VERITONE, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(Q4 2023 AND FULL YEAR 2023)
This document contains the following unaudited supplemental financial and business information:
Page
- Supplemental Non-GAAP Financial Information and Reconciliation to GAAP Information 1Q22, 2Q:22, 3Q:22, 4Q:22, 1Q:23; 2Q:23; 3Q23 and 4Q23;
- Breakdown and Reconciliation of Non-GAAP Net Income (Loss) to GAAP Net Loss for Core Operations and Corporate for the three and twelve months ended December 31, 2023 and for the three and twelve months ended December 31, 2022;
- Reconciliation of Non-GAAP Net Income (Loss) to GAAP Net Loss for the years ended December 31, 2018, 2019, 2020, 2021, 2022 and 2023 and for the Midpoint of the Company's Guidance for the Full Year 2024, as provided on March 12, 2024;
- Reconciliation of Non-GAAP Net Loss to GAAP Net Loss for 1Q22, 2Q:22, 3Q:22, 4Q:22, 1Q:23; 2Q:23; 3Q23; 4Q23 and for the Midpoint of the Company's Guidance for 1Q24, as provided on March 12, 2024;
- Supplemental Financial Information for the available periods starting 1Q:22;
- Supplemental Revenue Breakdown and Comparisons; and
- Reconciliation of Non-GAAP Gross Profit to Loss from Operations.
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 presents these non-GAAP financial measures 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.
These 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. These 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 this 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.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION AND RECONCILIATION TO GAAP INFORMATION
(unaudited; in thousands, except per share data)
March 31, | June 30, | September 30,December 31, | March 31, | June 30, | Sept 30, | Dec 31, | |||||||||||||||||
2022 | 2022 | 2022 | 2022 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
Revenue | $ | 34,407 | $ | 34,235 | $ | 37,196 | $ | 43,890 | $ | 30,263 | $ | 27,967 | $ | 35,133 | $ | 34,197 | |||||||
Cost of revenue | 6,923 | 6,705 | 7,097 | 6,707 | 6,809 | 7,765 | 7,187 | 6,495 | |||||||||||||||
Non-GAAP gross profit | 27,484 | 27,530 | 30,099 | 37,183 | 23,454 | 20,202 | 27,946 | 27,702 | |||||||||||||||
GAAP cost of revenue | 6,923 | 6,705 | 7,097 | 6,707 | 6,809 | 7,765 | 7,187 | 6,495 | |||||||||||||||
Stock-based compensation expense | (20) | (24) | (46) | (26) | (20) | (17) | 5 | (20) | |||||||||||||||
Non-GAAP cost of revenue | 6,903 | 6,681 | 7,051 | 6,681 | 6,789 | 7,748 | 7,192 | 6,475 | |||||||||||||||
GAAP sales and marketing expenses | 11,069 | 12,576 | 13,920 | 13,780 | 12,690 | 13,124 | 12,892 | 13,318 | |||||||||||||||
Depreciation | - | - | - | - | - | - | - | (60) | |||||||||||||||
Stock-based compensation expense | (463) | (727) | (538) | (535) | (176) | (529) | (208) | (388) | |||||||||||||||
Severance and executive transition costs | - | - | (86) | - | (313) | (190) | (207) | (121) | |||||||||||||||
Non-GAAP sales and marketing expenses | 10,606 | 11,849 | 13,296 | 13,245 | 12,201 | 12,405 | 12,477 | 12,749 | |||||||||||||||
GAAP research and development expenses | 9,883 | 11,068 | 11,784 | 10,854 | 11,527 | 10,519 | 10,410 | 9,634 | |||||||||||||||
Depreciation | - | - | - | - | (227) | (292) | (334) | (646) | |||||||||||||||
Stock-based compensation expense | (1,004) | (1,247) | (1,532) | (1,273) | (1,542) | (1,127) | (953) | (823) | |||||||||||||||
Variable consultant performance bonus expense | - | - | - | - | (394) | (237) | (397) | 77 | |||||||||||||||
Severance and executive transition costs | - | - | (198) | - | (529) | (151) | (188) | (166) | |||||||||||||||
Non-GAAP research and development expenses | 8,879 | 9,821 | 10,054 | 9,581 | 8,835 | 8,712 | 9,269 | 8,076 | |||||||||||||||
GAAP general and administrative expenses | 22,320 | 2,304 | 2,502 | 17,050 | 17,397 | 19,025 | 21,082 | 16,307 | |||||||||||||||
Depreciation | (198) | (245) | (320) | (549) | (245) | (375) | (880) | 673 | |||||||||||||||
Stock-based compensation expense | (3,329) | (2,663) | (2,986) | (2,702) | (2,179) | (1,024) | (876) | (949) | |||||||||||||||
Change in fair value of contingent consideration | (5,045) | 13,830 | 14,291 | (355) | (651) | - | (816) | (817) | |||||||||||||||
Acquisition and due diligence costs | (562) | (207) | (839) | (1,080) | (805) | (4,271) | (3,177) | (872) | |||||||||||||||
Severance and executive transition costs | - | - | (81) | (175) | (602) | (348) | (390) | (439) | |||||||||||||||
Non-GAAP general and administrative expenses | 13,186 | 13,019 | 12,567 | 12,189 | 12,915 | 13,007 | 14,193 | 13,903 | |||||||||||||||
GAAP amortization | (5,016) | (5,211) | (5,504) | (5,450) | (5,429) | (5,714) | (6,624) | (5,948) | |||||||||||||||
GAAP loss from operations | (20,804) | (3,629) | (3,611) | (9,951) | (23,589) | (28,180) | (23,062) | (17,505) | |||||||||||||||
Total non-GAAP adjustments (1) | 15,637 | (3,506) | (2,161) | 12,145 | 13,112 | 14,275 | 15,045 | 10,499 | |||||||||||||||
Non-GAAP net income (loss) from operations | (5,167) | (7,135) | (5,772) | 2,194 | (10,477) | (13,905) | (7,998) | (7,006) | |||||||||||||||
GAAP other income (expense), net | (1,186) | (1,231) | (1,249) | 18,413 | 355 | 3,510 | (2,456) | 29,254 | |||||||||||||||
Contribution of business held for sale (3) | - | - | - | - | 917 | 872 | - | (98) | |||||||||||||||
Gain on sale of energy group | - | - | - | - | - | (2,572) | - | - | |||||||||||||||
Gain on debt extinguishment | - | - | - | (19,097) | - | - | - | (30,023) | |||||||||||||||
Foreign currency impact | - | - | - | - | (1,161) | (1,659) | 2,294 | 393 | |||||||||||||||
Interest expense, net | 1,182 | 1,183 | 1,305 | 680 | 805 | 720 | 218 | 705 | |||||||||||||||
Non-GAAP other income (expense), net | (4) | (48) | 56 | (4) | 916 | 871 | 56 | 231 | |||||||||||||||
GAAP loss before income taxes | (21,990) | (4,860) | (4,860) | 8,462 | (23,234) | (24,670) | (25,518) | 11,749 | |||||||||||||||
Total non-GAAP adjustments (1) | 16,819 | (2,323) | (856) | (6,272) | 13,673 | 11,636 | 17,557 | (18,524) | |||||||||||||||
Non-GAAP net income (loss) before income taxes | (5,171) | (7,183) | (5,716) | 2,190 | (9,561) | (13,034) | (7,961) | (6,775) | |||||||||||||||
GAAP net loss | (22,129) | (3,253) | (4,886) | 4,711 | (22,963) | (23,296) | (24,541) | 12,175 | |||||||||||||||
Income tax provision | 139 | (1,607) | 26 | 3,751 | (271) | (1,374) | (977) | (426) | |||||||||||||||
Other non-GAAP adjustments | 16,819 | (2,323) | (856) | (6,272) | 13,673 | 11,636 | 17,557 | (18,524) | |||||||||||||||
Non-GAAP net income (loss) | $ | (5,171) | $ | (7,183) | $ | (5,716) | $ | 2,190 | $ | (9,561) | $ | (13,034) | $ | (7,961) | $ | (6,775) | |||||||
Shares used in computing non-GAAP basic net gain (loss) per share | 35,477 | 36,084 | 36,202 | 36,360 | 36,588 | 36,849 | 36,992 | 37,169 | |||||||||||||||
Shares used in computing non-GAAP diluted net gain (loss) per share(2) | 35,477 | 36,084 | 36,202 | 42,487 | 36,588 | 36,849 | 36,992 | 43,599 | |||||||||||||||
Non-GAAP basic net gain (loss) per share | $ | (0.15) | $ | (0.20) | $ | (0.16) | $ | 0.06 | $ | (0.26) | $ | (0.35) | $ | (0.22) | $ | (0.18) | |||||||
Non-GAAP diluted net gain (loss) per share | $ | (0.15) | $ | (0.20) | $ | (0.16) | $ | 0.05 | $ | (0.26) | $ | (0.35) | $ | (0.22) | $ | (0.16) |
- Adjustments are comprised of the adjustments to GAAP cost of revenue, sales and marketing expenses, research and development expenses and general and administrative expenses and other (expense) income, net (where applicable) listed above.
- Contribution of business held for sale relates to the net loss for the periods presented for our energy group that we divested during Q2 2023. We have not recast Non-GAAP Net Loss for periods ended prior to March 31, 2023 because the change in business strategy to divest the business occurred in Q1 2023 and the prior period contributions were costs to operate the continuing business when incurred in the prior periods. The historical amounts would not have a major effect on prior period results.
- In Q4 2022 and Q4 2023, the shares used in computing non-GAAP diluted net earnings (loss) per share include the dilutive effects of common stock issuable upon the exercise or settlement of options, RSUs, and warrants as well as the common stock issuable upon conversion of our convertible notes, which for the purposes of diluted net earnings per share will be presented as if the convertible notes were converted to common stock as of January 1, 2021.
1
VERITONE, INC.
Breakdown and Reconciliation of Non-GAAP Net Income (Loss) to GAAP Net Loss for Core Operations and Corporate
(in thousands)
Three Months Ended December 31, 2023 | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Core | Core | ||||||||||||||||
Operations(1) | Corporate(2) | Total | Operations(1) | Corporate(2) | Total | ||||||||||||
Net income (loss) | $ | (7,707) | $ | 19,882 | $ | 12,175 | $ | 3,466 | $ | 1,566 | $ | 5,032 | |||||
(Benefit from) income taxes | 386 | (812) | (426) | 2,310 | 1,120 | 3,430 | |||||||||||
Depreciation and amortization | 5,786 | 162 | 5,948 | 5,882 | 117 | 5,999 | |||||||||||
Stock-based compensation expense | 1,548 | 632 | 2,180 | 2,526 | 2,010 | 4,536 | |||||||||||
Change in fair value of contingent consideration | - | 817 | 817 | - | 355 | 355 | |||||||||||
Interest (income) expense, net | - | 704 | 704 | - | 680 | 680 | |||||||||||
Foreign currency impact | 458 | (65) | 393 | - | - | - | |||||||||||
Gain on debt extinguishment | - | (30,023) | (30,023) | - | (19,097) | (19,097) | |||||||||||
Acquisition and due diligence costs | - | 872 | 872 | - | 1,080 | 1,080 | |||||||||||
Contribution of business held for sale (3) | (98) | - | (98) | - | - | - | |||||||||||
Variable consultant performance bonus expense (4) | (77) | - | (77) | - | - | - | |||||||||||
Severance and executive transition costs | 406 | 321 | 727 | 175 | - | 175 | |||||||||||
Non-GAAP net (loss) income | $ | 702 | $ | (7,510) | $ | (6,808) | $ | 14,359 | $ | (12,169) | $ | 2,190 | |||||
Twelve Months Ended December 31, 2023 | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Core | Core | ||||||||||||||||
Operations(1) | Corporate(2) | Total | Operations(1) | Corporate(2) | Total | ||||||||||||
Net loss | $ | (46,133) | $ | (12,492) | $(58,625) | $ | (19,027) | $ | (6,530) | $ | (25,557) | ||||||
(Benefit from) provision income taxes | (4,022) | 974 | (3,048) | 1,805 | 504 | 2,309 | |||||||||||
Depreciation and amortization | 25,216 | 885 | 26,101 | 21,936 | 557 | 22,493 | |||||||||||
Stock-based compensation expense | 7,259 | 3,567 | 10,826 | 10,138 | 8,977 | 19,115 | |||||||||||
Change in fair value of contingent consideration | - | 2,284 | 2,284 | - | (22,721) | (22,721) | |||||||||||
Interest expense, net | 10 | 2,438 | 2,448 | - | 4,350 | 4,350 | |||||||||||
Foreign currency impact | - | (133) | (133) | - | - | - | |||||||||||
Gain on debt extinguishment | - | (30,023) | (30,023) | - | (19,097) | (19,097) | |||||||||||
Acquisition and due diligence costs | - | 9,125 | 9,125 | - | 2,688 | 2,688 | |||||||||||
Gain on sale of energy group | - | (2,572) | (2,572) | - | - | - | |||||||||||
Contribution of business held for sale (3) | 1,691 | - | 1,691 | - | - | - | |||||||||||
Variable consultant performance bonus expense(4) | 951 | - | 951 | - | - | - | |||||||||||
Severance and executive transition costs | 2,676 | 968 | 3,644 | 512 | 28 | 540 | |||||||||||
Non-GAAP Net Income (Loss) | $ | (12,352) | $ | (24,979) | $(37,331) | $ | 15,364 | $ | (31,244) | $ | (15,880) | ||||||
- Core operations consists of our consolidated Software Products & Services and Managed Services that include our content licensing and advertising services, and their supporting operations, including direct costs of sales as well as operating expenses for sales, marketing, and product development and certain general and administrative costs dedicated to these operations.
- Corporate consists of general and administrative functions such as executive, finance, legal, people operations, fixed overhead expenses (including facilities and information technology expenses), other income (expenses) and taxes, and other expenses that support the entire company, including public company driven costs.
- Loss from business held for sale relates to the net loss for the periods presented for our energy group that we divested during the second quarter of 2023. We have not recast Non-GAAP Net Loss for periods ended prior to March 31, 2023 because the change in business strategy to divest the business occurred in the first quarter of 2023 and the prior period contributions were costs to operate the continuing business when incurred in the prior periods. The historical amounts would not have a major effect on prior period results.
- Variable consultant performance bonus expense represents the bonus payments paid to Mr. Chad Steelberg as a result of his achievement of the performance goals pursuant to his consulting agreement with us.
2
VERITONE, INC.
RECONCILIATION OF NON-GAAP NET INCOME (LOSS) TO GAAP NET LOSS
(Unaudited, in thousands)
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024E | ||
GAAP net loss | $(61,104) | $(62,078) | $(47,876) | $(64,672) | $(25,557) | $(58,625) | $(55,150) | |
Interest expense, net | - | - | 9 | 538 | 4,350 | 2,448 | 6,500 | |
Provision for (benefit from) income taxes | 22 | (1,452) | 76 | 2,699 | 2,309 | (3,048) | (3,000) | |
Depreciation and amortization | 3,701 | 5,947 | 6,407 | 9,410 | 22,493 | 26,101 | 24,600 | |
Stock-based compensation expense | 14,383 | 19,402 | 19,539 | 40,063 | 19,115 | 10,826 | 9,800 | |
Severance and executive transition costs(1) | - | 279 | 145 | 349 | 540 | 3,644 | 2,000 | |
Gain on debt extinguishment | - | - | - | - | (19,097) | (30,023) | - | |
Warrant expense | 207 | - | 102 | - | - | - | - | |
Change in fair value of warrant liability | (184) | (16) | 200 | - | - | - | - | |
Gain on sale of asset | - | - | (56) | - | - | - | - | |
State sales tax reserve | - | - | 818 | 306 | - | - | - | |
Stock offering costs | - | - | 27 | - | - | - | - | |
Lease exit charges(2) | - | - | 16 | 3,367 | - | - | - | |
Change in fair value of Contingent consideration | - | - | - | 12,074 | (22,721) | 2,284 | 1,000 | |
Gain on sale of energy group | - | - | - | - | - | (2,572) | - | |
Foreign currency impact | - | - | - | - | - | (133) | - | |
Costs associated with unsolicited acquisition proposal | 116 | - | - | - | - | - | - | |
Contribution of business held for sale | - | - | - | - | - | 1,691 | - | |
Variable consultant performance bonus expense | - | - | - | - | - | 951 | 1,300 | |
Performance Bridge earn-out fair value adjustment | - | 139 | - | - | - | - | - | |
Machine Box contingent payments | 1,386 | 1,600 | - | - | - | - | - | |
Acquisition and due diligence costs | 2,427 | - | - | 2,698 | 2,688 | 9,125 | - | |
Non-GAAP net income (loss) | $(39,046) | $(36,179) | $(20,593) | $ | 6,832 | $(15,880) | $(37,331) | $(12,950) |
- Business realignment, severance and executive transition costs consists of severance and executive transition costs in 2023, severance and executive search costs in 2022 and 2021 and business realignment and officer severance costs in 2020 and 2019.
- Lease exit charges consists of charges related to a sublease in 2021 and lease termination charges in 2020.
Note: GAAP net loss and non-GAAP net income (loss) figures for FY 2024 reflect the midpoint of the Company's financial guidance provided on March 12, 2024.
3
VERITONE, INC.
RECONCILIATION OF NON-GAAP NET LOSS TO GAAP NET LOSS
(Unaudited, in thousands)
Q1:2022 | Q2:2022 | Q3:2022 | Q4:2022 | Q1:2023 | Q2:2023 | Q3:2023 | Q4:2023 | Q1: 2024 | ||||||
GAAP net (loss) income | $ | (22,129) | $ (3,253) | $ (4,886) | $ 4,711 | $ | (22,963) | $ (23,296) | $ | (24,541) | $ | 12,175 | $ | (19,300) |
Interest expense, net | 1,182 | 1,183 | 1,305 | 680 | 805 | 720 | 218 | 704 | 1,600 | |||||
Provision for (benefit from) income taxes | 139 | (1,607) | 26 | 3,751 | (271) | (1,374) | (977) | (426) | (600) | |||||
Depreciation and amortization | 5,214 | 5,456 | 5,824 | 5,999 | 5,907 | 6,389 | 7,857 | 5,948 | 6,200 | |||||
Stock-based compensation expense | 4,816 | 4,661 | 5,102 | 4,536 | 3,917 | 2,697 | 2,032 | 2,180 | 2,300 | |||||
Severance and executive transition costs(1) | - | - | 365 | 175 | 1,444 | 689 | 785 | 727 | 1,500 | |||||
Gain on debt extinguishment | - | - | - | (19,097) | - | - | - | (30,023) | - | |||||
Change in fair value of contingent consideration | 5,045 | (13,830) | (14,291) | 355 | 651 | - | 816 | 817 | 500 | |||||
Gain on sale of energy group | - | - | - | - | - | (2,572) | - | - | - | |||||
Foreign currency impact | - | - | - | - | (1,161) | (1,659) | 2,294 | 393 | - | |||||
Contribution of business held for sale | - | - | - | - | 917 | 872 | - | (98) | - | |||||
Variable consultant performance bonus expense | - | - | - | - | 394 | 237 | 397 | (77) | 300 | |||||
Acquisition and due diligence costs | 562 | 207 | 839 | 1,080 | 805 | 4,271 | 3,177 | 872 | - | |||||
Non-GAAP net loss | $ | (5,171) | $ (7,183) | $ (5,716) | $ 2,190 | $ | (9,555) | $ (13,026) | $ | (7,942) | $ | (6,808) | $ | (7,500) |
- Business realignment, severance and executive transition costs consists of severance and executive transition costs in 2023, severance and executive search costs in 2022 and 2021 and business realignment and officer severance costs in 2020 and 2019 . Note: GAAP net loss and non-GAAP net income (loss) figures for Q1 2024 reflect the midpoint of the Company's financial guidance provided on March 12, 2024.
4
VERITONE, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
Mar 31, | Jun 30, | Sept 30, | Dec 31, | Mar 31, | Jun 30, | Sept 30, | Dec 31, | |||||||||
2022(1) | 2022(1) | 2022 (1) | 2022 (1) | 2023 (1) | 2023 (1) | 2023 | 2023 | |||||||||
Software Products & Services Supplemental Financial | ||||||||||||||||
Pro Forma Software Revenue (in 000's) (2) | $ 26,319 | $26,857 | $28,629 | $35,656 | $22,417 | $ | 20,860 | $20,361 | $19,820 | |||||||
Total Software Products & Services Customers (3) | 3,673 | 3,718 | 3,787 | 3,824 | 3,773 | 3,705 | 3,536 | 3,460 | ||||||||
Annual Recurring Revenue (SaaS) (in 000's) (4) | $ 48,392 | $44,465 | $43,925 | $46,248 | $45,453 | $ | 47,720 | $47,456 | $48,026 | |||||||
Annual Recurring Revenue (Consumption) (in 000's) (5) | $ 87,445 | $85,901 | $85,091 | $71,754 | $67,242 | $ | 60,229 | $50,803 | $34,102 | |||||||
Total New Bookings (in 000's) (6) | $ 16,643 | $22,009 | $23,793 | $26,342 | $22,794 | $ | 8,388 | $15,501 | $17,457 | |||||||
Gross Revenue Retention (7) | >90% | >90% | >90% | >90% | >90% | >90% | >90% | >90% |
Managed Services Supplemental Financial Information
Avg billings per active managed service client (in 000's) (8)
Revenue during quarter (in 000's) (9)
Mar 31, | Jun 30, | Sept 30, | Dec 31, | Mar 31, | Jun 30, | Sept 30, | Dec 31, | |||||||||||||||
2022 | 2022 | 2022 | 2022 | 2023 | 2023 | 2023 | 2023 | |||||||||||||||
$ | 684 | $ | 736 | $ | 747 | $ | 823 | $ | 771 | $ | 576 | $ | 630 | $ | 647 | |||||||
$ | 10,735 | $ | 9,625 | $ | 10,035 | $ | 11,074 | $ | 9,337 | $ | 6,876 | $ | 9,117 | $ | 8,612 |
- All of the supplemental financial information for this period is presented on a Pro Forma basis inclusive of Broadbean.
- "Pro Forma Software Revenue" is a non-GAAP measure that represents Software Products & Services revenue on a Pro Forma basis.
- "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 and also excludes any customers categorized by us as trial or pilot status. In prior periods, we provided "Ending Software Customers," which represented Software Products & Services customers as of the end of each fiscal quarter with trailing twelve-month revenues in excess of $2,400 for both Veritone, Inc. and PandoLogic Ltd. and/or deemed by the Company to be under an active contract for the applicable periods. Total Software Products & Services Customers is not comparable to Ending Software Customers. Total Software Products & Services Customers includes customers based on revenues in the last month of the quarter rather than on a trailing twelve-month basis. Total Software Products & Services Customers includes customers based on revenues in the last month of the quarter rather than on a trailing twelve-month basis and excludes any customers that are on trial or pilot status with us rather than including customers with active contracts. 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
(4) "Annual Recurring Revenue (SaaS)" represents an annualized calculation of monthly recurring revenue during the last month of the applicable quarter for all Total Software Products & Services customers, in each case on a Pro Forma basis. In prior periods, we provided "Average Annual Revenue," which was calculated as the aggregate of trailing twelve-month Software Products & Services revenue divided by the average number of customers over the same period for both Veritone, Inc. and PandoLogic Ltd.. Annual Recurring Revenue is not comparable to Average Annual Revenue (SaaS). Annual Recurring Revenue (SaaS) includes only subscription-based SaaS revenue, is not averaged among active customers and uses a calculation of recurring revenue as described above instead of annual revenue. 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 revenues and the split between the two allows the reader to delineate between predictable recurring SaaS revenues and more volatile Consumption revenues.
-
"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, in each case, on a Pro Forma basis. In prior periods, we provided "Average Annual Revenue," which was calculated as the aggregate of trailing twelve-month Software Products & Services revenue divided by the average number of customers over the same period for both Veritone, Inc. and PandoLogic Ltd. Annual Recurring Revenue (Consumption) is not comparable to Average Annual Revenue. Annual Recurring Revenue (Consumption) includes only non-recurring and/or consumption- based revenue, is not averaged among active customers and uses a calculation of recurring revenue as described above instead of annual revenue. 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 revenues and the split between the two allows the reader to delineate between predictable recurring SaaS revenues and more volatile Consumption revenues. - "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), in each case on a Pro Forma basis.
- "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 3 months in the prior year quarter to such period, or Prior Year Quarter Revenue. We then deduct from the Prior Year Quarter 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 Quarter 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. All numbers used to determine Gross Revenue Retention are
- Avg billings per active Managed Services customer for each quarter reflects the average quarterly billings per active Managed Services customer over the twelve-month period through the end of such quarter for Managed Services clients that are active during such quarter.
- Managed Services revenue and metrics exclude content licensing and media services, and Table Rock Management.
5
VERITONE, INC.
SUPPLEMENTAL REVENUE BREAKDOWN AND COMPARISONS
Revenue by Business
Commercial Enterprise
Software Products & Services
Managed Services
Sub-total
Government & Regulated Industries
Software Products & Services
Managed Services
Sub-total
Total revenue
(Unaudited, Dollars in Thousands) | |||||||
Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 |
17,386 | 17,508 | 19,800 | 26,055 | 12,732 | 12,492 | 18,885 | 18,301 |
16,240 | 15,856 | 16,384 | 16,670 | 16,136 | 13,874 | 14,772 | 14,376 |
33,626 | 33,364 | 36,184 | 42,725 | 28,868 | 26,366 | 33,657 | 32,677 |
781 | 871 | 1,012 | 1,165 | 1,395 | 1,601 | 1,476 | 1,520 |
- | - | - | - | - | - | - | - |
781 | 871 | 1,012 | 1,165 | 1,395 | 1,601 | 1,476 | 1,520 |
$ 34,407 | $ 34,235 | $ 37,196 | $ 43,890 | $ 30,263 | $ 27,967 | $ 35,133 | $34,197 |
6
VERITONE, INC. | ||||||||||||
RECONCILIATION OF NON-GAAP GROSS PROFIT TO LOSS FROM OPERATIONS | ||||||||||||
(in thousands) | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
December 31, | December 31, | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Loss from operations | $ | (17,505) | $ | (9,951) | $ | (92,336) | $ | (37,995) | ||||
Sales and marketing | 13,318 | 13,780 | 52,024 | 51,345 | ||||||||
Research and development | 9,634 | 10,854 | 42,090 | 43,589 | ||||||||
General and administrative | 16,307 | 17,050 | 73,811 | 44,177 | ||||||||
Amortization | 5,948 | 5,450 | 23,715 | 21,180 | ||||||||
Non-GAAP gross profit | ||||||||||||
$ | 27,702 | $ | 37,183 | $ | 99,304 | $ | 122,296 | |||||
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Veritone Inc. published this content on 05 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 April 2024 04:12:04 UTC.