VERI - Earnings call transcript Q2 2024

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Operator

Good day, and welcome to the Veritone Inc.

Second Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please this event is being recorded.

I would now like to turn the conference over to Stefan Norbom, Investor Relations. Please go ahead.

Stefan Norbom

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

Officer; Joining us are and will and call live for then Zemetra, open Financial Mike prepared up Ryan for question-and-answer Chief Officer, a Veritone's Chief provide Steelberg; Chairman today's Executive remarks the call session.

include XX-K. as undertakes to forward-looking no discussed to X, and materially on them. This the today, annual your that stated Veritone questions from These assumptions statements note answers will and operating of limitation, strategy certain XXXX, are and revise those information without to Form statements performance. its forward-looking on based Please business today, These uncertainties risks, and statements. may that statements to actual financial including includes, August call our assumptions forward-looking results certain about update subject are or differ ending obligation on cause report future

call, today. pro this measures combined in discussing fiscal financial these presented measures of Reconciliations corresponding Veritone and XXXX. the we when forma we to pro forecasted such treating be the during measures. year non-GAAP release issued press measures owned measures basis, are by include the GAAP forma we included a measures, as Also, reference will actual are During on Broadbeam

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

Chief Executive Steelberg. turn the call Now to I Chairman over to Ryan would and our Officer, like

Ryan Steelberg

and thank you, us. Stefan, Thank everyone, for you, joining

more progress. company provide on and but with on and I to broader speak market update XXXX second our by Zemetra financials quarterly cover start opportunity. update wanted to excited our strategic will and operations, in our a current and an performance environment financial are providing today detail, quarter you and performance Mike We perspective

a and solutions are scale developing and delivering has a we has this workflows is both AI-based X,XXX serving for started. and for just for demand beneficiary. at catalyst now production-grade Veritone getting and years as now, customers, several higher, been never applications, solutions The direct been Veritone well over applications as AI and demand

SIV earnings As phases. largest which a law highlighted already material ever this I is you call, in later. enforcement demand Veritone DoD, of will software This trials contracted Fed public as pipeline momentum and initial its and of Fed AI launching boasts sector, local portion in as and by state with detail spendable in for and the activations strong such well more

Not I'm to be Veritone technology services pipeline, in services more boasted revenue entertainment, contract and recently overlooked its excited record I NCAA. with our the and speak will to contract detail. a Again, and media a to later secured and largest also Veritone to date, announce that media multiyear in entertainment

strategic accelerating new public collaboration with highlighted cloud AWS media, sectors. Veritone's drive talent or credited and and we will expanded to This by agreement AI sports, partnership premarket limited a our the but and across and announced our partnership efforts, network. Veritone which entertainment, Under acquisition AWS, AWS, reseller expanding selling includes solely also our direct velocity is robust with is not today. and innovation

we We resulting operating announced made we in in of a continue our non-GAAP quarter the this loss improvement structure, material strategic strides earlier also make initiatives optimizing to XX% and year-over-year. restructuring in progress the great net further And year.

our accelerating to the our continue While go-to-market enterprise AI-powered sharpening while achieving and fiscal improvements, product we concurrently focus latest and delivering to significant milestones these realizing in solutions customers.

efforts pipeline. incremental efforts of second we in We've to QX, organic our XXXX. focus OpEx announced we cost servicing growth the optimize to are strategically continue structure business to these we restructuring half of realize and our benefits the our full with and shifting in accelerating opportunities, saving completed expect While our

on reported remain QX, banking of near-term and formal have we our process launched to we non-software-based a we as sheet divest previous position. on improve calls, Additionally, liquidity a In our pathway balance X to assets.

have multiple consummated, portion our in We transaction fund that used future repay qualified and hope significant currently generate this will bidders of half close will XXXX. be and operations. to debt term to second of the proceeds If transaction this a cash

will this our process there strategic assurance is a active While from no can completed, company. an transaction objective be that ultimately for this be

to are drivers the we strength increase core of software. is of robust due the our that pipeline seeing One of the and in demand

designed of AI quarters, solutions enhancements and business plug-and-play AI-driven unprecedented models a models, using including is Leveraging made market. interchangeable and AI several seamless model cloud This speeds. past businesses array models ready-to-use enable AI increasingly adapters. to aiWARE, providers, With the proprietary AI solve the point the data course, Veritone models on platform, catalog significant Veritone operationalize solutions supports feature deploying can major scale, large as advances able AI aiWARE has latest from large-scale extensive language challenges. wide building of and to XX development best-of-breed workflows processing, deploy years Veritone models, real-world at AI solutions, an and experience valuable offerings production-grade and, of proprietary quickly Over aiWARE. develop to to enterprise solutions of our customers our at swiftly support

the data to platform and includes enhancements ingestion. significant advancements in aiWARE analytics Recent search,

we've capabilities, reliable, upgraded more enterprise-grade sophisticated ensuring search incorporate essential they that significantly now data cutting-edge features are across units. our business our and -- scalable, ingestion observable Our capabilities

units within These and advancements enable Veritone AI Group. to Solutions and innovation drive business transformative results foster our

All and groundbreaking launched as was positive software date. to demand enterprise our by feedback pipeline a have evidenced of aiWARE customer When the to largest workflows customers. in aggregate increase ago, years improve we AI way led it these to of meaningful several enhancements in a

large-scale still deployment. early for stages mentioned potential only I we explore of are discussions, its and previous AI have the As full in in to begun adoption

just these technologies complex also well how in is global work distributed accuracy. race environments. can for applications, than the It's features and Today, about about more and AI their

continues to their organizations rethink systems need the away models. move adapt change redesign Leaders large AI operate how data now AI As workflows businesses to and and to fast-changing from to software must landscape. traditional

uncertain sets, data challenges product and comprehensive and stand isolated concerns, platform data ROI, aiWARE aiWARE issues privacy suite Despite out. accessibility our like

platform is flexible and models Our can various deployment methods. work with and

main in partner in and Additionally, our us Augmented areas. strong Retrieval language our advancements AI across large and a cloud hardware models ecosystem service the Generation X providers make market for clients

Now our core providing let quarterly further on me details across to verticals. some turn progress market

gains product and and strong reorganization the a securing focus from multiyear its engineering by quarter, First, second subscription performance the Veritone strategic of on maintains Veritone teams Hire. underpinned in its strategy, Hire efficiency go-to-market deals. resulting

back to efficiency, office quarter system and the have us decisions completed, that report X excited integration All systems the providing enhances quarter. and recruiter moving automation employers. step completed experience I'm including this X financial for has migration Broadbean data-driven been CRM the hiring closer seamless this of and to we of legacy platforms, integration work operational Broadbean employee that

and we work unified brands, the branding under signed distribution next-generation Veritone incorporating and Notably, at advertising from synergy enterprise perspective, platform successfully Veritone and a the in Hire in suite. is We've there. we're Hire completed hard solution and job significant new application programmatic Pandalogic team our the and with of to brands the and the our network programmatic programmatic deals on Whole best beta including first also become quarter, software advertising the We global a Savita, launch publisher programmatic Australia, Foods, the solutions such Buy presence of as provider thrilled of Best Broadbeam

half acquisition in the leading programmatic KPIs positioned remains in deliver versus maximize from continues forward companies expansion the to quarter. momentum their recruiting this improvement recruitment, driving headwinds, and trend plus well XXXX. of XX% pilot up market, with to conversions cost spend industry on additional of keeping to returns look per efforts. campaigns Veritone seek to programmatic performance target capitalize the Despite in in wins Our average an executing upward this market Hire client as We second

entertainment, in agreements media quarter. the within media intelligence and partnerships to completed software second brands generated notable and significant landmark services focus Shifting Across entertainment. we renewals customer and and AI with and

media platform partner. -- deals including NCAA date represents clearances Veritone's there Tennis Media AI-powered Hub I of and and management dynamic Digital leverage extends partnership assets. and synergistic multiyear and years to to enhance been current media Australian former that media Headlining Australia image NCAA's has agreement of with to come. will a to the organizations, distribution multiyear and global am and archive announce and NCAA's for Veritone's entertainment partnership. provide also multiple This Veritone named advanced the student the with services largest for contract our are storage sports Record agreement extensive licensing exclusive championship prominent name will Veritone's vertical. pleased Veritone and The likeness

to underscoring AI-assisted licensing of diverse with agreements include and the produces the and CNN, satisfaction by client and Ten stickiness demonstrate and of supported buyers. networks growth, content continues CNBC, owns base which and commitment Network Veritone's solutions. content AMI a Big Australia, thrive significant Tennis partner NBCUniversal, to Bloomberg, customers our business our

role for securing ESPN, such near real-time distributed Veritone and and Disney, pivotal Rolex, played Alongside Nike, companies State Core a XX, in facilitating arrangements, licensing HBO. Pack these content packaged as TV, Farm,

One, revenues Veritone delivered agency, year-over-year increasing at performance in with QX strong over advertising XX%. Our substantially

Streaming capitalized new from expanding Chewy, and and media YouTube significant customers driving revitalized way, customers, media margins. investments placements respectively, Mint improved our the growth By advertising such LinkedIn, Mobile, We customers' the also on surging market-leading key with XX%, market. prominent Quint. and adding XX% Kings we've Draft saw as led and revenues including

for continue, in come. in of This the by pipeline momentum us of new is quarters positioning stages various success expected to a continued robust to advertisers contracting discussions, and fueled

Finally, to in progress. of sector and terms comment business public I on both would strategy like Veritone's

we our we enforcement in context of To and COVID, several market despite came in state our are local and provide law local We initial the enforcement with AI sector around this, are impact growing today, prospects. bullish very solutions about some to agencies growth XXXX quickly. state and hundred and service public

despite Fed for procurement, side, direct we coming aiWARE. new especially in products AI space. the and are relative recently already solutions a DoD and of just SIV the is of contracting Fed great is to progress player with built federal progress This This government the a software on AI On agencies. market-leading in contracting timing to market our XXXX, and result

and and SIV, strategy international DoD across and Our state agencies, and judicial government. enforcement go-to-market Fed Fed clear, local applicable is law extensible

So exceeded our far expectations. has greatly

set application materials strong Veritone market for suite Our of investigation-related record to and and positions leading and Veritone evidence all digital data sets. sharing aggregating, aiWARE a competitor disparate system powered tools become iDEMS correlating fast-growing a in as a intelligence management analyzing, of allowing by

to the position. stats, Expanding is addressable in to solutions data robust in more market video previous and great a made audio and customers. developing and the the future Veritone's deploying growing quickly, speed large have in AI assess sector and According uses comprehensive accurately we up on the for evidence, significant business and [indiscernible] including and iDEMS strides public public of sector meet successes evolving are needs we achieved quarters, AI government analytics. our that

tier sector our on solutions portfolio this resellers well. AI iDEMS seize unlocking increased and of This and public acquisitions sustain platform customer but the industries We've quarter. to our and Marketplace. only the the continue deepened public of enabling our our respective to not in pipeline as customers suite partner includes applications as dedication $XXX market the scale listings AWS distribution more competitive advantage activity Our gain global achieve XX market and technical channels sector status new a strategic traction rapidly the than their more customers with million. new significant [indiscernible] new addition our at and totaling success, advanced AWS of through of partnerships, to to such opportunities the traction listing addition of in reach public now to services

context able Relating share for In the completed just phase of police agreement. the the largest of this want to greater of And some third progress. we second the further recently, in one $XXX,XXX. were highlights with a phase quarter, value operational the to AI-based country of second video QX, enter agencies I we than total to our give service to redaction to contract

Bureau components Department $XX is purchase And number opportunities latest contract. officially a of the of Also, to the Justice Prisons previously as headway our of services. used blank In with significant agreement, ongoing announced, procure making addition, Veritone we X stages million project have are approval expanded the that forward. and including an U.S. this funnel, to security the promising received of in Senate pilot move we

of tasks, processing. hundreds to in realizing By traction increasingly these agencies manual automating Fed addition our Information now video great allows turning reducing our their their on protecting to requests streamline their time-consuming and the or expediting are focus of law enforcement business, AI-powered state missions In law core agencies and are of and the significantly to local tools growth audio of enforcement Act operational allocation resource to This and fulfillment serving optimizing cost communities. and Freedom

dedication Our footprint in demonstrate across XXXX in opportunity immense trusted municipalities the agencies partner to to realized achievements serving a and ahead our the broaden cities, sector countries, as and our public globally.

it relates Central I Hunt, am yields for have for and former government business, our our domain to Veritone, Intelligence of Good sector customers. long-standing AI as Gus shareholders passion generate and and the for Agency, Veritone will insights Finally, the adviser. joined as strategic a AI great Security mission Veritone's to public expertise our and CTO thrilled

strides a foundation significant strong first building in We of the throughout have half XXXX. made

and in Veritone's discipline implementing for success. our position long-term enhanced delivering progress. AI leadership remain instrumental enable and partners been I driving am solutions us financial model to operating strategic will improvements customers better committed Our scale. to this serve team's at confident customers to and our optimize in that focus our our operational strengthen dedication to We has cutting-edge

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

Michael Zemetra

we Ryan. to you, continue execute Thank XXXX. report I'm plan on through QX happy to

QX near-term More risks target with our our to SaaS including XXXX, the fiscal of revenue the and full scalability and pipeline heading inception of business, XXXX us ended QX KPIs into year the performance and our and and on second profitability fiscal since track with on we highlighting costs revenue year-over-year focus half importantly, guidance of keeping and projected on strongest results.

Starting and in million offset driven largely QX improvement by largely customers for Hire QX expected XXXX period, XXXX to generated software driven in million, compared services driven increase products $X.X Revenue from revenue performance. XXXX, advertising. Veritone from acquisition over as in up was year-over-year by $X million in service largely driven legacy in an QX increase services Veritone Hire, XXXX $X.X from and which with $XX Amazon. Broadbean was which XX.X% of consumption-based or software by revenue including million and million the from of managed June improved the The XXXX, million $X.X $X.X QX the revenue same by decline products

XXXX X% By QX as comparison, represented to Amazon less in than approximately XXXX. compared revenue XX% consolidated QX in of

XXXX. increased services of over and Excluding QX XXXX Amazon, the products impact QX software XX% in revenue would QX versus have

represents As to X% throughout continue base our over ARR. diversify strategy customers, continues total our QX our XX% In fiscal XXXX, XXXX, [indiscernible] we channel versus customer from of over improvement partner-driven which to deliver of QX and results. an consumption-based

our customers, pullback ARR the including consumption-based subscription-based XX-month While overall Amazon. trailing our from in year-over-year, grew given decline spending, principally ARR

bookings. were trailing XXXX expect the consumption-based bookings million, $XX Amazon We customer driven continue to by new in XX% decline ARR subscription-based increases of exit year-over-year half over up second as dependencies the to in period. we year-over-year, Total XX-month

discuss the sector uplift expect a our large public and we year-over-year quarters we substantially next will are improve I to in bookings in pipeline, particular as sales later, over with As result. a few seeing

from software smaller XXXX. above larger acquisition Gross Veritone off percentile, prioritize in which of revenue QX customers renewals ACV platform were XXth down CareerBuilder X,XXX, across as reductions legacy up of Hire and year-over-year, the retention continued quarter-over-quarter, principally products but higher Broadbean due the transition services we accounts, and be in to post slightly our to ACV with accounts and customers

slightly XXXX. year-over-year had that up The impact from overall from improved subscription-based ARR decline minimal as customers QX overall a was

in advertising are QX we rebound we XXXX. our a seeing in discussed As beginning prior in call,

XX% services XXXX. from advertising QX gross client were QX per active $XXX,XXX, Specifically, improving billings managed

operations year-over-year Given The in $XX.X driven improving we loss from million our of as through macroeconomic today in was of QX XXXX non-GAAP the operating of compared expected XXXX the bookings second XX.X% XX improvement the QX in results profit, the of improvements which anticipate by from advertising part half a restructuring improved timing of million. to of XXXX $XX.X loss from an million Broadbeam the and by opposed the a XXXX [ QX Broadbeam $XX.X to QX efforts over reductions partial in half acquisition continue legacy from June included acquisition, months or expenses expenses in acquisition-related ] month performance, throughout Broad XXXX. gross operations XXXX and driven year-over-year quarter in improvement trailing decline in XXXX. full second to of beam as year-over-year cost a

by of versus $XX.X XXXX non-GAAP Overall, largely the XX.X%, in reached gross $X.X improving or our and points driven increase to XXXX, million revenue. by margin in of revenue. outperformance non-GAAP XX% XXXX XXXX due improved XX.X% QX profit gross QX XXX of from million, the QX QX largely basis mix

non-GAAP consolidated gross expect fiscal of to We through XXXX. XX% to the remainder XX% margins approximate

non-GAAP the or QX loss to improvement largely included QX significant of our months, compared non-GAAP over of the million reductions This gross in was with coupled loss $XX.X an $X.X improvements net driven cost profit, XX reductions XXXX. million, $X.X XX% XXXX. structure cost through as in XXXX million which QX trailing was by through non-GAAP fiscal in the net

are in our of growth. we strategic XXXX, time well back now as we the out to On positioned cost transition reductions return towards focus QX

over million As since annualized beginning executed savings of cost a of we the $XX XXXX. reminder,

lines. reorganization, largely million latter cost full financial year $XX During of materialize in QX we and products this and our acquisitions future past to annualized both revenue expect which is of included XXXX, fiscal XXXX, across top On of we the integration XXXX cost part and of QX from of guidance. synergies completed over reductions, our services phase in software

sales, within global our workforce. a realignments which of approximately and was engineering result organizational reduction of of included restructuring QX the XX% The corporate,

pipeline sector we specifically, services approximate More are evidence digital opportunity. on with the and our $XXX phases $XX represents contract of at over outlook highs. an pipeline sales the are the alone, U.S. several in across growth federal all-time a and government large see currently market, market of the projects customers public global we front, international software products long-term On million. strong demand In revenue which management and various facets billion with

to against with recently expected with deal NCAA, a license term $XX multiyear we agreement the in our and up million revenue renewed heavy competition. over Additionally, the

to XX, million net balance payments principally Turning of $XX.X XX, December our $XX.X the operations cash of million of XXXX. at reflects cash net XXXX, and QX At decrease sheet. June million, compared in of million services cash outflows from we to $XX.X restricted held XXXX. The timing by $XX in managed driven

Our of non-GAAP principally media the across that net by platform, influencer-based of million much partly a Note associated of increased with to severance $X.X timing our we approximately from loss in net approximately to our on accelerated settlements where onetime and payments our QX million, customers traditional and interest from XXXX transition QX, payments versus $X.X media. restructuring. debt traditional expenses shorter campaigns advertising expectations are media driven shift our

energy net $X.X acquisitions XXXX consideration cash term was deferred sale from $X.X on of from from activities driven $X.X outflows principal fiscal our capital cash purchase there and by million, loan investing $X.X XXXX our million by in million addition, December expenditures, of million the payments offset In investment. of of debt

XXXX. of convertible debt cash the approximately June XX, principal $XXX.X million term on by from due in Total million. is earned million consolidated $XX.X million was million XXXX, on interest which income $X.X interest paid which hand offset of of and remaining half we first debt the of debt had At November $XX QX debt is XXXX, $X.X was our

the balance XXXX, debt of quarter. our Beginning principal X.X% began term in June per we amortizing at rate

position. pathway mentioned we previous sheet near-term balance improve and have As remain liquidity on we our to calls, on a

X engaged our formal bankers sell launched non-software We with of are have and process currently a assets. outside to

future parties We bidders our the our fund repay completed proceeds, currently generate strike but to our term cash, multiple million company. process expected in to of any in assurance ultimately be If close services, is qualified and payment and be cash to operations. debt strategic an Of total transaction price. which portion of this down this our used half million resulting active is to hope from of a XXXX. for cash significant will the this $XX managed [indiscernible] third transaction no be is objective have There reported for transaction this that second can will $XX.X approximately consummated, from essentially for to held

During XXXX, in of shares settled of net stock. XXX,XXX the we first warrant exchange common half shares XXX,XXX for

certain Looking payments onetime amortization associated term our million interest XXXX, up Cash to I Cash ahead $X.X of January our cash payments with $X.X debt. convertible the XXXX million of of payments and $X to associated QX is agreement want debt with our point consulting out million former items. and term with CEO. with associated our to cash amended

QX guidance financial and fiscal for XXXX. to Turning

and As we particularly planning a discipline around on our a backdrop any march to XXXX, continue conservative heightened we very approach on to approach revenue, with revenue profitability. with as fiscal towards consumption-based costs

previously intentionally XXXX, $XX future executed we second realized. of guidance XXXX of have included but they As the cost is half are expected guidance in million our in synergies and our XXXX any in revenue savings, annualized from over until QX omitted mentioned, which cost

half to more and second midpoint. revenue With half a at assumes larger Given the some QX $XX deals end the the in second guiding timing flat guidance maintaining to of are growth XXXX our in $XX uncertainty we we conservative is year-over-year similar million to of million, and XXXX. at pace reflect be that our of to a advertising and outlook the between in grow we backdrop, the range sector, continue in public top revenue relatively which year-over-year of are closing XXXX,

decline a Driving revenues. this consumption for will growth public advertising, services, and offset be including from onetime in and managed our by sector

grow customers. begin is with the accelerating in to as more macro XXXX challenging exit growth continue continue environment managed second more and and to Our existing to coming new significant of expected XXXX a services we bookings our half with

More Offsetting Hire pacing than legacy QX of our X% will continue less be be XXXX XX% strong year-over-year. growth to revenue see We QX of consolidated QX specifically, to these Amazon services and applications. X% will in our XXXX. advertising as Risks our a guidance QX be an Hire our which lesser from between sector, can and, on namely and of $X.X versus extent, the execution managed include XXXX. million new and non-GAAP deliverables, across consumption-based and quarterly net unpredictable, XX% Veritone loss with consolidated across improvement excess to revenue services; our to upside $X QX of revenue enterprise across public assumes drivers compared in to revenue QX bookings be our at midpoint million

improvement legacy in line begin the which this QX in we Driving bottom realizing are fully cost will reductions, XXXX.

our we be versus to flat For and and year X% of the XXXX, year-over-year a $XXX between full million, are range maintaining XXXX. relatively pro midpoint at revenue $XXX million forma increase representing

a revenue XXXX, second our our remains and to current driving forecast XX% to in reminder, given XX% sector conservatively outlook, of XXXX on economic As continue year-over-year. we as the pace public much the to half as grow

months. not closing deals the near-term next the is in previously growth as larger [indiscernible] of some this on dependent to and over recurring X However, X discussed, XXXX.

retention XXXX. from metrics and latter through of public software on compared our part products customers, Amazon is to our which new inflation, the continue QX our interest in across tighter rate represent of XX% least Risk on projected as the results guidance consolidated the than labor to the growth namely include revenue at less enterprise to and and macro deliverables markets X% midpoint expect sector our XXXX. annual higher services. economy our at and and of continued revenue to continued Execution customer considerably we

expect second now compared midpoint, this with we full year loss. to a and improvement XXXX. net result, and fiscal substantial million over non-GAAP between At beginning represents when be net half of million the a non-GAAP to XX% loss $XX profitability million, progress XXXX $XX in As towards the $XX

reach be basis we non-GAAP QX Assuming we flow the positive we a will early as of on cash XXXX. higher as guidance, our end expect

modest growth a should flow be XXXX, in and on positive Further, we basis assuming fiscal cash XXXX. revenue non-GAAP fiscal in

XXth X for the in remarks. would September questions. to the Lastly, Annual York That City. we now New presenting Investment be prepared will concludes like the open Conference, XXth call to Operator, at my we

Operator

[Operator question first Equity. Instructions] comes from Pacific The

Unknown Analyst

you loss. future material from any your impact changes? Ryan, these strides Mike, net I cuts loss have said reducing growth believe XX% improvement, but non-GAAP foresee do and cost in some guys made on operating GAAP and you organizational you

Ryan Steelberg

Brent. Thanks,

growth future talked as years it plan methodical business of go-to-market about think we've at execution where to area of key this practice put looking And has this I drivers public X.X well started think -- ago. the been well of part very engineering in a about terms the now would over I strategy we the are, of product that as focus in obviously, what and X sector require lot focus. and

of short I answer is, mix right we've job think done the So structure. a the reorganizational fantastic and finding

contracts I areas, this testament all-time be and local hit we're really the an think provision state engineering numbers, And a and product these to just on contracts our productivity at is to continue at bidding ability that but is can we year. on honestly very I high. to can and enforcement in solutions those not perspective So scale to very excited looking state landing perspective that despite right, our the state the and material cost cuts we've done. But

So ultimately, being I is servicing think deployed, we're is and customers retention at that software very, the rate. high proof statement we're very it of a still our effectively, retaining

Operator

The Michael Andrew with Sempra Wealth next question comes Management. from

Unknown Analyst

that would QX. around XXXX then of for imply for million Q million be profit digits, revenue or somewhere to $X -- and for $XX.X there projections million $X non-GAAP QX Your mid-single

on big the and from next last can quarter million [indiscernible] I QX, of basis be quarterly So improvement we good improvement regular of over a QX revenue pretty this forward, that's $X.X think, year, fourth a of would QX, for expect the year. kind

Ryan Steelberg

say, we've the of Number is Again, on Mike quarter. improvement managed with revitalization revenues the where the XX% on of sector the about services, call newer talked seen on customers. definitely talked the about a a call the quarter-over-quarter two, advertising expected second contribution that public of particularly as stated today in some contracts side, we've we

new that net to of little of I'd expect I'll seasonality we're with, very we a about coming this with bullish time kind Mike then at coupled customers record And well. So the bookings let the speak as say, on board, year, bit.

Michael Zemetra

some consumption the particularly there's our of Yes, definitely seasonality, business. side across

software the products, driven services or our seasonal side, our typically more And then hiring increases we side, customer the by on mix. On managed see consumption which certainly based. are

DraftKings be sports So market advertising versus more not. example, higher is during to football times going for and

in growth of that in, So I start terms run certainly it's wouldn't for of you year. kind into can QX, rate next heading proxying queue but a something as in

Unknown Analyst

So combined mean? percent, gross about was Or... that you the that what So I think right? imply would XX-some-odd

Michael Zemetra

XXXX, rate. can We're sort use of not you sort giving some guidance in that but to your model on exit of as a

Operator

Instructions] next Asset from question Banta [Operator with Banta comes Management. Our Stephen

Stephen Banta

[indiscernible] like traction know in space. from I'm what the you're contribution area next material thinking getting about it you're quarters? curious several just some over looks service revenue public the to And

Ryan Steelberg

of inbound timing I we the that a What think pretty clear this about what transactional comfortable of the relative assets. went path. little interest we're something talked bit and down year I of the we're had into pretty sort asset we can the nonsoftware-based potential progress this is we've that divestiture stating of to is last say far

year just asset of sort we've -- future year. last is last and in sort first market managed as advertising the and growing. guide But this services little discussion the let's many Veritone say as time mean, a for soft softer on growth strong. of unit the the we've And reported, years. I the was about call stated It's of was

new adding We're customers.

get say optimistic time we think banking formal table, that QX. in the parties I process back that around with number started this around the that a done. we'll the interested of part disciplined. qualified are outcome and and this this we And I'd see We a know be transaction to legacy want in on an important again, business historical good of to XXXX. it's result basis, we But expect So we very

As to the how as think, it arrived sector, into went think remarks it comprehensiveness the to you group. tell of relates can prepared sector by, public the much sort a I I is, public it of detail we've my and as I relates

and enforcement state trusted Fed and in is is the lumpy. Fed the the local an space and on Enforcement Law Now But established and space becoming timing side. partner Veritone and

X the applications selling custom-based infrastructure, both what a that are and selling I state platform our not and we very repeatable. -- to are all but them applications to built And the lot the want are of local on we're aiWARE, solutions out core enforcement workflows thing to workflows is and point Fed and these is

of velocity business. to of in and sign that's new because where So and in quickly, skills we our we the and media and customers and volume be actually the how built about. provision able And testament very we're a frankly, how expertise to bullish the of, sort honed true new data and of entertainment aiWARE our complexities customers

So to glad we're excited. We're defense we'll others. and be certain like the accounts discuss agencies able logistics key

AI able and proud for public the technologies very that we're our we're servicing apply specifically good to sector. also And expertise AI for and

Operator

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

Ryan Steelberg

like to for today would thank everyone I us. joining

is what excitement I to optimism As we and for of come remainder lot head of into for the a have XXXX, Veritone.

AI to customers may barriers fully and on continues adoption of positioned I this this capitalize the momentum break to -- opportunity accelerate, well value down true our realize on to mean, effort remains and the AI. Veritone of As

has our hard record to pipeline and obviously and team to liquidity balance serviceable both sheet. led a secure our worked improve Our by public advance incredibly

of articulated During the previously. second half we've which

-- partners validation is do advancing solutions transition. progress and of a people line, in our XXXX Veritone to us in empower to quickly this and these loss top businesses forward is earnings -- testament Thank November. and at and If AI us becoming an AI-based and data-driven at today. you I you foundational our our a definitively our to of solutions a kind forefront element of, this as employees new even third realize applaud sort and XX% want to our for net again, strong growth execution on validation providing to through and your helping we during the quarter and of the update call improvement non-GAAP strategy And really look is our time in for better. for look

Operator

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

now You may disconnect.

Veritone (VERI) 8 Aug 242024 Q2 Earnings call transcript