VERI - Earnings call transcript Q4 2020

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Operator

Good day and welcome to the Veritone Fourth Quarter 2020 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Brian Alger, Senior Vice President of Corporate Development and Investor Relations. ahead. go Please

Brian Alger

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

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

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

be than measures administrative advertising costs our non-GAAP the otherwise as These operations, basis the discussing sales, their SaaS supporting of consists these During as other the related marketing we core functions. supporting general functions, of will and of costs. the expenses any corporate. will results included and Reconciliations presented issued of and executive between general on initiatives financial non-GAAP and and finance, in noted. licensing measures operating are today. operations product to extent, services to the company, principally public corresponding sales, services, support actual and for revenue GAAP our unless people, of a breakout and direct software, operating be other include and this that Corporate of well release measures administrative press call, a driven such aiWARE consist the forecasted certain entire including including platform a content and as development, and operations IT lesser legal, and areas company our measures and Core our

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

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

Chad Steelberg

growth vibrant, XX% off. for XXXX of in year-over-year, XXXX building performance, distributed paying artificial thought and demonstrated excess driven I'm range, reliability, mission the Fourth not safer, core to intelligent transparent, our full came for for empowered thanks was while execution and proud of year unrest, survive, of the foundations Thank agility our we XX% this our are to and and shaking as grew joining you, XX%. year that yet, thrive, very business call. us And into society with of but turmoil, and improvements. its XX% today, today's XXXX, aiWARE In and efforts a high with of to the revenues true our great planet, quarter full-fledged Veritone And are own XXXX through massive intelligence. only report everyone growing end on pivotal SaaS guiding of our deployment in the COVID to midst keeping a at by Brian. operating to system social revenue delivering society. a speed more customers

a result, from year multiple for and As solutions accelerating. past demand our our is customers this markets cognitive across partners

so it We have Their are very and and artificial profound, the and have expanding real-world successful us grateful to customers problems. led exploring repeat with have and loyal results many their of been intelligence relationships. applying boundaries to to

aiWARE using them more tick, audiences are in customers their immediate makes engaging and deliver turn what solutions. and to help Our programming learn advertising

scene help Tier-XX find public, crime and video disclosure data [ph] pursuit increasing and and their in the unsolvable while Our in investigators scale of crimes evidence solving justice, the trust. and smoking the law gun. sometimes legal of transparency superhuman the the also aiWARE needle and even partners speeding footage other processing at to assists enforcement are to speed audio and haystack

manage in The grid. year underscored huge analyze for Texas facing outages on as a the faster aiWARE aerial grid in power security. to had natural power enormous reliability humans identify sources Soon helping extreme weather, images ageing electric disasters robust to loop again, past the US the California be and than and safety addressing accurately on struggle need more recently, energy volumes in our threats technology our making. the they government national that green and will aiWARE and of still Most and allies to human yet focused largely of more unpredictable relies utilities widespread to with the decision we've electrical the challenges

moment reduce these Our make and our technology time significant in our service distributed reserves, current critical quality the cost, optimization solve to reductions from the I'd more energy partners better of the efficient. operating the to their data alone. and I then partners believe powered the combined Veritone aiWARE. again, our XXXX. these the that to that X.X stand AI could be to realize hard new like market, and technology with we our symbiotically and and of believe and enable like exceed by while address are in in and utility will and We of aiWARE giant that leading future aren't Hamiltonian customer management as spinning Early engines this a to believe is at with aiWARE that uniquely challenges We collaborating models a critical usher flexibility which realized in. to we to us performance artificial our us a protects to third-generation Nvidia magnitude proprietary grids forecasting needs intelligence positioned it's with same a in for like customers. grid system leads pause for resilient improving Microsoft by of era company revolution. nascent for reliability settle and solutions opportunities forecasting world some, the synchronization power projected billion infrastructure to But let AI is their energy optimization leverage

pursuit the I future few with belief factors, help in and strong powered will highlight trajectory align driven role this by shaping passionate this AI our will of many and Veritone Our yours. meaningful perspective play expectations which to a of are being and

but even accelerates think XXXX. diversifies solutions deliver the companies expected with We billion to that rather by no are estimate. First, on serving and organizations AI annually are longer for to are Organizations adoption AI, more will depending We're than and a believe both larger sectors. that's especially marketplace. behavioral performance. conservative be we TAM spend And a $XXX simply AI as seeing on improved government change experimenting the it commercial those operational in globally

Cooperative learning our cutting-edge agencies Veritone patented across learning models, are cognitive more of Distributed Inferencing More fully models. it government optimization about and orchestrated offers technologies, verticals machine companies Second, geographies. hundreds including world and prediction and class and

customers and the cognitive of cost and efficiencies engines. depend AI platform to the deliver Our savings us on come our that with adoption growth,

are data a certified Third, including Edge our the also aiWARE aiWARE Today Veritone solution. and on-premise run anywhere centers. is in and AWS both version, deployed and processing data and operates FedRAMP everywhere on our customers' government and Azure, we

our into processors relationship proven The follows success and use operating We dominated expect reminiscent to IoT is the revolution. that for of a relationship aiWARE system expand Nvidia computational and path EGX the the CUDA our deployment support Wintel cases advanced realm. Nvidia's of further Veritone's between symbiotic computer and and

success open time again. OS, whose an proven is been time standard driven and aiWARE a model Finally, has

Windows over and our to is ecosystems Just me importantly, standards. to innovate value call over rhythm. quickly bets comfort, team with We our and and the aiWARE to go-to-market company measured exciting see a detail. our achievements management platform maturing even customers, in several would iOS. to vibrant make strong on Veritone look a The over to that, force you, always or continue stability on logarithmic to AI Mac, Over With of most more largest Android Solaris, the and revolution unlocking I This Expo of calculated opportunities. in more this on I scale. like levels open for orders think successive a and over gives efforts built and discuss finding as discussing in Linux forward of Ryan. their have May. hand operational Ryan, been greater new in Technology inaugural President now magnitude in to Co-Founder our

Ryan Steelberg

afternoon good and everyone. Chad you, Thank

fourth when we very you above November. area the every mentioned, we a In we with to had and delivered strong spoke Chad exceptional we set quarter year. had expectations finish results As in our

than XX% and for by grew revenue QX, the SaaS full Our XX% more year-over-year year. in by

massively by with over strongest the just revenue, XXXX. throughout as by enabled want were were network aiWARE, advertising our VeriAds team Our differentiation of contribution the to fueled and this Advertising team, QX, GLC XXXX. outperformed energy our they our QX. also XX% contributors of out peers grew QX by I insights performance and of exceptional markets in in call the its including compared

were Purple, continue Entering budgets the recognize to provide showed we of we of solutions XXXX, the from year per billings customer. year as customers. XXXXs to Veritone delivering aiWARE and in gross many to including our increased the HelloFresh marked customers which spend During clients, many results, DraftKings, currently differentiated Veritone active in ad others. is AI slashed increases Throughout

the and and augment to problems government, for of federal We we leveraging workflows our complex are same and architecture organizations. addressing hundreds for large are enhance

partners AI and are and delivering enables multiyear engagements as these the rapidly our developers and it can contracts market. much a performance to cognitively and third-party industry. to truly operating more of virtually be learning democratizing into million create any as hundred The flexibility, system little driven deploy others several scalability expansive machine and dollar solutions and of Veritone, few and aiWARE a dollars month, Some a

a believe we single and OS Veritone's efficacy that holistic into larger AI Alteryx. opportunity by unifies extends that than so and is end Nvidia accelerates And adoption user and aiWARE and technology that power, past with This Big complimentary cognitive advanced processing partnerships solution. substantially Data a is providers. a we announced quarter, providing market other platforms, applications

Nvidia Our and their truly EGX Edge. already through we everywhere. with relationship integration platform deliver will speeds Nvidia's cognition to integration accelerated We've GPUs real in and the cloud, with CUDA processing our the realized with extends aiWARE creation model with dynamic time our IoT

We case unprecedented aiWARE are it platforms. In integration, industries. working per AiWARE capabilities and applying to to and multiple leading we Self develop leadership new available transform and plus And to few integration are use Alteryx our we've Service with believe a this $XXX Alteryx, solutions plan Service analytics end the per customers cases. Veritone. to and other and completed has a integration month. customers replicate user tactical aiWARE with that company's significant directly for energy our milestone now deliver data this potential This represents with for the of is as XXXX its Alteryx a to Cloud

delivered up growth in digit Looking each year-over-year, million X.X QX SaaS at double detail, in XX% verticals, in aiWARE greater off we in We XX% sequentially. a QX. and of performance strong sequential posted primary our SaaS revenues were solutions accelerating

increasing Our continue of activity augmenting Air Force grow, the Department opportunities to Justice. rapidly supporting our the with

under software We are contracts have cognitive X support Automated contractors services recently Litigation prime multiple our MEGA been $X.X who under contracts. those processing with and Support awarded aiWARE - DOJs billion to the partnering contract

initiatives intelligence market. of Defense we for channel various domestic submitted gaining have expanding Department of the anywhere broader in local provide our sales government community. federal successful government concept to entity, the a and our our proof partner proposals We and traction. groups direct Canadian recently completed level, within aiWARE state At Additionally, a both are efforts the project beyond

and Our partners a initiatives. regional sales augmented number into initial by is being statewide our go-to-market of direct expanded

achieved M&E the as are offerings a XX% are the which over revenues customers, increasing today, back at by high from our expansion revenues detail, near incremental end us the data engaged of markets, dominated forward projects While it confidence and is early attribute customers implementation our Initial we well first this this QX too a both to year-on-year. to strong to in a account results emerging started the rate look of up and other renewal in began in the We sweat quarter, growth where growth on market. product our sustainable fit. rapidly as week. we our and reporting on potential sets of energy from fourth new and sequential very than gives In to growth XX% come future. In the offerings continue engagements benefit of in our existing and drove more across radio TV number promising

of quarter advertising fourth leverage services, acceleration above and These SaaS alone aggregate in the efforts As year in again aiWARE record our advertising to in in to once executed tremendous peer further XXXX both results midst In aiWARE economy, affected team, for business a enabled are any and group. our advertising their a our ad is full performance XXXX. that Mike net market. the will the in sequentially, QX outstanding and expect which revenues the technology our XX% we of grew aiWARE year-over-year. our pandemic testament let discuss well solutions XX% later, revenue we In

licensing team. VeriAds the reposition be power our for of gain momentum declines we XXXX We search on revenue with momentum advertisers and in content by to addition the and both with achieved, index, year-on-year have pandemic for advertising we In leverage licensing creators, normal year network, our services, content video to continue our confident to million audio we constant already licensing the strong premium aiWARE generated over where to are X headwinds strong in sequential slowness. and content the This continue and Based in we will XXXX. that face seasonal another which of drove revenue. bookings associated

In a key they on experiencing will course if revenue look seasonal back and we will with like our Fortunately, quarter, administered licensing the crowds. financial Mike? events QX Mike our Madness expect I now March are its the to XXXX. hand it summary, of rebounding, activity live in financial over forward guidance to Both first in full pre-pandemic returning production momentum organic growth the sporting even fourth our we across outline and are And Zemetra, of the we of to with and content uptick I levels the for markets strong Masters to detail occur quarter CFO all to and XXXX. in XXXX. calendar, the results over year

Mike Zemetra

We our fourth of record financial across Ryan. year and results for guidance. the you, exceeding KPI's XXXX Thank full in quarter the board posted

our highlight our net performance comments of the XXXX, providing year-over-year and with fourth first full sequential well our million. For our compared discussing versus and reported we then will revenue performance XXXX million as XXXX quarter, QX QX. time spend on non-GAAP as X.X in a this year in loss some Since is XX.X QX more end, of results I year in

late revenue and story sequential in as revenue grew we XX% record SaaS aiWARE XX% million largely is year, year-over-year of Turning QX due cancellation our which year driven and performance, our and the XX% declines to XX% events the from XX.X improvements improvement services. coupled XXXX, growth GLC slight and XXXX The SaaS in In minus XXXX launched in footprint by up from in in the live content by QX the rate to due our sporting full revenue year up energy we of growth growth down X% over throughout QX. in media agency a to year-over-year caused full year-over-year, in COVID-XX. in real expanded by XXXX. XX.X QX advertising advertising networks, was VeriAds offset aiWARE entertainment, This in and to grew course some to million our X% licensing XXXX XX% was acceleration in up year-over-year with markets. our in in up

million XX% improving and gross SaaS XXXX, in get profit more accelerated X.X by largely year was over and second loss net core Full corporate. growth later. by aiWARE operations a the non-GAAP extent periods, in get X.X I revenue later. SaaS QX loss drivers net XX% driven XXXX. in improvements core Full respectively, Overall operations will or a deeper XX.X XXXX gross XXXX. reached solutions will XXXX too was million aiWARE XX.X to XX% million, million was non-GAAP and lesser in driven XX% for million compared coupled improvement the I cost into XX.X% year benefit Our with these fromXXXX improvement detail will driven which with with XX.X I XX or from of of more improvements of to elaborate QX part XXXX. enacted a increased improvements in later. compared This growing XX% year into XXXX improvement margins a XX.X% in prior margin latter or largely million, on by the in full half particular in

discuss like XXXX. would to QX for I Now of our results

prospects QX and new we media We're energy the material incredibly entertainment remain in expect pipeline the multibillion-dollar announce this to and early revenue stages QX milestones XX% Driving deliver our QX in important new continue Year-over-year million, improvement QX energy SaaS aiWARE million grew along was XX% for XXXX we was and early on we to to solutions as our of in this where growth revenue and XXXX. bullish GLC bookings technology compared as market our of of QX, in aiWARE Our market, from million market with across XXXX. markets. X.X on XX.X deliverables XXXX. growth with and developments X.X

agency services year-over-year, VeriAds by and X.X In of driven or networks our the aiWARE both ramp our our XX% growth addition, in by services. grew million, enabled advertising

licensing growth slightly content sporting We KPI to partially offset solid due revenues is results events lower result by Our of COVID-XX. QX. as a in fewer live reported year-over-year

to QX, billings Our driven primarily advertising aiWARE initiatives by increased across and digital in average year-over-year growth related XX% markets. in services podcasting XXX,XXX improved by revenues

solutions the XX% SaaS accounts on in platform year-over-year aiWARE grew by Our QX. total

our accounts, X.X half by due customers part and New reached to significant large XX.X%, XXXX, improvement of QX quarter, with from to large driven margins XX% an SaaS a level, of aiWARE with new in on million to realized by of of QX Sequentially, unit QX bookings was and XX.X% improving down SaaS compared dramatically QX pending efficiencies coupled of the driven system. margins gross in with margin versus from lower in to were increase expansion gross higher increased XXXX. improved solutions XXXX. of operating energy blended QX XX% XXXX. year-over-year the QX each or XX.X largely GLC deals profit first XXXX. revenue of timing our XX.X% the agreements the aiWARE aiWARE of gross Overall processing with largely our million costs shifting This in the incremental margins XX% iHeartMedia over

the As continue was to net both of aiWARE gross record to net next loss net and non-GAAP months, we a year-over-year In overall expect million with QX was enacted non-GAAP QX XX X operations COVID-XX. corporate. loss lower X.X million, largely decreases by improvement was The loss a XXXX scale core margins. with operating to QX X.X by of X.X X.X as XXXp, million by reductions gross In services million, X.X with a result QX posted million and was to non-GAAP year-over-year driven a driven a non-GAAP QX profit personnel of from record in by net improvement compared in travel cost net or of XX% million continue million X.X expenses professional in operations XX% QX, we driven over The in around XX in corporate principally core improvement yielded in improvements XXXX. QX improvement million the improve coupled XXXX. profit. or X.X compared

cash restricted million provided at QX million from XXX.X of activities and million, XX.X largely by The with ended balance net cash net financing XX, driven cash and operations year-over-year million. our increase we XX.X by by X.X XXXX. up cash to provided XXXX to December was XX.X of Turning of sheet, million

the ended raise QX from due near-term raised to of on primarily in the sale QX additional the of XX XXXX, common net million principally and million includes During the capital associated X.X capital of XXXX, were employee with XXXX our proceeds changes of XX.X stock our execute net of growth year raising usage, we working stock advertising which X.X in of million exercises operating December cash The warrants inflows XX, XX.XX offset raised shares, XXXX approximately million us our timing operating an offerings, million, million gives loss proceeds and to sufficient capital net options. million in services, XX.X by cash plans. net Net X.X driven period. positive our principally during during our payments activities by non-GAAP through

As of and our XX% given agency payment will for or timing the any reminder, advertising And of our dates essentially parties approximately to third services. held a fluctuate period. in on to depending working payments continue due reported cash is capital

cash at million unencumbered shares year the was outstanding. XX.X a XX end with approximately end XXXX. at of XX ended million of over substantial XXXX the We QX Our million, XXXX from improvement the

direct drive be first of guidance our renewals providing annual loss. the year non-GAAP full financial the the Veritone visibility our customer today in ability in and importantly and will in and base. and net to This our guidance, on is and QX is time net XXXX to pipeline, revenue confidence retention high existing Turning revenue more result both

quarter in excited XX.X to ever are XXXX. approximately revenue to and representing million, our at Now sequentially QX XX% up increase year-over-year and a from turning QX QX guide million XXXX, the XX to strongest midpoint be we

forecasting non-GAAP to items in loss net two our improvement invest plan We I'll a throughout QX, be QX midpoint. relatively recent growth the responsibility XXXX. as our profitable division areas our million, we expect key year-over-year With corporate loss core be to representing at overhead to between and non-GAAP accelerate price. improvement XX% for consistent result operations additional X.X in XXXX. resources of share in QX be to are net mention in help once X.X this, the our XXXX a with and again We

will during X.X onetime offs certain a QX vesting to approximately and the charge of related and the of of write corporate stock and leasehold expense with approximately quarter recognize associated million million We improvements, XXXX expenses our a certain performance sublease non-cash of associated XX.X a non-cash in with awards furniture other former headquarters. onetime

full revenue and be aiWARE year and expect For expect XXXX, representing midpoint. And and between XX XX% midpoint million million, XX% expect the year-over-year representing a revenue be a our to to XX end XX year-over-year net over XX we XX% the non-GAAP SaaS increase the million at and high to at improvement XX% grow at XX% year-over-year. to we million between at loss

Technology growth as invest sales, initiatives well in I efforts. year, look with to meeting as to in Sarbanes-Oxley planned development XXXX We forecasting plan this our host corporate and conference QX in infrastructure as following Expo expansion requirements, marketing, year, are we XXXX speaking into mainly and call. We a our investors. international out some May engineering forward roll to early and first our

we will And the for to the Conference the Stifel for I remarks. That to upcoming prepared events can Chad and turn in thoughts. my June. final March concludes in Conference line over In call up like the then open would we including in Chad? Roth Q&Q. addition, participate

Chad Steelberg

the our strong performance. of family Thanks Veritone and Mike. Reflecting continued I'm proud XXXX, extremely on

economic to aiWARE our we continues While all the is our power XXXX remain the outlook evolve, long-term social from harness COVID-XX to and to delivering safer, and focused Last its as quarter's results that fallout path build and more and mission. AI of demonstrate this on core vibrant, guidance strong help as a well recovery mission transparent to empowered society. on

energy that, universal into types aiWARE of at Veritone We will large clean expansion and example endeavor. see applicability amazing operating of continue opportunities prime operator. Our to to is aiWARE bets and With the sector mission Veritone a that make. like technology to Q&A session to the is that aligned we believe of fundamental the And the system the transform this world. we firmly begin would for our our

Operator

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

Darren Aftahi

guys, I acceleration see the nice taking Hi, the my thanks on line on you're for hope Nice XXXX. the job and in well. quarter questions. to top

in is Just if math may, aiWARE I XX.X think million somewhere revenue I for three the XXXX. correct, your SaaS is questions, if my

the is question around with that. visibility First

those. are most And question traction energy, the general seeing on companies, adoption Second talking seeing guys on to last you're cycle providers, any where What about can each grid renewables that XXXX? Studio? color verticals, maybe the operators, just Automate a guys you and in is give then Thanks. equipment mover you with one, with and going there of battery be sales needle

Chad Steelberg

Yeah, the thanks. Appreciate questions.

Mike? pick second one and I of third. up Mike all, First then I'll why don't tee it to the up to address one, that the

Mike Zemetra

Yeah, Chad. that annual particular why earlier confident think terms reason visibility on of highly Thanks I the Hi, the are visibility is we're call mentioned Darren. outlook Sure. and we in an in in Yeah. I Yes. SaaS. it with pipeline providing

phenomenal retention is also the good. business is we're pipeline. that our net the So the confidence very advertising pretty visibility in even in is and of terms - And we're seeing, there, strong

that hope your So answers question.

Chad Steelberg

I mean, on Yeah, me Mike. add to let - I'll that,

we As we exceeds that SAS be and to our visibility and And energy from won to - sit clear of here pacing the of all groups customers, and contracts add and today, XXXX. substantial to the the book existing and exceed, this on that businesses revenues already GLC our of those in have advertising in business M&E, already sectors.

and already we which We bookings book of know definitions of are we extremely even beyond confident on have, goes because our of classic business the the well TCB. guidance

question, And month. lumpy. course, of year. our just And think little energy is utility energy back cycle it energy So we are prepared and QX a to be getting the Remember, said, were moving going up past bit revenues last we business customers it right, as the from QX extremely as remarks, I in ramps began And related of launched in sort lead to however, QX. this I it there. the to our of second roughly go-to-market impressive. data my from results early XX% was

technology for difference seeing to our we're remarks the markets, just penetrating and as utility their happened massive a with that go-to-market their So providers they're be consistent in mentioned not rollout market time customers, means and quality as starts power and Florida is power by mitigated tuned as power primarily level, hardware I think to just can't just grids. operations, and I what overall on stay green and sources. really a really makes as deliver already impacts having again, to cycle customers. existing California I causing And is supplied as well green a the energy end deployments, that's other what at seen catastrophes And ability on biggest becomes here. it you've unique. in prepared in our of difficult those percentage a other It greater factor especially greater increasing end total basis that today have that the impact But the independent mean, This and Texas. IPP, customers. power in where what's their

cycle utility objectives, direct channel to the green engaged have to a working those optimize engaged of with And achieving both a development. internationally also, sources predict, with But to grid We've us. companies been really with abroad. already only have is our going energy we energy and go-to-market and few biggest us. domestically number are not be domestically got and sales classic and partners that control green but our able being paramount So that business is

a and to their as government case be augment recently. So team customer cases uptick the Alteryx both true that significant last that in launched Ryan and see intelligence go-to-market well that And the adoption in use starting nearly already some with artificial cases as we novel interesting in was to those applied analytics the Automate obviously motion last working Alteryx use with federal and Studio use year. We really we're with just side Automate with sectors now Studio. begins mentioned, to as commercial there. platform did can announced We're sectors. in question their integration management any

roll time to and completely motion to up and the What Studio. our end SaaS aiWARE continue a specifically stay So has Veritone provision self-service that I'm platform out. first most solutions is for that customers about as we service excited tuned pay allows offered that Automate there go-to-market self-sign

name self-service you can made always made direct available. had that's SaaS a every been company great So - that has

is think I footsteps. following in those Veritone

Darren Aftahi

color. for Thanks the

Chad Steelberg

Sure.

Operator

question next The Stifel. Please ahead. comes Reback with from Brad go

Brad Reback

there maybe Hi, of one-time should great, the me, sequential about how level? XQ new that think couple that the a higher the little for 'XX? there's quick Were drove strong, items nothing we thanks on much. the a very over astounding, growth XQ A shape SaaS curve course in the business, very any base of short and ones versus of of low

Chad Steelberg

one? that Mike, you take why don't

Mike Zemetra

sector. take that the around as to going very terms with GLC And themes one. Yeah, really in QX promising you're I energy. mentioned, in announce looking and similar mean, see we I next sequential start, energy to growth think activities can of I then I quarter, from we're as coming

that XXXX projections quarter-over-quarter for you its some be sequential level in pattern may here would of follow in our deliverables it there sort those as four, there to onetime a basis after then So like normal will saw down. follow with But far And on five way plan as what our growth will months. example. be similar enterprise a things

Brad Reback

and note, using we that count Great, the one housekeeping what's share the for full year? of it the for and - sort should and right got quarter then be then

Mike Zemetra

the as shares. As quarter about XX.X far million it's

Brad Reback

And the year?

Mike Zemetra

well. year as use the million would I XX.X And now for right

Brad Reback

much, Okay, great. Thanks very guys.

Chad Steelberg

Brad. Thanks

Operator

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

Patrick Walravens

add you. one ask for you. up a for all can follow Chad Thank Mike, big Great. let acceleration. on then picture and If I congratulations the my And the me

and the can between Veritone's like understand companies you strategy investors public distinction of the other CX some in AI Chad, and help Palantir So and Snowflake?

Chad Steelberg

Yeah. you how Hi, Pat, are today?

Patrick Walravens

Great.

Chad Steelberg

happy Yeah, answer to question. the

few to a prepared this question a going but augment years. First, that and I data industries. of one enterprise It's AI backdrop. number disrupt that deliver agree annually to forecast, think in as opportunity for of opportunity companies different my conservative the just can there's through remarks are a with $XXX AI to to market greatest over And breakthroughs - exceed as on as specifically, that's we all mentioned answer a mankind. artificial technological And such, think of enterprise enormous history intelligence I an we more billion in the approaches. represents estimate, using to your

solution are like again, growth. point delivering are more Well, you others this support compute as software. yet consulting Others, just are driven. CX mentioned, and hardware the Palantir Some services and and building required out infrastructure to

strategic a everywhere. platform running customers diversity software enterprise and confidence that the the Our by to for universal growth discussed that's our I in that of pioneered our our technology been we're operating leveraging call, companies proprietary runs we to approach. business technology and the AI our strategies experiencing patterning aiWARE on on aiWARE on approach successful The our of applications largest a the this, some are existence. unique playbook Furthermore, is the historically and deliver reinforce system as in

happened not some partners. And some of strategic to you know, happenstance by as our of also whom be

in companies AI's we but So the extremely assist positioned companies with in complimentary really start are of in think symbiotic and product some like further relationship time and fill and space marketplace, like the adoption to their drive at to others we build the to a the very AI other Nvidia roadmap accelerate important market. uniquely gaps to in Alteryx the same

Patrick Walravens

And hear something attention. had then my right, in that's you of All don't thank super, your that you - often kind Mike, that caught you. script, very

is material something QX? wondering booking if about early as there as on, new So elaborate can I just and you developments was

Mike Zemetra

be of in will sort it I've so energy alluded the market. to Yeah, This earlier.

announcing be So of second a quarter. going the we're been looking on lot in stuff great some to the we've forward to stuff working that

Patrick Walravens

is help word you one maybe quickly, Texas, mean, at then And with? could that in just what when something look that I happened AI Okay.

Chad Steelberg

a what up their could hours, wind plants to severe, you on back turbine think, infrastructure ended have was that they day, even for think, go froze, control failing they of so the when XX have it. we coal what picture peel there. better basically interesting, completely plant energy covers in Yes, control nuclear and Texas, It's had I they the end and operators, happened Yes, much a and given fired really at happened power had having even offline. their some of of major modeling the their our infrastructure, tried But I software would it. forecasted

seeing controlling regardless think of it. was to But independent So factors, the the interconnects, and that power we don't the the as flourish infrastructure on I at confluence providers market, from Card being would our of you but broader have so have mitigate mitigate AIR energy distribution, lines, of to dynamic would like of these of catastrophic, been begin that day, to and the more power start they that end much been impact the by would on a have even a hit the we exchange, on in able basis, real absolutely haul storm, additional long technology not areas pull had. because mitigated time able to lot

the that. but current planned So mitigating roadmap what with the in technology probably vastly we're a utilities, in these with been the would infrastructure, our seeing difficult, lot and have future, to what's for critical of

Patrick Walravens

you. Okay, Thank great.

Chad Steelberg

Thanks.

Operator

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

Unidentified Analyst

seeing what is heavily And Sahu energy to on [ph] quarter. vertical, revenue you are type on just the recurring? is of it upsells? is in Hi, for or on licensed update guys. great logos This Anchal energy a Mike. like give weighted more Congrats me or you Could new an probably is

Chad Steelberg

that take I'll Mike.

So take second the I'll half.

solar more expand well the we've existing got in same infrastructure, So battery we as a the it's both as the deployment energy additional pipeline that consist And we'll power of asked independent of which customers was? across But upsells time and be upgrades infrastructure. green and as again, includes to at both first utility question XXXX. roster our you adding very providers that will obviously robust companies new other logos to

Unidentified Analyst

type vertical, you energy what it's revenue seeing are in yeah? of Yeah,

Mike Zemetra

Yeah.

a variety. it'll be So

I agreements type, of of terms enterprise early that maintenance some deliverables. but you're then going also see on, in you'll have will And and see support. flavor be SaaS think SaaS pure

be both. a of it'll mixture So

Unidentified Analyst

Okay, for like all this visibility right. into year any And legal the growth? catalysts pipeline, project how's the accelerating

Chad Steelberg

don't do take why of Mike, course you well? you that it. one Yeah, know I as

Mike Zemetra

the dependent because is it That's Yeah, tend legal so can area a mean, to an highly experience we're be I side. upon listen, good having usage. bumpy on little bit that

side, of terms the we that. some have in However visibility of our utilizing great on in Fed the products legal

pipeline feel looks it's the grow. continue going to confident So and to robust pretty we

Unidentified Analyst

be last will the this one, how And as a important year? channel Microsoft

Chad Steelberg

but steam run and are Azure. natively also customers go-to-market that Microsoft, that's expanded more Yeah, think to I going that is partner strong one, both terms the And a cloud we've motion, on partner be further a into I technology in for garnering to answer as just of can Mike. and more further us continue as aiWARE environment. to piling sales

relationship think more. that symbiotic leaning be as Microsoft even foster, I to So into relationship the continues will

So stay tuned.

Unidentified Analyst

Thank you.

Operator

question from Instructions] go [Operator with next Nick The Please comes ahead. Mattiacci Craig-Hallum.

Nick Mattiacci

Mattiacci Nick Bennett. is this for Chad Hi, on

Could extension Force You you seeing just contractors the expand partnering contracts Air you're guys an you're last that's Air guys there? year? mentioned won contracts. primary And of a with you Force multiple couple if what for on

Chad Steelberg

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

Ryan Steelberg

Yeah.

we of dozen call, a BAE So to I Tier-X Systems from prime actually have our as major in to earnings others. ranging right we agreements up now, discussed think teaming almost contractors, with multiple,

and you'll is work Veritone's So quarters large to these and prime with - the our more few what reinforce see contractor. over pushing strategy as is prime to continue executed to contractors. through aggressive bidding on But and next a approach, direct both more agreements and be more teaming

use be of good prime the that we Some could cases sole that Department with A initiative. opportunities of the where in feel also effect source Justice, sole be ultimately would our these we IDIQ in and we are source. that contractor of analogy

and to sub. traditional following by being successful we're going playbook a prime very both a a again, So and be

Nick Mattiacci

recognized DOJ we of DOJ half us how idea Could that then I it in guess beginning second was deal, for the ramp was that Got give a revenues in last I to an deal? heard on use and the revenue with QX. in of is QX think it much expected year just

Ryan Steelberg

that relationship, can won't of to you'll out as a Attorney's the was to we our expansion first the with their compliance we break and limited to Operate ATO, support over Authorization What is we State Well, individually. offices. is, tell Department - the few breath of quarters And material next DOJ. Justice what the see that of you

QX. not Fed and largest But our for the that are that largest, about We believe customer DOJ to will one be we of beyond. talk confident more do XXXX if our in continue be able to we'll that

Nick Mattiacci

Okay characterize you vertical energy expected revenue could and for for just recurring then upfront between aiWARE XXXX, any just one just revenue revenue? way for is the mix in one and the as last perpetual me the

Chad Steelberg

prior but Mike, Yeah, you I question, addressed think the that reiterate. why on Mike don't

Mike Zemetra

our a parts parts Yeah, I business stuff, of some I particularly be mix. We're business. bit be in it's have of a in mean, one do type quarter. That little recurring. our time. we and more will second the mean, usage it's there'll enterprise And other upon are dependent

So it'll be a mixture.

Nick Mattiacci

Congrats on the court. Thanks.

Chad Steelberg

you. Thank

Operator

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

Chad Steelberg

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

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

our teams to day. them than better are Have in ever future. to to We reporting forward before. progress areas capture a the of our they opportunities huge you positioned look in on have We all our good been have and Goodbye. business,

Operator

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

disconnect. now may You

Veritone (VERI) 5 Mar 212020 Q4 Earnings call transcript