VERI - Earnings call transcript Q3 2021

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Operator

Hello everyone, and welcome to the Veritone Third Quarter 2021 Financial Results Call. My name is Daisy and I will be coordinating today’s call. [Operator instructions] I would now hand over to your host Brian Alger from Veritone to begin. Brian, please go ahead, sir.

Brian Alger

Good afternoon, and welcome to Veritone’s third quarter of 2021 conference call. Senior Investor Alger, Markets. and Brian am Vice Relations President, Capital I XX, the issued the results September Veritone closed third press ended After today, the a market release announcing quarter XXXX. for supplemental information press section our website. and The is of release at the available investors other

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

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

noted people, other During Software the that GAAP general of this our operations of general expenses, consist Managed core unless overhead include and call, of acquired to marketing, will direct press issued Reconciliations taxes including and revenue of well administrative than including content product expenses, today. functions development, discussing results presented are company, other breakout of legal, measures their costs. and operating operations, Products sales, be and a include and the measures between Services forecasted certain and our technology Services Core we sales, and expenses non-GAAP recently be the for corporate. in measures other operations PandoLogic the basis, & advertising Corporate a and and is support such otherwise. facilities release actual These these we’ll these our consists included consolidated dedicated executive, cost our on company-driven public licensing services non-GAAP financial or corresponding to including and and expenses including supporting operations. income operations, the administrative fixed costs finance, expenses as and that entire as information measures as

on commercial two categories, known industries regulated and industries. and content will of industries. that discuss our enterprise industry regulated regulated which As including state, revenue this focus which GRI government and from are enterprise, Software compliance as customers. have through government customer commercial customers entertainment licensing legal, customers, distinct we sector, we and to customers advertising today government on local and Managed customers, we and into and groups, commercial regulated in our the sectors, separate & customers today and our not two businesses, and federal call, or Government and government, consists the regulated and the customers industries Services. government PandoLogic organization of consists realigned also Across Services energy Products in media including enterprise, Commercial

from revenues any Software professional any through services. related and revenues such implementation associated & and with Managed solutions. software licensing of deployment and related and/or agency related and aiWARE the advertising PandoLogic’s content Products consist generated consists platform services, services Services of our Services from services maintenance generated and our of the support solutions, our product

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

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

Chad Steelberg

Welcome. Brian, and investors continues. for us to that raising the everyone, first joining thanks, joined trend have many bar time. of that have like delighted us you, the new today’s call. Looks Thank I’m on we report for Veritone’s

making confidence, the dynamic, with Moreover, by is through is of ecosystem, year-on-year our our a XX% and we mission to the first million, partner and XXXX. and of current enhanced AI world sixth our outcomes. automation, One decision grew the Veritone expanding that revenue ever in intelligence. create XXXX that artificial there to AI solving record challenges steadfast midpoint With which over power help innovative raising and quarter. XX% QX are AI transparent, system. consecutive full powered guidance remain proven our revenue top-line We growth to optimized represents versus their better Our $XXX.X future operating rich through year our aiWARE, processes intelligent safe, knowing platform, solutions are support, customers streamline our

beginning this customer our and new we and our the We the XXX intelligence, transformative. broadened XX% count market, acquisition corporate and combined overall growing product Fortune excited impact is recent international are capabilities. the since Including PandoLogic, XXXX, over increased more footprint. of very the XXX, with penetration increasing have importantly, integration business our is approaching to closed head PandoLogic. and entering to our By into The engineering

and PandoLogic’s XXXX also million XX%. $XX the of margins forma We in than top-line revenues pro our of augmented operating with greater addition over

our culture to objectives. strengthening strategic fits perfectly with and PandoLogic our aligns addition financial In our position,

the aiWARE integrating aggressively into of are PandoLogic’s labor. applications and are We fruits our already seeing

continues to a company, strategy mature. go-to-market Veritone’s As

multiple more advances aiWARE, an capturing number proven mature across the the a PandoLogic and now of With in are of applications. platform businesses. With technological we increasing enterprise opportunities addition technology and

full the AI. the to business delivered our customer and aligning are of potential more broadly on focus We

I President, achievements over would call discuss our organization Co-Founder Ryan. Over go-to-market in QX, a to like Ryan, on with and detail. to you, government industries. call and and to focus in to markets will hand our distinct With now and enterprise the regulated to that, each and in later two the we operational detail customer Ryan commercial realigned unique base As Mike our greater strategy,

Ryan Steelberg

results everyone. afternoon, record good achieved and in Chad, again QX. We you, Thank

the to the reflect performance and a reflects commercial and markets for business we our of managing industries. and in and multiple government we platform enterprise and Services year-to-date are business sell accurately a Accordingly, maturing strategy. end more combination quarter revenue today. regulated products Managed We have recast Our into breakdown

revenue with recasting aligns with has our of reporting Our Veritone to customers technology. and software the always the we serve lead and go we way will market. the and our

suite with the products we aiWARE as customer customers talked expand engage the platform way we about In However, that our early the strategy. of land also our has matured. and our and matures, days,

customers how conversations. much use to are was of comprehensive their whole expand much then comprehensive and a engaging get use product with to Services, company. products enterprise they we customers. having more goal strategic one in and foothold of a Our in compel our Increasingly, are so we across suite Managed more conversations have our Today, we technology to much

different and grow applications. and sizes vast Yet power accounts application broadcast now evolved the is is believe of a GRI engaged single revenues. or case with with or customers, in broad of potential will public and conversations leverage started scope aiWARE. of use that Whether for safety to with So and it majority contracts sales leveraging now what agency albeit Commercial suite currently enterprise cycles. deal full we size, platform, Veritone newly Veritone’s legacy our has the that of of ecosystem partners the customers,

Media by of milestones renewed international the course our strong customers. enterprise UK a in Over all quarter, contracts, achieved of which the News Bauer supporting agreement with customer material the notable with extending We by globally. commercial signing retention, as New number above Zealand, footprint our well CBS well licensing we MediaWorks in XX%. QX We as and our remains expanded

MARVEL.ai, with I’m Wade with RECUR MARVEL.ai Wendy’s excited won referencing as recent has to state AI been the Year, framework. Non-Fungible Product Mythical or conversational Regarding customer of our new and to Voice-as-a-Service create Steve our NFTs. back Cohen offering, integrated relationship Tokens just awarded & we the NAB PandoLogic’s a that

We owners, our platform make media NFTs. content the we an content other customer, long-time it opportunity agreement And replicating available aiWARE content brands, and and digital have their of our This ecosystem. also the PAC-XX influencers, as and unveiled the networks. to extensibility expanded highlights with strength of Conference the are with

revenue challenges, our sales with tier the from iHeart, an to third with top acquisition quarter. Viacom further media a drive talent Bringing and growth Odyssey, today’s such is enterprise of customers. most hiring. the PandoIQ equation in AI-enabled into existing PandoIQ the solving to one others platform addition, is as job recruitment, led expected and expanding customers list companies and contracts In more focused strength approach recruitment and solution of notable

large, AI uses of number and day illustrates broadly the chains, U.S. companies solving in match and U.S. Amazon. small having these are of trucking mention been and the all reading hospitality right well the millions around the how businesses as quick have transportation, a logistics largest Every labor as the seekers. the We facing and Many labor as acute service more challenges globally. opportunities job and of systemic about world. our restaurant is job not challenges, countless the restaurants company, PandoIQ and AI companies, clients delivered largest used PandoIQ for logistics across e-commerce world’s being to with hearing to are applicants

in that through leveraging success this Well and is focus media opportunities grew governments, we Veritone our and aiWARE and extending aiWARE energy. had with proof points. customers our technology. particularly is established in legal streams technology our new Bringing the industry new peers. brings NFTs Veritone the average being GRI. unlocking past year, All ahead bear. to for the strong year-on-year. and and we Managed and prominent billings licensing gross We of public unique U.S. agencies, have the with and of strength Shifting with internationally the brands, quarter, together leveraging scale are made XX% owners but we safety content client have progress have partners that federal per clients also MARVEL.ai with Moreover, state considerable Services, to Increasingly, revenue brand broadcasters, ecosystem content

surge on the communicate with quickly to webinar and that now Georgia, Department enabling co-hosted view the important the Microsoft us. agencies intelligent that today, of are and Contact serve. I our panel across Redact, the law and local Massachusetts, data Veritone platform, solutions our a this all increasingly and Illinois, enforcement website. included lake. customers through police are shared more accurately Justice provide realizing chiefs communities Illuminate, deals California. aiWARE On our products. available in licensing level, breadth a offerings is of Earlier And and the of is significant state of and the public recently made applications number for that of activation Colorado, and hosted they their agencies closing transparency they interactions the have with that into a our to are encourage safety With transparency it its we country value iDentify the from the everyone most

Our by the success driving is solutions with our DOJ legal adoption aiWARE of accelerating customers.

partners, and processes and system of an amount providing through As and customers. the Veritone’s of legal the Managed platform all legal licenses and evidence scale Services Discovery mountains information. cognition Data of pre-buying unstructured aiWARE Illuminate and behalf and the required Increasingly, Redact increasing constituents products Veritone’s created. gathers being are to their Pro Xact Epic, sift are Serve ever providers on including necessary

Speaking we ATO agencies are XX Authorization the initial cannot FedRAMP offices, in the all across or Attorneys our of extending DOJ. To overstate the the of we our EOUSA, XX award DOJ, U.S. authorized Operate now with significance beyond

Azure have multiple have in work and the awarded of of Already we multiple branches We engagements under Already, to authorization Veritone’s across of the federal and Prisons, at others. the Homeland with partners, the time, Department DEA such platform dramatically scope are through divisions of DOJ seen cloud the of the government. environments, adoption active our multiple our same we FBI, ATO, Security, AWS the of first expand newly Bureau this provider including had accelerating in have while AI channel case.

DOJ, other In actively the work addition foreign the governments the other and with leveraging are that flexibility scale our are both aiWARE. and engaged with U.S. to we of unique of departments

our with front, energy the made we progress have customer. lead significant On

implemented and our optimization solar delivered forecaster which array, as software represents our for our implemented than software customers have well solar less have production. delivered and X% We and as controller this battery of initial

are seek distribution large control solar resilience As is our operator utilizing reserve to solution. million its of backup array footprint and This technology the license. unpredictable current the cycles. battery an diesel expensive have a $XX customers, our accurately customer’s guarantee The to to have wide future remain ever the production, our committed optimization solar and run of that this focus to to we engagement course, expanded sticky removes our growth. with the projects, this that contributor often led Based The significant businesses its systems, trade-off over year. of and success needs has solutions become on customer enterprise is we and energy more development Similar elongated which effectively regulated of performance initial found able energy of government very in such grid area. We array finally pipeline are production to scope. in that and of incredibly predict multi-year cost industry a our current on sales solar confident these our will and GRI this driving a than engagements revenue broad

AI to poised a extend over to accelerate our XXXX, leader globe. I it finish Veritone’s CFO. all in to recognized machine the across the growth look we As its And Mike see now ecosystem. ever Mike? Zemetra, than and into stronger will is as AI learning industries we further Veritone hand positioned

Mike Zemetra

am Thank our I of in QX, you, progress, including recent excited financial Ryan. report XXXX. to addition PandoLogic late our

For the the bottom-line top results we and guidance. record sixth with along our XXXX consecutive and QX beat our quarter, KPIs posted

will remarks, KPI and to XXXX our and drivers. financial I organizational During resulting QX discuss reporting my changes realignment our prepared

PandoLogic year-over-year XXXX revenues, important highlighting we a and impact and time which million on and performance again, as QX projected with scaling $XXX net pro annual quarter first exceeding equally guidance, first the our XXXX non-GAAP a Our positive GAAP basis, forma being the for raised income. and

and realignment and metrics. reporting organizational format our discuss I’ll First, new

regulated groups, unique and a focus each revenue and one or and commercial presenting customer with in enterprise go-to-market strategy, government two GRI. are industries distinct two We

one, Managed Additionally, two categories, in we and Services. show services, and revenue software product two,

our which a proxy total is Services, revenue This of customer X, since churn. and annual We we per average consolidated PandoLogic AAR basis ending and are breakdown also or now Product pro reporting Software our new includes a & forma best as January retention, around on customer metrics own driven customer quarterly if customers, XXXX. gross for

to in GAAP $XX.X PandoLogic improvement $X.X by Software Services million Managed AAR $X contributed XXX% was We Services, closed transaction year-on-year basis, a was XXXX. revenue $X.X to pro record revenue Products been or XXXX services XX% $XX.X to basis, Services, QX Veritone which Driving approximately and XX% million performance. On QX during annual pro increase forma to to our which was million Services increase has Software Services which XX, began was pipeline of largely a million. this million million. stronger. from increase forma XXXX pro Driving growth QX growth over year-over-year. increased record largely million, or $X in or XX% revenue driven increasing $X.X for AAR A in legacy Products XX% Now QX from On acquisition or or forma September was and from by customer & million $XX.X Amazon, organic was Services, Products increased million Software organic a of million Products and XX%. The revenue in ramp QX $XX.X Overall, a $X.X revenue driven up of significantly which increased & Software average in QX this or $X $XXX,XXX an XXXX driven PandoLogic & software with XX% PandoLogic on the which outstanding growth & XX% revenue million revenue. Software XXXX. in never from QX, of increased XXXX, the while Products & secondarily

the addition million on an and from announcement selling channel MARVEL energy XX% XXXX bookings forma Our recent to with of DOJ, the of increase in PandoLogic, continues expansion, with of partner our new XXXX, ATO QX, of the pro significant results QX, cross progress international initiatives. driven $X.X strategy deliver over

start future customer results. growth stronger, Our and term. in pipeline KPI forma long particularly reported more across pro near never GRI all we groups In to where been has expect in significant solid we the realizing QX,

advertising billings up forma increased XXX,XXX. XX% year. million, XXXX. retention prior up Pro QX and exceeded XX%. were XX% XXXX. continued pro XXXX pro software client bookings QX QX outpace Manages advertising forma revenue per [ph] forma XX% AAR Services XXX,XXX, over customers up New gross to $X.X In forma from eclipsing gross to Pro

QX, industry or and more from reached in up of XXXX. XX.X% first QX half the million profit margins XXXX increased However, XXXX. improving of XXXX. of XX% and robust Overall XX% from in approximating growth gross gross compared XXXX, QX $XX.X shown $X.X the XX% to strength million, QX sequentially in with QX

Services XX%. from of margins & margins has Products Software gross the which from gross excess contribution benefited two-week in historical PandoLogic,

having for to As XXXX. expect PandoLogic months we QX results in as period, XX including margins to as XX consolidated to we the over XX% months, gross exceed next continue entire early scale the our

PandoLogic QX margins $X by had for revenue a we in a of XXXX and relatively an to compared future operating X.X $X.X or driving XXXX, results. in results. increased On the of in OpEx, of by sales in income and record million and have entire at year-over-year. engineering, $X.X net driven $X.X improvement Assuming increase driven by QX million, and in core non-GAAP non-GAAP XXXX principally gross XXXX. year-over-year drive from to million year-over-year corporate in of QX offset non-GAAP loss margin XX% flat QX by forma flat or posted $X.X growth. fund gross Overall, profit with In sales $X.X change $XX.X forma PandoLogic, our were in core income product The income planned and organically was operations year investments net $X.X namely QX improvement which net at we of PandoLogic offset gross profit pro million was million the XX%. offset forma investments pro quarter, generated forma year-over-year QX XXXX improved engineering million, was profits the QX, million million a to QX net record QX million a improvements operations and versus XX% increased pro basis, increased greater marketing drove gross versus acquisition by across current XXXX pro

million. balance XXXX, million coupled million by activities working of was to million The in from cash other acquisition $XX.X in PandoLogic $X.X Products held reflects offset of investing restricted of consists million by by of changes of at activities million $X Turning and operating of activities, associated cash $XX.X compared provided net & net to which XX, December our we $XX.X cash $XXX.X financing XX, Services, Net decrease uses. used our cash sheet. principally the outflows XXXX. net At and offset $X.X of September the and including with million operations positive net and million $X.X and timing payments cash non-GAAP our Software Managed Services our by capital growth with loss cash

our of As cash payments due reminder, payment on we $XX parties the period. million timing dates will our a any reported to our Services. in and Managed essentially continue depending from fluctuate is for approximately of given to In held capital, third working

XXXX. was the XXXX substantial XXXX at future $XX the of operate million, cash for flows beginning outstanding. unencumbered end XX.X QX, generate over as Our the sufficient existing will QX, shares the acquisition operations XX, which from September foreseeable million ended is cash with in PandoLogic We to business

Turning to PandoLogic.

million XXXX. or immediately and with payable margin million largest of margin. X.X million financial cash most seasonality million PandoLogic has closed having Amazon. hiring than XXXX over XXXX, with have to XXX in $XXX Terms gross million customer, and $XX cash the forma and greater upon of targets a note based in with revenue stock, its September versus rate PandoLogic meeting acquisition acquisition As and run QX on and million of revenue accretive notably patterns XX% Veritone, greater were and reminder, business shares XX, operating of in its and Please does XX% payable closing. its concentrations consistent stock deal and XXXX customers in QX remaining upon pro $XX QX in a PandoLogic the price the $XX we to in with QX exceed

Turning to financial guidance.

sequentially XXXX. forecasting more confidence at be the between expect and income QX guide We up to million key to million revenue strongest $X.X for continue Given significantly and our we representing and be XXXX. quarter and from full overhead And to throughout in QX to our improvement QX our resources core continued XXXX. and PandoLogic, mid in XX% increase in visibility year-over-year for are and revenue areas the QX $XX consistent non-GAAP operations including QX corporate in XXX% ever are representing heading point over our to net to profitable pipeline, of we a we expect between $XX.X quarterly and loss $XX.X quarter million to our growth relatively excited to with $XX first non-GAAP in into high million, invest accelerate responsibly net help million year-over-year from this, QX With be XXXX be our XXXX. plan time

impact increase For million, PandoLogic, software between at we and year-over-year our XXXX, revenue midpoint a XXX% and the combined over revenue the representing consolidated year expect to XX% of and services to $XXX be over year-over-year. million full of including growth expect products be $XXX.X

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

we X the Conference XX; we Midwest X.X we to Operator, to my be of at through Virtual remarks. prepared Needham up our May will That ROTH our now I'd would our depth demo invite will you and use for testimonials. this questions. event, Also, technology, November UBS and Conference The concludes the Conference X; December call ROTH speaking One-on-One XXth. the investor Deer like through the to the showcase Friday, like conferences: X close, November on tech Conference, following Valley and Analyst cases XX; but the on the Stifel finally, Similar team and November on new Day Thursday, abbreviated Conference December I XX; to open to Before XX. hours, the customer November

Operator

Aftahi from your ROTH ahead. Darren, Instructions] go [Operator Darren is from Thank open. first line Capital question comes Our you Partners. Please very much.

Darren Aftahi

quarter closed Pando with I'm How Hi for big what's for since and market, congrats on second the then questions curious and the my as into nice taking guys. legacy of the labor Two, if I kind just Thanks prospects bought do outlook. of the just good of and may, your you and going of is kind question things changed, kind Veritone of picture. Pando. And kind have kind you what see cross-selling base? on,

look you fairly into a kind of catalysts. or you've you can I'm will fruit if are of of amongst speak As XXXX, got government, of think then kind gain curious lot traction that the just things material MARVEL.ai. to energy, kind which PandoLogic federal ones you and most Thanks.

Chad Steelberg

second Darren. why one Ryan, of up. you then follow and I'll first Hi, part don't and then take the the

Ryan Steelberg

great. Okay,

market, to Veritone benefiting think I significantly ours. a obviously going And to puts and position benefit, with to for it many the business. doing it challenging time of very in Pando are strategic obviously, respective really those a be labor our despite being grow that – we corporations, in we're obviously clients very while that,

demand seeing through foreseeable future. we're hence, and we expect to PandoIQ. increased do the for obviously, revenue, continue So increased that demand increased And from that

going the Just say, see short-term – we just problem to systemic of logistics beyond. – it's persist for, do well tight. and think service type employees, through we to XXXX restaurants but going type quick again, be market the of employers I'd labor not is and And

very bodes for well what So doing. we're

an still before, mapping. some contracted Yes, has thought of a very already done is kind and this been terms well In and great we've but on-boarded to subject to PandoLogic as state out strategically co-marketing, in earn-out I'm cross-selling, we've of opportunity. excited disclosed terms that work of that cross-selling doing really

deployed will enabled quality very see customer we are forward start PandoIQ in the we're aiWARE, penetration acting of everybody technology The of our think breadth is upon is but with only talent. need sold base. that good we're I And and to of that that XXXX, and looking not we now. news to optimistic So across in hiring

and seeing of I the which speak other we're We're did about, remarks of exciting. industry curve. catalysts, legal been to just his ecosystem, terms a compliance, we're sort as prepared we own that and commitment about I'll of going that remarks, earlier have the Chad our I'll on the M&E, sort but really lot now and Metaverse this to in entertainment today but to sprint talk government, as ahead here new to media demand In has let of

of major as proof on their prepared have which for extremely have content indexing early and we that aiWARE, hosting obviously about. through as points we're lots We and we've already good the sort NFTs as already some bullish aiWARE sized such through MARVEL.ai, of customers. well obviously deals We've facilitated fairly

on to do want that front? the from I material MARVEL.ai to add distribution XXXX. yes, will both GLC of so deployment think energy Chad, a think wide to productions And commercial you service have be to audio anything or a contributor MARVEL theatrical internationally. very productions revenue in I And we'll books of spans localization, and and domestically

Chad Steelberg

question, the Yes. mean to Darren. I back going first

very markets mass well, that challenges the a are with driving seeing invest tailoring beyond I COVID the foundation, hiring we've You collaboration the that government sector. we Zoom and progress of in of investing solving in the in are I manifested even you're and continue that like as to I in that kind a intelligence current adoption has of expanding forward acquisition, chain terms enterprise, but that transform into society enterprise our systemic AI we're things technologies, in corporate XXXX, which think accelerating market, the part right? Ryan in seeing, side and that global think unique the technology in effect become past the Internet, and to the in of the kind heavily witnessed spectacular our just obviously this of, well aiWARE that's as businesses the itself in and the looking two the laying really over GRI, will as services crunch starting effect all, and And nice global mentioned this the categories, terms in directly have problem of on solutions that then seeing And COVID other way. have And in and hiring our communication supply fronts. position been obvious and well platform. which and with talent a sector leaves both us obviously energy believe

So tuned. stay

One us of explode massive and part business. XXXX, will a the year. really market we're become to see be crossing that that our going these days, of our fingers you're that for

Darren Aftahi

Thank you.

Operator

from Please Pat Our go JMP next open. comes question from ahead. Securities. your line Pat, Walravens is

Pat Walravens

many Oh, guys. business congratulations And so the you to see great. to on different Thank you. cranking fronts. Nice

of I in just the sort of Pando my you've and opportunity Metaverse take? the think two, that press what would steps So comment terms about to the definitely the the And that and taken I steps you've would part one. and release piqued still love be of to with part sort presents. hear the integrating then you is curiosity have

So if on little you of expand a wants one that. love bit hear to that, to

Chad Steelberg

the you the of both roadmap don't first, why team Metaverse. Ryan, so left then tag on and can Sorry. what's integration we on Pando then we've what kind take far done forward? the And going

Ryan Steelberg

Mike integration. as I'll it – well. of technical There's say, address a I'll And with side

and sure systems. good I wanted controls that had like data institutional to we we of everything think So first make

full have there. And and have all making team I metrics think visibility financial our processes. sure Mike team numbers, about good in say, job so the and system and just integration check our we I'll done box a access to

on we're well time. we and say, But that effort to ongoing a ahead completed. been HR-based mean, look that's So sort I would definitely common I an will over other consolidate be of systems schedule. as of platform

our management of part already. they're importantly, weekly meetings More

of example, So do important weekly kind this for – staff is some of at anecdotal, calls. worldwide they part already all of we just our are but

side on sales and at account the their right, accelerate that mentioned front, really co-engaged, valuable their but looking how accelerate how we base. and Now earlier. just as mapping, And our we're marketing both obviously specifically PandoIQ I means existing to actively do can customer pipeline, taking services we not

as we we aligned. be ability Pandos' our And ongoing into obviously align that an news hindering and there'll achieve obviously obviously, processes of talked place, they projected earnout. have growth. almost actions The it's put make take in is ability not any Some account little to good in – sure things we're perfectly to do to of the have sort again, providing those a we bit, But are, earnouts. with to need

the numbers, both fruits and logo or our benefit. hit new again, labors labors it's whether their So accounts of we collective to

it give the how on and marks, so I future. been So suit score internal to that terms doing in far I we've here very follow in would high of integration, expect

Meta, Mike, also on integration the regarding basis? On add to a technical anything there want is I

Mike Zemetra

perfect. was that No,

Chad Steelberg

the Metaverse well. would integration how Okay. into the Ryan, be plays & Wendy touching I worth it MARVEL.ai as into Wade on and that think

Ryan Steelberg

even the with I'd And framework. AI through of of aiWARE Wade integrations representations conversational new Wendy is level MARVEL.ai just starting kind I'd integration say, do that one we've above low of cognitive work novel done, Yes. & say, some, our to PandoLogic's

that. which almost that. about dialects, excited powerful, very We've And acquisition offering can chatbot needs. talent they're really when we & – conversation a their engaging of voice added voice in is for to that And through a we're element environment AI so can And Wendy, provides very type languages. intelligent different Wade of hyperrealistic PandoIQ be different and very a and seamlessly Pando customers' service powerful service

quarter That we partners one But entertainment media of say concrete the – their content that's just OTT integration now many linear our in I'll Metaverse, to having more looking the right? off-line of up human and being to just an continuity And means technical inside seamless whole ESPN CBS Fortnite things element or accessible ago King into footage the is so example, television. with Wendy. of Luther might being talent Civil and example. one Rights of it Metaverse. again, couple a was, ready a or with like means good to are and big Washington actually all the and through very experience for March on-boarding for yesterday, good you Martin game Wade acquisitions other CBS be of as in a a and an MARVEL.ai voices of I'm a through, like distribution add with with I And of the our ago simple & I provider I we're say, of – – almost think, that of evaluating position mentioned world, News, forward is dealing a imagine traditional I that integration I sorry, all think organizations content aspect a the the of of News one we have one – the on quarters example we And great media can really and effect, is movement seamless a tee with that and would just transformation just looking but not example a they're partner customers to digital as technical think and

So in indexed production we've NFT this content ready possible aiWARE a again, makes packaged all whatnot. position. that's the activation, for we're all and think I great or whether sort distribution, because of already

yes, we're about excited it. very Chad? So

Chad Steelberg

Yes. our to digital by a digital Facebook. definition, be new both company with information, realm By that's content is and realm And and AKA definition, bigger it's the selves. the interfacing then in moving us than into physical I Metaverse, lot the multi-verse the think going a Meta back obviously,

I set is our think our for to aiWARE transformation that the Automate Studio positioned integration those digital pipelines ability with up Metaverse. and with perfectly

all our and partners and really over APIs lifting for going years Metaverse we've our the been capitalize is spades that heavy to on us pay to and way. doing So the

Pat Walravens

All perspective. that Thank to right. Great. both you

Operator

Thank you Pat. very much,

Reback Our go next from from open. line comes ahead. is question Brad, Brad your Please Stifel.

Brad Reback

spoken same there? yet, to the we think high the get Great. XXXX should Any all Thanks us I on and how on level, to very you starting haven't page. just much. trying know point revenue about but growth Guys, thoughts

Mike Zemetra

this take I'll one. Yes,

look target. midpoint you us tell grower a think pro plus basis. Brad, sort our if year-over-year, going But you, what guidance. have can I XX%. of we're XX% baseline growing the is forma said you north We'll And take just as to on of forma is our what be to of be at So pro I always a we've

use off least start at I in to be So the as ballpark, you're that proxy XXXX, you to a going for if think the gate.

Brad Reback

That's the for sort tactical of given for great. be over that to That's should flipped share we great. And then using account XQ profitability? What just you real question. one

Mike Zemetra

Yes, that's a great question.

XX million stock million common XX.X about that shares shares there's equivalents and of got we've So outstanding. roughly are outstanding,

a I what basis. diluted on use fully would that's So

Brad Reback

That's very Thanks much great. guys.

Mike Zemetra

Yes, thanks, Brad.

Operator

go Our Nick, next Craig-Hallum. Mattiacci line open. question Please ahead. Nick is from from your is

Nick Mattiacci

This for our questions. Thanks on is taking for Nick Chad Bennett.

business aiWARE So I'm entertainment traction of media vertical. on speak you and then do And is that could how of you in any entertainment vertical just And where much of the curious aiWARE if gaining entertainment? media and is where you if about commercial the see outside could color media also, give today? commercial enterprises outside opportunity

Chad Steelberg

Ryan, why one? don't this you take

Ryan Steelberg

Yes.

of Today, and So commercial dominates we since makes still as entertainment of commercial. I the and government, media kind define of mean, new sort – legal regulated industry. it and our really up lion's share compliance announcing alignment and and

but expand different really types And so of here industries – into we expect all do quickly. to that

say kind doing foyer that can the with of AI PandoIQ. where already we're an You is of kind through interesting of integration PandoLogic and

to PandoIQ other So scale to of us really that's in market quick a by from of be be all default, and their in And service through healthcare, and the with auto hospitality, others. focus fintech have wide offering. of, service array kind going we're obviously, kind ours because of major But and we just I expect a areas. industries, PandoIQ, of already restaurants leverage already

post ourselves basis, I commercial, every almost XXXX. on are think don't out vertical. legacy But really think kind entertainment itself of we Pando, through and limited will I aware, today, be as So kind diversified dominated media broaden and close that of we're in guys candidly, historically and but you see be of more had a

Nick Mattiacci

curious that you saw this road any on guys impact map founder company. the you acquired guys' product energy the for I of Got the it. products. that, believe think, And has left I you. became product energy just I if the company, the eventually Thank I was

Ryan Steelberg

– are I own our you talking about solution? don't internal yes, energy think – I mean

Nick Mattiacci

Correct.

Ryan Steelberg

was that Chief product. Founder Yes. No. and Chad the Architect of

think Dr. you're a part of Kahn, to referring I scientist data as was that. Wolf who

and actively by don't we no, expect company consulting a he's still So engaged basis. with the on – way, the

Chad lead effort. that don't of we engineering have expect any and I be disruption, our but to own sort think and led clear, to continue So will team

Nick Mattiacci

you. Thank Got it.

Ryan Steelberg

Nick. Thanks,

Operator

no At Instructions] further we this [Operator have time, questions.

So back to I'll closing remarks. hand Chad over any for

Chad Steelberg

everyone, time, and call. us thanks, through making we your exciting Thank very mission performance time to the the share appreciate quarter. today's opportunity intelligence. you, I'm goodbye. this today joining for are making world past We progress of and next the with operator, pleased our artificial Veritone's Until better on towards

Operator

joining everyone, you, for call. Thank today's

day. now line, may You your a disconnect lovely have and

Veritone (VERI) 10 Nov 212021 Q3 Earnings call transcript