VERI - Earnings call transcript Q3 2020

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Operator

Good day and welcome to the Veritone Third Quarter 2020 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note 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 third call. Good of Alger, and Senior Brian Corporate Vice I'm President Development Investor Relations. After a press third today, Veritone results closed XX, the September quarter the for ended release market announcing XXXX. issued This of website. section the our press is release at investors available

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

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 these report results Annual for forward-looking the call net the X, obligation XX-K and November 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 fourth

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

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

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

Chad Steelberg

for quarter measures, by I'm record was to QX report a Veritone. Brian. proud that you, all Thank

More and smarter our data mission to power on public build importantly, a safer we and through intelligence. help conquer the organizations to artificial private world are delivering complexity, of

to renewable Veritone their operations, and intelligence in artificial continue is through XX.X our that of from our the agility, solutions, We powerful in year-over-year edge record a times helping XX% accelerating build aiWARE energy. board, XX% adoption anchored big make by resilience QX in improve systems. whether adoption performed law matter helping the million, challenging operating increased Across it enforcement with the skills the improve areas customers up quarter. cutting by team or our to and transparency last revenue of investments

which our in Our and government, momentum Veritone our received the launch legal, Energy, markets. presence or was boosted media by and augments well compliance and entertainment timely and growing

from quarter year-over-year, a million. QX X.X XX% third loss record XX% by and non-GAAP decreased Our net to

software we This forward. saw and from moving particularly in momentum by future. fact continue increasing And XX% is foreseeable highlighted the GLC the our businesses, QX we revenues build expect for sequentially. will solutions continue line aiWARE’s bottom usage, faster exceeded continues this and about guidance But this significantly not cash August. about growth top results reduced we both cost than the trend story to believe the quarter And or our Our increased savings Revenue expectations. in accelerate we by energy our that and to to growth. it's which provided year-over-year, XX% increased is fully

excel supports of to the NVIDIA in cloud. to awash sources. capability, growing more are green our leading the NVIDIA are grid all. being we've energy has [optimization] address an for make and to or whether accelerate. Veritone to to trust creating improve and but [Technical stride boom. is Jon. both or to and of grid quickly too with very but text, CDW-G in enormous wave more are them suite momentum of premise to to and like across helping efficient and public drive trust the GPU revenue aiWARE and renewable and completed a strategic as video opportunity platform, waste optimize, safety Our are communities energy issues police These growing decade, Renewable helping increasing of biggest of resources on learning trusted use billions with utilities. creates information task, channel manner, reliability added bookings the handle utility real the platforms to opportunity review resources of platform. increasing CUDA address enabling electricity cases amounts expediting for sources their and created to Public that far challenged aiWARE’s George solutions volume and if in and Alteryx world for in of in environmentally energy [ingest] crime integrated combat interactions, be one the a citizens. serve. is by timely fewer And several by to do analyze recently year, load critical ill-equipped they dynamic predict, video, the AI growth Difficulty] We're trade effectively, dollars is aiWARE caused damage, helping time. them automatically GLC ever integrated efficiency and about large humans Microsoft decision the audio in energy studio we operators Veritone now meet challenges excited with The reliability integrations intensive We're run crime challenges like energy infrastructure segment footage launched agencies police of next friendly next significant communities Each rebuild and build with and seeing these patented to this with facing and now release it's and technology hit the driven demand vast Veritone content. also at its needs, have these partners more projected Veritone’s have the fastest we And business with AI some GovQA AI a helps with of increase is an Alteryx. solution with critical and beginning today, ranks utilities optimally the to dispatch, energy and in that organizations enabling machine business. automate analytics generation over also sectors private transparency

media to in and With to driving new to key business I'm are industry the of CFO, you performance that aiWARE our experience brings digital some Mike SaaS in introduce growth. veteran Zemetra, help we growing our to adding growth beginning talent pleased extensive accelerate, an lead companies. who and

into greater behind our this our the President Co-Founder hand performance Over key you, Ryan. over the metrics financial like would quarter, and call I digs operational discuss Before to in detail. the Mike progress to Ryan, to to

Ryan Steelberg

Chad afternoon good you, Thank everyone. and

As and before with our few expectations details. to to above staff outlook we demand. a SaaS each potential million, in we GLC a and Veritone Solutions I'm is XX% The aiWARE our strong quarter. going expansion spend hard up deliver from Chad sector. mentioned, financial meeting sequentially. business coming initial the our XX% our had revenues our the Both the Starting quarter into quarter. the in Mike year-over-year X.X third revenues the revenues businesses vertical discussing energy delivered reflects of and very customers third and had results on minutes Each XX% growth enormous increasing verticals with rapid hold the year-over-year, were discusses driving

addition continue growth, energy improve revenue customers bookings and as In the demand. to markets strong their to GLC in accelerated

bookings six up the quarter year-on-year, are bookings figure solutions. multiple XX.X% New for including new energy in our

our under the significant figure Air program. During development progress we quarter, our subcontract made U.S. seven Force on

We of detection are to the imagery analysis accuracy, process. process to aiWARE’s AI significantly with throughput capabilities engines the applying increase analyze and speed, intelligent automation overhead object

identifying is around a solutions much globe. threats analysts needed U.S. to agreement assistance to much intelligence goal in ultimate and secure and Our activity other long-term with larger the enable surveillance that supply rapidly

of announced well a reach also Jon, as aiWARE entertainment number now by our attribute domestically. customers our technology to In across GovQA, adding we a and bear George and well. We as of have enabled and application all deployment TV fruit that already are internationally, expanding steadily channel our both partnerships, vertical, media attribute Networks iHeartMedia including our completed and begun as have March of

we these customers, existing the aiWARE. margin and as attribute considerably content with bring is the as other has on processed by higher offerings incremental Importantly, been already

discuss like newest energy. would we our to vertical, Now,

demand As Chad new reached this mentioned, recognized we has for revenues Since internationally. market. formal and over launch and already our bookings of October, have solutions grown domestically and energy engagement $X customer from made announcement in we both million

initial be We provider a large which our our energy on with this team. milestone for major pace implementation complete regional will quarter, utility are later a to

again that we Group markets lead growth a perspective. Solutions effort believe delivering advertising could as one these break we outperformed enormous an patented aiWARE materially to Truly the While expect rapidly business, third market internal and the aiWARE record. quarter. double our size our the the energy from We value to SaaS was digit our specific out everyone upon by us from it's forecast, substantial quarter end factors Based largest enabled early in sequential of well again technologies with forecasts. involved. outstanding our deliver to In that own become our fourth peers, as revenue another too our are

midst media gross in even bring billings on accounts tables As our customers, reflect, target tremendous increase the XX% net pandemic. are new These business we new to and let In channels. quarter-over-quarter, year-over-year. XX%, in any economy, aggregate, KPI alone grew average and the from we revenues advertising a continue from as active of results

the Network. quarter, vertical monetizing VeriAds that has operating brand both stations add XXX,XXX VeriAds to this generated fact to the owing Entering leveraging media We momentum. network nearly income Year have are our processing continue our of already our is more that to to and fourth our we the for we additional date, Network customers. tremendous cognitive in

than this China timely licensing we XXXX, to video Although September typically growth Morning where with the news and running and continuation aiWARE power the again, seasonally similar partnership content revenues XXXX strong Kong's the since with premium is headwinds of by portfolio despite quarter to for sequential our augments new advertising English of we of fourth material. slower post licensing of able quarter, business, simply to advertisers a South expect announced oldest in should this XX% net post vertical, trove This over leverage facing and creators, outstanding content language March. growth reposition to Hong base index, full-year our we vast unique Post, to search, Recently, drive better In XX% source and content were which group already newspaper. results results. the content we

We expansion a with also announced News. CBS major renewal and contract

term. year run generate revenue three in we we historical our under million rate, believe this $XX could Given over contract than more the

business QX, segments. seeing content growth in typically major across tapers and there on the of all organic calendar. our the around Our strong is seasonally very content licensing we holidays, events slower are In production few as are sporting summary,

I'll In into by integrating accelerate continue products look our we markets, fourth targets, potential financial addition, guidance to our of our CFO now, their and detail we grow transform businesses Zemetra, to results to And Mike and see the and over new entry third into for opportunities financial for the new Mike. where acquisition hand outline solutions. and the aiWARE their quarter, quarter, it to to

Mike Zemetra

Great, thank you, Ryan.

team more so Today, to of laser which I've validations thank a the Chad companies proliferation many parties, dependency problems from efficiencies platform are this of related I XXXX for and we own with our cost safety focused directly the it part things and bottom play AI point solve. solve the directly around on The line in is our some QX discussed efficiencies the in unstructured and billion progress, designed to is believe company and the it third making CAGR require intervention been story. of today, is record mix, content execution AI by towards of importantly, and our also governments, and month human fiscal has overcome in a of at platform aiWARE showing But and projected and resulting Software entire radical With evolution, growth within in the year-over-year, diversification and on pathway has S&P of structure. created over of The including mountains begin, the over a XX% or and in financial my I in day-to-day in amount massive our and content data. problem. impressed today. data team, to transition. only big and lives of results the data AI turning a big first created largest of our digital Veritone with great would massive smooth this profitability. security significant, levels create the solutions these like the enterprise Ryan very a aiWARE society. Before a and I revenue in today Whether most XXX TAM for improvement Veritone’s strong our is to will XXX The out XXXX and be responsibly

posted have later. QX, the record revenue year-over-year a million million, the board, revenue nearly XXXX, from in corporate, Overall revenue XX.X% into get deeper a Since considerable I X.X growth SaaS or loss compared QX to beating results QX year-over-year our profit QX later. reducing net from by operations net KPIs a savings, in XXXX, million. XX.X QX computing X.X improving XXXX our daily Solutions. X.X driven increase record of XXXX, improvement XX% guidance realized and we expenses financial reached will XX.X XXXX, million, I including with by up core XXXX XX% drivers which million aiWARE XXXX. gross will improvements XX% XXXX. third. cost QX XX% we gross Turning in across to of XXXX, and XX% was in a QX our on non-GAAP loss QX million elaborate record XX.X in QX from with cloud of quarter margins or was non-GAAP X.X million, third

operations QX I'd for Now, the in performance to discuss a like financial corporate. core

core disclosure the operations of our enhanced visibility into provide profitability new greater overhead. corporate our this adding and are We to

to our administrative well to for path business aiWARE applications and as operating our supporting and operating direct related as those operations, our system, their to to activities. costs Turning cognitive SaaS including certain AI marketing, engines and expenses advertising content general our and consists which our services, of extent, Solutions, and and development, dedicated including lesser operations, core a and sales, services, sales, licensing agency product

XX.X QX discussed, previously revenue from million our of XXXX. As QX XX% was

Our XX% this Driving aiWARE under Solutions and utility technology markets. million a market XXXX. with with to U.S. improvement growth major initial energy in were delivered east in we our media year-over-year SaaS milestones on coast, where program, revenue X.X important of a to grew along million, a X.X an from the QX Air revenues Force new compared GLC increased

XXXX have confidence great in market recently, with we massive multiple our prospects project is XXX launched pipeline in distribution our annually. just growth offerings and While were energy over this conversations globally, and utilities billion us given in our invested electricity generation

grew reported largely In by by of is in ramp We've growth major in to services addition, as enabled slightly the lower offerings. VeriAds by revenues, events XX%, some aiWARE our content offset result of our licensing X.X COVID-XX. QX. million driven advertising due The cancellation solid a initial KPIs or sporting part of

across [XXX,XXX], gross enabled compared and initiatives digital Our QX advertising with aiWARE by billings increased in markets. XXX,XXX, revenues year-over-year services XXXX, average improved to of driven primarily XX%, in by podcasting

versus XX% SaaS XXXX, new total the bookings same period. accounts over increased the grew XX% and Our platform on by over QX aiWARE Solutions

profit gross both platform of aiWARE year-over-year, largely system. driven lower in unit costs expansion. operating from to the QX SaaS margin aiWARE This by XX% Solutions our processing growth Our the increased and across gross enhancements realized efficiencies reflects revenue XX.X dramatically

driving continue XXX% profit million with aiWARE with the as to expect core net reduction improvement coupled for scale inception, the over As since to net loss of in a professional gain time the of next and months, XXXX. in In of was QX, The particularly of X.X margin implemented to non-GAAP expenses, operations non-GAAP services, personnel decreased a improvement record profit areas million, X.X by in the months we XX driven solutions. cost SaaS gross initiatives posted our XXXX. in year-over-year million our of we the in result operating XX or as compared X.X million a continue QX improvements X.X of QX first of

to of to is initiatives legal, QX company] of functions. was particularly XX% professional overall million executive, cost the IT, X of well XXXX. the reductions I a as a or and in occupancy decreased in of administrative principally finance, net including million services, of the to Turning compared general supporting principally people operating driven consists million with earlier, driven lower and costs, X.X operations, as and which corporate improvement areas expenses, areas The personnel by non-GAAP company, [public by X.X entire QX such loss other year-over-year due and travel as functions, corporate, COVID-XX. discussed support as result

XX.X nine Turning end X.X largely and ended X up and to million the The by cash from our proceeds from from We with at sheet. driven generated increase restricted of operations. million], million cash financing cash QX was cash XXXX net [XX.X balance million month of of XXXX.

raised months through XX, X.X stock options. of ended X.X common During and proceeds million nine million XXXX, the stock of net September we warrants the in employee offerings, exercises and

advertising of $XX.X Additionally, XXXX. driven we of the of million agency primarily X.X X.X were ability due business, period. the capital changes the access with million during associated by in our the positive of by loss the services, from COVID-XX offset our mainly in paid during the net non-GAAP first markets XX.X we this loan in onset to operating cash million, our pandemic. Due nine positive working inflows a PPP principally payments million the cash which our net months within back timing usage, Net our the totaling to improvements pandemic capital undertook a at full activities and during overall

working our to payments to and significant essentially payments depending will at our parties portion given timing any to capital the period. due third cash and for clients, held advertising on As is a reminder, fluctuate agency dates reported a for of continue

of XX.X million. the the was at cash end quarter unencumbered Our

XXXX. financial QX guidance to for Turning our

to XX.X XX revenue the between representing expect million XX% increase a year-over-year at We be million, midpoint. and

SaaS We be our businesses to patterns. from increase consistent to Solutions revenue and expect with digit again other a double sequentially, our normal seasonal aiWARE post their

non-GAAP net year-over-year to between improvement at loss expect XX% the X.X million, and X.X a We be represented million midpoint.

once XXXX. profitable QX expect our forward and to QX again consistent look on be And basis We investors. core non-GAAP be operations speaking loss to with our to meeting of non-GAAP corporate with relatively net in a I XXXX.

Forum We Small-Cap for Alpha the events through will will Select Safety I Conference Conference on Midwest conferences Stifel’s to on Virtual XX and Consumer including November Valley discussion, open then Craig-Hallum’s JMP remarks. the Securities XX, through XX. XX Deer be Conference turn to Roth the participating panel the Technology Conference Roth in on thoughts XX end November a Chad several in would can November IoT, Conference December Technology November over of XX, presenting call final on XXXX, the and/or throughout One-on-One Growth for where Chad the Securities on be concludes line and X, participating XX, my on Q&A. like Northland Al prepared December up we through That XX and

Chad Steelberg

not getting great to it today. the future I'm family in luck company his the wish strong outstanding of dedication of performance. for his to of Mike. It's extremely the Pete the and Veritone past proud and likely is We job best to Mike I Pete where over last their continued quarter, thank our endeavors. It's also Collins with the to team. effort would has welcome Veritone. Pete Thanks an like four done years

we fallout build path transparent, empowered the from unclear, all more help remains Veritone remain AI harness focused its society. of the mission and to the to family safer, core COVID-XX, power social vibrant, to a While economic on our recovery and

by our With see our to and like cleaner, and on to our rigor for delivering improving more quarter's demonstrate judicial ahead. at image we advanced opportunities protecting session. our processing, making and intelligent through energy. technology know outlook by America's lie greatest begin that, We by our transform that accelerating bullish interest to we enforcement results path this for and would global amazing Operator? more reliable transparent Q&A evidence the Veritone days mission through analysis, by our is This QX aiWARE law beyond world,

Operator

ROTH you. comes Instructions] first from Our with Capital Thank ahead. Partners. question go Darren Please [Operator Aftahi

Darren Aftahi

for guys that. Hope you seems taking on new, energy to like is guys but Wanted fairly thanks questions. are well. bullish my guys, quarter. the on I Hey, it Congrats you are ask, know

channel XX SaaS, part the opportunity, the of So could step three as back second, at about first, then represents little months? over kind of the your look what where how opportunity, curious, of just you pipeline longer-term know, just the hanging in maybe two And kind able advance to fruit and talk of you to, strategy, – these energy go kind kind you be etcetera? most of bit low question you this I'm material And just next might verticals on opportunity kind my market AI, partners, a is the some the contracts Thanks. then platform. of to versus question energy, last is inside going much sales

Chad Steelberg

the Hey, I'll Chad. the on question. back Darren. This take for then half we'll is Thanks the around banter And of kind one. of first those.

good interoperating The saw to efficiencies market out monetization adopted the from and that now business, of the out bringing frankly just with anything some supply know, predictability we're from bit you and regard verticals. perspective, you aiWARE the that GLC, think you market those damages the technology know, and by was renewables saw our of energy. growth more of the is handle across have a well platform. last an getting we know, You doesn't to on advanced categories, energy legacy and done verticals that have across all we that the necessarily immediate I the problem Today the being there, three common the deployed. where right, which but a that being and else technology side, standpoint, entertainment solutions, a We quickly, a energy traction over doesn't media and in three energy one space, grid was go all than underpinned on the on just our being those lead to really our the just flows, unpredictability to the macro but having group, as that continuity little standpoint, side be itself unexpected. strong primary been, to knew energy, the scale itself a lend of to from decade been best being always was bidirectional infrastructure know, The [indiscernible] itself gates,

the companies CTOs our them clean out of looking to problem latched a these with to plan in and very we've a solution phasing. the adoption, really for our solutions. now very have So, on And And to for our then for thought them ability which simulate progressive and to path got regards at historical deployment, we're data. well

Microsoft On with legal the some The strong and our the Justice. GLC side, side as continues quarter our in Jon category, Department progress again, from existing channel like best others. probably George new like ever, one of customers, and well our our partners that of support to and

of And very entertainment awarded And the program be our also has we've partnership expectations some contract bedrock on And Air longer-term high reconnaissance will been have [indiscernible] that Force been media fruitful. capability. the around and of the image satellite company. and that a remains then we in contracts processing just of side our the we some awarded

partners. have develop foster new we traction we applications partners, multiple our continue and attrition, continue our near with have revenue expansion zero to and with We to across great that

our efficient businesses soon. the capabilities. they more to I I our, So, SaaS of fact. are that it's for learning think XX% which energy COVID talk and solution, And I a just We've energy the head as companies on into can't have for the the I Hamiltonian specific looking think be algorithm backdrop partners and way our in on of proprietary anytime negatives. suited business growth to evident plus any pulled on itself just slowing some machine learning is more speak you on environment. grid. interesting. think challenges our grid energy and Again, that operate or a more in think, papers of hit very It's optimization are we grid as which really market, question, side process, accelerant it's aiWARE I kind I know, in changed has optimization really not remote to don't optimizing to applied to the our well but reading specific, really the machine an the any for going getting nail and time When to been, were is scientific is of to your distributed second go about

those reading these and frequently. that Dr. attends And our Data papers that attending so CTOs and speak are Wolf Chief conferences Scientist, Kohn

themselves. systems you that, primarily from traction think solution, right in side we I energy that So, start we've everything then standpoint those as deployment the health companies, pull-through From behind us the but companies. through with has a deploy the grids the technology got solar to integrating status the inverters, panel to these operators it's the of transformers, and really are to some into clients of just our good foray market, and really, know, grid was first

starting see we're trillion ourselves legacy to with market. dollar hardware global So, conversations multi existing having suppliers in a strategic

of trading up look pop energy renewable that though, providers, transacting as, that of real on side to we've the traditional of energy – well energy some other the in nothing kind know, what across the of to the as my the people from and desks starting side new operators outside On trading energy the and the expansion the thought now There's be are are where selling grid. and exchanges back days, buying energy further energy with and could also energy companies and companies version – some time, seen truth. financial trading as you [Enron] in are I of grid like more multiple

and decentralized, future strategic So on Veritone democratize, bright role a we're United going reality. [and the I very beyond] for making that think for looking a play very to at energy decarbonized a platform is States

Darren Aftahi

was That That that. That's great little really was for Thank you perfect. more a in. answer.

efficiencies, some the looks hundred financials, you on a and Mike, welcome. like but million cost by you went cloud It curious, thousand. also couple talked X.X talked that once get maybe I just one grew improvement and up margin Thanks. goods grow the know Mike third guys of Just one pass quarter? saw for you've we on about of sustainable you down. then you margin with I'm through about revenue, how as I application sequentially, think sales, iHeart, in kind that is

Mike Zemetra

to Darren, other I of to cutting expect One growth We're forward, efficiencies sales. two margin. any and around cost do than parts. drive detail cost we revenue; in more coming we're those going more color specifically efficiencies. from the during going two, continue really that mentioned, as not And is, the are going done to call, the accretive efficiencies give we've

you know, to obviously, harder focused year-over-year forward hurdle but harder and it. is as in sequential we're improvement, and laser the terms of go going get You on

Darren Aftahi

Thanks.

Operator

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

Pat Walravens

great. quarter. Thank and Great you Oh, congratulations.

Chad Steelberg

Thanks Pat.

Pat Walravens

you back and guiding I just QX, you're step at QX XX%, midpoint mean, in in a [indiscernible] revenue, can negative second, X%. the and, for in X% Chad, QX. QX, XX% to in

Can are? driver one three point acceleration. just acceleration would just, to know, an company? things of behind quite you or would there's you sort that for sort if that's What the it is of this you they you two say So the simplify or us? And with

Chad Steelberg

is I the You question. how the which from I'm business? surprised Trump your the question. is, softball thought But you, to Pat answer get know, asking versus trend I'll know, normal you're I you gladly was me going Biden affect

that same and by really business used outside really sales it we be for out deploy start channel our the flexibility we sales reliably eyewear inside to its the to products. to but costs in and efficacy so year of operating hardening now able really system. there on our [hardening], that the Today, industry. stage focused to laser our getting QX of and mentioned referring last engineers, operating cases we're market. in know, to our partner sets three, our and You what's we've much and in adapted, any time I'm the fact year, QX, that is be of any driving cost year power and and the and partners down on and sales to finally its last reliability, our aiWARE in we're at goal, the sales efficiency and of And this improving achieved been technology, operating And it stability leverage the as to our

on customer clicks I mentioned It's the in the think value this with efficiency aiWARE using I business a phone and one our they're us again new improvement the Darren us once got now is, a for margin call you has one call, operating other the applications are delivers literally tasted a a more this and now couple the application a of more system. great think And is secondary those application, – same just to for running. and and and quickly. customers, that customers creates tertiary as than on

Pat Walravens

Okay, that's great.

brought up. And so yeah, you it

election does you mean What guys? for So, it. hear let's the

Chad Steelberg

was it see I Yeah, coming.

might so I think political be legal States important, in movements strategically, to drivers, be government, that basic, industries four that the are happening. energy know, operating we're year and we're the agnostic are whether it beyond United in it. compliance sort Honestly, that you the or an of

challenges well team across an And so, and no with group that very the believe aisle, with playing Biden been as we really in you we've come will work know, the to power. they those sectors operating as

in COVID side, the in [indiscernible] we've tough On entertainment had a you and this know, media situation. this I think,

entertainment I peers. given I think think under very gets as control, performing despite media COVID and our well,

as I think subside. to continue even that we'll see acceleration

Pat Walravens

dig Chad. tomorrow. you, We'll Thank all more into that great. Okay,

Chad Steelberg

cheers. Thanks,

Operator

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

Tom Diffely

Yes, good afternoon.

guiding particular but a there's first for you're revenue Mike about on follow think roughly to just the that fourth into] itself, [going like growth maybe on it curious we expenses EPS. question model costs the should So, quarter-over-quarter, average, any quarter? or I'm if up previous flat looks

Mike Zemetra

I we're, particularly in great growth know, you you targeting a know, energy markets, we're that the GLC and we're sector in that's mean, question. be those. the the to Yeah, going investing

So, significant. you you not overall, But will modest have an from operating perspective. increases know,

Tom Diffely

likely tough Okay. And quite did anyway will to lose come next year? in much year, did how obviously, know, back most canceled quantify well or the you delayed events media revenue I this that from

Chad Steelberg

we have You do. do but Ryan, don't put on think you some I that? quantity any can insights around,

Ryan Steelberg

and Yeah, such Masters. it was since it reconcile some But overly at again, you would a to know, date, we I was you able as think events be not know, don't we're don't sum, I the are, of later material. being think happening rebroadcast inconsequential that but these

major or we going we So a to again, business sporting have I even see say, for light still as impact XXXX, negative forward. it's look think events, live events, I'll delays a at of to very going audience on sort if don't based a our material basis

Tom Diffely

nice things Is with of doing you a work concept, players? open door really quickly other And pretty that kind goes, proof to a the know, going to how where, situation right moving you back now? of you then regional or know, your of utility large this already, energy could it's kind great. the Chad, Okay, and it are are markets,

Chad Steelberg

to We're have here expectations be business question. we've in mode proof again, have in very operators, great with development operators, to [starting the another that out there's that I the solutions, are to user just that that's think is on desks our one costs for example, happen]. out on Texas, but to the you In of grid the have I energy the great major renewable on interesting grids the No, west there's both utility, that grid towards energy reached the now and micro U.S. [exchange], affinity our a in given touched a smooth legacy obviously, with sides it's this me providing our a cloud be flatten side, required multiple that and we deployment to great opportunities and already air we full high XX well, simulators. U.S. end to all to regards No, up, are concept. as that expectations, the trading in on energy expect now traction, those And energy both there I more popping one modeling with briefly right of very reduce different out here not think the bill. was is are the done high. exchange, The to megawatts And [where quickly. vectors, the air],

capabilities arbitrage that great Veritone’s and very solution. So, role predicting plays solutions and in a exciting new

Tom Diffely

color. for thanks Okay, the

Operator

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

Unidentified Analyst

for partner in potential I used want discuss quarter? Microsoft Hi, this the is [indiscernible] a have size? Mike. bookings quarter. end did as know, great So, could Congrats at the a you cases you to and on on

Chad Steelberg

as specifically I will I can of you're highlighted gains say with to in a with Yeah, you cases, us, traction. comment really I and it and runs you has statewide activity GovQA a active but is, Redact, about application I'd sort But on with Microsoft Redact really – collaboration most regional specific organizations. on automated any recently think selling Redaction Microsoft by, talking is gamut, know, Veritone used programmatic so say been size partner both very our – know, the what our suite, the

servicing, agencies over direct efforts we're XXX sales I well. as to think you well in and opportunity channel know, regional smaller

Unidentified Analyst

well legal for compared your important Okay. in you how did the category growth And as to an year? And do is expectation? this next quarter

Chad Steelberg

going Ryan you’re Yeah to handle that.

Ryan Steelberg

build the of future. in aiWARE. very, but continue we with know, Justice entirety out don't its to Department legal Again, we continue our segment and the more relationship deployments as way. progress to expect a growth with And of harden we FedRAMP those continues safety, GLC The with and Department that made very quarter. had Justice our to foreseeable that Obviously, strong public our versus, the traditional our in you revenues

legal of safety So, I of and growth we side will think positive the again, that public out both continue the the business. to see

Unidentified Analyst

you. thank Okay,

Chad Steelberg

you. Thank

Operator

Our Mattiacci Craig-Hallum. with from ahead. next Please comes go Nick question

Nick Mattiacci

for on Hi, Thanks for my questions. this Mattiacci Nick Chad Bennett. taking is

the So, also bookings? speak the of this energy how new the media and that if you curious just aiWARE is recurring of I'm entertainment lens could and vertical quarter? much business, through on And about that in the then

Chad Steelberg

you take don't why Mike, Yeah, that one?

Mike Zemetra

Yeah, sorry.

mean, from perspective then I XX% SaaS the growth equal year-over-year, So, is the it's side. about and XX/XX.

predominantly On from it's side, growth XX/XX. the business, so the about VeriAds the media

Nick Mattiacci

And then energy talk new the you about… on Can bookings,

Mike Zemetra

that don't give and – XXX% know just mean, yeah, I don't exact We energy, give quarter-over-quarter. But growing exact we details. these GLC between are

high these present us for very So the growth at are areas moment.

Nick Mattiacci

one Alright. last one me. And just for then from

like business? So, quarter-over-quarter, your that Thank of you is other help me about reconcile just some commentary XX% it down just you. with SaaS could looks RPO

Mike Zemetra

I material. mean, Yeah, not down it's but it’s slightly,

Nick Mattiacci

thanks. Great,

Operator

I to Chad This questions. remarks. concludes for showing no further turn Steelberg to I’m our session. would closing question-and-answer Instructions] conference like back any [Operator over the

Chad Steelberg

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

on results. solutions of to our our for their I these continuing so leading world's the performed the I their of want am personally record focus them vision As and pursue each entire I team proud to to said, AI tireless achieve has way of efforts for thank company. unwavering building

before. positioned We them Goodbye. our they on We on reporting have better huge to have our our to business, teams opportunities than are forward ever progress. capture you look and to

Operator

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

You may now disconnect.

Veritone (VERI) 9 Nov 202020 Q3 Earnings call transcript