Board phases across me more at into the the think multiple ability let we terms multiple about you if me contracts federal revenue. line now selected winner. is into that

we're bookings, come across in conservative as desk. us withholding how booking and terms in the for well in see that the as our But contract the basically revenue, our of until finally report we door nature, signature

Darren Aftahi

that's helpful. Okay,

understand compares Pete's Is me all verticals from basically Just across $X.X upside spread M&E, over is potential. as to one it the you're in M&E where to potential of towards as or your contract So, terms the could last million vertical? it index million of lie currently trying about comments it value, kind $XX sort the of kind on of of looking kind that beyond at? bookings, that of fairly upside maybe

Chad Steelberg

$XX to Well, zero, our the million, customers, and have we do the majority that agreements. those not has performance have expect people terminate entertainment. our limits, our they term not termination of relation our early near bookings associated with are we and clauses. historical with media contracts upon those have Based of The so just qualification churn historically been it's do

upside. full bookings necessarily the are vary realize the the it So plus to contracted $XX is they those opportunistic $XX million differently the we do of don't annual million terminate, I space. Hence, a term, bookings of I'll they option of as majority opportunities, over to. potentially expect majorly total majority don't the like have say, of little that, entertainment in the think of But those They all an the media agreements. value and we them and contract again, at but to bit expect

Darren Aftahi

Great. you. Thank

Operator

Latimore Northland with comes Your next Mike Capital Markets. from question

Your open. line is

Mike Latimore

lot. a Thanks

is horizon roughly? there $XX sort the on million Just three that of year a

Pete Collins

to I Yes. the think go majority are few three out There years in that period. them two are years, of agreements

Mike Latimore

you that's I'm have Okay, last have had quarter, I that XX Redaction an many not XX And this like, Redaction I apples-to-apples my how number you. sure but got the metric. in then notes On on basis you the same quarter. customers, heard customers do

Pete Collins

Alright.

So, customers. let's see

active QX, represents XX% the XX XX I quarter, those are compared active growth a customers. think in active and which GLC over we in customers have as this to redact actives

Mike Latimore

Active.

a driver these I Okay, laws there? great. are transparency big assume And

Pete Collins

that. police ability offering to that think the because legislation. marketing we continue attractive agencies the to mean, quickly Yes, you bring use of a changes as automation a as I again, municipality heightened But, partners, that in process product state very each to different, is but again, is these it tool is drive I it as to know, our depends, help do

Chad Steelberg

the But Mike, states outside as capability mandatory there's just are pursuing who of that also have requirements are also some well. that more agencies forward-looking, that are that

Mike Latimore

-- larger M&E on, you Okay, exceeds be here over then to I bookings the potentially revenue talked you the that a the category in start than think would some great. comment. I be guessing, category seeing you the bookings? And M&E that time. should expect guess, mentioned When we GLC of GLC I'm

Pete Collins

those that I we're think we're in phases being awarded under contracts.

And to so see bookings over we material start few should quarters. the next

Mike Latimore

thanks. Okay,

Operator

Your next Craig-Hallum. Chad comes Bennett with from question

Your line is open.

Chad Bennett

in how first we year-over-year? on Pete, for the about the basis think guide revenue or revenue quarter, should SaaS sequential aiWARE a either

Pete Collins

give overall more don't level, business really guidance do not is that XX. it, big at think we Yes, of about XX.X way the X. well Chad. disruption SaaS to any I and It's the that is But number continuing there. think to really the we're and expecting

Chad Bennett

spend too. ad from the headwinds and virus commentary trying the I'm near-term here obviously business, rhyme the on of And the delayed Okay. kind to

I was about this that? reacceleration commentary think out it the Can you advertising me with revenue year. help in

Pete Collins

of in been annual a the to What of strong a double impact the our four like and disruption really chain digit say in from kind the advertising three growth, we've agency. plans first handful though, year, the is the clients. of that growth on year-over-year business that seen overall last the the weeks on basis have Yes, supply advertising our back in weeks with us, media clients, three the showed shared

we at that we that be way disruption. chain about is this the due to originally so to what reduction expecting that look quarter, supply $XXX,XXX had that from a for revenues in And we're expected,

the expansion our of well. and hit VeriAds issues the be to clients at our in very increase year-over-year the in about our But double clients. are that for overall impact projecting providing $XXX,XXX the we're the digit, plans is annual market, then a we're So, introduction trending product the that spend at more as low supporting near-term as I well, said topline a QX. services overall And continued of that

Chad Bennett

And Okay. the quick Pete. diluted be from what maybe one If count? profitable, then company last fully me, was the share would

Pete Collins

have don't top of head. my the I that off

Chad Steelberg

the and It options some where on the depends of price price is sensitive. stock are

Pete Collins

point at are the of options this underwater. Most

Chad Bennett

right. Okay. All Thank you.

Operator

[Operator instructions] with comes Your Steve is Management. question Asset Banta go ahead. from Please Banta next

Stephen Banta

profitability the more fourth thoughts viewing to provide great color path on, to of entire great quarter a it something two, ATM additional any like on number to how congratulations alleviate little curious, able to you a dilution you on one? a full in year. facility have and with guys, be And could be Hey, number you're your some drawn team guys would say, a I'm looks concerns? credit lieu potential that

Chad Steelberg

Yes, why don’t the Pete take second first? one

Pete Collins

let that Yes, me just one. start on

we've but are it's best a available got facilities options us to us. options from the of matter to first a the to I of we available perspective. which of then with So different mean, we've think profitability, lot sufficient got, all financing a we've got get resources to

the get of it also the profitability financing opportunities the our alternatives the we we're we we've span So, think today, capabilities But got with obviously, our that at to we've minimizing and evaluating still that have. to can we alternatives shareholders various pursuing of outlook. we're got. is utmost and But, dilution resources in ranges the kind with looking

Chad Steelberg

profitability both Perfect. With regards really to the path the our media of three half, in as and to and the the to their overall down general at and progress comes entertainment have public past, One are day, things. it quarter the solutions, to continuing to made automation in and that safety. to as in aiWARE revenue growth base process topline drive by automated use as customer continue is well expanding end a we've we

pent profitability. improvement systemic we're that revenue think obviously lift as to going achieve company bottom a have performance improved verticals resulting line. of drive to that and topline benefit any will then sort the new really margin, and don't will perennially continue to and I to the the assist we heavy is the of into in TAM. that gross more hit architecture plenty up This move operating There's of the

really So, come the team together. has

the focus our people's that from level would align market. in realignment to fourth team quarter, the to customer of the personal expectations. again, all think, I interests terms the dramatic think staff with achieve what we we're anticipated our board the BU while employees across reorganization in improvements The trying that ability of surpassed did leadership results executives and in has that of been have that I to we

where employee not our think any capabilities impact really on needs possible realignment and I our to focusing cost of customers' to desires. cutting So going address that's

expect engineering We're the actually cheaper like creating that improved when are channel we're of sale. of cost cycles, exact you'd dedicated you seeing more tighten belt of what relationships inverse partner and a faster this. go-to-market seeing In fact, terms typically your

So across soon leaner think an as prize meter possibly can the just organization we're with we achieve eye I it. profitability the as Board, on of a

Stephen Banta

guys. Thanks, Great.

Operator

There this further at questions time. are no

Chad Steelberg

Thank excited and in We're on XXXX operator, you continuing us the the thank for today's joining momentum about all in progress and made XXXX. we're you, call. we

and expect forward progress. revenue We to teams have been. are Goodbye, to and reporting we better and our to and huge significant businesses, the capture we our a coming opportunities see our good you day. to on In across than channels in ever verticals diversification positioned growth have they have them product, look months,

Operator

conference. today's concludes This

Veritone (VERI) 4 Mar 202019 Q4 Earnings call transcript