Q2 aiWARE SaaS Solutions up 86% year over year
- Posted Record Revenue in Q2 of $19.2 Million, Up 45% Year over Year
- Increased Q2 Gross Profit 47% Year over Year to $14.0 Million
- Reported Q2 GAAP Net Loss of $12.7 Million
- Improved Q2 Non-GAAP Net Loss 32% Year over Year to $3.9 Million
- Raised Full Year 2021 Guidance, Increasing Midpoints in Revenue from $81 Million to $100 Million and in Non-GAAP Net Loss from $15.5 Million to $7.0 Million*
- Signed a Definitive Agreement in July to Acquire PandoLogic Ltd, an Intelligent Hiring Platform, with Pro Forma 2021 Revenue over $50 Million and Non-GAAP Net Income over $25 Million
Veritone, Inc. (NASDAQ: VERI), a leading provider of artificial intelligence (AI) technology and solutions, today reported results for the quarter ended June 30, 2021.
Veritone reported revenue of $19.2 million for the second quarter of 2021, reflecting its fifth consecutive quarter of record contributions from aiWARE SaaS Solutions and Advertising. For the second quarter of 2021, GAAP net loss was $12.7 million. Non-GAAP net loss was $3.9 million, improving $1.8 million compared with the second quarter of 2020.
“Q2 was once again exceptional, and we achieved our fifth consecutive quarter of record results,” said Chad Steelberg, Chairman and CEO of Veritone. “Executing on all fronts, we completed a major milestone with the release of aiWARE 3.0, including next generation synthetic voice technology Marvel.ai, successfully deployed our energy Forecaster and Controller at a major utility in the East Coast, and signed a definitive agreement to acquire next generation intelligent hiring platform, PandoLogic. The acquisition is expected to be immediately accretive beginning in Q4 2021, transforming our operating profile, with scale and increased SaaS revenue contribution. With our increasing confidence and improving visibility into our continued growth, we are raising our full year guidance.”
Ryan Steelberg, President of Veritone added, “Veritone’s strength continues to build as our customers find increasing value in our AI solutions and our sales cycles and new market penetration are accelerating. Our go to market strategy and partner relationships are maturing, as we continue to expand the penetration of existing accounts and land new accounts in new markets. We delivered strong growth across the board, notably SaaS revenue grew by 86% year-over-year and achieved its largest bookings quarter ever. Having established strong momentum in the first six months of the year, we expect to build upon that going forward.”
Recent Business Highlights
- Launched MARVEL.ai, a complete end-to-end voice-as-a-service solution, to create and monetize hyper-realistic synthetic voice content at commercial scale.
- Deployed Energy Forecaster and Controller solutions to a lead utility customer.
- Forged a new partnership with Sports Illustrated to monetize the brand’s iconic sports and entertainment content.
- Unveiled device learning model for SMA Sunny Central solar inverters, driving GRID reliability in the global transition to green energy.
- Awarded US patent for dynamic AI model orchestration.
- Signed a definitive agreement in July 2021 to acquire PandoLogic Ltd to expand Veritone’s AI platform to include intelligent recruitment. The deal was valued at $150 million in cash and stock, with $50 million in cash and $35 million in stock (1.7 million shares) to be paid at closing, and the remaining $65 million to be paid in cash and stock based upon PandoLogic achieving certain financial conditions in fiscals 2021 and 2022. The transaction is subject to customary closing conditions and is expected to finalize by late September 2021.
* The company outlook assumes the completion of the PandoLogic in late September 2021.
Third Quarter 2021
- Revenue is expected to be in the range of $21.5 million to $22.5 million, representing a 40% increase year over year at the midpoint.
- Non-GAAP net loss is expected to be in the range of $4.5 million to $3.5 million, representing a 7% improvement year over year at the midpoint.
Full Year 2021
- The Company increased its 2021 revenue expectations to be in the range of $96.5 million to $103.5 million, representing a 73% increase year over year at the midpoint with aiWARE SaaS Solutions revenue expected to grow over 200% year over year.
- The Company narrowed its 2021 non-GAAP net loss expectations to be in the range of $8.5 million to $5.5 million, representing a 66% improvement year over year at the midpoint.
Financial Results for Second Quarter Ended June 30, 2021
Revenue was a record $19.2 million, compared with $13.3 million in the second quarter of 2020. The growth reflects a 86% increase in aiWARE SaaS Solutions, including strong growth from the Company’s M&E and GLC services; a 42% increase in Advertising driven by higher gross billings at VeritoneOne and growth in our VeriAds Network and an 13% increase in aiWARE Content Licensing and Media Services. Gross profit increased 47% year over year to $14.0 million, compared with $9.5 million in the second quarter of 2020, driven largely by the revenue growth in aiWARE SaaS Solutions and Advertising.
GAAP net loss was $12.7 million, compared with a GAAP net loss of $11.8 million in the second quarter of 2020. Non-GAAP net loss was $3.9 million, improving $1.8 million year-over-year compared with $5.7 million in the second quarter of 2020. This was driven by the $1.9 million improvement in Core Operations, which reported Q2 2021 non-GAAP net income of $1.4 million, up from Q2 2020 non-GAAP net loss of $0.5 million reflecting higher gross margins offset by greater operating expenses to support the Company’s growth.
As of June 30, 2021, the Company had cash and cash equivalents of $120.6 million, including $48.2 million of cash received from Advertising clients for future payments to vendors, and no long-term debt.
Veritone will hold a conference call on Tuesday, August 3, 2021 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its results for the second quarter of 2021 and its outlook for the third quarter and full year of 2021, provide an update on the business, and conduct a question and answer session. To listen, please join the webcast or dial-in. To avoid a wait, if dialing in, please pre-register or call in 20 minutes in advance.
For more such updates and perspectives around Digital Innovation, IoT, Data Infrastructure, AI & Cybsercurity, go to AI-Techpark.com.