VERI - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good evening, thank you for attending today’s Veritone Fourth Quarter and Year End 2021 Financial Results Conference Call. My name is Bethany and I will be your moderator for today’s call. [Operator instructions] I would now like to pass the conference over to our host. Please go ahead.

Unidentified Company Representative

Good afternoon, and welcome to Veritone’s fourth quarter and full-year 2021 conference call. twin Angeles Scully, XXXX. Dodgers digital of legendary the Los the from am of the Vin voice I XXXX to though Veritone passion the from ago, retired have platform made achievements I in games you history most-advanced Even years today AI-powered with several voice by in calling human my the sports world. for Dodger and here and Voice, great voice have synthetic fourth I quarter to am Veritone’s and introduce call. conference year-end excited Brian to the Investor hand It’s Alger, now after over Brian. SVP, and call you my Markets, Capital pleasure Relations the to

Brian Alger

Scully. investors Veritone and December release Mr. results of section XX, release you, for After a the the press The other Thank Veritone’s the website. supplemental market today, announcing ended XXXX. issued information closed the is quarter fourth at press available

the update statements from to the for Shortly to results Who the non-GAAP materially of quarter Ryan earnings those remarks industry-first. uncertainties year Steelberg; provide future languages are Chad income discussed and and performance, about synthetic in having today include operating for forward-looking Please may differ languages assumptions its that Veritone’s on completing digital of today’s will events risks, multiple call made report no respectively. future live of is Veritone’s and revenues and forward-looking six Form on by are Veritone’s or implied in as We sessions. Zemetra. financial and us President, and first risks an subject them. an assumptions based the on These of a open today’s to available cause the and Veritone’s certain both annual AI-lead and These that XXXX[ph] believe net net the SEC call today actual stated including information those note voices. and assumptions be loss strategy expected obligation and Certain Mike and full call, call XXXX, Veritone available statements March filings, will XX-K. on undertakes remarks forward-looking will after business or are Chairman its included CFO, statements are and call versions tone for up statements. revise discussed live CEO, Q&A in then these X, prepared Steelberg; and Joining

the including as Enterprise certain XXXX aligned and development, expenses PandoLogic support and services During Commercial the entertainment unless Managed will content financial we and of other expenses customers, our we’ll taxes technology company, in Regulated noted Industries. other Commercial sales, including well to in expenses, Enterprise, this commercial measures consists and overhead costs. expenses, actual the media the Veritone’s Government company-driven organization as customers cost and on call, non-GAAP groups, income their its today measures Veritone general marketing, of a has information customer for expenses public and these or facilities Core that content Services of distinct measures between consists of discussing product including and advertising licensing operating and sector, direct sales, costs entire and GAAP including acquired corresponding are and basis, to our executives, customers and of administrative general administrative customers, two be and a Reconciliations focus than and issued Regulated and such customers. consolidated energy September GRI, and release fixed and legal, presented forecasted people, and Software Government Industries separate as licensing supporting otherwise. other revenue regulated dedicated of today on finance, late regulated advertising Corporate businesses, breakout government be customers including included operations, revenue results in the Products Industries measures & known Products operations the and Veritone’s federal including consist industry & Software local Government as corporate. non-GAAP to and operations compliance Services. and industries. not press and operations. include operations, include These also Regulated two customers that that today. functions state, legal, and core Services sectors, in these government, are through the or PandoLogic of Managed we from Across consists categories, government into and Enterprise Commercial the Services

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

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

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

Chad Steelberg

begin, Veritone its to moment want this that take that I say of Thank hope a our with sufficient day, to [Foreign and is you, we Before mitigate AI nature. necessary, and, Ukraine if conflicts stands afternoon. to resolve to Russia Good one Brian. help in opposition Language] actively

noted, Twin am Digital I Chad. Brian As

XXXX while culmination efficiency QX our and hard million, quick of of many success determination Our consecutive and started of work are resulting our XXXX on brighter and our $XX first ago of already fourth expand give quarter and suspect line operating revenue, leverage These the our year trend system revenue performance, one profitable synthetic network nearly continued this to continuation and income future. as profitability, have of customers, of our and bottom the We a demonstration great company. financially, with revenue applications. of ado, Veritone record voice today $XX was Without Mr. in the flow, foundation earnings including seventh standard of non-GAAP the focused customer will I'll a of team's quarter aiWARE-powered strategy and and our our growth year metrics as are of operating Vin you of our a years profitable the our on even land and first commercial icon, using that we using become AI quarter, year-end was QX operating looks net our and vision, review our XXXX the sports voice validates paid-off. further nearly question, the strategy which, purposes application million call cash for profitability. first several is future firsts year a delivered perfect for our calls and improving, effect XXX% are our lay without synthetic the of performance. and growth pivotal we retention was results two-years for Scully, positive quarter focus customer it exceptional

revenue day, It dead. more am It than energy basis. hiring, and podcast world AI to EBITDA. with than software possible Today, delivery We More California, that of on are alive through that now and direct AI proud full guiding state XXXX declared positive XX% we AI to and impact in synthetically than content two on optimizing and underpin every aiWARE industries of Veritone's producing and Defense sea, alive. XX%, America in set that helping powering the decades the the millions in I XXXX is even that through of make today. the of entertain public that increasing advertising Benioff Department an into companies pizzas flow alive efficiency being the the planet started. our packages by for and alive. and is corner manage bigger is equal. be is police poised higher ago, aiWARE is its the providing metaverse by impacting year life. world to tomorrow, on people services come. benefit than the information to and our the improving to communication is transparency a its understand diligence from many so touching in protecting of defending is us, and saving daily in much applications more the in of data and hundreds powered It's listen Amazon inform it profound ground, or Southern and our lives, the is collected important and Domino's recruiting, critical world, we in real the by personal are ways, every It facet is impact local crimes are yet my to and in helping energy note, space. AI and getting investigate serves, all expand aiWARE's forecasting communities in of the only on than massive and community allies both created of every the ever-growing and air with not Marc

in integration delivering consulting and services, are Others companies tools. applications specific models machine delivering and providing point Some are and a few industries. are learning solution

supporting its has Veritone vast any with AI operating array industry. that only applications power services across AI of developed a can of an and all applications system However,

AI application and our to ever-expanding mission In capabilities common development performance fact, road and of runs operating reducing have show, is I boosting just since will or dramatically Linux. applications. of aiWARE, to future on by software IPO Mac AI laser-focused X number our handful by time, system, of common have traditional on ability the saying remain OSs compute We an its cost. computational how XXX-fold a reducing operating support like Windows, like AI a OS been system, that improve aiWARE's enterprise

of of developing our XXXX, aiWARE of startup from develop as law metrics, Check our award-winning we say do Check the our way margin for from for and of as long the from thing one in do through and a aiWARE, gross be It's safety first investors, leader, one than did our very public artificial we enforcement unique been it building XX% and target improved Also upside We to process paves we end box. At on we Our model employees I box we as better to ethical and well. use and based performance expanding predicted XX%-plus, well, the differentiated to profitable it. that intelligence. business AI. a applications. AI a set financial else. customers. would XXXX, would Version customer AI and significant And the X evolving aiOS the loyal the potential thing our anyone

Before our outside online in to Ryan more our now powerful, aiWARE publicly the largest an Check more and use everything stable could more for anyone XXXX, is technology, but only predicted its diverse, any core and we future, marketplace the Similarly, human focus. engine marketplace it's numerous cloud. Amazon, what focus even made leading or powerful that the is thought industries. realize. than X,XXX of and customer, went important, that more that humanity the and is online future again. the bookseller than public, now we I the and both seems is cloud Veritone its become in nobody powers profitable call is It synthetic more computing more AWS, AI voices in of now on times diverse engine possible more the infrastructure. and

our the We have and is of tipping elaborate. another I'll continued reached vision accelerating. reality into point translation

six years one Veritone We aiWARE. Just model one models, ago, Version ended on dozens one less customers XXX with of application used applications than of had by in used industry of five over XXXX hundreds XX[ph] running customers industries. with X in with by AI

and Our attrition revenue beginning. negligible QX results broke just the is and many records, contribution, this including growth, customer SaaS

have We the market. going and aggressively after been systematically

one-tenth the We the partners global build were Government. typical from they the with new tested Deloitte, the applications In in scratch enterprise these aiWARE have formed of to relationships Federal Microsoft of entities cost U.S. strategic numerous average power time. able with like XXXX, of XX% and

This geometric and believers XXXX, in entered AI Managed and, so a and helping point X% the as new team solution gets applications less where by adoption customers expand This tipping are strategy enormous aiWARE further our repeatedly, is they AI really AI we to expand Thus, point and owned their novel to drive stage we the and the develop the of been their aiWARE on. aiWARE. customers. our being billions by users, are leverage the partners of use point it diverge progression point than it our application to our increased in on the Now is developed land to for Veritone will where their partners, in have revenue future where of The customers creates our will end striving we millions business, and aiWARE accelerate XXXX. where and returned for. now develop believe we Services and grow Veritone. have customers, land turn, In point of have expect own Veritone customers The the interesting. development applications solutions powered our aiWARE of with users, running and have end and for

OS do convince is point. have we've compare point, this We future, know work and tipping are because this value, rather important or have our call, point How this reached equally the that investors hard reached metrics appreciate, for I and and how we we I building translating investors to the of do the can understand. reached

XXXX Our year are record QX financial, KPIs, full proof of progression. and both and operational our

we our scale. ability addition, PandoLogic, at proving integrated acquisition of In inorganically grow successfully our to

is our our and are complex, metrics While results not. technology

in We purpose prove are available is everyone. our declare maniacal alive that to and and AI for

new one shortsighted. Steve new will The for day is the enhanced its artificial famously is with declared are the case once are computer creator. relationship beginning Steve We leading mind been may era, a where world our where surpass a limitations symbiotic was a mind. bicycle This augmented new that have biological computer one that into the a through intelligence. and a epic, Jobs our

As Ryan moment, Mike and years nearly delivering detail seven in the a will ago. we executing is that strategy Veritone and envisioned on

is gains continues broad-based and through AI in ourselves to acquisition an we data standard efficiency As challenged the drive by of lake environment. the will strength solutions. are now we labor and to choice, adoption unprecedented find many this benefiting its exceptional common while are of employment able Veritone attract period enterprise unprecedented trust convinced and current PandoLogic cognitive recent our leverage. positive talent from that with of businesses layer, Further we enhancing and aiWARE outcomes, adapter intelligent and standardized are accelerating APIs inherent deliver

of For current was With leaning higher with year and business, XXXX, environment of customers' outpace our and accelerate are adoption importantly, XXXX XXXX our be in in when in a best Veritone, over that this that revenue further cash even Most these aiWARE. million to growth year growth cash, than is our flow our alive. AI peers. in advantages our and we line the is accelerating sight projected is expect I'll opportunity. XX% great only and emitting guidance forecasting $XXX positive labor our ever, at investing it to we summarize. our least clear the is geometric our proved people into

the much aiWARE on it smarter electric all but shows in not watch, better, me, protect that and yet You the powers it's see your might day. vehicle serve in you and that and the trust you it's there every so more, in getting police running electricity and

Ryan, I'll President, our provide our the to turn Over details to Now over on to progress. further call operational you, Ryan.

Ryan Steelberg

record afternoon our Thank language]. yet you, [Foreign The performance. reflect PandoLogic. We Chad. quarter another closed And good full results with acquiring first outstanding XXXX after

Our with fruit, efforts already enterprise. are on to integration and beginning track starting cross-selling commercial bear is

robust. software X,XXX%. remains XX% year The commercial revenue prior On our Amazon, increased significant. revenues obviously managed the enterprise by customer, QX our and year-over-year, period. XXXX commercial, business Within contribution largest over was whole, the services grew XXX% and quite with our nearly services grew PandoLogic's

was the over going our quarter, PandoLogic PandoLogic, strength. by to excluding in every December Veritone grew from in commercial business, outstanding more XX% growth measure. importantly, XXX% Perhaps quarter However, year-over-year strength for is customer an the quarter.

growth. Our strong are bookings, retention and offerings delivering new market compounding

Our our bookings a up eclipsing bookings and million, hit more organic XXX% high, quarter. versus $X the record year than ago were

we contracts. virtually of we to one enterprise are renewed every commercial have As single excited our expanded enter and/or XXXX,

In lead. to follow synthetic Veritone and just conversational implications strategy content, are leader we the list prequalify in top and the and When tier. audio This retention a is rapidly coming Veritone's the offerings. businesses November, commercial is about are Veritone. technology are podcast seek iHeartMedia its is to large in we deep metaverse global synthetic synthetic enterprises. companies voice weeks already detail announced network. to will and we remain building In turning leverage as Mike our metaverse of content our small licensing synthetic exemplified applicants. for example bringing another company, iHeartMedia's largest be both of voice talking prospects The how can help Veritone metrics Veritone's client, is AI we to our podcast how wide-reaching advertising, they rapidly and As the when will and podcast it February, unveiled months, our land shortly, expand long-standing In more the

our and which in Veritone's emerging of However, of doubt this engagements no relevance focus this the announced already strategy we calling leave market should are very-verse.

influencers. addition In inking deals voice we number to iHeart, of markets production like are and advertising in beyond digital podcasting a books, audio studios, audio

with of licensing NFT and and Shifting puzzle to are our in enabled strength. In markets. new see just that with Activity to another acceleration been Pac-XX synthetic expanded the is Veritone our driven enterprise in workflows and industries aiWARE, government nearly position. or agreements all bookings regulated over we strong has California and we announced XXXX, momentum market expanding being growth resulting deserve analytics the carried by Contact local, platform While licensed has our RECUR and functionality, finished into federal very-verse agencies. piece prior XXXX of attention XXXX, growth quarter, which unique DMH they strong aiWARE regulated accelerating voice, XXX with law GRI the of by enforcement PandoIQ commercial as that across by expect the represent GRI, expanded all offerings and our driven early and from our TAM. state, announced Recently, customers,

enterprise its While on rapid it products sale is our that of potential. holds revenue impressive that the other own, adoption is greater

fit our contribution safety and the incredibly of delivering material as that California enforcement we and product is not value are market law high, agencies in today, penetration public that strength. Although rapid sector revenue the the into reflects

customers, the T&E been outside announced also DoJ Department. Chamblee Henderson data notable In Police in the $XXX of AI County and Bulk press. the State and expansion financial the not numerous California, Agreement, the significant if report DeKalb Indiana Veritone's Center brand new portion or Police, and we the with the February, broader the across Joint within or was with Department, Sarasota investment DoD, just with a that past We of years penetration has will for agencies. the Sheriff, BPA, Police of Veritone the in are Sheriff JAIC, stronger, never named acceleration results shine not several to the also Purchase million the of excited including County Federal AI initiative. to Government Ultimately, results but other some

represented We year. expect growth material our this from our see in government financials to customers

time, directly have California for Coast. on delivering Already, with better we another operates regulated demonstrated continue progress. announcement energy the our suite forecasting to wholesale contract manages contracting power statistical Southeast week's signed in reliability. make this On electricity their This the lead provider to for Operator energy with the Independent we up grid we a of market participants dollars important CAISO. side, With millions as discussions good and the has the February, infrastructure in the production better applications market save CPV energy targeting a lines, overseas run results to while, at flow forecasting, resiliency the standard, East formal and of California and Southern on are energy In IDERMS against in announced System technology advanced our results. of Veritone in our continues software in outstanding of is California. the opportunity. known high-voltage equipment, XX/X planning XX% delivering customer With potential same S., CAISO on U. our

much conversations terms finalized, more providing say, extended Needless clean look and regarding energy commercial forward details. are across utilities to the in broader we soon deployment to as a extended are We as portfolio. entire

performance than its momentum company's the efficiency is time at other and operating our whole, in Veritone history. any more On highest with in in

enabled be aiWARE expanding, Our customer leverage operational the to beginning is by rapidly realized. is engagement just and

hand results CFO, Now like off the our in detail. call I and to go Mike. guidance financial to more through to to you, Mike would Zemetra, the Over

Mike Zemetra

Ryan. you, Thank

in First, the Language]. Latin I in America, investors and want analysts China, Language], [Foreign to [Foreign Germany, thank Language] our world international [Foreign around

cash positive highest Turning and first the to report with ending million. in quarter, year and non-GAAP reporting XXXX with results performing QX, excited at excess are of consecutive record seventh I'm to we quarter $XXX our levels our

we year-over-year growth the our profitability a integrating you for products our and $XX over we XXXX, revenue the year-over-year margin including software forma story growth profitable generated and organic and executed to-date, revenue and importantly, and solid XXXX, operating now to even and services pro acquisition revenue year have closing of over XX% sheet growth, Heading and growth More have to outlined balance on and on the contributed leverage over financial from into PandoLogic, ending with XX% our everything momentum over further. business quarter at beginning largest million which generating of first the with revenue we XX% time. accelerate consolidated rock XX%

remarks, we KPIs XXXX, prepared and an on my financing XXXX beginning record and since QX and I November PandoLogic XXX% XXXX, a XXXX year-over-year. $XXX working our basis pro and will and non-GAAP and million year-over-year if During performance, the as debt Starting forma our with revenue own discuss capital QX reached of convertible guidance. XXXX XXXX $XXX.X full-year million, full year up performance

a and primarily basis, million XX% organic XXXX $XX.X revenue increased driven XX%, products million million, and to and software in million, the contribution services forma XX% million, averages. $XX.X $XXX.X XXX% products PandoLogic by XX% XX%. to and services Managed revenue increase a services a above or pro products and million Managed record On well by software XX%. year-over-year or $XX.X million grew increased $XX.X Software services driven industry and by $X.X or services. or $XX.X products grew software services. organic PandoLogic increased increased

am million XXXX to was basis, in $XXX.X margins $XX.X from XXXX. As year, of the gross of reached to compared XXX% and forma represented in XX.X% million, million and pro gross pleased XX% gross with Gross to expanded in $XX.X or in up forma software compared XXXX. at XXXX I relatively On pro prior revenue, XXXX. remained XX% in very XX% approximately a improving XX.X% revenue profit total constant margins versus in XXXX $XX.X XX% a profit or XX.X% from XXXX, products million, total XXXX percentage generated last report loss non-GAAP was for compared $X.X million $XX.X of $XX.X margin full basis, since Veritone that remarkable core with notably million, operating was from net pro XX% income as positive forma inception, PandoLogic's XX% time The a contribution XX% $X.X approximate first a non-GAAP driven combined year XXXX. year. operations, by for net months million income improvement approximate operating million four in to the million of non-GAAP most improvement, an $XX.X in revenue. the increases a in organic or XXXX margin each On net representing services

to of $XX.X QX financial performance, QX million revenue QX turning Now $XX.X up million, XXXX a was XXX% or record XXXX. from

coupled revenue. flat with a the is Amazon. customers XXX year-over-year which in forma pipeline XXXX, XX%. by $X.X grew forma at On driven to media by XXX% pro entertainment or QX been and by government. PandoLogic products products of XXX% XX% services software PandoLogic organic Software $XX.X increase million led million $XX.X XX% and over year-over-year, increased in $XX.X or over pro driven record grew AAR net our reflecting services revenue by has contribution commercial On in customer customer stronger. and Overall, was million services forma year-over-year services, offset and relatively from increased driven products and million basis, new the Managed growth non-Amazon XX%, and QX year-over-year, a new by never timing revenue, of QX a pro XXX%. basis, customers to retention growth XX% and in growth software growth

to deliver Our strategy results. channel partner-driven continues

the over Organic were an QX bookings of XXXX, was in increase XXX% $X.X XXX%. quarter. New million growth in bookings

immediately long-term. Our GRI, high, significant in pipeline begin an in is to at future particularly realizing expect near where growth and we all-time the

licensing offerings voice increased new enterprise announcement services, reported of In with results. within BPA around recent on like energy significant other million international commission synthetic technology, and initiatives. PandoLogic, expansion applications KPI and AI product cross-selling solid We GRI, QX, progress we joint our the $XXX have opportunities and the

largely pro software million, up forma retention over growth XXX% year-over-year In in $X. up advertising first forma $XXX,XXX. at outpace New XXXX. managed XXXX, XXXX. to from shown driven campaigns timing reached by or first half event-driven up pro XX% to expanded compared quarter with inclusion QX in bookings XXXX. $XX.X benefiting AAR XX% half XX.X%, QX advertising approximating were customers QX increased XX%. exceed PandoLogic, the remained and to pro of million in and strength million, consistent entire XX%, generated billings continued to of in XXXX, the profit services, were up continued gross XXX% gross Gross excess from the XX.X% margins key QX QX forma industry improving active $XXX,XXX, by from X revenue of per new year, $XX.X gross prior of QX XXXX robust larger margins the of XXXX customers client which XX.X% year-over-year over QX in the XXXX, gross and of XXXX versus

income to at sequentially exceed and of million margin $X.X $XX.X gross expansion. million were versus non-GAAP to aforementioned $XX.X engineering, fund $XX.X and impact As a investments rent record offset seasonality. reflecting expect XXXX, improving organically XXXX posted by at $X.X million to or total basis, million growth. forma pro net we margins $XX.X reflecting $X.X XXXX. was XXXX, improving operations X% increased income we revenue in each XX% PandoLogic million million XXXX, QX million, personnel-related net of Pro On lower million year-over-year. XX.X% QX margins our principally increased year-over-year continue to net full and improved of the with scale relatively basis, year-over-year. improved QX a On $XX.X throughout the and expenses sales increased over the versus compared next XX PandoLogic gross including forma loss to to Core compared corporate million profit record QX pro QX net XX income or in gross profit, gross PandoLogic's and PandoLogic, QX quarter, QX forma reflecting a OpEx driven XX% namely XX.X%. The to by in gross flat months, $X.X

November This Turning of for services to of of to December $XXX.X due compares to million payments cash Working used $XX period. and XX, the net million convertible million debt in given held million, increase reflects from our acquisition $X.X at our the PandoLogic. by XXXX, million and and offset received XXXX vendors. dates restricted At inflows from $XX.X cash balance timing including future capital clients cash on for XXXX. in offering to we managed net operations of million XX, depending any fluctuate December $XXX.X continue $XXX.X cash The sheet. payments from will

support Our the operate is of $XXX to over existing end unencumbered which million, XXXX and at growth the QX was future. business cash foreseeable for sufficient the

convertible coupon We capital, proceeds result financing As for to and Veritone. $XXX.X million after X.XX% X.X% outstanding. proceeds general December capped plan of annual Greenshoe corporate purposes with including the approximately million. proceeds of cost interest generating acquisitions. in strategic million to Total the XX, the was We shares net call $XXX.X is debt of a the XXXX, reminder, cost of use million the XX with cash ended approximately and $X.X gross

QX XXX in share. $XX.X PandoLogic Lastly, financial end cash stock with will pay expect million PandoLogic I million the note be $XX.X target, comprised valued that million out want of achieving in shares connection per in of XXXX, to $X.X at XXX, to or $XX.XX by approximately which to its shareholders XXXX we and

To and include which, investments. year XXXX. near employees. to over and by to support QX expect today, be These and includes our Turning XXX making full will XX%, financial significant in XXXX Veritone. for increases we continue full-time over forecasted growth objectives, growth a year for this just headcount responsible guidance long-term achieve

support the is of and on sales. dependent be will operational majority which hires, largely these growth Our engineers,

growth and In half our invest active in and have to in addition, Oracle the to global infrastructure, also we deployments as manage to need strategic acquisitions accelerate such order including we planned our planned systems XXXX. In growth of Workday pipeline and of organic future of scale, an scale. first

onetime Lastly, with as the the wage employees restrictions no need our at retain into lowest these resignation, of the revenue In longer XXXX, versus Veritone Chad system that and accelerating year. current outset, versus to investments and PandoLogic retention higher significant and quarterly the that in retention-related with need mentioned our to richer throughout where reminder historical. we backdrop the raises rewards, globally, approximately increases costs with and expect higher back to hiring, to see a QX world will we newer reinvest with annual great be benefits opportunity. we in We hiring seasonality $X the incremental also employees border have sees total, however, and XXXX current has great and we on inflation million

expect the GAAP QX $XX.X QX and increase XXXX an pro million $XX.X million, XXXX QX year-over-year versus and to revenue an between midpoint of be XX% We increase at versus forma. XX% representing XXXX

as the single XXXX and QX to XX% revenue to grow and Software products while in growth, high revenue revenue, forma is services mid- consistent to compared retention reflecting over AAR maintaining pro to increase and services rates. gross customer expected is projected net Managed digits.

$X.X relatively QX $X.X to between a expect basis. be million XXXX flat net We XXXX and QX million, pro loss forma which non-GAAP both is on GAAP versus and

Even we loss revenue to non-GAAP be a over our with overhead seasonal results the XXXX As are operating gross of majority decline comparing $XX corporate a core in costs be and QX in XXXX. payroll-driven. XXXX, and operations of the still in are QX net to relatively and QX consistent million our to forecasting profitable reminder, QX with XXXX, our profit. decrease fixed When this,

$XXX year-over-year For increase basis of basis revenue midpoint $XXX and the to GAAP at on pro XX% a XXXX. full expect million, representing XXXX, year million and be a for we XX% forma increase between near on a over

GAAP combined be our growth We a software and over basis. on services expect to revenue products year-over-year XXX%

over to non-GAAP income net compared $XX million. when income. be We represents non-GAAP expect full improvement between the XXXX million an and At year to this net XXX% midpoint, $XX

non-GAAP held and It to primarily our slightly If projected pro diluted upgrades, XXXX to accounting the XX.X options, between system be and by be XXXX, to up you share a previously our outstanding when retention income onetime our million net we compared the debt be RSUs associated to to shares, expenses should expect due employees. the associated warrants largely with forma. million that convertible would discussed fully noted extent, and as-if-converted exclude and offering with be count and XX.X in lesser

speaking now the we XX for close, call the following March questions. Operator, be we Annual up Securities March open the XX. like through XXth the investor X; I Roth the and will conferences Conference, X JMP Conference Before month: would at Technology to this and

Operator

Aftahi Capital Certainly. [Operator line go Darren with line first Please comes from question the The ROTH Partners. Instructions] of ahead. from of the

Darren Aftahi

underlay you on couple, kind Mike, then and Good just software I of basis? but MARVEL.ai? is how acquisition, GRI you number $XXX we Are so within see if what congrats afternoon. A for number lastly, the XXXX? investment, of a to you curious correct, right forma then questions you. things do net Thank work. I cash unencumbered to Hey that's growth guys. on the what And and mean, about may. forma that services and XXXX if pro terms I'm acquisitions? are know Thanks hear talked you – much the nice did contributory incremental sort in GAAP And government I I gave guys million going for a that growth with like pro are going basically in of more

Mike Zemetra

was There questions. right. lot a All of

pro I'll forma maybe the So growth. with start

out really the guidance and is we So you grew growth XXXX back But XX% terms forma in going we break versus of in be. year-over-year forma look to don't what pro at go can XXXX. over pro

year, said consistent have is – going can my we you good all because are not had do with or year terms Now PandoLogic. And along be significant hiring concentration we to of it's what target. this with they Amazon that a great and expect in Amazon. XX%-plus just but expectation and

talked synthetic government growth going see growth. think see about contribute that as the in particularly far I energy in what's commercial nicely. But growth to to GRI, PandoLogic mean, side. we're I to stuff growth, we in to going comprise you As today is going more going will importantly, enterprise. and grow The on to certainly is

of we're So balance And None to both. aggressive, to a be a We responsible. be sheet. our a acquisitions. as in healthy it mix be will healthy includes of guidance we've spot then I mean, but feel far good capital, like as got

I be acquisitions, proceeds for future before, of mentioned as purposes operating to but use today. and then so And nothing on that is specific for probably going

Darren Aftahi

Thank you.

Operator

Aftahi. Mr. of next Thank question Securities. you, Walravens JMP from Patrick comes go line ahead. the Please The with

Patrick Walravens

you. have is that's that? talking. to through to my a Chad, go, right. this I to Thank She's like, kitchen wife do is it do And twin And goes. walking that. the give I I think she who what Actually, and explained Chad's was this Oh, and they credit digital what's great. question I How [ph]

start more How traditional? and I I'll that? then ask let's think So a do that's great do something question. you that,

Chad Steelberg

absolutely. that’s Yes,

of some discrepancy the audio. tell, as terms could of So you quality the was in there

terms know you tell Mike's voice you you perspective, If that of kind voice Ryan's there in Ryan from agree? out voice voice, my mimicking his Ryan, and right? most, my of really the voice, could best probably was

Patrick Walravens

Yes.

Chad Steelberg

sound a the take bit training on the then better individual. data was and the can in. and the data really, straight we sounded epic, set. literally – training a better It's just that profile robotic, into we're we all Roboto it of a represents read You being And we model your have basically provide a voice prepared feed audio through you works the and to want comes which this aiWARE, basically then of down remarks. model, really Cole the I We the I the about the small run we way system We it generate to voice noted and set, like guy host specify training just performs. text prepared I kind that little while remarks is and with like chatting it Vince that sample

that's we this. did So how

can could speaking individual. You I be live, voice to speaking output the Pat, do your could but voice you of an translated into where have also

stuff. So powerful really really,

to data. didn't Now sound the good as necessarily been have I reason time training spend and I I've the didn't as why busy on the

[indiscernible], have to where amplifies up, how it AI to out think for goes. not access. don't I And the really you same really built to this you ability can bit the a capabilities really get communicating in if everybody you because have but the also access AI little So I of to came important see the level access and data are and training going is

So interesting. it's

Patrick Walravens

you have or those recordings, just use And to do for spend lots Can Yes. you so – been you all recordings have use it just example, time actually can live? on talking. of

Chad Steelberg

Ryan. go ahead, You can actually use –

Ryan Steelberg

separation, Yes. Well, that hours content. out, many to one mean, on millions you that we again, cetera. And obviously, et ingest know, aiWARE speaker entertainment as separate our of of luxury working we're the I in that of customers, tens media with so of sitting of ability content have right,

very also at to scale. in unique We are situation this a do

opportunity a isolate effect, a think repurpose of But of just lot to relative for quality footage. right, training historical can quality in hours Obviously, which programmatically yes, number as to the ability voices better of unique of our very of training quality of we creating get and So us. training data, the is model data, it data. we

rate of we clear, Chat not training Ryan. quality XXX our the at spending a few But between training if voice worth hours my – data, amount could have X/XX fidelity and data we're talking the to could of a difference we're Ryan, I hours be only of need if difference very So data. about may talking on isolate bit and super we training of performance, high high of

world largest the is the about. of put in release iHeartMedia, about out about something using that the a languages. bit a And got different excited this a So you've audio technology. We little we're press company in our very obviously snippet this speeches

excited the So this about with. use of we're that major taking we're to market really several cases

Patrick Walravens

Awesome.

Okay.

Now my more traditional question.

difference the buying would sort to big right? a we're this you selling look, during demand is into of we're behavior? in the how So guys in And versus but hopefully, pandemic, environment there way, you're it's stay now? the So particular, pandemic that – characterize post-pandemic exiting going

Chad Steelberg

that? take you don't why Ryan,

Ryan Steelberg

choice don't acceleration. products, with stay. I of to see local the I catalyst if we don't COVID the all demand. our and pandemic our of actually I these correlated have for as of different these kind I at maybe sort any again, lines, at to would areas, pandemic on having any energy a is maybe dissipation anything, But think of our see work remotely been products, was traditional we Sure. directly our commercial and for products demand in state of at things. all law Fed, see enforcement, macro don't we some the certain people And them you and to here business But services say of more than all. obviously – mean, trends look The days

was again, Pando our some was But a and it's very catalyst definitely I I'm So sorry, – and the pandemic diverse, elements. is for I mean, strong. COVID business think very

Patrick Walravens

Okay, great. you. Thank

Operator

Thank you, Walravens. Mr.

ahead. next of with the Koji Ikeda Please America. of Our line comes go question from Bank

Koji Ikeda

Chad, Thanks and Ryan Hi, taking hey the for Mike. questions.

So questions of couple for me. a

opportunity the to First of going back kind government here. one,

kind of So enforcement big contract couple few a with past finished revenue. looks weeks announcements the it the of especially that law and contract. DoD like over year, of But the million $X around

be even longer there's I like also one-year big opportunity? those revenue about then of pretty we two-year understand that opportunity the opportunity, companies that or within how it's should other a bunch a maybe a a do are opportunity this? this long So different contract. an adoption the and is or contract. between maybe DoD? thinking both I of specifically How more opportunity of Is XX-year on mean

Mike Zemetra

take it it, Ryan. off, I'll Go for Chad.

Ryan Steelberg

Yes.

bid awards the center, there PPA. these milestone. JAIC, and it agreements, heavily the federal but efforts we get are involved in under as of of of different just imagine, part the with And different you started the price pay opportunities, ago. division, many these still OTA is specifically can't we're this across that. space and yes, understand is And as the So a to of I you of really for within awarded JAIC and can't the purchase multitude others, But multitude successfully – different also, that can the areas government. Department a joint tackle. into being blank and to you years huge a the not just What Defense, us customers opportunity that's be see agreements AI able

specific starting be multiyear FedRAMP come to one the And to do security in our an pay tip is We provisioning this this thing. approved others of are that's many. right? see dividends, Obviously, like be a for task orders opportunity. a partners expect really made protocols, PPA. clear, the here now, and this So iceberg. and big shortly to will very our down are the we But vendor of we It with as investments all Deloitte of and we

Koji Ikeda

Got it. it. Got

of for And just of And a was I question right. was that a numbers, year I PandoLogic guess, Mike. it basis I make wanted Mike Thanks sure pro the off lot rattling forma full then PandoLogic? maybe for to What a Ryan. Okay. housekeeping contribution Synthetic, got from first question?

Mike Zemetra

for Yes. for over not our QX. mark contribution with XX% yes, revenue $XX pro million GAAP but forma, of slightly and for year QX

Koji Ikeda

Okay.

[ph] pro that... think you about million. from – so $XX right? basis, the a So And Is forma kind that of just thinking

Mike Zemetra

forma Closer million, pro a on to basis. $XX

Koji Ikeda

well above still $XX million. million, $XX Okay. the

within So how with do PandoLogic, think the the growth we PandoLogic contribution XXXX? for about of Thanks my taking guys. question

Mike Zemetra

what's of Sure. it, the XX% with on just the we not the alluded healthy sort is I double-digit PandoLogic, it and great employer where we And growth, changed, plus opportunity Yes, Very that Ryan to is mean the post-pandemic, giving. call this year-over-year. keeps gift world's technology happening customers. challenges projecting hiring, And the complete very in find person all employee non-Amazon-related healthy right mobile. now find for with flexibility that because employer. that person triple-digit but And has in and are the to growth – requires to we're that has right

happy projections. very we're its So PandoLogic with and

Koji Ikeda

taking Got my it. for guys. Thanks, question Mike. Thanks

Mike Zemetra

Yes.

Operator

The Ikeda. question from go line next Bennett with Craig-Hallum. the Thank comes Please you, of ahead. Chad

Chad Bennett

probably. Again, questions. my one taking Great. Thanks for Mike for

the because prepared I a on don't again, So it was little bit rapid recall remarks. fire

did bookings much the how So quarter, say your related and prepared? in million Pando in the was non-Pando for you on $X.X

Mike Zemetra

But the majority break that we is organic. down. don't No,

Chad Bennett

maybe And bookings, of or that organic going the – for is point software more $X.X million then or of business, revenue, either recurring in that organic, truly SaaS? okay. how forward then Majority bookings much also is this at and business,

Mike Zemetra

Yes.

more is we've before, event-driven, the seasonality. So – disclosed a healthy PandoLogic's revenue which creates

Chad Bennett

I I'm non-Pando, more I'm speaking more focused guess, on.

Mike Zemetra

recurring as M&A mean is it's type exact mean, far the actually I on the Yes. as I'd say I revenue. I SaaS. side, percentage, majority mean

recurring it at recurring least shortly, XX will past we is side, part. fully most side, the coming delivery. be sort But majority where maybe the enterprise the But of Canada for outside been will on more proof for deliverables then with the On GRI commercial out the SaaS is bled on revenues concept of it post here has of recurring. and months, certainly it see some

Chad Bennett

maybe then me. one And quick real for it. Got one last

in what with off of pretty you growth year, impressive year. looks this on Just which a terms great indicated Pando

in of So doing the we're of math going to business, I'm be if $XX potentially north kind right. that million

that EBITDA that know margins business differently think – potentially is I Or turns it's – out that think of type I above should one, rate? of we about contribution million run – kind $XX but In all how EBITDA mean, we XX% still in on at terms margin, that?

Mike Zemetra

plus way few think yes, the but mean, to about best I a Yes. minus points, percentage it. that's or

Chad Bennett

Okay, thanks much. so

Operator

Thank Mr. you, Bennett.

of Mike line Northland go Markets. ahead. Latimore next Our from question comes with the Please Capital

Mike Latimore

Great. love presentation. Thank the That I you was again. fun.

maybe terms In – opportunities, kind of of I know kind here? emerging early cases are but about of talk use you're PandoLogic, it's Veritone cross-sell a can the still what you days, little bit what seeing,

Ryan Steelberg

Mike, I'll take that.

Chad Steelberg

don't Ryan, why you that? take

Ryan Steelberg

almost our of applicable of AI-related customers, balance frankly, customers, mutual Pando and for single We one services. every see both the services

We closed have cross-selling. deals already

even ability And but getting we've side building company. unique a to our of I of – two major internally lot is has at elements look obviously they're talent single our relates becoming milestones benefiting, integrated and is a together, come seeing for acquisition branding corporate brand those now historically we and advertising you're a branding more is lot hiring companies. strong very really budgets. where great issue business kind with into And definitely integration very them is enhanced it into the of side like candidly, and as technology a Obviously, don't tapped advertising as We our a to going really But involved in made aiWARE capabilities talent congruous also acquisition, organic and think we're detail already and they obviously, have inorganic. of really PandoLogic. Veritone more well. some between today, not which not from are the just integration

already just that. the seeing expected, a we're we synergy that really So excited, of of but we're we realization there's and ton think

Mike Latimore

on you itself? thinking innovations what Pando or this for then PandoLogic, year advancements about kind And Great. of are technology

Ryan Steelberg

programmatic I of of just think I the all the opportunity. advancement making to big the continued of is one the streamline PandoIQ, mean trying nature again

we're Amazon very and and As large, local for, issues. like say, where I'll just strong demand opportunities say, we go regional a demand let's others, there's from of, I'd national accounts dominantly say, seeing hiring more turnover ton more

excited little make to growth a efficient we're AI have the that some really bit be Wade something focus about the So several and opportunities weeks. the through that. continuity sort of when it local Wendy product trying look the the touched we next conversational for of of trying in really updates to through and the an as gone a at that on is core But talked system as regional-based candidate acquisition really to ours. as enters the the way our the so we'll here call a is previous hiring onboarding is integration, about integration, door framework where conversational process, which the perspective and & in leveraging we from over and and talking in we've automate AI you automate end-to-end the Also all AI the which

Operator

questions like additional no any this back Chad closing are for I now There the at waiting pass to time. would remarks. to conference

Chad Steelberg

artificial call. us you, what today thank with to better of about this past your through Veritone's the next making year, but joining very more Until our pleased time opportunity the I'm mission intelligence. we operator, towards Thank and time, exciting making appreciate today's performance and We quarter even ahead. lies progress past share all SPX on you are and excited the for I'm goodbye. world

Mike Latimore

lot. a Thanks Great. right. All

Chad Steelberg

Thank you.

Operator

Thank this time. to would pass for questions Spielberg you, There now the closing Chad additional like Mr. back waiting any conference to no I at Latimore. are remarks.

Chad Steelberg

making performance very Veritone’s today Thank your you, year. mission better you I'm all we excited goodbye. intelligence, artificial I’m time, exciting opportunity the past for quarter today's more the the lies share on us next to ahead. until and of what and and progress with are thank making about But time this joining operator, through call. We past world our even towards pleased appreciate

Operator

XXXX concludes day. conference That call. fourth I enjoy all your and hope quarter results year-end the financial Veritone rest the of you

may You lines. disconnect your now

Veritone (VERI) 4 Mar 222021 Q4 Earnings call transcript