GICS Sector : Technology
Veritone, Inc., together with its subsidiaries, provides artificial intelligence (AI) computing solutions in the United States and the United Kingdom.It develops and operates aiWARE platform, an AI operating system that uses machine learning algorithms or AI models, such as perception, prediction, and problem solving and optimization, as well as cognitive processes, including transcription, language translation, face detection and recognition, object detection and recognition, logo recognition, sentiment analysis, text keyword/topic analysis, audio/video fingerprinting, geolocation, visual moderation, and optical character recognition to reveal valuable insights from vast amounts of structured and unstructured data.The company also provides media advertising agency services, including media planning and strategy, media buying and placement, campaign messaging, clearance verification and attribution, and custom analytics directly to advertisers through outbound sales networking, and client and partner referrals, as well as indirectly through advertising agencies or marketing consultants.
Veritone reported Q4 revenue of $18.1‑$30 million, a broad range that underscores the impact of a $12.9 million non‑monetary transaction unlocking over 50 million hours of monetizable data. Gross margins held steady at 60‑65 %, yet the company posted a net loss of $13.5‑$22.5 million, translating to an EPS of –$0.105 versus analysts’ estimate of –$0.06. <cite>Mike Zemetra noted that the software products and services revenue pipeline and long‑term outlook continue to be strong.</cite> These figures illustrate the firm’s ongoing transition from loss‑making to profitability, with a projected FY‑26 revenue of $130‑$145 million – a 47 % YoY jump – and a narrowing loss margin.
Publication Date: Apr -13
The Oracle Cloud Infrastructure tie‑up accelerates aiWARE deployment, offering financial incentives and ensuring customers benefit from superior price performance, security, and data sovereignty. This partnership positions Veritone to capture a larger slice of the $700 billion combined CapEx in 2026, as hyperscalers plan massive AI investments.
Veritone’s new data marketplace streamlines asset distribution, while the VDR pipeline exceeds $50 million in near‑term sales potential. By expanding dataset availability and engineering the VDR engine, the company aims to convert this pipeline into recurring revenue, targeting a 23 % CAGR in LLM spending through 2034.
Public‑sector revenue grew 68 % YoY, with a TAM of $10 billion. The firm projects 60‑70 % YoY growth in 2026, driven by federal contracts and new international deals. Backlog and pipeline surpass $200 million, underscoring a robust demand curve for digital evidence management.
Debt has been largely retired: all senior secured term debt is gone, and 50 % of convertible notes were repurchased, cutting annual debt carry by 90 %. The balance sheet ends with $27.7 million in unencumbered cash, $45 million in convertible debt, and 92.6 million shares outstanding. Operating expenses remain flat, while R&D sees modest increases.
Revenue hinges on consumption‑based VDR and the timing of government contracts. Nonetheless, the company believes it could hit profitability as early as Q4 2026, with non‑GAAP net loss improving 54 % YoY and gross margin expected to stay within 60‑65 %.
Given the current earnings loss, Veritone trades at a negative P/E of –1.53 and an EV/EBITDA of –3.31. The P/S ratio of 1.01 reflects modest revenue multiples, while the high P/B of 10.55 indicates market expectations of future asset value creation.
INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Veritone, Inc. - VERI
May -01
UK Department for Work and Pensions Selects Veritone to Power Workforce Recruitment Strategy
Apr -30
VERI INVESTOR ALERT: Kirby McInerney LLP Investigates Potential Claims Involving Veritone, Inc.
Apr -29
INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Veritone, Inc. - VERI
Apr -28
INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Veritone, Inc. - VERI
Apr -28
VERI SHAREHOLDER ALERT: Investors Encouraged to Contact Kirby McInerney LLP About Potential Securities Laws Violations
Apr -28
VERI SHAREHOLDER ALERT: Investors Encouraged to Contact Kirby McInerney LLP About Potential Securities Laws Violations
Apr -28
Veritone to Hold First Quarter 2026 Results Conference Call on May 12th
Apr -27
Veritone's software products and services growth is driven by increasing demand for AI-powered solutions, expansion into new markets, and strategic partnerships. The company's proprietary aiWARE platform, which offers a suite of AI tools, is a key growth driver. Additionally, the growing need for media and entertainment companies to leverage AI for content analysis and monetization is also fueling growth.
Veritone's advertising growth is driven by increasing demand for AI-powered ad analytics, expansion into new markets, and strategic partnerships. The company's proprietary aiWARE platform provides a competitive edge, enabling clients to optimize ad spend and improve ROI. Additionally, the growing need for brands to measure and attribute their advertising efforts effectively contributes to the segment's 8% growth.
Veritone's licensing growth is driven by increasing adoption of AI-powered solutions, expansion into new industries, and strategic partnerships. The company's proprietary aiWARE platform, which offers a suite of AI engines, is a key differentiator. Additionally, the growing demand for media analytics, content recognition, and metadata enrichment solutions is fueling growth.
aiWARE is a operating system for artificial intelligence that enables organizations to integrate and operationalize AI models at scale.
Veritone Core is a cloud-based platform that enables organizations to ingest, process, and analyze large volumes of data from various sources.
Veritone Illuminate is a media analytics platform that provides real-time insights and analytics for media and entertainment companies.
Veritone Attribute is an attribution platform that enables organizations to measure the effectiveness of their advertising campaigns.
Veritone Discovery is a search and discovery platform that enables organizations to search, analyze, and discover insights from large volumes of data.
Veritone's AI-powered solutions are highly specialized, making it difficult for substitutes to emerge. However, the company's reliance on cloud infrastructure and open-source software may make it vulnerable to substitutes in the long run.
Veritone's customers are primarily media and entertainment companies, which have limited bargaining power due to the company's unique AI-powered solutions and high switching costs.
Veritone's suppliers are primarily cloud infrastructure providers and open-source software developers, which have limited bargaining power due to the company's ability to switch to alternative suppliers.
The AI-powered solutions market is highly competitive, and new entrants with significant resources and expertise may pose a significant threat to Veritone's market share.
The AI-powered solutions market is highly competitive, with several established players and new entrants vying for market share, leading to a high intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 78.91% |
| Debt Cost | 3.95% |
| Equity Weight | 21.09% |
| Equity Cost | 19.09% |
| WACC | 7.14% |
| Leverage | 374.20% |
Value: 6.5
Growth: 6.6
Quality: 8.6
Yield: 4.0
Momentum: 2.5
Volatility: 3.3
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Value: 8.5
Growth: 1.6
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Volatility: 1.7
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