VERI - Earnings call transcript Q2 2020

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Operator

Good day and welcome to the Veritone Second Quarter 2020 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Brian Alger. Please go ahead.

Brian Alger

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

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

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

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

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

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

Chad Steelberg

with efficiency transform and ingenuity, which the driven Thank you, together quarter, ever Helping determination. our has talented by resilience our our team, our The AI unprecedented Veritone strongest and posted was results their times. to worked customers turbulent leverage improve operations. despite financial this Brian. and success technology

result, we a And which QX midpoint we $XX.X revenues quarter XX.X% of accelerate estimates $XX.X goal year-over-year by up for X.X% of and sequentially. a forecasting As quarter of results the would represent X% posted that XX.X% street year-over-year full second effectively sequentially. are million, growth and million,

record operating system world-class AI QX of of AI and AI differentiated services. Our applications of the demonstrate the results diverse and our power our portfolio value powered and

side, march fourth shifting profitability achieving we the in cash towards On our the flow year quarter of to breakeven. last continue and cost operational focus our

quarterly continuing XXXX We while simultaneously non-GAAP reduce by XX% have We're seen our growing since at net to committed million. $X.X double-digit to losses net moving of non-GAAP loss revenues our improved rates. forward, our to QX

cleaner, quickly to to and of the their giving agencies serve communities video even and effectively spend, optimize companies content ability easily more the their and protect and archives, transparently and affordable earlier making from clear fog critical effectively their parts days the that more helping technology are somewhat the our is efficiently. the AI are And that their accelerating from that of the and audio energy the to impact and advertising operations we reliable, execute government helping search delivering owners lifted is that monetize pandemic has customers Now of businesses and implementation possible, power. across deliver to enabling more

ago, has them the ambitious to and worldwide. we immediate resulted future. simultaneously achieve with see in and operating of developing reinvent an only world. customers their powerful the to solutions industries, patents been virtual targeted automated six and to building an is revolutionary Veritone's and help AI have the operations and on AI that they AI recognize reimagine help proprietary of growing their goals, issued that focus best partner opportunity XX increasingly Our inception technology while initial over our an base, focused with deliver a technology. measurable pending system And solely Veritone value Since Veritone's and set AI years

result of Microsoft, companies innovating and Veritone's infrastructure poised of some our Veritone now cost and is clarity many we drive But while technology will to warming and for global micro is energy, purpose, where efficiency, technical solve have and allows that of help reduce suite and Veritone new and executing across can the green every time we use together challenges believe U.S. loss. progress be tools align future market. fields short AI are of the more planet how of applications developer sharing its and markets on generations. not Carahsoft. such renewable every that generating system But transform industry build damaged are this aiWARE are the and issues, next existing The out revenues, investment customer integrator about to and unprecedented despite we and we energy billions applications positively and energy these a making coming best accelerate us help based renewable the operators. our have aiWARE world's leveraging deepen our the As of movement cost-savings addressing will and our for rather partners and energy geography, and and the global cognitive a of and which macro inroads impaired to energy energy, only impact flexibility key and energy grid alone. of the reliability, with helping in to like technology In and relationships, as we exploring tremendous weeks, CDW-G

transparent, that vibrant, more and increase important artificial to and belief more aligned goals be founding safety more trust. Our a we key will maintain in to to with These to are empowered public create public transparent intelligence helping able efficient is are our building are that while safety that and police effectively, helping society. public solutions a forces accountability safer,

off gateway the active to future as increasingly are The necessary We to is shaping some I to you, as We solutions better Ryan, Co-Founder future. powered a be better. revolution like Veritone idea, survive. are an and the determined discuss a leading is to cases operational that, some progress Ryan. over and to our the hand it’s President and contributor in AI our see would for happening greater compete, to Over to seen our not everywhere way. call now With to detail. AI them in simply far

Ryan Steelberg

you good afternoon, Chad, Thank and everyone.

we had strong all we indicated, much quarter, we expected May. better with second Chad As you in spoke than when a of

before focused very of few results. this to proud during agile team's our We unprecedented XX.X% They well, baton business a our passing are continuing strong contribution business, and back outlook going and in to discussing minutes performance to staying year-over-year, million, we our are a spend strong truly quarter record $X advertising and our In from each environment. VeriAds I'm generate Pete. including immensely revenues over businesses quarter up of have our responded had the of second network. a just

client's up across focus to platforms Our and in leverage programs. this significantly year-over-year continues aiWARE demonstrate agency strong was ROI margin multiple and X.X% and a to digital to It sequentially. space our our our social advertising outperform due wide on ability X.X% to business optimize by to platforms most peers

spending did clients in than most the offset to winning some ad -- team expanding second job clients the great agency more a existing of and quarter, in reductions by our pandemic. new with which business due Our business

have traction VeriAds our see network. started to We also great in

over XXX our and digital in influencer advertising spot have existing on impacting November, launched radio incremental their now influencer opportunities year. stations we this these We new advertising our While program X,XXX up ad and this without generate influencers past to bridge easily for revenue create over open for native network and opportunities advertisers. ad just networks new active participating unique media partners sales

of network forward, Looking advertising our to as better video advertisers our business from to licensing licensing expect social where much and expected. macro deliver our show market. the search business, continue premium quarter our in platforms our content reposition revenues overcame outperform to advertising content tremendous headwinds index, aiWARE and digital other strong had the power of second and both Agency content we originally segments we we growth team In a QX VeriAds creators, for to than by and leverage

canceled many slowness continue sporting television business, has events team our to the added headwinds, including customer base. and production in challenge new of broadened and film and this the While libraries content

will result, and we As we traction will to we a when so larger and revenues we from. a to able college the base quarter, restarts have sustain be sports second back, believe in come production the and professional grow content created

licensing, events. year-over-year, down of were from in services due terms $XXX,XXX revenues highlights event performance lost within including In revenue to canceled sporting content live XX.X%

only down event live revenues Excluding were X.X% services, year-over-year. licensing

digital and expanded served new content expand expanded and of with and influencer Collab partners our diversify agreements StudioXX We new our and in of continue base firms a have licensing that including content, with business. like this number premium relationships market to

While to team revenues Shifting Revenues and expect growth customers were able solutions. are XX.X% to with year-over-year, in start the business, QX, new believe from continued content growth slight could over stabilized we licensing we media reflecting pandemic our the revenues and just to professional has see sports our sequentially. we SaaS if entertainment $X up businesses. impact million, and our energy to QX, college continue the during

with Department SaaS, to account had number largely iHeart expect in very including through relationships the due customer our station including we reflect, portfolios, figure a issues, beginning revenues in While QX, our our X.X% under media. existing QX. KPI we a program generating down to expansion point seven quarter, QX, expect we of in tables Within Defense of In that attribute development customers. M&E to they sequentially across growth subcontract we were as of to begin timing strong second bookings continued start saw

radio increasing WideOrbit in is in addition TV highlighted we also generating press our station to among recent networks. attention Attribute the release operators As

insights VeriAds SaaS our within with give M&E agency greater to partners, believe features and we finding our increasingly which and are will our new us synergies increase and Finally, products group, differentiation. develop we

our [ph] by capabilities. linking the on-premise see We aiWARE's expand potential addressable also with market cognitive cloud-based MEMS to

new of a exited Their Our GLC second GLC all foundational SaaS bookings. generated business the revenues had quarter XXXX. in bookings in quarter

Discovery OpenText we to their and data. structured Xact Oasis, large tools of like Relativity with furthering, Data multiple partnerships legal vastly Epic technology MSPs reach that have quantities eDiscovery and formed Additionally, have and ProSearch both expand unstructured process potential. cognitively revenue and integrated our enabling like aiWARE Companies

of systems, as also Information of adding a software of with to a partners. have surveillance agreements in Act Freedom processing recently specializing list and with provider as channel leading We signed our provider well security requests,

business to sustainable from being based Importantly, GLC activity has more contracts. to primarily project long-term strategic and our begin shift

will expansion through to expect bookings our continue we be GLC revenues, and further projects our component pipeline see of GLCs to channel While technology an important of partners.

new revenue Veritone, aiWARE SaaS revenues verticals. a introducing Since markets line. we application said Markets. are have Other subset of we within SaaS we and founded those industries across and find our and quarter, use This represents opportunities other aiWARE industries called that Other revenue multiple our would

the our tables, the with energy associated As visit to that page were the revenues supplemental projects We shown generated in utility. other an technology initial website everyone U.S. a net our around renewable many other $XXX,XXX world. second regional be our used more. veritone.com on energy can energy quarter. These to of believe with revenues in aiWARE learn in solutions at I project encourage

transform initiatives, will we and our to provide and our for now to look solutions. by targets, new integrating see potential Collins results their organic into guidance. the review products our quarter around financial for businesses into entry to details growth their opportunities acquisition second financial addition grow our and accelerate Pete Pete? and we markets where In aiWARE continue

Pete Collins

have units. already quarter this good Each should and our you released Ryan business everyone. of we provided earlier afternoon, significant on Ryan, and revenues the the you, has access color of results Thank to afternoon, second

the Our pandemic, impact of in offset revenues COVID-XX growth X.X% strategies year-over-year. which resulted net are our the beginning sequentially total and increasing XX.X% to

the review results, weren't couple a discussion. As I further financial of items

basis, gross revenues to revenues year-over-year. are the software, contributed account our The Ryan advertising in were quarter, VeriAds costs, performance only net second trend is but the our and in on an are the improvement our XX.X%, is to strong to growth which previously, the In computing also quarter. our margins basis. we points As VeriAds We while continue. upward of expect revenues the due a for reported non-GAAP which primarily we on made gross second agency a XXX more stability, benefits basis enhancements year-over-year reducing not and aiWARE have our improving to these mentioned than

then, and initiatives XXXX very quarter operating to in have and deliver XXXX. initiated our we cost discipline. cost in Regarding significant These Since we March, of costs, have reductions. maintained reductions additional cost continue the effective been aggressive actions fourth strict

compared XXXX expenses decreased by expenses Our focus first of have the with second of an by cash our we decreased third operating cash since XX.X% second annualized XXXX. quarter quarter X.X% reductions and the and quarter compared flow operating With $XX.X of breakeven, cost XXXX, non-GAAP on lowered million the by on basis quarter of with our XXXX.

quarterly dropped lowest them since reduced of tight quarter million achieving since sequentially each have net improvement, toward we have XX% despite company. reduce non-GAAP quarter our expense past disruption Our the the level our pandemic. net a of have non-GAAP XXXX, quarters, controls, losses by the breakeven, we to three public the us our with been shifting coupled third to $X.X and second gross the margin flow focus loss revenue caused And reaching cash helped

continuing to breakeven committed cash flow our forward. are going to drive We

While compute costs, expenses are and outlook. our to don't in see as our we gains engine we adding we cognitive continue selectively expect to further cloud our overall growth in incremental to see talent support reduction now efficiency operating

As of cash equivalent clients million from vendors million, cash for XXXX, $XX.X $XX.X payments and received $XX.X with we cash had at to no advertising future million XX, of compared XX, long-term and June December XXXX. debt of including

warrants, we at through second exercise an and million per the of of quarter, share. $XX.XX price raised of the million received $X.X During the average from $X.X sale shares we

of reduce net needed cash us Our raise. losses the allowed to non-GAAP to lowered have we have amount significantly

growth, operations. and cash need operating our until reach cash reductions, to compute reduce burn we'll the control minimize revenue We to cost raise from expense and combination continue of the to amount expect cash of flow we breakeven to

third our of quarter guidance the Turning to XXXX. for

to our SaaS businesses. expect see in We sequential advertising growth and GLC

do year-over-year. million we result, continuing and of further the burn expect sequentially NFL with $XX.X the this growth cost again, clients projection range that the Football will net million, schedules third our have advertising and in midpoint range to revenues represent and this position Open in quarter as we As a supply our once our the of of Based that $XX.X major line to sporting and in now Tennis to not believe controls, disruptions be on sequentially. X.X% U.S. and experience total College revenue Revenues should be chain for reduce XXXX would such occur assuming a XX.X% of seasons cash current we events,

to non-GAAP loss net to XX.X% the the million. XXXX. quarter third to loss in third we of or Virtual To a represent our with We encourage meetings their tomorrow, of the XX. investors brokers would range range improvement expect We at at of directly be $X.X $X.X the million respective And out a reach to over net institutional Oppenheimer investors Brian event, connecting arrange that non-GAAP quarter midpoint and August forward look to to Alger. Conference contact at this analysts

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

Chad Steelberg

driven mission ourselves the intelligence specifically in, the and products of helping aiWARE. we artificial questions. innovation environment unprecedented in the few before more to of transparent the briefly of new of wave AI leading which pipeline. And a to open world I'd sense core we empowered Despite safer, and Veritone we with with highlight build pursue next like a find urgency floor at renewed more a through to Pete. our you, a Thank to Veritone are is of number

to automation for six the code wide prepare months automation. range a Automate accelerate helped used the see automation of AI our processes helps production our scale. that low AI beta enabling First Studio internally of and and applications. new industries. applications our this month, expertise, set a and will release. enriched AI across to will development reproduct launching process workflow at it we out believe Studio go be the past applications tool designer AI new we over Studio, we need hyper Automated We we have to of publicly thank development And Automate quickly easily this process organizations for that customers bringing us And widespread ready Without have for code low business standard

has much both on felt number needed we of accuracy performance, the hidden mass on Veritone critical begin engines imperative an that we AI running bias potential clarity that and reached of aiWARE, shed and customers cognitive in Now the models. to

you mind. you end this give new need visibility harness you're and which Veritone Clarity chief user, important of Veritone an that application officer scheduled of addition risk our peace full Our an Whether is on. is the to for fall aiWARE rely the customers the trust with artificial will suite release can or potential a solutions intelligence of AI confidence Clarity to practical and

developing acutely current first been partners our I've standards health a and working what rolls which have reimagine AI sharing. with code crisis on from are to this it in look forward have global exciting we I and for a support named sharing program, aiWARE details like on out look of we scale VeriSafe this customers an new COVID Veritone, framework on safety new the monitoring been and With Lastly, to information society. beta more top and safety aware should quarter. of external to health partners as

side to would Q&A pioneering economically, balance time, augment benefits As the socially technology intelligence by to and we to are that intelligence Veritone ethical committed that inherent of a the history redefining be responsibility financial begin of artificial this is our geopolitically. success, we comes continue on artificial reap with with the at We we acknowledge and continued power and the Operator? human right At session. the of determined intelligence. global like

Operator

Thank you.

with ROTH. Aftahi will question question-and-answer Please from Instructions] go session. the begin [Operator now first ahead. Darren comes We Our

Darren Aftahi

the out an company. quarter, big opportunity to of -- what and your talk products slightly about that I I I for you made some how of growth kind of in produce that that how well. Hey, you SaaS. of my you're mentioned utility taking quarter two, GLC. Thanks components about in you just Could it's mostly legs it that? you sequential of questions. up a Can this, Chad, guys. utility the by Can energy may, kind revenue you're on comments, on are like you of your talk I you If quarter. company, it's differentiated? one, for first a And talk is kind and obviously Hope each there's doing sounded the the it over of those? for advertising what growth of of one, Second million, called -- revenue with the think and understand know sort

You also called out advertising your business.

did So, me, receive more DOJ the in from granularity. And bit a any revenue quarter? one from you Thanks. little last guys the the

Chad Steelberg

Perfect. the for so Hey much Darren, thanks questions.

about So, innovation the initiative, energy delivering existing -- as and last And know, are over industry proprietary realities AI. others Other oftentimes utilities. renewable our finally new which focus main with energy briefly -- mentioned on and with years, as the have rolled and through greater and dealing even public efficiency in sources, we of infrastructure, when incompatible and solar, on resiliency we economic our we've the disruptive wind enabling quarterly is with at odds such call this out QX. you the it energy that in our focused sometimes

and all entire an infrastructure is batteries, to cleaner and smart the not helps as backbone and they result, and systemic a a hurdles help is What's energy technology clean model proprietary and down reliable our found way well is intelligence create controller on important energy. a to our our to vectors. equipment aiWARE, can to accelerate resistance user But as forecaster As our mitigate solar such suppliers, optimization Veritone these it running ecosystem our path solution, controllers, number se. more and per and a grid as micro actually inverters, coordinated of artificial energy significant have that the energy note from from end such meters. as operators devices macro intelligent supports that Veritone technology

pose So makes it our energy some future. diverse potential customer and extremely in the growth base and is sense. significant for That

Darren Aftahi

Thanks. does. Perfect. It Yeah.

Chad Steelberg

one the take breakdown? you next revenue want to the on Pete,

Pete Collins

I'm -- Sure. Hey, Darren, it good. how's going? So

So, growth business. on focused the is a talked about the that revenue parts we of couple

picture thing that So, continued what in look got beginning with is, advertising, the of And a we of about revenue like -- in at we've business. nice gets basically is growth a existing of that to the customers. quarter, see revenue the of we've once to part it quarter the in locked going very the number our solid

customers course about we really about of the third we that real one the the for bookings Ryan agency So, the the advertising second talked over feel we're GLC, QX. that existing the in the revenue that business good and was, part in things QX foundation with that revenue in of had lays growth growing of strong over on In counting quarter that business. that quarter, growth in the quarter the

fall today, that's in or we other see other We're of some -- events and licensing out them we stay -- that that things aspect don't the would the of business the part this So able obviously third control across are at that to remarks. especially But in see to our the are as we favorable those honestly, get content point. expect revenue if that of the dynamic of out a bit some events we all kind quarter. of little see some that's sporting we business parts -- expect the our and called in if a be sporting off think breaks I some growth of

but certain the that, sequentially about and certain -- GLC. definitely So, necessarily in growth about revenue advertising not

Darren Aftahi

just And helpful. then the DOJ? That's from revenue Great. lastly, any

Pete Collins

yeah, no, that. recorded so under in -- no DOJ QX revenue

May. that remember signed in If just got you

are to revenue we QX. training everything so, second ramped in up, quarter expecting see spent a the DOJ getting And from lot doing the was basically of and but

Darren Aftahi

Thank Great. you.

Pete Collins

Yeah.

Operator

comes Walravens Securities. Please with go question JMP Patrick from next Our ahead.

Patrick Walravens

another general? realize more that's But yours spending the for question, that tend I is to a were congratulations be helpful. you. picture and slowed one and AI look, to is sure in Chad, of was talking Great. projects like way. And CEO enable AI really public focused QX. Number a now for safe ask around particular employees companies quarter to company work-from-home, making big of context, doing comment when on in that for and to to want the Hey, they whom two work-from-home. priority guidance everyone I their this for his spending And around, is big of that things what enabling in they're we Thank which the you is sort number

then so, it's which three. security. number of And And are used number around lot projects, be one cyber to a now our

And so that cause your sales cycles of of hear how sounds LinkedIn and issues? to it deal different love you. sizes like kinds things to have go you your team are down. And for I just those then And working And sales around reaction.

Chad Steelberg

is question. Hey, Veritone a At part in different think level, of the ecosystem. Pat. macro very AI Great I

As AI time of both operating cloud a you environment, yet remotely. been local operate an an but on very building easily that amount and we've basis, spending in can exorbitant any system access be can know, deployed also

where then applications on you what security the hundreds like the which how customers do staff customers, from And their touched and created, their that processes, top not them, capitalized then biggest you think home, the as -- of I the And how moved, you've has that's certain third. really And there, companies and Pat, wave, about which that loop we specific of from how building the one global you sort only media customers, data in infrastructure automate protect first how very which standpoint, obviously to be safety Department are tackles basis, but completely billions, effective how and do cyber mission-critical. think only is need ensure solving -- and which opportunity a do still and second you which if to were way this a Veritone changed customer working really systems and like you use of entire the of be way and do communicate Justice for remote not of which in processed. your Zoom effectively movement security, loop you're to the also cases disrupted automation even things so and is is before communicate is and processing efficiency home evidence is and leverage your do as from data crime And information, entertainment. everyone tackling, in really others and when you on So, the that not jobs forced a information. corporate security on. and of to millions, in in collaboration with for have and drive employees humans working on, of identifying it's suspects human literally in that, -- and communication

about those for as So, And the technology a was as talking honestly, were lifting, of problems available upon not become heretofore I'm to lot very humans. reliant data I'm corporation only have about computational in and able that heavy challenging cognitive more And they've more those employees solving just moved home, the talking themselves. to do that only lifting. actual capabilities of

they they our With at scene, remotely. wanted were that never view the they crime do analysis footage the or to the on do can applications, corporation. all new at precinct when or be the So, aiWARE the to required

is technology resurgence So, rolls rate the technology it looking it they're corporations institutions finding in at as you're we're think success real and -- is they're at seeing is to seeing I as a our great what and But out. and what to people of a least finding AI move of continue enable forward. with accelerating, to -- disruptive what them adoption

Patrick Walravens

Thank helpful. That's super it. Got you.

Chad Steelberg

Welcome.

Operator

D.A. ahead. from Diffely question with Please comes Our go next Tom Davidson.

Tom Diffely

me Yes. afternoon. letting for Good ask Thanks a few questions here.

what just follow-up off talked a about to And their of as what first and going pull forward. AI looks some the far facial on kind you be of off if their a one, big from been facial you responsible companies what kind from recognition like is systems. wondering deciding picture that as recognition, It networks has AI these of is view programming would impact So, the of could Chad, of a curious of great.

Chad Steelberg

news the been with I forefront Yeah. the lately No. around. flying of that's think have And BLM Great that obviously models question. of at the been all

know, period, or transparent, be seen, any we've create belief not we've of for and company for on problems. the we the technical justified responsible Word other technology website, is and you will if center matter. it on you the solving And challenging that front ethically the efficient Hammer outcome, stated key Microsoft and a like is or just AI AI this society's more ever AI some action. that not like is that innovation uniquely a and to like help our As founded most

Now outcome here the starting to now really AI more not was basis. accountable responsible was is to responsibility were for to, machine. held that shift humans shared solely, something And that that and

sees can Veritone itself the we live better share in a financial as to in we benefits, if we partner serve. outcomes, not also only but obviously, industries the provide we So, expect same And with society.

at that in recognition remotely, able look I've identity able security safety being a think -- part facial happening and like the use et use is of standpoint, cetera, to cyber the So, world the changing is of management, been AI a we Pat’s what's from recognition and that of mix. to identify and public to crime as of I that and all scenes question facial suspects last process and

a we amendment the of very the into but that way in laws so all rights lean that it, way, we in a transparent taking do with we first So, necessary and protect. conforms very ethical

answer question. that hope the So,

Tom Diffely

land then, to your for a curious, and you. is international opportunity there the station expand And the what I'm for -- across your your you? great. and was expand strategy in with No. obviously, radio relationship asset how domestic much great Yeah. That's radio is stations in

Ryan Steelberg

Hi. that. Yeah. take This is Ryan

domestically opportunities growth think groups substantial OTT online broadcasters internationally related there's networks. both and in and also and still in streaming terrestrial based I

and reasons few talking these mean, Chad of large a operations, more I was bringing the to about and to their helping are are analogous employee lot accelerate corporations and productivity resources kind working home. -- and basis For efficiencies tools our somewhat -- while what of a from

to the home also verify they ad bringing placement bear a and example. analyze how all and augmented assessment whatnot, the delivered real-time same feeds of to checks. that's on complex doing topics the we're -- government remotely. similar entertainment. they compliance, do or spot can Salespeople can device, do literally for and exact very in So whether pre-produced and from trending efficiencies Programmers media get native and get a very remote thing legal can we're and can mobile We this live results fly and their integration enhanced

So, more helping I not -- just only fundamentally not in growth efficiencies, being middle we're they're bring think, are transformation we AI, a right but solution opportunities. digital as but revenue incorporating of the

we enterprise despite So, broadcast maybe groups dealing to with think increase opportunity lines our significant but not continue those in in see we and that the I develop what legacy we product -- of absolutely, other because also with, headwinds as aspects, current even just innovate.

we'll think success. I see great

Tom Diffely

the of or were. look what wondering That's quarter? at how during Pete, hiring, one-time Okay. impacts expenses finally, the you maybe kind in No. has impacted the I when -- there And the helpful. was but operating term Great. of just structure, decreased assume expense one cost -- delayed it COVID travel,

Pete Collins

Yeah.

So, basis. our year-over-year on and for of was reduction quarter travel the probably the the Tom, a entertainment neighborhood $XXX,XXX in in expenses

Your headcount, attracting talent quarter. and about in job honestly new great comment actually a a we did of adding

over about increased course XX the people actually headcount our quarter. we of by So, the

really I of were and onto company. found people we some we quarter erupted, little increased think pleased our the people talented really the team second but some us. our over great to back late the slow quarter, kind a were join of of when the the things in And actually course headcount very with we first brought So, -- pandemic

Tom Diffely

Okay. to today. time your Thanks. Great. hear and That's appreciate good

Pete Collins

Tom. Thanks, Yeah.

Operator

question Our with Please from ahead. Bennett comes Chad Craig-Hallum. go next

Chad Bennett

Great. questions. my taking Thanks for

Pete. for one maybe So,

total was in then with and looks that sequentially, does a down kind like record XX% bookings, How about that GLC vertical? was around couple percent. rhyme [ph] RPO definition RPO, So, from the does commentary current standpoint, down your how rhyme just of it -- especially a

Chad Steelberg

this had -- capabilities GLC rollout has build off and the a in with Well, successful basically to contracts low it been vertical, base the to new quarter. very of, -- Chad, particular the was in getting of able enhanced

As got where into was quarter bookings. range it first we the said the in figure that it seven

that always business, that not we -- building So, board, we're perspective we're in revenue we're Across from do is are the consistent as what with seeing the there pleased the growth see market. quarter-to-quarter. a really

not other growing the and there times one to pace. up the might step-up bookings of for so, are same business picks And really was where GLC this as in the the one be while And great at part some quarter deliver quarter. the

Chad Bennett

Okay. And then maybe that a one. follow-up on

the to that guide respect you with Just gave. September quarter

at are and SaaS indicated described up you -- the potentially to are like sequentially I if it What to thoughts aiWARE least to content GLC -- we rate But nice aiWARE September they or SaaS you at right, obviously I get quarter. have be pretty sports think in I business, grow the revs, your be going if business there's on sounds going back. think some again, overall quarter? just should revs advertising a up said, that qualitatively sequentially, overall is on September in upside some the

Pete Collins

up quarter Yeah. expecting sequentially. third in We're overall the be aiWARE to the

Chad Bennett

Okay. Got one quick. it. Got it. And then real maybe last one

know terms in with up. of of we about could be the in we way just just where mean, standpoint now, them that contract? them you're upside going potential months let's -- I from do Just six any magnitude getting DOJ, ramping a and relative say I have thinking the

Chad Steelberg

No.

build there. And too if that able to And -- I that update a projects and as forward going, we will, get that we that our think DOJ. the within approach doing that being about various do analysts the you kind -- look with development pipeline of people investors flywheel and offices and of to our case of and to a -- level case with by of lot on starting trying ourselves get that's and as an why and results we're of to of mean, is days in training just I the in bit exactly difficult there. we a about in the get in be we're there. and giving upside you very But the development forecasts. is to where what opportunity a position ahead we're making it. pleased not that excited early quantify aggressive we're It's update it's sort

Chad Bennett

Yeah. my Understood. taking questions. Thanks for

Chad Steelberg

Thanks, Chad.

Operator

Latimore Northland Our next Capital. Mike ahead. from comes with go Please question

Unidentified Analyst

is This Could Yeah. Sahu Hey. [ph] time Hi. tell what for hi. you on hey Latimore. -- Mike -- Anchal me

So do same level the segment as SaaS what media you could horizon me time reaching government the tell you and see entertainment?

Chad Steelberg

I'm sorry.

just rephrase that question. me Let

the GLC media revenues revenues? over what asking entertainment up with and You're the we're timeframe match to going see

Unidentified Analyst

Right. Yeah. SaaS segment.

Pete Collins

Okay.

think right is in The coming the is bookings stands and of we've indicative SaaS GLC the from that media strengthened. there. But I entertainment. now, as revenue QX bulk aiWARE -- of the still that strong the got growth it

we GLC, at the also to the to about internal of entertainment parts grow those we faster talked have and independently. it's see business having a about of think and trying can serve And M&E. Frankly, going scarcity balanced in. markets we that see station some expand be with there needs radio grow pace, but media to somewhat no a them those to Ryan that exceed of we're two. not customers So, both opportunity there's of frankly, concern that other developing to growth see and There's to groups, kind GLC resources in of between the continue we

and long-term GLC, pace else support to we still growth the be businesses in is add Ryan, space. a there -- opportunities see is on the to see So, want the we you'd anything media lot in but to entertainment of faster going over that?

Ryan Steelberg

would that's in, I energy potential as we're well. obviously we're optimistic opportunity say about looks -- like early -- well, Yeah. on but that very pretty just what

focusing and new point, kind accepting accelerate, the which non- lines, confident processed. Veritone going include but M&E, they our -- other to you to those are definitely is continue growth to and aiWARE that part the other our Pete's are we're staff line entertainment if to initiatives the being media items, So, kind based of of have potential demand is we're not of disproportionately as on revenues, we surpass

Chad Steelberg

me let this is -- Ryan, Chad.

one if can. company rather I automation are important industries more and a with Automate color that the just to emerging. give category, now now longer noted but that hyper restricted Veritone in Studio, as also Ryan, regulated to Pete no the really me or that's is It's note just Let we leading to by

well far what more that that our going based to so, are and And historically diversifying it's of type SaaS we use a think aiWARE and toolset. industries important with are to have I be note really omni quickly outside solutions into solutions served

So, again, pay that well. attention to as

So, much another, markets don't tackling one being an company about in so vertically AI focused generalist, as simultaneously. or multiple but rather a think

Unidentified Analyst

launch? your built size has That’s pipeline helpful. with Microsoft? the And Yeah. what And size what how of May -- the it since

Chad Steelberg

want that? to take do Ryan, you

Ryan Steelberg

Yeah.

enforcement. in kind for a us almost has pipeline Microsoft our co-sell state of from and exclusively law think I focus local on representing -- historically -- been

we So, did this.

and very the terms United That's thousands of pipeline main thousands the strong. across between Sheriff's in departments of does the police collaboration and today. of So, there's efforts Obviously, States. local Microsoft and look sales departments Veritone kind

suite identify those for is And focused see three public pipeline eliminate. products. again, demand still high primarily of and our that's redact, And so, application all the safety quite large. on three in very, we very And

which to see very -- accounts. tap high a mechanisms we so the great and Microsoft does it potential of by And ceiling into as one agency provide those different

of again, specific the high, size we're is but of very handicapping opportunity. So, sort not pipeline a

Unidentified Analyst

Yeah.

last government How versus pipeline predict and legal And is the much you. another Thank one. Okay. of application?

Ryan Steelberg

question again? What the was

Chad Steelberg

redact that in And of the others? in It department pipeline. assumptions -- is actually department legal not in the pipeline our How was is versus redact. the much legal goes

L come little Relativity Our set we and them GLC project primarily work. and through and of and evidence a based video as that done part tools eDiscovery misnomer. our makes around a of analysis. that its audio others to the that down MSPs of integrations bit of It's about business way with a Epic like is talk That's primarily we've

more they're projects project. of to any specific analyze quote team the Our audio defined do It's case using software in video of for discovery. doesn't based evidence our staff terms actually and this and

Unidentified Analyst

Thank you. Okay.

Ryan Steelberg

Thank you.

Chad Steelberg

you. Thank

Operator

any turn for I session. the to remarks. Chad conference over to Steelberg question-and-answer our closing like would concludes This back

Chad Steelberg

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

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

huge have and them business opportunities ever teams better are before. our have been than to in positioned We our capture they

by While be know I not many address in bright, would the I times. these being that future if is difficult hardships our did we faced remiss

with times ones. have lost who values are loved are matter, especially At those that connections that these, everyone impacted relationships we this prayers by reminded like Our matter. has been who pandemic, and

look serve. In committed We our has being together customers and to progress. pandemic a addition public Goodbye. the to crisis mobility crisis, communities Veritone helping has health we this you forward to to and bring on in created reporting the

Operator

The now presentation. concluded. Thank today's you is attending conference for

disconnect. now may You

Veritone (VERI) 10 Aug 202020 Q2 Earnings call transcript