Slide 1: Investor Presentation
Investor Presentation NOVEMBER 2023
Slide 2: Forward Looking Statements & Disclaimers
Forward Looking Statements & Disclaimers This presentation of Veritone, Inc. (the “Company”) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. The words “anticipate,” “believe,” “estimate,”
Slide 3: The Enterprise AI Company that makes Humans Even Better
The Enterprise AI Company that makes Humans Even Better Veritone is a leading enterprise AI software, applications and services provider with one mission – to advance the capabilities of AI to empower people to do more than they ever thought possible. Founded in NASDAQ: Employees: Customers: 2014 VE
Slide 4: Earnings Results Snapshot
FINANCIALS $35M $20M $72M Q3 2023 Q3 2023 Q3 2023 Earnings Results Total Revenue Software Revenue Cash & Cash Equivalents Snapshot KPIs KEY INDICATORS IN Q3 2023 3,536 $99M >90% Total Software Products Annual Recurring Gross Revenue & Service Customers Revenue Retention 4
Slide 5: Quarterly Business Highlights
OCT Veritone Partners with CHESA to Streamline the U.S. Quarterly Business 03 Federal Legislative Branch Digital Media Management Solutions Legislative Branch of the U.S. Government will use Veritone to streamline Highlights its digital media management efforts. The channel partnership with CHESA ai
Slide 6: Veritone's Growth Drivers
DOUBLE DOWN ON CORE CAPITALIZE ON DATA & INTEGRATION VERTICALS CAPABILITIES • Deepen exposure to industries we serve • Deliver best-in-class ecosystem to drive operational efficiencies, accelerate decision • Leverage track record of AI partner model making and increase profitability success to incre
Slide 7: An Ever-Expanding Partner & Customer Ecosystem
An Ever-Expanding Partner & Customer Ecosystem
Slide 8: Investment Highlights
Investment Highlights Large & Growing A Leading Operating System and Focused Growth and Pathway Enterprise AI Market applications for Artificial Intelligence (AI) Towards Profitability Through Strategic Driving Enterprise AI Transformation and Organic Opportunities Critical Enterprise Solutions Foun
Slide 9: Extensible AI Platform Accelerating Digital Transformation
Extensible AI Platform Accelerating Digital Transformation Veritone’s proven Enterprise AI platform, aiWARETM, is the foundation upon which Veritone has helped customers and partners: BUILD AI-powered solutions and applications faster and cost-effectively ACCELERATE AI enterprise implementation and
Slide 10: A decade of leading the way
• Acquires Machine Box; company exceeds 300 full-time employees A decade • aiWARE applications include IDentify, Redact and Attribute • Acquires Performance Bridge Media • Acquires Wazee Digital • First $1M quarter for aiWARE of leading • Anaheim PD becomes first government agency to use aiWARE; lau
Slide 11: Target Market Verticals
Target Market Verticals Media & Entertainment Hire Public Sector CREATE ATTRACT DEPLOY Automated content creation, interactive Automate and optimize the job advertising Suite of AI-enabled solutions enables fast and storytelling and real-time content to scale reach process with AI-enabled talent acq
Slide 12: Veritone Media & Entertainment
Veritone Media & SELECTED CUSTOMERS Entertainment FROM CLIPS & CONTENT TO REAL VALUE AND REVENUE Veritone Media & Entertainment empowers leaders in media, entertainment, sports and broadcast to unlock human potential through AI solutions, services and technologies. Creators, advertisers, podcasters,
Slide 13: Veritone Hire
SELECTED CUSTOMERS Veritone Hire AI THAT HELPS PEOPLE FIND MORE GREAT PEOPLE Veritone Hire is redefining recruiting and talent acquisition by combining global job distribution tools with programmatic advertising AI technology to optimize customers' recruiting strategies, reduce their costs, improve
Slide 14: Veritone Public Sector
SELECTED CUSTOMERS Veritone Public Sector LESS TASKWORK. MORE TIME TO SERVE. With Veritone's category-leading AI platform aiWARE™, the people at work in law enforcement, government and public safety can streamline manual identification and redaction efforts and accelerate audio and video processing
Slide 15: Financial Update
Financial Update
Slide 16: Q3 2023 Financial Highlights
Q3 2023 Financial Highlights $ in Million QUARTERLY REVENUE ANNUALIZED RECURRING REVENUE (ARR)* $43.9 $130.4 $129.0 $118.0 $112.7 $37.2 $107.9 $34.2 $35.1 $98.6 $30.3 $28.0 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Total Software Products & Gross Revenue Retention Revenue CAGR (201
Slide 17: Quarterly Key Performance Indicators
Quarterly Key Performance Indicators Three Months Ended Three Months Ended Percent Change September 30, 2023 September 30, 2022 ($ in Thousands) Revenue $35,133 $37,196 (6%) Annual Recurring Revenue $98,559 $129,016* (24%) Loss from Operations ($23,062) ($3,611) 539% Net Loss ($24,541) ($4,886) 402%
Slide 18: Stable and Diverse Revenue Mix
Stable and Diverse Revenue Mix SaaS and consumption-based sales model provides earnings stability and flexibility to contract with companies of various sizes and preferences across industries. Annual Recurring Revenue (SaaS)* Annual Recurring Revenue (Consumption)* $130.4 SaaS Revenue as % of Total
Slide 19: Software Products & Services
Software Products & Services HIGHLIGHTS • Revenue of $20.4 million, REVENUE PERFORMANCE down 2% YoY attributed to lower $27.2 consumption across the Veritone $1.2 Hire customer base $20.8 • New bookings of $15.5 million, $20.4 up 85% sequentially versus 2Q23 $18.4 $1.0 $1.5 on a pro forma basis $0.9
Slide 20: Managed Services
Managed Services HIGHLIGHTS • Revenue of $14.8 million, REVENUE PERFORMANCE declined 10% YoY driven by lower advertising spend $16.4 $16.7 $15.9 $16.1 • Advertising gross billings per $14.8 active client(1) of $630,000, up 9% $4.6 $13.9 $5.4 $5.6 sequentially and down 16% YoY $5.2 $4.8 $5.5 • Manage
Slide 21: Balance Sheet Summary
Balance Sheet Summary As of September 30, 2023 As of December 31, 2022 ($ in Thousands) Cash and Cash Equivalents $72,070 $184,423 Current Assets $161,387 $278,005 Total Assets $359,423 $424,752 Current Liabilities $186,243 $193,323 Total Liabilities $340,720 $344,901 Stockholders’ Equity $18,703 $7
Slide 22: Appendix
Appendix VD VERITONE.
Slide 23: Quarterly GAAP to Non-GAAP Reconciliation (Unaudited)
Quarterly GAAP to Non-GAAP Reconciliation (Unaudited) ($ in Thousands) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023E GAAP net loss $ (3,253) $ (4,886) $ 4,711 $ (22,963) $ (23,296) $ (24,541) $ (15,500) Interest expense, net 1,183 1,305 680 805 720 218 200 Provision for (benefit from) inc
Slide 24: Annual GAAP to Non-GAAP Reconciliation (Unaudited)
Annual GAAP to Non-GAAP Reconciliation (Unaudited) ($ in Thousands) 2018 2019 2020 2021 2022 2023 E GAAP net loss $ (61,104) $ (62,078) $ (47,876) $ (64,672) $ (25,557) $ (86,300) Interest expense, net - - 9 538 4,350 1,900 Provision for (benefit from) income taxes 22 (1,452) 76 2,699 2,309 (3,400)
Slide 25: Revenue to Non-GAAP Reconciliation (Unaudited)
Revenue to Non-GAAP Reconciliation (Unaudited) ($ in Thousands) 2023 E Revenue $ 127,200 Cost of Revenue 27,984 Non-GAAP Gross Profit $ 99,216 Non-GAAP Gross Margin 78.0% ($ in Thousands) 2023 E Revenue $ 127,200 (1) Non-GAAP Net Loss (36,500) Non-GAAP Net Loss Margin (28.7)% (1) See page 24 for rec
Slide 26: Third Quarter 2023 Revenue Summary
Third Quarter 2023 Revenue Summary Q3 2023 CHANGE ($ in Thousands) Q3 2022 Q2 2023 Q3 2023 Q/Q Y/Y Commercial Enterprise Software Products & Services $19,800 $12,492 $18,885 51% (5%) Managed Services $16,384 $13,874 $14,772 6% (10%) Subtotal $36,184 $26,366 $33,657 28% (7%) Government & Regulated In
Slide 27: Supplemental Financial Information
Supplemental Financial Information Our customer composition is diverse and includes various segments across our verticals, each with different purchasing trends and pricing models. In order to provide enhanced visibility into our growth composition and broad customer base, we have added ARR as a key
Slide 28: Thank you
Thank you VD VERITONE.