DENVER —- Veritone, Inc. (Nasdaq: VERI) (“the Company”), a leader in designing human-centered AI solutions, today reported results for the fourth quarter and fiscal year ended December 31, 2023.
“I am pleased with our performance in the fourth quarter, and extremely excited about our prospects for 2024. For the balance of the past year, we executed and progressed against the strategic initiatives we set in motion at the beginning of 2023, continuing through the first quarter of 2024, which have resulted in a series of transformative actions, including the execution of significant cost reductions and the realignment of our organization. More importantly, we believe we now have the appropriate talent and investment to meet the current demands of our customers and partners, and to secure our growth in delivering advanced, efficient AI solutions to our customers in the years to come. These actions, coupled with our large and diverse customer base, high gross margins and industry leading AI software and solutions, set Veritone on the path to accelerating profitability into the second half of 2024,” said Ryan Steelberg, Chairman and Chief Executive Officer of Veritone. “Looking to the year ahead, I am confident that our aiWARE-powered solutions, expertise in the core market verticals we serve and renewed sense of focus will position us to be stronger, more competitive and better aligned to capitalize on the opportunities presented by the dynamic AI market for years to come.”
Full Year 2023 Financial Highlights
- Revenue of $127.6 million, a decrease of $22.2 million or 14.8% year over year.
- Loss from operations of $92.3 million, an increase of $54.3 million year over year.
- Non-GAAP gross profit of $99.3 million, a decrease of $23.0 million or 18.8% year over year.
- Net loss of $58.6 million, an increase of $33.0 million year over year on a GAAP basis.
- Non-GAAP Net Loss of $37.3 million, as compared to Non-GAAP Net Loss of $15.9 million in fiscal year 2022.
- Cash and cash equivalents(1) were $79.4 million as of December 31, 2023, as compared to $184.4 million as of December 31, 2022.
Fourth Quarter 2023 Financial Highlights
Calculated on a Pro Forma basis; for additional information on these calculations, see “Note Regarding Pro Forma Information” and the definitions provided for each metric cited.
- Revenue of $34.2 million, a decrease of 22.1%, compared to Q4 2022.
- Software Products and Services revenues of $19.8 million, a decrease of 27.2% compared to Q4 2022.
- Managed Services revenue of $14.4 million, a decrease of 13.8% compared to Q4 2022.
- Total Software Products & Services Customers(1) of 3,460, down slightly year over year.
- Total New Bookings(2) of $17.5 million, down from $26.3 million in Q4 2022.
- Annual Recurring Revenue (ARR)(2) of $82.1 million, down from $118.0 in Q4 2022 driven by declines in consumption-based revenue from our largest customer, offset by increases from recurring subscription-based revenue customers.
- Loss from Operations of $17.5 million, as compared to a loss of $10.0 million in Q4 2022.
- Non-GAAP gross profit of $27.7 million, a decrease of $9.5 million compared to Q4 2022.
- Net Income of $12.2 million, as compared to Net Income of $5.0 million in Q4 2022 driven by gains from repurchases of our November 2026 convertible notes at discounts in Q4 of 2023 and 2022.
- Non-GAAP Net Loss of $6.8 million, as compared to Non-GAAP Net Income of $2.2 million in Q4 2022.
(1) Including approximately $45.3 million of cash received from Managed Services clients for future payments to vendors.
(2) Calculated on a Pro Forma basis; for additional information on these calculations, see “Note Regarding Pro Forma Information” and the definitions provided for each metric cited.
