Veritone : Quarterly Non-GAAP supplement Q1 2025

Published: 2025-05-08 17:08:40 ET VERI

Published on 05/08/2025 at 17:08

‌VERITONE, INC.

SUPPLEMENTAL FINANCIAL INFORMATION (Q1 2025)

This document contains the following unaudited supplemental financial and business information: Page:

Reconciliation of Non-GAAP Net Loss to GAAP Net Loss for the Three Months Ended March 31, 2024

and Three Months Ended March 31, 2025;

Reconciliation of Non-GAAP Net Income from Discontinued Operations to GAAP Net Income from Discontinued Operations for the Three Months Ended March 31, 2024;

Reconciliation of Non-GAAP Gross Profit to GAAP Gross Profit for the Three Months Ended March 31, 2024 and Three Months Ended March 31, 2025;

Reconciliation of Expected Non-GAAP Net Loss Range to Expected GAAP Net Loss Range for the Three Months Ending June 30, 2025 and Year Ending December 31, 2025;

Supplemental Revenue Breakdown and Comparisons; and

Supplemental Revenue Detail.

Explanatory Notes

The accompanying financial information excludes all financial statement disclosures and other information required by generally accepted accounting principles (GAAP) and Securities and Exchange Commission (SEC) rules and regulations. However, Veritone has previously filed, or has publicly disclosed and will file, with the SEC, financial statements for each of the above noted periods that were prepared in accordance with generally accepted accounting principles and SEC rules and regulations. The accompanying financial information is derived from the books and records of Veritone that were used to prepare those financial statements. Accordingly, the accompanying information should be read in conjunction with Veritone's consolidated financial statements and notes thereto filed with the SEC for each respective period. We believe that quarter-to-quarter comparisons of results from operations, or any other similar period-to-period comparisons, should not be construed as reliable indicators of our future performance.

The accompanying financial information includes certain non-GAAP financial measures. The items excluded from these non-GAAP financial measures and a reconciliation of such non-GAAP results and guidance with the Company's most directly comparable GAAP results and guidance are detailed on the following pages. The Company has provided these non-GAAP financial measures and KPIs because management believes such information to be important supplemental measures of performance that are commonly used by securities analysts, investors and other interested parties in the evaluation of companies in its industry. Management also uses this information internally for forecasting and budgeting.

The non-GAAP financial measures should not be considered as an alternative to revenue, net income (loss), operating income (loss) or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. Other companies (including the Company's competitors) may define these non-GAAP financial measures differently. The non-GAAP financial measures may not be indicative of the historical operating results of Veritone or predictive of potential future results. Investors should not consider these non-GAAP financial measures in isolation or as a substitute for analysis of the Company's results as reported in accordance with GAAP.

‌VERITONE, INC.‌

RECONCILIATION OF NON-GAAP NET LOSS TO GAAP NET LOSS (UNAUDITED)

(in thousands)

Net loss

$ (19,875)

$ (25,198)

Net income from discontinued operations, net of income taxes

(1,002)

Interest expense, net

2,628

2,462

Income taxes

(326)

(1,045)

Depreciation and amortization

6,948

7,425

Stock-based compensation

1,743

1,534

Change in fair value of earnout receivable

(3,654)

Contingent purchase compensation expense

317

Foreign currency impact and other

(416)

416

Acquisition and due diligence costs

268

903

Severance and executive transition costs

465

3,844

Other non-recurring items(1)

1,014

Non-GAAP net loss from continuing operations

(11,130)

(10,344)

Non-GAAP net income from discontinued operations(2)

2,725

Non-GAAP net loss

$ (11,130)

$ (7,619)

(1)Other non-recurring items for the three months ended March 31, 2025 consists of fees paid to the lenders of our senior secured term loan in connection with the Limited Consent to the Credit Agreement entered into on March 13, 2025.

(2)A reconciliation of non-GAAP net income from discontinued operations to GAAP net income from discontinued operations for the three

months ended March 31, 2024 is set forth in the table below.

‌VERITONE, INC.

RECONCILIATION OF NON-GAAP NET INCOME FROM DISCONTINUED OPERATIONS TO GAAP NET INCOME FROM

DISCONTINUED OPERATIONS (UNAUDITED)

(in thousands)

Net income from discontinued operations, net of income taxes

$ 1,002

Interest expense, net

1,528

Depreciation and amortization

Stock-based compensation

Acquisition and due diligence costs

Severance and executive transition costs

Non-GAAP net income from discontinued operations

$ 2,725

‌VERITONE, INC.

RECONCILIATION OF NON-GAAP GROSS PROFIT TO GAAP GROSS PROFIT (UNAUDITED)

(in thousands)

Revenue

$ 22,463

$ 24,153

Operating expenses:

Cost of revenue (exclusive of depreciation and amortization)

7,834

6,947

Depreciation and amortization related to cost of revenue

915

879

GAAP gross profit

13,714

16,327

Depreciation and amortization related to cost of revenue

915

879

Stock-based compensation

(1)

Non-GAAP gross profit

$ 14,629

$ 17,205

GAAP gross margin

61.1 %

67.6 %

Non-GAAP gross margin

65.1 %

71.2 %

‌VERITONE, INC.

RECONCILIATION OF EXPECTED NON-GAAP NET LOSS RANGE

TO EXPECTED GAAP NET LOSS RANGE (UNAUDITED)

(in millions)

Three Months Ending June 30,

2025

Year Ending December 31, 2025

Net loss

$(21.5) to $(18.5)

$(80.0) to $(62.0)

Interest expense, net

$3.0 to $2.5

$12.0 to $10.0

Income taxes

$- to $(0.5)

$- to $(2.0)

Depreciation and amortization

$7.5 to $7.0

$30.0 to $28.0

Stock-based compensation

$2.0 to $1.5

$8.0 to $6.0

Non-GAAP net loss

$(9.0) to $(8.0)

$(30.0) to $(20.0)

‌VERITONE, INC.

SUPPLEMENTAL REVENUE BREAKDOWN AND COMPARISONS (UNAUDITED)

Three Months Ended

March 31,

2025

March 31,

2024

Software Products & Services Revenue (in 000's)

$ 14,483

$ 15,220

Total Software Products & Services Customers(1)

3,156

3,384

Annual Recurring Revenue (SaaS) (in 000's)(2)

$ 47,494

$ 49,064

Annual Recurring Revenue (Consumption) (in 000's)(3)

$ 11,223

$ 23,510

Total New Bookings (in 000's)(4)

$ 15,835

$ 12,964

Gross Revenue Retention(5)

>90%

(1)"Total Software Products & Services Customers" includes Software Products & Services customers as of the end of each respective quarter set forth above with net revenues in excess of $10 during the last month of the quarter and also excludes any customers categorized by us as trial or pilot status. Management uses Total Software Products & Services Customers and we believe Total Software Products & Services Customers are useful to investors because it more accurately reflects our total customers for our Software Products & Services inclusive of Broadbean.

(2)"Annual Recurring Revenue (SaaS)" represents an annualized calculation of monthly recurring subscription-based SaaS revenue during the last month of the applicable quarter for all Total Software Products & Services customers. Management uses "Annual Recurring Revenue (SaaS)" and we believe Annual Recurring Revenue (SaaS) is useful to investors because Broadbean significantly increases our mix of subscription-based SaaS revenues as compared to consumption-based revenues and the split between the two allows us to delineate between predictable recurring SaaS revenues and more volatile consumption-based revenues.

(3)"Annual Recurring Revenue (Consumption)" represents the trailing twelve months of all non-recurring and/or consumption-based revenue for all active Total Software Products & Services customers. Management uses "Annual Recurring Revenue (Consumption)" and we believe Annual Recurring Revenue (Consumption) is useful to investors because Broadbean significantly increases our mix of subscription-based SaaS revenues as compared to consumption-based revenues and the split between the two allows us to delineate between predictable recurring SaaS revenues and more volatile consumption-based revenues.

(4)"Total New Bookings" represents the total fees payable during the full contract term for new contracts received in the quarter (including fees payable during any cancellable portion and an estimate of license fees that may fluctuate over the term), excluding any variable fees under the contract (e.g., fees for cognitive processing, storage, professional services and other variable services).

(5)"Gross Revenue Retention" represents a calculation of our dollar-based gross revenue retention rate as of the period end by starting with the revenue from Software Products & Services Customers as of the three months in the prior year quarter to such period, or Prior Year Ǫuarter Revenue. We then deduct from the Prior Year Ǫuarter Revenue any revenue from Software Products & Services Customers who are no longer customers as of the current period end, or Current Period Ending Software Customer Revenue. We then divide the total Current Period Ending Software Customer Revenue by the total Prior Year Ǫuarter Revenue to arrive at our dollar-based gross retention rate, which is the percentage of revenue from all Software Products & Services Customers from our Software Products & Services as of the year prior that is not lost to customer churn.

‌VERITONE, INC.

SUPPLEMENTAL REVENUE DETAIL (UNAUDITED)

(in thousands)

Three Months Ended

March 31, 2025

March 31, 2024

Commercial

Enterprise

Public Sector

Total

Commercial

Enterprise

Public Sector

Total

Software Products & Services $ 13,149

$ 1,334

$ 14,483

$ 13,703

$ 1,517

$ 15,220

Managed Services:

Representation Services

2,771

3,492

Licensing

5,209

5,441

Total Managed Services

7,980

8,933

Total revenue

$ 21,129 $

1,334 $

22,463 $

22,636 $

1,517 $

24,153

Disclaimer

Veritone Inc. published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 20:44 UTC.