VERI - Earnings call transcript Q1 2021

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Operator

Good day and welcome to the Veritone Inc.

First Quarter 2021 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. to President conference Investor of like Alger, to Relations. now Vice Senior Corporate would turn over the Brian I Development and Please go ahead.

Brian Alger

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

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

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

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

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

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

Chad Steelberg

for us you, on joining And Thank Brian. thanks today’s everyone call.

our million strongest pipeline of in We a in in XXXX. history tremendous are in off to the debt Veritone business. no a with and position over cash, $XXX is start rapidly growing

last from share momentum a year perspective. is revenue, Our accelerating and market technology from

XX% Our total to accelerated growth in with year-over-year compared XX% QX. in QX revenue

to improve. the intelligence months guidance learning delivering applications the in continues further applications aiWARE dozens and The to is the future, and realize adoption. and enables and developer unparalleled of In XXX market organizations to at powered come a rapidly leadership unique I an Veritone this operating operating and insights. more and shifting need their is the AI highlighted machine their Underpinning and provided we both driving aiWARE’s line exceeded scalability deployment as architecture focus system just performance the artificial learning Veritone’s key suite that provide recap solutions. for more that our accelerates factors for do enterprise models, two March, AI are QX to and for machine role Our flexibility, leading growth ago, we system top everything outlook world's bottom aiWARE, over

capable First, large any few years. $XXX billion is accelerating we to in in industry. limitless, of expected market excess aiWARE just a are serving targeting of a and be

We and the has pilot now positive. feedback channel been are selling initial direct markets of a new and customer into partner’s through aiWARE number

models, orchestrates and already set demonstrating a our the hosts dozens but green breadth, aiWARE only growing hundreds to that and course, Second, of revolution. of across models we our of depth This energy accelerate cognitive AI. not industries, patented applications of in expertise expect the of prediction includes optimization

value channel aiWARE vibrant is ecosystem cognitive computing on handle creates based provides and and to use continue to through is is intelligence. last runs VeriSign that deployment system to and your solutions across our models building aiWARE continues Third, your industries developers. in own AI because true AI as their AWS, and own strength anywhere cases. and build This continues standards multiple servers, development there partners, a and applications. thrive approach aiWARE an integrators of with for and and standards we artificial of run find framework needs. a more our organization Azure, society The customers with finally, solutions partners open on year to our technology Whether empowered of safer, And stay your deploy mission transparent extend solutions. based to demonstrated vibrant, ready to core accelerating driven a architecture we AI or Veritone

leaders, of and only local federal, state not energy agencies with markets media a in global rapidly, expanding other well. is industry as entertainment and wide companies, -- but Our government and range

driven And the a accelerating year on-going visibility opportunities continues by and achieve to year-over-year growth in Our we services, which to least our by expect growth full our staff which increasing expect XXXX. we guidance, pipeline we at the grow as year-over-year into are XX% now to in build. at result, midpoint growth XX%

models solution grid. verticals and AI and Unlike at patented across are primary energy distributed power increasingly to the participants of that the complex for distributed optimization enhancements systems, at Veritone's and energy control energy more transformative residential monitoring know While control to the our level utility comes prediction, is grid of resource are Industry and requirements applications geographically management and going and the only with infrastructure. M&E government acceleration, crucial deliver to the more recent drivers energy SCADA poised energy prediction offering Veritone’s the this an independent as and autonomous and onto the levels, grow. only free the is and clean experts latency providing capable and

progress our gives the us tremendous in we're Our sales more rapidly technical strength will and mature vertical pipeline confidence grow match seeing energy the to other verticals. that

grid call storage with new the on new you energy down. and play market, me of energy layman's the those break In are to the make let who terms, plug compatible we and solutions. generation it For

energy in manages toward manually and reprogram network intelligently march a the grid handle of result green an time. delivery to energy supply, having storage and energy clean, and aiWARE accelerate trust to to their optimal energy sub in of unpredictable real a than effective reliable Bottom customers. now and technology, energy adjust So autonomously of distribution, and will the providers rather energy, its to This learns, cost way quality, future, AI as delivery flow and ensure line. the world green means can powered the energy

over day additional business technology will we'll our business, and the opportunities our greater to much technology investor into Co-founder detailed our growth operational to the With our innovations like to some Over at new partners Expo, drive President Ryan, and you a week detail. discuss customers. and of our providing that, look would achievements be in we Next and I to for and call Ryan? that more now hand believe

Ryan Steelberg

Thank you, afternoon, everyone. And Chad. good

By grew our advertising is by XX% of As quarter, $X first accelerating. VeriAds AI comparison, including million we had XXXX. driven network our $X and mentioned, VeriAds. Chad over momentum a million contributed from very ad strong year-over-year, all emerging

revenue legal grew and delivered XX% up strong generated over compliance M&E The sequential and versus of government QX over SaaS sequentially, by QX. and XXX% or in GLC Our was year-on-year. XX% growth XX% year-over-year growth well over growth vertical, XXXX.

energy implementation of expect period which the in progress front results initial we a revenues and go meaningful just vertical, will our a was on I QX energy our anticipated, this transformational deployment deliver and year. bit. to into for As

production. sporting bar events is the was for and strong media QX our the exceptional content higher. an year-over-year our Finally, time notable since first the advertising. for which licensing seasonality, QX pandemic growth as posted QX typical even particularly halted set Overcoming quarter

continue illustrate, drive to client KPIs increasing revenues we basis. on a per our As

a be another will have we successful significant of growth been double year great XXXX addition, In adding new in in number of digit clients, also that solid giving confidence us advertising.

in VeriAds XXXX. network ad all going enormous expect forward. more As recorded XXXX run roughly the I our half a growth than opportunity We be QX, meaningful our profitability see generated to the mentioned, and network in to our rate, we contributor double overall are VeriAds for of versus that revenue current revenue XXXX. to At in

leverage strong has starts superior for using important is our Before SaaS call and ad I take have think we understand vertical gross share. this started not we verification, it majority XXXX, also with market timely and so aiWARE to we continue integrations it provide our directly. results measurement unparalleled On we ad place with this influencers ad We into billings month. and million but per will do XX,XXX executing basis, attribution. scale, in aiWARE than to advertising all It only why been I discovery, licensing, search Veritone a Since to in huge going for and partners digital data. on detailed at for over more everybody and $XXX been unique year,

our with to with leverages further Our broadcaster's this relationships technology relationships our growth. a that leading together accelerating the solution brands, provide VeriAds our unique license that is network with

numbers has broadening all exciting, revenue From the the verticals. financial M&E a grew sequentially. at Looking SAS our SaaS. X% standpoint, is our What sales however, themselves. been activity for funnel more acceleration across and and of of speak the

are relationships and of add and in retain Japan. the interactive also and to to of Australia, including and roster our Nova clients, wireless ESPN broadcasting continue who customers group expand U.K., international like in domestic key Odyssey continuing with world our to out athletics Sony We

started. the this competence accelerating high. and and of remain our we seeing great very is local state and GLC predictability as level, vertical the we products. and Our awareness have first getting are in and strong adoption was, accelerating quarter just we believe are fit, At product as

federal Deloitte, the are all Without we CICI, day federal six our others business have now lighthouse, within DOD new the eight seven and customers level, continues opportunities traction our PIE, and like seeing multiple to business. of are from partners Microsoft, expand. figure the and On active the expanding figures. Thunder with from pipeline to upcoming Channel contracts our DOJ grown analyst [Indiscernible]

well to timeline, we happen have nothing energy While by made pay off. seems say along of augmented first to customer’s our tremendous lead collecting that markets, and In entities. our moving implementation and to our strong progress more strategy on well data technology the beginning the is a project predictable first partners beginning as government since at completed been against March. more is quickly, with have site, we and or proud as that our modeling attract to I'm We

three Recall, energy five each of Our customers to potential use for needs. solutions engaging different and our the are new per a now multifaceted, week. energy team has space combination case is

the stimulation video are and board. in index, and and by content tournament and improved controller QX. market. Madness advertisers the We In optimizer content to in have are leverage distribution returned, applications finally and like our production uptick premium content power forecaster that services, solutions reposition this we for for more where broader fits Sporting and Masters audio AI more content events saw search we licensing creators, licensing and and across finding great the of March an our Golf

and content expect the improve. licensing was QX to market continue last year, XX% we up Our over QX to that revenue

from to As In our the global summary, that increase. believe organic revenue we emerge economy continue growth COVID expect various all in the licensing continues of will strong verticals our to XXXX. and momentum continue we to restrictions, across

pipeline year XXXX. now hand and for And will financial strong our financial quarter our outline I As in as second believe and during quarter Veritone position intelligence CFO and of services we workflows. day guidance AI it our development will results technology will Mike? the our continue that and the over first we to the applications, Expo, detail the to leader discuss investor Zemetra, to full product Mike

Mike Zemetra

Thank you, Brian.

For the in results consecutive fourth the we board. KPI’s across quarter, record posted

net non-GAAP be During million, QX and of both financial of guidance. which we $XX.X delivered $X.X a million in revenue our loss

on performance QX comments performance compared discuss remarks, my XXXX. XXXX our provide of During QX some I versus year-over-year in of will and with QX our sequential prepared

deliverables in increased QX SaaS generated million GLC, improvement Turning representing performance, Driving of revenue Justice principally over which government in of of to an fiscal SaaS compared of with by both In QX sold important approximately was driven XXXX QX GLC XX% consolidated of from XXXX, XXXX. aiWARE $XX.X of the XXX% revenue Department XXXX, of we year-over-year $X.X in million revenue solutions within and XXXX. solutions advertising QX XX% to and and QX XX% generated the of revenues. from all grew increase million initiatives XXXX Department Defense. $X.X across this aiWARE

the Overall, services, revenues market, our primarily energy we our in QX resumption that reflects this driven our developments We in outperformance incredibly are pipeline announce gross aiWARE year-over-year early to improvement still time driven we stages same services the and channel advertising QX billings year-over-year since to XXXX $XX.X network a not revenue GLC one Xx than bookings QX timing in up and million, partner with both drive and expect XX% campaigns QX. to to events While deliverables than XXXX. active XX% to results continue VeriAd services. grew to licensing prospects certain XXX,XXX of recur growth XX% KPI bullish on solid client million the XXXX content in This expected distribution. from QX. up sequentially. the enabled $X.X strategy the to were content increasing due to reported market And grew and results, in over continues clients of We more ramp grew production opportunity our rate material remain XX% at by advertising unseasonal growth sporting pipeline agency of dollar per and the to in XXXX. of across and new our multibillion by

to As revenues such gross slightly and lower be in to expect revenue to continue QX, expect sequentially, prior outpace advertising we that bookings year.

in on QX the Our accounts of aiWARE by QX platform SaaS XX% solutions total grew XXXX. versus

the continue million was mid our largely improving New to the with $XX.X also increase of driven to XX% XXXX. for pending significant customers year-over-year, expansion of part QX million bookings a XXXX. operating aiWARE profit on the increased aiWARE $X.X gross customer system. unit to GLC are with blended margins QX XX.X% largely company compared of This our XX% platform in versus SaaS the solutions accounts. latter up Overall the Sequentially, even energy from by XXXX. higher lower SaaS This margin deals driven from or revenue gross dramatically improvement reflects with an XX% across improve and QX costs gross quarter, margins to efficiencies by in growths new QX in realized shifting reached QX margins incremental of XX% of over to aiWARE XX.X% XXXX. both level, each with of

to As to we we continue to continue next scale to gross expect XX margins. months, XX over improve the

net QX large GAAP one two greater million, charges $XX.X time was million QX QX than to Our due $XX.X XXXX. loss in XXXX

our as million stock based stock First expense improvement for the with of non-cash of performance investing $XX.X in which a rates, triggered compensation of stock result a price.

Mesa. core XXXX. initiatives million was improvement. product driven net $X.X space gross improving QX QX XXXX Sarbanes-Oxley In incrementally necessary higher in as posted higher our XXXX XXXX was than was the net a compliance. relatively of in of in by growth added of non-GAAP Costa million in corporate responsibly XX% $X.X record marketing onetime million engineering loss corporate improvement QX support we of outlook, was associated in growth such plans improvement Second net the corporate by our by and QX non-GAAP million, a as to with In investments to million $X.X in million subleasing driven QX and new This invested the from $X.X year-over-year profit charge in offset non-GAAP our core flat $X.X offset $X.X infrastructure drive personally by sales part profit the corporate operations year. in million $X.X an year-over- loss operations QX,

cash, to balance we XXXX. cash with up cash and our sheet, Turning million restricted December XXXX $XX.X ended million, of equivalents $XXX.X from QX XX,

and $XX.X primarily and operating warrants QX, non-GAAP Net exercise During positive million. loss timing by cash options inflows the of working associated activities QX, million our in million. of $X.X with we received our stock net offset $X.X shares changes growth of principally the advertising net with our connection approximately of to in $X.X were payments capital services, issued XXX,XXX million in proceeds in certain from due employee and of

essentially a the dates due As timing payments services. given reported in significant is any for broadcasters, working with a on our continue reminder, payments cash of connection in agencies depending will advertising to held portion fluctuate of to And our period. and our capital

Our unencumbered QX. shares the $XX with at million QX ended outstanding. approximately million end versus of cash at was of XX.X over end $XX the We million QX

XXXX Turning to financial year QX full guidance. and

Given to in and confidence net ability and to and our our revenue retention in existing pipeline, more in our base. our renewals visibility importantly, customer drive

$XX.X a revenue increase our million representing strongest and expect a be to sequential We the $XX.X over at year-over-year between XX% QX and million midpoint quarter ever. increase

growth to loss be help be continue We loss $X.X net year-over-year responsibly key forecasting QX this, consistent expect a once and be We the again XXXX. million to invest corporate with QX core net our we between are at million, relatively operations QX to accelerate non-GAAP profitable representing XXXX. improvement XXXX to to throughout XX% non-GAAP and plan overhead midpoint. in With areas in resources $X to

net year over representing full million and XX% aiWARE our year-over-year. range. we loss midpoint now reflecting XXXX, between guidance in increasing For XX% the revenue and to be at revenue consolidated over year-over-year SaaS $XX.X are growth million expect $XX.X and a our We guidance narrowing increase of revenue

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

to and at Virtual noon invite like back on Friday, you turn Time. Investor the to Eastern Expo Day I XX I'd Tech to Chad. May Before call our

so, changing plan game as and the be please have XX showcasing applications XX will new next not some you AI over to do signed we months. to release If up already, we months

events addition, & Virtual prepared Needham now will concludes at my That Conferences. at Stifel hand Annual over Media Tech speaking be London In we will Conference May three upcoming Cross I investor Chad? Insight XX at June Sector to in remarks. ROTH and on and it Chad.

Chad Steelberg

of Mike. gaining To perspective, our GLC transparent the XXXX acceleration to for a for media poised Veritone Veritone. are laser focused are a revenue, share, core year financial services empowered society. and safer, mission is and and our vibrant, build power breakout more energy solutions The rapidly remains summarize, performance. market to team the and technology help of Thanks harness momentum, From related on our AI

Our performance increased over delivering as long and XXXX term on that this aiWARE the our well past several mission. quarters, as is outlook guidance demonstrate

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

Operator

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

Darren Aftahi

thanks Hey my quarter. the guys, A on may. few I Congrats for questions. taking if

earning. I'm AI. of we First, marginal just your that raised I where's aiWARE two the think just day on it's last coming curious confidence the about on spoke from on of like the months guidance kind

just we of I SaaS three kind kind on just one. That broken So Two, how number, in out the That's this on any enterprise then coming software data broader time curious, curious. where And more some that's spend I'm quarter the curious. Thanks. a bookings with pipeline both just the of of pretty down the think was strong question verticals. I'm and guys about kind pipe partnerships [Indiscernible]. X.X hearing the those between the time year? of last partnerships, aiWARE million number, of kind like software are more then intelligence

Chad Steelberg

I probably of level, much for it and is up address Chad. but tee then the give think continues This to market now. that. But At thanks my Ryan I'll a color Darren, is aiWARE coming so on prepared shine. us it and some I more I mentioned Hey, the question. bit I'll to remarks in Ryan, to that next Mike mean, a to little just macro

been even there the the I of their talent. does like software be your think an some generation have consulting their, They've the integrate operating point own right people without now, solutions. AI by tried involved, it'd into to first And on on engineering been has practices, themselves one-off out your burned nobody probably of they've with their tried solutions kind running system PC complexities that. it

to alone, of really both ease scalability, the in of And is system benefits it's operating today. of that the board. have building something data, I benefits quickly think so we're reaping terms in set the a world of we the very realize the moving applications, is that of across that. an And diverse across reliability, market And pioneered

customers, the market of the very demonstrations that a In our doing on of and the there is energy we're and seeing terms deployment great starts quarter GLC is again, success of with impact getting gates. the calls But seeing plus going we're M&E customers, very, segments, just we're the well. obviously, amount and meetings existing inbound quarter, side, out this that

to expect I So this down at all. slow don't

the grade the in industry on in you where more we're facto seeing the building enterprise the to what of to some I we're the details of standard of de to want starting think artificial in hit terms of that some applications. aiWARE Ryan, just stride GPUs? becomes, touch intelligence

Ryan Steelberg

constraints. lot quarter, expect QX have I'll I'd A in delays. bookings strong, did another Yep. legacy parties, customers. interested just where current lot those the a pent with, And of and meeting we there demand from lot start a entertainment up were particularly very have of for strong some reasons, say, of the we was of COVID with obvious budget to quarter.

I spending. were catch some up so pent starting customers, up. From just, say And a authorize to would demand was of M&E, really that

coming meeting I recent on our out is In think we like entertainment hub, couple we brief addition, releases more a we're seeing specifically. few media press cloud put increased have that, significant AI data which a for And infused, in. application digital demand for

So fit particularly we with both and hub, also it government into an see seeing for built has that product prove demand aiWARE great digital domestically that other is is continuing market on we're And as which to legal extensible and it being obviously is internationally. media BUs, compliance.

that. excited we're So about very

would and continue pillars And see accordingly. to demand I of those increase, you'll to expect so bookings

The use other expand subscribing this to about, note, what thing aiWARE I use would cases, and to different talking we is to was customers Chad and with ties continue see into the back of different applications.

So already revenues we're data same really high with a with additional depth it end and efficiency that that provides to yield. a It I'm set been by of and us I provides great fashion are and that content where value customer, just correlated say all that's the the their new seamlessness and in able time a to and if a lot application indexed customer. provides very expanded been acquire let's the margin, more in indexing against show of a video gain which have provision already audio M&E,

them with more them it data and more then and much assets and for provisioning pretty as So turn the similar us in who an applications. others, where on their demand for and valuable police that entities the business units and the have, again opportunities on exhaustive agencies, seeing GLC agencies, and And we're well, seeing particularly in from purchase you're into other M&E front. it invested on easier and and aiWARE, again and makes to additional viable

drive bookings also So is with new of bookings, I logos, expansion which existing helping but really the think it's customers.

Chad Steelberg

question let Ryan, three finish there Thanks, because parts to final integration. just you me asked technology the that, was which were

not the and continue heavily to lean world. integrators. and system technology These of large We Alteryx, others the the both very into Snowflakes just partners, are small

the see continues to expect So year Alteryx throughout perennially. and this balance relationship of The probably efforts that grow. continue us to

and been primarily We see balance we've nice, of platform we're some the QX to system Alteryx be integrators expansions their going in looks on now taking bullish continue the are integrated to aiWARE on as tomorrow. what of of focusing of to the through early about customers, very the we're solutions strong announcing through like offerings as terms leading that new demand and which

our and proposition where we're the be integrated a partners bringing customers So, and the tuned we'll technology for having that so new of with about us Tech stay to Expo, partners stage our value on Texas market. talking lot

Darren Aftahi

Okay, thanks.

Operator

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

Brad Reback

thanks energy vertical. on how help very customers just them much. in with little Hi, the you the Can sense how installed optimize Thanks. tools give a a save us assets? Not optimizing of guys but legacy Maybe digging you great green, help deeper their actually actually their infrastructure? money

Chad Steelberg

Yes. demand. power and changing forecastable. a kind power absolutely. their energy markets had stable of grids is, quickly the happening What's one from Brad, or customer Yes, based and base maybe are two, That of was they where fairly legacy routes, supplies, easily

us side capable of allows forecasting us voltage of regulation movement, power optimize on supply also supply doing tightly lifespan but to the power to demand but time, deploy that are the are engaged with the both So energy traditional the we're In and one not real of there to talking of that and to that's multiple second the that customers nines a few even accuracy, curve for ability very first things on demand. that we the of edge bring aren't. technology understanding in green forecasting the senses, the allows end infrastructure, And meet appropriate through demand benefits narrowband inverters your control in to distribution in maintaining customers. infrastructure and a market sub modulation, supply But even about in for even that volts reprogram of you the other the the more dynamic to cleanliness ensure of terms of the the of terms or of and frequency power you're key to grid prolong really that of range. with

to as the more legacy start play existing and energy grid problem arrays, across those power costs going arrays, was deploying and reducing couple as operators exponentially becomes you challenging grids, exacerbated This into that such having well and becomes you're be green board. plug problem as orchestrate. the to turbines, themselves plugging providers, independent So the storage wind PV solutions, as

simply of dynamics, soon reduced excess utilized. well twofold. that's is into battery to to there have that with more power with our to that understand power the well if difficult. supply being have when form that does The volt One, reserves solution both charging you it of as you now does in And green are basically infrastructure. Veritone we're table. to companies what that online problem is for energy, for is is gets forecast you faced all cycles. spinning current the today dramatically aiWARE what reserves as unpredictable energy is really as as do as customers it's all just so have and traditional discharging ground, as challenge power, to able And gets dumped the be power not the are the able spinning What bringing

thing second through now to optimize we're to start the power push do how is to or able routing either even exchanges. that it discharge we're that operators to charge party third battery and grid The array,

programmatic as in, Nexus through Sun let's a points that seeing, now you're base energy So power on we spikes basis. route in, say, can Belt, arbitrage the

the what the Legacy to of based circuit table this almost similar literally we about the into internet market. network based network a a based telecommunications energy to is So packet turning we're The bringing for what think as did. legacy the equivalent

have without It was control parameterization optimization for Now been you'll the one do both forecasting supply this under data holistic and AI others but for systems impossible. and years and system. to distribution hear trying control infrastructure for a

leaders same international focused that us. now customer. with So utility we Country, on on summer really the everyone's major results seeing And Country an initial publishing engaged very plan on are first we're demand just basis.

Brad Reback

That's excellent. Thank you much. very

Chad Steelberg

Sure.

Operator

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

Nick Mattiacci

I taking is for ask agency it core XX% going about our advertising core questions. accelerated forward looks VeriAds. in for business Chad we think to from we of which excluding second the year. Bennett. wanted like the on about the this half advertising Hi, growth How Mattiacci contribution Thanks for business about agency Nick should saw growth last

Chad Steelberg

one? take Why we expect don’t to Ryan that

Ryan Steelberg

Sure.

last and to can the I what you I client months when be very a hear or roster. on have think me. surpass has it and expect solid diverse over par XX where we growth would

nature based investment high. profile the advertising, those very into advertising will their businesses, of the upon expect We into that particularly based as remain influencer investment future

be I agency group. forward growth expect the strong going So to for would rates very

Nick Mattiacci

like around be any color Okay, ever net the business can and business? able you. for advertising customer of a rate about expansion that you talk you kind dollar then Thank expansion give for or to would

Chad Steelberg

don't Mike, one, why Mike. you don't Yes, why take this

Mike Zemetra

increase. going publish our shows annual not increasing attend stay customer But which about retention We we We're do. I to you'll talk some or continues in color expansion. our then. net more our did more, Hopefully, to revenue per think KPIs net

to expect we well. so as continue that And trend

Nick Mattiacci

got Okay, Thank it. you.

Operator

go The Instructions] from of ahead. [Operator question Pat Walravens Please comes next JMP.

Aaron Kimson

momentum passes This the I is on Kimson Aaron priorities Are for Biden as increased any seeing Pat wondering first GLC the days side. administration the become clear? was guys Walravens. you on XXX the

Chad Steelberg

with aligns where defense and Chad, defense the and infrastructure the seeing is take of we been some have towards couple spending spending question. through kind more the focus energy that getting solutions this our are obviously Department as space spending infrastructure infrastructure and Justice, spending initial perfectly that on the aiWARE of we space, the Fed in both with kind think the versus division, That I'll Yes, has tailored cost savings, We're well I that of of deprioritized. stack side of been of of that energy customers have everyone's with AI. heavily top as aligning things a at aware

macro budget we going cutting a level, the though our well from don't to administration again, for artificial us expanding think to So the perspective, at I At intelligence, that's that all. Biden be in play expect budget.

they're expand that likely hearing In significantly be curtailed. other we're most programs will while to defense going to budget, continue fact, that

Aaron Kimson

very much. you Thank

Operator

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

Unidentified Analyst

this on XX? [Indiscernible] you're guys, energy on Hi, Congrats for great on expecting of status deal the give first large that you half Mike. an a is quarter. in the Could update of me

Chad Steelberg

Was just was question? to the energy that clarify what the question that

Unidentified Analyst

Yes.

Chad Steelberg

both that And infrastructure. United forecaster and of that of awaiting that continue solutions the been partner expectation internationally, deployment States a And that in the the from multiple results to broader So they deployment the models months, doing and independent into an our controller, for customers. terms operator in last to energy. can other deployment so to opportunities as are system, of six how continue validate companies, battery of the that our QX and eastern of the us solution we and in as we of engaged for global major deploy end which to set end the as domestically roll have relationship standard we working includes can with out a Morgan optimizer full utility simultaneously, utility QX both the expand is well Energy a number providers detailed a portion and with south power that will

the designed. is So I rolling all and performing is, we're see as very expected. excited it was to think the of pipeline building kind And solution as

happens, pipeline, whether solutions product what our but So fit this energy. next massive and this will quarter very yet really for for we're the to we're in market bullish be the green be it determined, in about energy infrastructure quarter spend seeing

Unidentified Analyst

there for And any XQ, were Okay. any meaningful projects slate and in legal XQ?

Mike Zemetra

constantly take this, coming going it's just right. projects It's, and ball I'll us. know, consistently. a You bouncing see We for

as Ryan is independent legal expansion into what's think, as support well technology our services. that just with and Department providers provide, agencies, as I interesting continued of Justice, mentioned, the the

more solution and more readily and becoming much industry. a adopted, is becoming accepted that broadly technology throughout more Our as legal

getting revenue to of just we're coming continue so cases And on the from shots goal build. also a more the and size perspective through,

that become a standard continue accelerate, of is, that a we expectation and and more anticipation will my and is as process more to of So grow prosecution. as and business part legal

Unidentified Analyst

very by different a is tailwind and for The at COVID Alright, point country. headwind a the one. Is or COVID and having Veritone? this last

Chad Steelberg

a sort neutral today. think I of from point our for COVID us is perspective

have, seeing I most a our in the live States customers United today, that not where we're of think of impact. we amount significant

However, they there. obviously, into have challenging expanded little primarily bit as a situation on European more internationally, we've him the markets,

international our our definitely But on a due global broad COVID the with majority to And I on focus. impact standpoint, really operations of not from just seeing slowdown we're expansion so yes, in seeing a cycle. an think business a domestic of we're today,

Unidentified Analyst

Okay, you. helpful. Thank

Chad Steelberg

Thank you.

Operator

your Pat with question. And we that JMP. do ahead of I understand go have Please Walravens

Pat Walravens

great. the can six role. out? or have financial building in reason, So, been so that seven the so that mean, Pat. operational scale, in months, and that help I year to systems are Thank Mike, you this it’s Hey, been priorities is it's came What's the what I you you, you, very was of Oh, kind And the How's since board grows. of on ask part know, rest terms you what far? of of - done for your stuff going? tone you've

Mike Zemetra

between Yes, are across we're, scale, infrastructure. it's thanks, people, phase we and systems. of processes Pat. mean, in the deployment of the In I balance board in terms

there's go are resources quarter, process first but spread. help the particularly hired that, associated international, we've also financial more invested controls, with During systems element start on us, as which a we've Sarbanes-Oxley, to in we to

and to And so half we're the whether definitely which is, of international hopefully, it's We're functional the the somewhat at have whatever moment. growth, investing that, operational back or us, at thrown this the in M&E, end, seeds Sarbanes-Oxley, gets or latter and year. what planning by

Pat Walravens

things expansion as net totally that that Are information don't in say, in? but I be answer you for I how we there give, forward are get metrics this dollar know, would able like can But are question earlier. to the it to you you place this. you look make are as the what, that what there pieces to of so that, before prompted Great. systems know all sure things are want question need that you might that there had what And rails rate like that, do? love investors, that to to there are was

Mike Zemetra

XXX%.

customer understand customer on retention. on to then company that We're into seeing across through early And performance. relative lot So is process and showing. allows net success just really now the going we're things of our not are but the go like where right in performance, the retention, back of data, metrics business seeing to focus really data we a net driving

build processes DNA of report. hopeful more So during as to showcase our a part will preliminary give robust we're analyst as to better have our day metrics and when systems just that visibility we which out some we and then

Pat Walravens

Okay, great. That's thank super, you.

Operator

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

Chad Steelberg

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

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

capture seeing our business, Investor We our of them Virtual look have week in have better are huge a you Goodbye. Expo. ever in to positioned Tech to at next all We teams opportunities they areas before. Day than forward and been

Operator

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

now may disconnect. You

Veritone (VERI) 5 May 212021 Q1 Earnings call transcript