VERI - Earnings call transcript Q1 2020

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Operator

Good afternoon. My name is Susan, and I’ll be your conference operator for today. At this time, I would like to welcome everyone to the Veritone First Quarter 2020 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remark, there will be a question-and-answer session. you. Thank Instructions] [Operator

Vice begin Corporate your Senior Relation, and you may conference. President Alger, Development of Investor Brian

Brian Alger

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

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

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

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

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

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

non-GAAP are GAAP non-GAAP issued we Reconciliations call, the corresponding expenses a the actual be of measures During the operating this discussing in these to measures and financial basis. gross will press be on today. presented margins, forecasted measures including, will and included loss release net

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

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

Chad Steelberg

I are much imagined for safe When Welcome Brian. thank and these and spoke quickly the families world early March, could healthy hope I you, have with how Thank would one change. you no extraordinary in and in and circumstances. your last of you joining us light staying you today. how everyone

pandemic Our everyone who prayers with have lost are who this ones. been loved hit especially those by has

revenue The revenue approximately few content expected with differentiated X.X our on of our QX pandemic team delays last the was the significant and March and with and in revenue quarter. million. had an advertising loss in I’m resiliency immediate demonstrate value diverse our pressure, weeks of businesses or impact million the XX.X the Despite portfolio. which pleased the QX Veritone’s results of and our licensing

On we've line. a were bottom the side, the on given position the in strong we cost since QX focus had

we from this us million. X.X cannot talented of program non-GAAP without working driving accelerate As to in development reduce able in pandemic reduce stress continue reduction all headcount, levels our enough expand time proud while I quickly Herculean to spread, were effort and employees, to our I to net loss our am operations expenses to engagement our the customer and enabling environment maintain the how of further a operating immensely home product highs. to and

the cloud changing a and in digital the AI increasingly months, change to and two businesses transformation seen last We’ve the as of move recognizing worth for necessity the decade’s world.

As expect engagement powerful they increased our and platforms. unique see a strong result, on to

aiWARE out high verticals are safety, explore customers. praise and we We continued new upgrades continue existing customers, system and gain such operating to our from and energy new to our as innovate building adding and relationships to

aiWARE the various performance AI, and mitigate they the models have for place. ensure and More measure balances bias on launched groundbreaking and to our AI specifically, have every priority working a important to we become and digital customers with within efficiencies first checks tool been the Veritone’s of equally benchmarking and machine. help the to AI businesses organization compare remains in privacy customers using as and necessary they Security that closely

addition and the reopen hyper-focused global helping efforts In on Veritone communities customers economy. is help they the serve, to to

and We back immune coming a details and down to economic creates live, path new In environment public but still in be that spirit, position solutions to organizations weeks. downturn, where on at to aimed are digital recovery. business, develop the sector opportunities with also finding this for we AI-based are to current believe confidence we and plenty our from places we global needed hope to to we doubling but do, working share to top in work, AI are government additional bringing the and trust critical much the There's a shop play. hardly private us, as

that AI and Looking AI industries. to global is profound for and building just our transparent sizes the more a of innovation transform in is past At and is relatively available to making future. core, technology bright society. mankind's the productive belief we committed quick organizations a agile and particularly by see the driven response recovery phase, activities our structural the and of all changes the are greatest we Veritone first economy, key but fast to

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

Ryan Steelberg

afternoon Thank you Chad and everyone. good

than not a in in each start of on spend from our our pressures like just but discussing me mitigating the minutes that emerging the Let revenues few first resulting entire I'd restrictions, has to businesses. laser economic pandemic phase before. and even been saying focused quarter business, the of our team our stronger and by on impact outlook

we several while business advertising and in cancellation campaigns the advertising delay March. saw of our In

helps to disruption from and are processing serves media consumer diversity to our cognitive differentiated our focused Our markets of that pandemics some fact extent. the the capabilities, the mitigate the clients and of to analytics direct many

performance grew has highlights revenues by customer its continued and peers our in according for be to of quarter its clients. business, while declined, of net the most stable count X% terms year this over In relatively to year are their revenues

and a as our future average current primary KPI, our introducing advertising a new of are performance active of billings clients business. gross is We per it indicator

performance increased gross we XX.X% a campaigns and aiWARE average his QX traction XXX,XXX reflecting digital well. analytics Our new active over to through year very and increasing for marketing express adding is like accounts having cognitive by the our with billings broadcast, perform year One service Veritone. to per continue are enabled influencers to large podcasts, XXXX that clients VPN drugs and pharmaceutical company

us are continues in call new also billings strength and to the competition. segments For ad billions I total continued more outperform represent of networks in to our here business XX% the the our want revenue out we seeing gross growth VeriAds. than our to

a stations strong pickup seen increasing look as to offerings quarter advertisers this have and We loads transact, our in unsold inventory. VeriAds of

up. our somewhat new to client and VeriAds, further growth and rebound QX later in these to open are similar temporary In business, expect near-term we ahead, our content we starts decisive seeing to once action are they revenues licensing pressures impacts. due from this revenue that campaigns to taking we are global Looking economy increase we mitigate COVID advertising year and will in back optimistic while

leveraging has live canceled entertainment respectively. aiWARE historical and have postponed. material for virtually We revenue monetize that postponed is Basketball and of canceled audio mid-March, content worldwide and Starting the media the both power most licensing and of our event remain the the sporting tournament or been and two major drivers, video NCAA confident particular groups, In in Golf of every a industry. to been Masters strategy our tournament game changer

which impacted was production QX revenue. QX shut largely down also in film and addition, March and our In and television April,

However, an value content to content. aiWARE new job license our that excellent of capabilities leveraging the add team tier represent has done to finding top and opportunities we to

as a are increase we terms CNN. material provided of News, CBS content related COVID-XX seeing partners performance such highlights, licensing In demand and for Bloomberg in by

are we distribution with indexing Peacock. with emerge, And presence NBCUniversal are efficiently. finding new new base and to streaming models such search aiWARE's content as content, able and provide golf capabilities, service quickly identify existing of our the Within channels we on this

like clients have to content. has licensing notable generated also additionally and content starting into and On!, already UGC and our added this we expanded business We are user license CBS' Game new new representing indexing or licensing

to the this when and at normal they our some to initiatives expect sporting seeing stabilize and take licensing content business levels. returns of start rebound events on later them impact start new to place, TV somewhat produce production film we to to in that optimistic QX, are While our to start we're we and year revenues will revenue, continue starts

second expect that also We of the tournament, on have the our including this been half of year, will the some Masters golf for licensee later rescheduled year. the positive events that impact revenue a have

up of and climate, SaaS our record Shifting the of revenues all X.X SaaS sizes challenging performance. the continue to to year. X% deliver in strong activity aiWARE. economic business over power through organizations Despite continues XX% year of million, industries of to the Total sequentially were businesses, our SaaS QX we transform

TCB and bookings last our illustrates, strong table over quarters. each KPI updated the four improvement our As at shown

and growth is as strategy expand our business entertainment while in media government landing drive and and land legal from is business momentum compliance coming new customers. Our seen to continuing our

In in businesses, vast remotely grow operates, our SaaS operations. that's and the our majority usage customers of cloud of our both of are continues of adoption solutions the deployments despite our customer's the these to in use enabling to the and changes

its of virtually of XXX our radio aiWARE zero pleased now into to all this using have a premiere contracts. networks this number we have term is iHeart of that, and broader podcasts. churn and stations, continue month, longer radio their we as of begun all customer existing M&E, see national say customers Within to U.S. I'm is renewed and processing on

and also using of nearly stations Entercom Bonneville Hubbard, Moreover, are all aiWARE.

professional and our aiWARE In several Fremantle signed Sony broadcast Pictures, have we addition and teams. media deals sports partners, other large to companies with

the sponsored extend aiWARE Force's a quarter, to a good GLC our of a intend cognitive we AFWERX, program all figure forwarded, customers. arm. Air under by by six subcontract Looking posted of the innovation capabilities strengthened U.S across

about are to excited this U.S supply the very aiWARE for We military. opportunity

license activity shifted trials business agreements. GLCs and demos signing new Importantly, has to from

two-year of contracts public States. cognitive contracts the more of agencies signed Year-to-date, business signed consider we Veritone XXXX. expand in X U.S sole Government. Department award justice solutions. we new various We have Federal a our covering the That's this with Justice all significant safety strategy in last different to IDIQ with than source in Friday, and Also a XX our awarded milestone

to such Furthermore, our through others and drive our expansion organization. engagement PRI, and leverage with Apis, partners Microsoft, Deloitte, continues as

GLC will for M&E new at exceed grow year, GLC's of Looking SaaS rapidly to confident QX our the increasingly that business. and we business are the pipeline remainder

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

Pete Collins

provided should Ryan, our we color afternoon good you total revenues already our immediate in X.X% which year of The monetization business and resulted businesses starting COVID-XX had over declining units. our X.X% an impact pandemic year. quarter in of by March, accessed you, everyone. results the and this has afternoon, to on significant revenues Thank earlier Each Ryan and have first the released on sequentially

a As results, I further warranted reviewed our discussion. financial of couple items

First, margin to our significant achieve in we able were improvements gross QX.

Our This overall margin points year mix which XXX revenue are gross points to XXX year. improving but enhancements improved stability. to business, we have licensing primarily not lowest more non-GAAP sequentially and due but is gross and our basis is QX margin computing in content only also our software, as our performance costs, than reflective also made aiWARE basis our it's underlying of reducing over

We've and our great XXXX, presenting reducing expenses. operating aggressively costs efficiencies in cutting back areas. also a in QX we began number Starting of in made progress of

additional talked deteriorate our in costs. we conditions actions we March, As reduce implemented begin to to

the year. by we operating last fourth versus expenses As non-GAAP our down $X able a were to million of quarter nearly bring two point result,

On $XX on had in flow we operating cost breakeven. an the XXXX, than basis, we base we quarter towards before annualized are lower shifted focus of third driving cash a with million our now

caused QX margin gross As have a by public the these lowest the a controls tight company. pandemic, with us non-GAAP of since revenue net to expense improvement our we $X.X actions, reduce level our helped loss disruption despite result to together million, been the

QX. now Over dropped three towards $X.X our $X.X non-GAAP shifting in net flow quarterly since million our losses quarters cash million from to past $X.X and the reaching focus to have breakeven, million

an largest to point consideration While very diligent cost been costs The annual possible, commission that reducing our $XX cash I and where payroll had expense employees' XX efficiencies our out compensation. team our continues of like improving head count, million. to be current the or in and bonus has we benefit

the linked deposited have program The and accounts $X.X as into is protection loans paycheck under that million costs under received directly separate the are occupancy withdrawals all been in program payroll related and to we've rules. required

outlook, or As reductions, these we capital term. layoffs our costing that April together our our XXth loans needing the us to in do additional salary as are with initiatives our on noted press employees such current furloughs. we Based avoid helping would release, anticipate actions impact not near in

compute costs expenses we the our to pursue reach control will breakeven cloud and from reduce need actions that will cash In our reductions amount operating we growth, of revenue cognitive flow combination to engine and reduce will our and growth. operations. compute will and control expense cash burn of cost take We raise continue as revenue we until operating minimize cash

see continue Turning events to our of quarter production guidance second content television delays of cancellations in slowness regarding sporting to and XXXX, the film we business unit. licensing and impacting our and

We also in economic SaaS shutdown. our see avenues expectedly the some new resulting delays from from businesses

We existing by spending clients VeriAds. growth businesses and due offset rebranding primarily be expect additional by impacts these advertising to our in to

range of net second revenues million As for of the to $XX.X the be XXXX to a expect result, our million. in $XX.X quarter we now total

made a we have sequentially. the gains controls, tight WE be again efficiency once should significant on of to and burn we reduce position our discussed, and have we result front, progress in a believe as cash cost operational As

second expect be to our non-GAAP million $X.X million. net We in quarter range loss to $X.X the of

the Now, to Chad back Chad? I'll call to over summarize. hand

Chad Steelberg

you, Thank Pete.

it that role the we opportunities committed this will while will different we also and clear a recognize the we severe We're before. of is be to in As world new human economy. ensuring our see through this And persevere impact Veritone created, critical very rebuilding that you global facing economic has play a pandemic ahead. than crisis,

to of aiWARE, AI is our backbone key system and operating intelligence strategy transformation. for enterprise proprietary artificial the our

deep a new is and and and machine forged of fellowship result intelligence artificial a learning, sound as in man trust customers between our Our being efforts.

that reiterating through our Veritone confidence this stronger by conclude I'll emerge will crisis.

is in today business differentiated Our the marketplace.

and of very we have have and our relationships We engagement and a products a diverse portfolio and customers. unique solutions, with strong

which are team which through our strength partner our source this and is me truly to our customers culture, period, to helping We're a and them differentiation. of brings our

team spread wildfire, another become watched one as I this like cared Veritone the During family, empathy. pandemic, as encourage and sincerity and fear they uncertainty a with

Bryan honored at And virtual look conference in them. I connecting tomorrow, institutional Alger. analysts we their meetings our your be and directly for for I'm am XX. Oppenheimer partners reach investors counted business. among brokers and contact the support and thankful We blessed forward to at May to To with event, out this to shareholders, customers to to continued investors arrange respective encouraged or our

to begin Q&A At this session, time, we'd operator. like the

Operator

Our thank you question first Pat Instructions] And much. JMP line Securities. from very of comes with the [Operator Walravens

Your line is open.

Patrick Walravens

expenses I one Great, thank can you an and congratulations you Chad, people guys on period. questions extremely with certain which is. of big controlling in know have, start your the volatile I

April and different the there you’ve headlines you just You've and that. Protection got million about from status in many the X.X us has announced update Program, the Paycheck what been so is? Can that

Chad Steelberg

customers First, our to part our I'll to first of been obligations And had communities. partners we and impact a immediate always continued And start prepared our pandemic business with March meeting wellbeing an very and and noted the in employees, has families, and success. uncertainty. our safety of their our there future and be our amount starting negative remarks, was the to our COVID-XX tremendous in paramount on as is

When base I'd that the and to through fact salary applied passed, loans the our and allowed based to time. loans have this avoid economic and the us both and for on reductions economic pandemic interpretations duration was these say to and period both good and help we PVP the forward And CARES intensity at to, business to us and uncertainty. in layoffs, of truly rules continue the profitability. downturn the and going access finance obviously ability would the Act capital the in

have question, not sort any of on Pat. do today updates though this We

evaluate Our board continues to situation. the

know, continues and going update goal the Act future. As will our employees the our to again, our loans the forward. and the to to in you governing protect themselves, PPP primary make government modifications rules the is you business we CARES but But

Pat Walravens

them put just I’ll there. more, two then And out

about big So, were had the and how guide that QX? you wondering, environment might QX that did mean, the cause any about that? a is I'm Anything turn thought helpful. a revenue you should some quarter didn't know Or bookings after it And ideas unfair quarters I down can things think it go Pete, have aiWARE into maybe for you I on little this flat? us you we then, really there but year, the into would? be should with share be sequentially? the SaaS impacted way they Should would

Chad Steelberg

So, address in why Ryan and don't into translates the XXXX? have how bookings I that revenue

Ryan Steelberg

with It's some expansion groups. up station we across expansion So, in their That track. deploy fourth attribute material, generation media. contracts, large including quarter, to sending very is material iHeart and application expanded us next the our a renewed actually software on

So, I that wouldn't say delay. a material been there's

competent more So and as terms the of attribute it very total contract with QX accelerated in through start are specifically will we bookings value, and QX. end of see the we're to relates to expansion

Pete Collins

Pete. is This

Let me that. on up pick

as I the the started that can the the operating question, that's we was and you when most. mentioned expenses full did you with your year outlook, we thing control thing really So think first the job

So, on perspective. we see share feedback let you kind from that with just me of what

we're year, I in very guiding looking expenses expecting where think similar QX. that they will to for to the -- we're be our rest the we're operating to QX for of and are what

out from of So, we're remainder see not the expense the perspective that to year. looking expecting operating significant for changes

Operator

Aftahi our Partners. from ROTH from And next Darren question Capital comes

line Your open. is now

Darren Aftahi

reductions. up, your Pete, around on commentary I can follow OpEx Few,

took XX in maybe guys basis so benefiting OpEx Just XX we correct million quarter to so by if you've savings in think starting annualized annualized X I rate should you compare that XXXX? XQ? I me from as million I'm about think does I run So the savings, at wrong? think of And understand it referenced annualized clearly, the third end in that the of million

Pete Collins

back think out saying we pulled quarter was since year, roughly on anchored comment and the over last the that that quarter of in Darren, I time. million a point really third $X

So, that annual run QX is the over million improvement really XXXX an rate. XX

Darren Aftahi

the that Okay correct? is quarter, and starting that's in

Pete Collins

Yes, it's ongoing yes. from the second first and quarter,

Darren Aftahi

you then, business, in you And duplicate On in VeriAds? business licensing the content around release, I ads VeriAds core so and weakness AI compare though a rebound of SaaS. your ads of A then two may. between kind know the and and core business, kind commentary the versus about and said, more, if maybe little the contrast? business surprised said bit can you I just you Ryan, talk maybe in your if could

Ryan Steelberg

core primarily of the was it rather business consumer agency for And customers It hoped resilient heavy had although of was different and the because just to QX. the have types was resilience we of represent. Sure, for of of accounts. the than we distribution specifically, a portfolio and softer that type type direct we rather dollars

world, the the of VPNs or increase historically the express retail. GoTo, heavy were maintained which consumer spend that LogMeIn with in goods packaged you If some actually we instances really actually never

bodes pharmaceutical the larger I continuing for bring QX. that that buys And very well of recent, very on some QX kick throughout are think and did quarter. So the in at we us started to end through

mostly the great for I client distribution to the would direct consumers. of to, it a going relates team. to chalk portfolio into pretty discipline we and sort diversified dominant and again, year, So had But position as execution up great,

Darren Aftahi

I last of just and one parts two noticed then me. Great for this.

both pretty think, On a year-on-year sequentially. and accounts up, the was materially that the aiWARE I

that energy first there's you been your talked that. talk a about vertical the mentioned then Chad, So, you've may have for I of time aiWARE. And think is

So, more little curious could if that? kind Thanks. you just of a bit I'm into

Chad Steelberg

take I’ll first you So, take the Ryan, and the second.

Ryan Steelberg

really a think and obviously laying for to U.S. we're couple time, excited been opportunities with to XX attorney's in the roll extension with that obviously, laying and about just an the groundwork we've that. a and trains referenced, of long pretty mark the I to states we're offices infrastructure the DOJ, And GLC, specifically in of starting our ATO see Sure. benefits out their starting that. really we

the material deals U.S. Air relatively a -- AFWERX, those we're with Military deploy Force's been within come us see start coming, time side a but actually is to was a to deals lot for use close. which of the aiWARE Obviously, starting and the long in for to again

pipeline legal related government. opportunities more but So, GLC, very about DOD Chad? from other for we the DOJ, are with the say centric with both within also I'll and optimistic initiatives the

Chad Steelberg

as The aiWARE industry always independent that vertical any of operating developed an was system and was specific.

have we the our see our And And and I've front terms even the both been advantage their safety, take terms, security of to where they some as well really with applications with and and explore markets really, of opportunities aiWARE continued energy to new the the again these to energy be needs so, to over standpoint new markets in transformation in continue in artificial sectors, the past the pleased organization that of technology in the as evolve markets actually heavily been could markets of we team those labs of and in as year the just to intelligence progress market. general safety. both working us,

stay tuned. so, And

think into us. team some new with and big, year things we've a worked science regards markets have I on got could core over dramatic impact for that underway a data our for aiWARE that to big we've

Operator

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

now is open. line Your

Chad Bennett

the missed MRR an know it in I Pete, or quarter? don’t about in if in aiWARE Did release. for talk the I you press prepared the

Pete Collins

mix of that that we've business We've refined a just the we for We and wasn't with factor our got, significant did found KPIs us. not. that

not presented any the in KPI table longer. So, it's

Chad Bennett

I any more guess, the million nature? was quarter, -- there in revenue the time would X.X there that was in there in one be in

Pete Collins

jet. revenue would the for item the of quarter be in one-timer the was that one would piece referring one to that Ryan be AFWERX from the Yes, project, one revenue

Chad Bennett

you And that? quantify can Okay.

Pete Collins

It was XXX,XXX. a

Chad Bennett

sequentially here sounds can as talking think it. was June you think it tell And will grow the today. just then, again Ryan Okay, I it in directionally as aiWARE got quarter you about the far like, and segments

Pete Collins

a broken the the We out on color segments. given haven't

the that we emphasize licensing. that content challenges that shared -- in seeing had improvement facing comments in the think we're we're the advertising. And Ryan the especially I

sequential So, relatively those of talks QX. overall are flat, that factors basis are the heading for about that down heading looking more one a kind Ryan or directionally two that that on up, I'd one say at revenues overall QX the producing

Chad Bennett

Right.

me. aiWARE maybe to bookings bookings were with And X.X The can is that any split provide Thanks. quarter in for the one and million, GLC kind dollar there of M&E a amount? respect last Okay. you in

Pete Collins

towards in about bookings the M&E skewed is are our number that the with past, playbook Yes, was contracts the still And they the have figure of GLC signed. typically more been got, significant of accounts but in talked from in, what the get past we've we we where perspective, up ramp the this type customers. five kind following seen in we've we that

the GLC, familiar we've new we and expect more with account. as adding get aiWARE on as specifically that able to well for basis, they expand to applications Once be revenue built that account-by-account

and continue well we've adoption and as the got the and the overall momentum year. operating growth accounts that made and the really just the about the in build to excited the looking throughout reaction in as to really So, we've to system applications in QX improvements,

Chad Bennett

last And from Pete. me, sorry, one one

near with forward APM that indicated you call the imply you're on going position the utilize least at capital won't Does now. the right you've think comfortable that I term? guys

Pete Collins

to expect we capital in what said Yes, loan, term. the do need not not near need the -- PPP proceeds with additional is from we do we the that

Operator

DA question Instructions] line of Diffely comes [Operator Davidson. of the Tom from next The

open. is line Your

Unidentified Analyst

a on you This Tom revenue this I to for the quarter. is impact bit on afternoon. little the dig had on want Frank

sort impact what cancellations the versus push and in of cancellations quarter. into late visibility out about Do talked have You with of a outs? percentage push any you

Chad Steelberg

to Ryan. Ryan have We'll Frank. for question that Hi you. address

Ryan Steelberg

guys cut a out the you sorry, for question? Can repeat you I'm second.

Unidentified Analyst

Yes.

trying between color So, you that? to any have impact just and push revenue if I'm quarter cancellations outs, understand in on was the what a

Ryan Steelberg

Yes, that around quarter estimates in X.X I of we it based was started million pretty think represented and the our an immediately. impact on

events believe we these singular and some systemic. are not of Although do

for at to Masters versus so Masters. March have least you those of recoup, if the hundred this Masters Madness year, amount, is loss look generated revenues historically the knows for for not everybody who expect a thousand The majority at if do specifically, revenue So and dollars rescheduled as of several those we an immaterial us.

basketball tournament not obviously The NCAA is rescheduled. being

And as just businesses, lost and and opportunity there. think healthy, important as relatively sit so, we resilient all I strong But other our the look look pipelines on they is is at here what look that we again, for today.

With the the licensing of predicated sports to and of and in, going be other is somewhat up up, leagues exception opening back which professional going back sports. discussions still opening lots a these other NBA production, work to business, lot potentially and upon there's of about

been with Tour. the As exception we the sit PGA definitively has here of today, nothing rescheduled

Unidentified Analyst

GLC And result a of the pandemic? saving you any impacts then vertical have seen on engagements deals and the the or perhaps timing of as the

Ryan Steelberg

not the delay, a bump. are and products the it for and identified. agencies say, tiny orders directly in deal also redact appetite and police who bit into specifically themselves little And the and that just softness I flow some to it's put demand a is been and necessarily of wouldn't the correlated definitely has a has been just and Part stay COVID-XX. of There impacted there at home out into, by services

pretty That being the our pretty license Police a excited Anaheim recent we city self sized operations. Department said renewal of vote for with good in press and you -- and for did was can having Council that we approve did the City unanimous release, identify that the a are

point us well other for very to bodes agencies that So for to.

we course of year. have So, but -- be we seen we impactful the do don't over softness, believe the it's overly going to

Unidentified Analyst

the podcast any performance the then on have I Okay. quarters one last And few updates tools do market one in recently they if you put may, introduced of ago?

Ryan Steelberg

our tech I actually primary beneficiary tools, to monetization those you're technologies solutions. think podcast The referring of is own The analytics new the group.

target roll think into in in have I've clear, target and entire the again, about. I started provided to out we're clients, look really to and shows advertising different started to just the categories. targeting excited analytics to just capabilities we've tech these very lieu And leverage specific can So, tried We now by which be our topics contexts, that's shelf. own against

And so, push that's going big to be really initially. the

to own groups, technology to we're but technology that in a starting is ARTXX beneficiary Veritone of addition One In actually monetization license I'd that few and externally, the other primary group. our say

Operator

our [Yolanda [Operator Dee] comes Private ahead. question Investor. Instructions] first Please from And go

is line open. now Your

Unidentified Analyst

I'm on thoughts shareholder Thank reschedule had this your very sorry you Are that? the next it you. year? meeting. or cancel planning to on year you to trying conference What's

Pete Collins

lot into meeting. effort of Yes, we a of into We preparing put effort lot for this put -- is the a Pete. shareholder

we was town it to sense conference host not because logistics to Conference let made be the the ROTH be meeting. at -- offices the between coincide folks it shelter time and and definitely the with and like meeting, but of that correct from many myself, So, proximity to me them it And in of perspective a our when would in just our investor would the office.

back the doing excited once to schedule. kind pattern, host and But kind normal update that of that normal got a things the most reevaluate operating So, to getting back investors something the get we on more and likely year. to back later look in forward and were in of we'll we it

Operator

line of [Chad comes Northland the Your next of Latimore] Capital. from question

Your now line open. is

Mike Latimore

guys, here. Hi Mike

Or media a here? You was timeline entertainment. exceeding you GLC talked there? for thinking the are about What again what

Pete Collins

like see mix XX-XX but today long-term I M&E versus the opportunities GLC, something timelines more a is might, term, of GLC. in longer we the think

just there. And of the than grow M&E is so TAM because will out GLC faster

Mike Latimore

that? of Content rough what's kind the margin licensing, on gross

Pete Collins

margins now is gross low the tipping is, in the The overhead as relatively low well. the XXs,

our level business is kind on margin rough margin lowest lowest operating a basis, gross but -- for high good business. it a our now it's So, of us,

Mike Latimore

on going Is expectations? overall. meeting Is be like sounds just that well more color COVID the Is it that just of of bit of a Then kind expectations? that little last as podcasting, is stuff, it because head will tell great? slower

Pete Collins

Yes.

the in for clients remains people podcasts not work demand home. consuming also But podcast of to and the during strong. as this think taking The the obviously benefit. performance office always at of relates increase, sort has event, there kind and our been the continues spent a disproportionate time from I being of just business advantage very rate to

still the high. So, investment advertising within performance remains board, in for higher maintaining are across of the the the demand engagements podcast is

Operator

no are remarks. the to back Steelberg Mr. closing in I'll the turn further queue. questions call for There Chad

Chad Steelberg

you joining call. and us thank all today's Thank for you, on operator,

solutions As this I team of very said, responded I situation. leading tireless focus on months, each of them in vision entire AI personally efforts continuing to for world's the their pursue am unwavering proud to has their thank our to way I our past and of for company. two the the challenging building very want

they in opportunities are businesses and progress. to positioned you have huge Good been have forward our We capture them teams bye. ever reporting our on We than look to better our before.

Operator

conference. today's concludes this And

disconnect. You may now

Veritone (VERI) 11 May 202020 Q1 Earnings call transcript