VERI - Earnings call transcript Q2 2022

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Operator

Good day, and welcome to the Veritone Second Quarter 2022 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note today’s event is being recorded. I would now like to turn the conference over to Brian Alger, Senior Vice President, Investor Relations and Capital Markets. Please go ahead.

Brian Alger

afternoon. good and you, Thank After the announcing XX, a release Veritone closed for the today, results June issued second press market quarter XXXX. ended at Veritone’s release information press other the available Investors The section website. and of is supplemental

are on Joining President, digital Chairman versions and the then twin the prepared the and the forward-looking that discussed call and Steelberg; filings, that up Certain limitation, are subject are for today’s them. CFO, us certain to Veritone and XX-K. results and actual obligation Annual of assumptions SEC Chad future to who XXXX, of from open business answers financial and Steelberg; risks, remarks may these will assumptions revise session. call statements live statements. provide Report undertakes Veritone’s operating the those cause our strategy its today, without for include X, discussed Form of differ today, forward-looking CEO, note Please call performance. update or both materially on live as to and your are based to stated. and Ryan a Veritone’s question-and-answer Mike on including risks includes, uncertainties statements August Zemetra, in statements and no will certain about forward-looking These These assumptions including information questions This

financial we corresponding basis, issued be included will the measures forecasted the are discussing presented and measures actual otherwise. noted release unless non-GAAP in the Reconciliations on measures we be call, a the of today. During GAAP press to will these

synthetic this recorded Voice, call of the remind is everyone to Veritone not section at be voice link website Investors been proprietary available the and made replay will solution. www.veritone.com. with produced being for via It in would has company’s only also our I like a Finally, that

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

Chad Steelberg

am of the digital noted, twin [Foreign you everyone. to on to speak As business. with and Chad. Good Brian. today progress you, happy our Language] update Thank I’m I Brian afternoon, an provide

quarter the $XX.X X% a of of revenue pro basis. GAAP representing second growth reported XX% For year-over-year XXXX, on basis forma and on of Veritone a million

nearly period, XX%, count customer bookings both forma in on pro the our the basis. quarter same doubled a and Over grew

As Ryan the and vast of of XXXX. the shortly, quarter very Mike business well majority will tracked detail second our in

However, largest our actions customers, impacted one in taken of financial the quarter. our Amazon, growth by

the capitalized. balance release, As our sheet well is you Veritone from can see earnings in

levers growth. $XXX We of have cash in over cash million many with equivalents and

our that We and to strategically represents. opportunity in growth aiWARE the invest continue

a Artificial align number to thrive. other in We are changes the better tactical implementing of intelligence, opportunities with business ahead. bad, and will and times cost-saving good initiatives continue our to

fact. sequential testament is that customers in year-on-year Our the quarter to and and a in bookings growth new

XX% our resources, commitment end QX Additionally, second market gross business, we our remain our driven our revenue the even excess in the penetration improved retention firm strong of by of Ample Consumption XXXX. business, was primarily quarter, in activity a and our in while management meaningfully negatively impacted the with well fundamental strength overall confident to in technology strategy. goal, the our technology and Amazon, results and

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

Ryan Steelberg

average well year-on-year business, record. Quarterly a Services. consecutive XX% per in growth $XXX,XXX. to we our saw revenue software grew revenue Services both as XX% Chad Software as In Managed software grew grew to Managed our new as Thank as gross on year-on-year XX% XXX, mentioned, basis. customer Within our software count up of bookings a million Products active forma record was strong quarter billings & And year-on-year strong XXXX, pro the you, customer Services bookings with GAAP our Chad. of $XX.X second second growth

Let’s enterprise and XX% commercial our basis, increased pro our period. Products a over start with grew On by prior our Within GAAP the the X% services QX review basis, revenue XXX%. year revenues year-over-year. and XX% enterprise. revenues on software year-over-year, enterprise a nearly & commercial commercial commercial Managed forma XXXX declined business Software Services grew Services

quarter first contribution Products bookings actions PandoLogic’s revenues in significant commercial quarter’s Software our significantly While was taken our softer and & resulted to a customer, from the by growth, other Amazon strong second Services. despite

year-over-year. its & Services PandoLogic’s Importantly, customer with a enterprise was commercial base our whole year-over-year in growth as basis, over Veritone grew while on XX% in customer base, Commercial growth its a customer are year-to-date Products strong seeing Software up general XX% XX%.

at rapidly Our enterprise, with to evolving up was offerings. Within our partners across confirms genres revenue numerous and contribution date new final to leverage been our Voice engagement media and Veritone customers market. expectations are end quarter this signing and not material, Veriverse XXX. has we creators commercial count the broader customer rapidly for contracting multiple Though

strategy and our diversity relative had basis expand continued to a efforts. for to through land grew continued year-over-year our us on in to offerings. XX%. The our other $XXX,XXX. and Voice bookings or to strong bottom market industries retention sales customer across revenues reiterate product strong, adoption offerings and This the line our to the and basis. We I a and the we accelerate Revenue business In voice synthetic revenue GRI. want XX% further our growth aggregate quarter remains and company, quite north to strong fortify and regulated Veriverse technology of confidence top of gives expect government VocaliD Veritone customer and of retention Shifting expansion. fit. well strong our all completed of provide QX, of business go-to-market growth strengthen acquisition Veriverse in GRI further

across At government the the being our level, federal are day. pipeline of continues sales continues to using and every our LEAs fit with software XXX every Nationwide, are various state tremendous enforcement we agencies software. and XXX agencies over activity products Our have cycles momentum. our landscape legal have level, product/market and we bookings longer, and build. alone, and California as new business almost well as have law In to but state build new local At leveraging the our added LEAs day. broader

the front, suite iDERMS Company. officially California independent On has operator the product demand of the our launched since presented our system against results and at performance Electric and energy accelerated metrics our Tampa deployment we

are remains generating We significant In revenues with general, in for engaged strong. Veritone’s multiple actively now expansion. operators, each from business potential

continue Our speak customer growth, revenue within that size the increasingly markets, reality. diverse growth. Amazon’s we record see all extremely of where revenue and base, strong many, hiring to workforce to overshadows Even the bookings

with We executing significant opportunity market right to up have over a fact, to proper maximize of increase strategy. the In the right our share, to and opportunity. to deliver know we and it revenues excluding on our up at support that Amazon, amount year-over-year. is PandoLogic’s were We dedicated us the time remain solutions XX% to focused

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

Mike Zemetra

in QX retention up $XXX years percentiles retention customer you, in when we cost-saving QX and aggregated, to side, burn hiring our Ryan. excluding net with was of bookings QX $XXX this most customer growth well business customer in ended with us one year-over-year, which year-over-year, over quarter. a On XX-plus unencumbered record at gross of the software XX% mixed XXX% high-XX Thank excess and that of curtailing continue year’s million of this, Amazon, in rate. cash, XXXX, is across gives we XXX% million measures cash year-over-year. notably Atop projected instituted execute

business our largest QX we with did in its some the beyond reduce had to initiatives customer, its we headwinds fulfillment face previously mentioned, across levels As ran which Amazon, forecasted. hiring

second strategic Also, closed the acquisition half XXXX the quarter at updated small, but we strategy. will reflects our the run current of synthetic Our the end rate hiring guidance that a believe Amazon consumption. voice accelerate we estimated of

our a forma and and QX QX my prepared since basis performance year we the position as XXXX, remarks, cash of guidance. year-over-year will I capital our KPIs in During QX full PandoLogic’s working on pro and remaining XXXX own if beginning discuss

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

Software the year-over-year increase largely PandoLogic On million, overall addition of in Services Products XX% as coverage and Products or & digital legacy X% the content pro a year-over-year, in XXXX Managed by million by solutions. increased record an revenue the $XX.X decline which QX content increase in Services, in revenue by driven Software with Managed conditions. our by by $X.X QX of million XX% live events X% pre-COVID Services. driven in growth XX%, & driven Services in usage or return grew year-over-year basis, to was a up XXX%, offset increases forma rose revenue we coupled $XX.X driven licensing,

decline high-XX to fulfillment ARR its retention Veritone Software Amazon, constraints, a was in our Software of business with across XX%, Driving During metrics initiatives retention, PandoLogic’s including as reduced in or and overhiring Offsetting reduce amidst percentile QX, QX PandoLogic customers its XXXX excluding largest large net headcount by QX decline year-over-year. gross XX% legacy & XX% Amazon, $X.X & consumption customer in a in X%, a was million in COVID-XX improvements the the up XXX%. over in customer this ending drove was beneficiary, key increasing Products Services Services, in Products up which coupled business. overall driven result decline QX. part hiring of

to fell Amazon XX% in QX QX of XXXX. percentage as our a to in As XXXX compared revenue, XX% consolidated

the aggressively software solutions, generated we applicable In the our we and growth On PandoLogic XX% in market positive than QX continue Reaching non-Amazon QX, invest opportunities X% revenue its over year-over-year. less customer growth to see large and growth of was in PandoLogic XXXX, side, strong metrics. we’ll near for long-term. and for share,

in a a million adoption half year-over-year, XXXX, which half campaigns In were made which up New down of X% to in XXXX. XXXX excluding the synthetic of $X net XXXX. forma late year-over-year platform, synthetic fairly AAR new the speed $X.X percentiles, first of voice we forma cash and and $XXX,XXX decline be be will consisted increased XXX, per total and versus was the forma in Overall, pro XXX%. largely active XX% as serve QX million up million, in for Managed upfront in and XX payments million, of pro QX advertising the the of to XXX% greatly advertising Services, revenue QX, by up retention $XXX,XXX bookings over will timing in event-driven services. $X.X deferred XXXX our VocaliD In driven of key XXXX. improve by acquired cash flat first VocaliD of a larger in voice by customers our driven from continued QX high XX% customer over on gross Amazon. from billings retention customers basis. $XXX,XXX, And ending QX QX pro Amazon, gross revenue XXXX, $XX.X to products

QX less or a For generate we our well of PandoLogic improving from of relatively to consolidated gross impact compared on both profit margins to XXXX. income net legacy in quarter neutral QX non-GAAP expect benefited $XX.X our XXXX, Gross XX% revenue million, VocaliD revenue entire $XX.X from inclusion increase the XX% QX in the non-GAAP in to XXXX, services. QX million and XXXX, software X% than reached expanded XXXX up guidance. XXXX from XX% as of year-over-year forecasted Veritone as

in total exceeding and for previously As XXXX. Software first PandoLogic a forma revenue next expect of and to marketing were QX and greatest Services impact QX continue million of pro QX, we XX% gross of hiring driven loss basis, throughout $X.X XXXX sequentially which Amazon. to of XX% to half to to XXXX non-GAAP remainder sales Products and margins loss in XX% months, net Driving the slowest our margins throughout decline forma the months accelerate operations, as in we XX in scale discussed full year XX% compared to totaled growth XXXX. On gross margin in of was down XXXX. versus year year-over-year this and to XX% as long-term pro reflect year-over-year resources was QX revenue XX net XXXX & improving compared million the continue the total the in pro in slightly by forma, the QX at QX of non-GAAP QX including engineering, namely in gross is XXXX seasonality, as growth. recent $X.X increase investments PandoLogic, the over in

and million new $X efficiently, to year Workday, launching and are scale per in Oracle employee we XXXX. launched addition, spending QX retention enable new of In to which initiatives infrastructure in us more systems roughly each including more

Sarbanes-Oxley net investments million the loss During was corporate QX, recent million, higher costs. our driven posted million non-GAAP slight net operations costs relatively we’ve profit to of The year-over-year, XXXX, reflecting core of a year a full million in flat when compared with loss in QX G&A QX by compared The $X.X first $X.X made. to growth non-GAAP coupled was $X.X support XXXX. $X.X with principally increase compliance

revenue, As lower XXXX. a a to QX $X.X XX% QX million revenue from On a QX XX% percentage forma net pro corporate XXXX a million QX dropped in non-GAAP XXXX and to Amazon profit $X.X in in of reflecting base. non-GAAP the cost net coupled compares from XXXX, with loss costs basis, operating margin in higher QX

hiring XXXX, a forecasted results. heavier plan which first for bottom XXXX impact the was Our XXXX loaded of in on will have front also line half

million to the net half stock Cash million half paid operations million This net non-GAAP restricted working negative flow to restricted XX, and million held capital given cash approximately continue from Turning June from we cash future from fixed Services of to compares $XXX.X for vendors. to of cash over activities, reflects $XX $X.X our approximately first positive Managed the net balance net million customers partially and of $XXX.X $XX.X fluctuate offset XXXX $X.X PandoLogic’s reflects in Working and period. of including sheet. for acquisition-driven outflows capital million, $XX.X and net any from XXXX, At payments million operations. million the investments, $XX.X dates settlements at decrease assets. changes million in payments acquisitions $XX.X and The by XX, financing depending six-month first in timing outflows loss, earn-out, $X.X due million on December for cash cash will XXXX. including

million, the million years is plus. Our of for burn XX, XX.X $XXX at at rate QX outstanding. ended today’s which the unencumbered XXXX, projected next shares operate the We end was approximately existing business XXXX to XXXX with support cash June sufficient XX growth and

guidance financial full for to XXXX. year and Turning QX

this QX which Amazon’s discussed, are XXXX, a we actions impact to the of on year. previously greater-than-expected in continue As for estimating hiring had recent us remainder

year, on previous top line a has accelerating we in guidance at includes seasonality of an the QX revenue. of that the and estimated a midpoint result, Amazon for reflect the of a revenue represent consumption relatively our results. versus that QX better approximately approximate forma. year, With half $XX be our $XX million, are this XXXX QX with representing to expect pro the acquisitions of reminder XX% increase and and between As revenue year-over-year including throughout full the GAAP QX significant versus lowest to we updating second XXXX XXXX and million QX guidance the backdrop half our quarter the X% and which XXXX first of bottom consolidated to QX PandoLogic flat recent to is projected X% impact year

coupled forma slightly the the growth. as in with people and net XXXX infrastructure QX loss pro our of and to be Amazon, and XXXX $X to income net non-GAAP net non-GAAP to support XXXX investments in compared We million non-GAAP near- between million million, $X loss $X.X but long-term expect reflecting million decline costs $X.X versus QX of QX down stepped-up

For XXXX. year midpoint at revenue representing be expect a pro is forma to million we hiring consumption reflecting on X% state on and near the and updated GAAP lower of a million basis with remainder The driver of of full for year-over-year XXXX. of revenue $XXX $XXX XXXX, increase XX% a throughout increase the primary now Amazon, basis our a Amazon this guide outlook between

recent XXXX approximately combined is Services includes XXXX Software consolidated QX of full to year-over-year approximate revenue. guidance growth acquisition & be basis. our on which expect XX% projected X% a year Full GAAP We represent revenue an to Products year our

million This million mix our and million and $X.X $XX overall loss expect net full of a timing non-GAAP to year on profit to in the XXXX. the revenue. be compares between We depending $XX non-GAAP net of

at Before Ideas close, be I August Conference SMID speaking we plan XX. CAP BofA to the tomorrow,

now to scheduling you’d we interested would to in representative. Operator, If like the your please be one-on-one, Brian a call for out up BofA reach open questions. or

Operator

Today’s comes [Operator question Please BofA. Instructions] from Ikeda you. first go ahead. Koji Thank with

Koji Ikeda

taking Hey guys. Thanks my for questions.

the like of $X.X parsing at the guide and I Just getting looking just And of was faster Pando. on could that looks Amazon from it of you for in absolute the in what of of other envelope and right? here. was so much the PandoLogic quarter. us if was Kind kind contribution side I million. growing how math comes was kind the could we know thinking an but about kind back Q, that Is start driving what the about the then PandoLogic out business basis, that more wondering down it’s about just revenue the out give of granular, the contribution,

Mike Zemetra

take out question. maybe the anywhere consolidated I’ll about We XX% said break our represented – And said don’t for XX% that that business. the we the But XX% specifically Amazon of we legacy call second from from, to QX. represented PandoLogic business. of Yes, of part it, revenue Amazon historically, that

non-Amazon lower However, with the of revenue, it’s substantially now. growth the

Koji Ikeda

Got it. Mike. Thanks,

was part XX% revenue. Got total of Amazon the So it.

Okay.

PandoLogic kind net income? either again? What so of profitability down? pretty business Veritone about looks you net going we needs expect net happen thinking like to get to much of attributable So for about profile guide the income income guys potentially the it from to forward, guys when business, business of Thanks the to way profitable get thinking thinking down, right more you a guide and Amazon. aiWARE can But that’s guys. or profitable Is the the that

Chad Steelberg

why last XXX. this sitting over year to in today, the mean, strategic XXX at we’re And – just we I how then jump our over about and from when end I the of bit just employees. at business and had investing, year, we’re side don’t tail you little on on Mike, think Ryan more can operationally jump want that. a One I take

in So technology company sales, continue to and we working. investment significantly in strategy our the is invest marketing because both

our If one in total net growth, on growth in we’ve past XXX% cases. of XX% seen at customer, Amazon, you some growth business, customer they’re years. and the retention in look over XX% our metrics good our past as bookings, record-breaking and net the five as CAGR

we’re know so And is we what working. doing

But we’re time, conscious to macroeconomic continuing also be being the environments. We’re right, same diligent. of at

smart of are the Amazon, and we’re We how realigning conscious growth. in managing business happening for it being we’re and what’s about

to that Koji, point. on way don’t or And I any that in in so hasn’t want our reflects any again, strategy been you, Street the think way this

got we sectors hiring. by that on bit very Amazon impact quickly. just the a the caught we’ve think blindsided I testimony strong to phenomenal other team, of that business negative little job to growing in PandoLogic how was done a a and recovered And

So Mike?

Mike Zemetra

to going Yes. mean business. in any then take business term our XXXX, we’re if should we’re enterprise back, PandoLogic. going that not the makes I if enterprise turn across you strategy, long of give commercial ship continue to the sense. along regulated in the shortly, our to part here continuing guide profitable, And And of And but and same terms it we’re incredibly and a invest including step is industry the

Ryan Steelberg

our right to both And the the just pace emerging add product that’s I the investments revenue on that very potential that potential feel going products and I services. now would way is think in that, we I any today our have as side production we’ve to frankly, full curtailing made it product and internal mix the disrupt our relates I confident hiring and and of into that growth in don’t capital right human side, production, in think any

also our shortly, retention high customer coupled what built is been or So other Pando, future already a our every very in very, net business being I sellers area their growth and bullish increased again, is to here counts of growing has with incredible. on prospects business testament their for excellence continued say, non-high very volume rates really and are the including frankly the – non-Amazon think

Koji Ikeda

taking guys. Got questions. Thanks it. Thanks for the

Chad Steelberg

you. Thank Sure.

Operator

with Please Partners. comes Capital question Darren next today our from ROTH Aftahi go ahead. And

Darren Aftahi

may. if questions. I Hey guys. for Thanks Two, taking my

in advertising you that where of Just on has deeper into Ryan, And I’m seeing of in ad strength is kind just kind tech talked of guys actually business? this there. the you’re manifest about bookings. recognized bit record the revenue dive disastrous kind kind flat. and think get I cadence. And Can of little every company you when maybe then, said was curious; other a

between June actually forward? your So soften you’re that’s to taken further the maybe guidance July, business if April and into and I’m come going curious cadence understand the seeing if in into Thanks.

Ryan Steelberg

Yes.

strong very and Our ad business has been resilient.

Our And are customer the billing – of the details in that we’ll per tables. some we I provided think actual gross up.

because as do is to two days importantly, of our differentiation. reasons only unique has to And have clear of economy. creative ago, it’s targeting we year. Again, few tell aiWARE, couple booked like marketing. a, companies ad our have a primary there, differentiated business total that solution. offering product insight could don’t resilient is, get last Number all is I contextual-based revenue ad where of performance More two business a a of than too really very already I of you a us technical business very is billings more we the more a our can through want influence but why

from the the to find our always had just in it. customers the like anything in of shows performance-based. downside larger – But negative the nurture long in increased And at ad testament majority that we business to to we’re only we’re pullback lot buyers, we our ad majority is considering other large bookings. performance, was side in as the The all trying the only spending – maintain spend business. of I’m – it able a delivering all start-up growth of our as unlike of spends of those just of that or CPM-based had was – increased some try or all almost businesses super venture brands, the our if impression-based we spend So to

very very, So performance. and pleased, expect I continued strong

Mike Zemetra

realized strength specific representing XX% mean, And could expect the you I across area, our or of probably Darren, board. It just it so to the Maybe about that of wasn’t next one. I’ll be one take was over business. bookings months. the XX really the

Ryan Steelberg

of In Veritone part our Voice, technologies and of are new Darren, some that booking.

Darren Aftahi

Thanks, Ryan.

Operator

at next Our Chad question comes go Instructions] Please [Operator Craig-Hallum. ahead. Bennett from

Chad Bennett

Great. Thanks question. my for taking

So I like backing uptick of kind decent know don’t the bookings did into to it you a Pando prior what numbers just pretty backing like But into on aiWARE actually disclose was. question, sequentially. see looks relative you numbers. to

So was that revenue I – standpoint, from a say. should

So kind of a drove sequentially – revenue aiWARE standpoint? was from again, that of function the what growth a

Ryan Steelberg

primarily stated Well, from as bookings bookings, on those a earlier, and and through increased primarily GRI services selling and mobilization two the it in we software was an of commercial uptick products enterprise also elements. between and

Chad Bennett

Okay.

again GRI the was but So business, modestly sequentially I’m talking up sequentially.

sequentially. So that it that commercial-related was it saying? lot of like aiWARE growth other sectors you’re seems revenue drove what a Is

Ryan Steelberg

enterprise, bookings. the was Commercial share the or the lion’s majority of yes,

Chad Bennett

– just EBITDA business? we’re a and that business acquired model it, XX% the run still margin is second is – then And question, when about rate when margin current profile on still thinking you at Okay. Pando that the

Mike Zemetra

one. take Yes. I that could

and we So R&D. marketing into made PandoLogic, investments have sales on namely and

running that XX%, slightly So profitable. incredibly but we’re below it’s still

Chad Bennett

for Thanks my right. All questions. taking

Mike Zemetra

Thank Chad. you, Yes.

Operator

And our ahead. Securities. of from Walravens go JMP question next Please Pat comes

Pat Walravens

maybe Thank you. Maybe two, for one Great. Mike. start I’ll with

should when Mike, be due? debt there? it So you is repaying how it? we come – about does does When much worried And

Mike Zemetra

year. in the of about question convertible November yes, convertible $XXX year debt. last – Yes. they’re Good issued five notes and notes, interest-only, it’s $XX We a share. They’re million,

term, in long sitting worry nothing So near to it’s about no all covenants, the in term. but nothing so crazy,

Pat Walravens

I we... cash, million So have think right And $XXX in you unencumbered right? now, Okay.

Mike Zemetra

million, yes. $XXX

Pat Walravens

to I just right, this. hear we want guys to don’t have going to so start generating that about you worry cash, are

Mike Zemetra

Of course.

Pat Walravens

big differently Pando. Chad then XXXX what And have secondly, But you benefit done would hindsight, of a around obviously, caveat. and that’s

Chad Steelberg

TAM with I invest that We in knew helping all in transaction they new they in to tonnage more our smaller differentiated concentration going and heavily, but lot have line were we that revenue to into open. a think investing that. had were went the customers you’re and their that we a less business customer you’re going wide expanding into per Amazon. them get through We significant eyes Pando knew customer, were obviously,

exactly to we be think what And was point, Amazon at to I going so we And knew expected. that was knew some slow. honest,

think us how is they just we’re and phenomenal about hit brakes quickly extremely for in surprise a looks for even us that It’s I massively business profitable. still like that. bullish But on going the is acquisition today’s what that economics, forward. the

Pat, was any there don’t I real surprises. think, So

well or I event and an we terms on there earn-out the we would was that protected side aligned net-net be in with team and catastrophe in all incentivize structured management transaction the Veritone protection business. the think of the and really the are sure might hit what the another some cost shareholders making Amazon have the

at end well. going the profitable business of day, again, So the

think They’re innovate. I and we still to aiWARE nicely. it technology purchased integrating continuing

excited and very about So I’m in it do it again [indiscernible].

Mike Zemetra

of anticipated. corrected first PandoLogic than the certainly And larger first Amazon in up The And first got still remember, remember, was side – well. from they up a over-hiring, XX% out in benefit half business half half. as and I’m we a we was what it’s the And in mean over XX%, It the was earnings release. not sure this just software first correction came on QX. half, the or I XX% which sequentially call.

thing first of to PandoLogic lower the and fundamentals incremental there the We over this business still are So is some But half. the the half performing rocking consumption in be the still do back of year. expect rolling.

Ryan Steelberg

already has that about believe one also has X% only on the the add about programmatic of right, that side, comment the programmatic market market quick – opportunity. me in is really touched share, real we of terms Let

a very or by XX%. over testament grow a our it’s high obviously, So to ceiling reinforced of then growth opportunity. that And ability unique customers for that’s

Pat Walravens

one how last really release, of the million, on was did pay my it out right? work $XXX an And purchase Okay. that remind At was you the cash to? but really initially So then did the us out, And so end what Mike, that million? earn can – and topic structured? press day, you guys in on was this price the stock $XXX is

Mike Zemetra

Yes.

but it year, and out and They was XXXX earn-out then I earn-outs remaining was we’ll fully hit the the $XX So this find their XXXX. $XX upon based in of mean XXXX. million upfront, by million in end

upon million their So this schedule $XX out got based a the end paid depending it’s on we’ve $XX to $XX performance million literally be from their to about $XX waterfall X of of year to million results. – million year. it’s And

they this if which up intuitively, be we Amazon, missing, in around is price significantly purchase why end put lower. that would So protection

Pat Walravens

Okay, thank you.

Mike Zemetra

Pat. Yes. Thanks

Operator

remarks. like over your And gentlemen, and turn conference to I’d back to this ladies the concludes Chad any session. for final question-and-answer Steelberg,

Chad Steelberg

Thank you, Operator.

execution the of pleased We with our business. are overall

Our new speak to of bookings, customer strength growth, retention business. the all and fundamental the

We resources of capital terms execute growth and talent and have against to pursue our strategies. in ample

Our by aiWARE our strong of we all backed us question, Despite without macroeconomic the volatility in strategy. confidence is ongoing the that and metrics, today, and surrounds remain geopolitical customer our artificial and vital in a future potential. is by to of day. today’s going be on joining role for us enterprise play in unlocking believe call. Thank that steadfast powered will you intelligence, we Good Veritone

Operator

concludes We today’s Thank call. you. all you presentation. today’s thank for attending This conference

lines, and day. disconnect wonderful have a You now may your

Veritone (VERI) 10 Aug 222022 Q2 Earnings call transcript