Increased Revenue 230% for Q4 and 100% for 2021 Year over Year
Grew Software Customers to 529 in Q4, Up 47% Year over Year on a Pro Forma Basis
Reported Positive non-GAAP Net Income, First Time for the Quarter and Full Year
Held $255 Million Cash and Cash Equivalents at Dec. 31, 2021(1)
Veritone, Inc. (NASDAQ: VERI), creator of aiWARE, a hyper-expansive enterprise AI platform, today reported results for the fourth quarter and year ended December 31, 2021.
“Delivering record results with our first profitable quarter and full year on a non-GAAP basis in 2021, we have made significant progress serving our global customers and generating substantial growth,” said Chad Steelberg, Chairman and CEO of Veritone. “The strength of our core business has enabled us to accelerate our investments in aiWARE toward enterprise deliverables, transforming the way we deliver our AI operating system and supporting an expanding number of applications. In addition, we successfully integrated our transformative acquisition of PandoLogic, demonstrating our ability to grow inorganically.”
Ryan Steelberg, President of Veritone added, “Q4 and full year 2021, we generated record customer growth, revenue, profitability, and free cash flow. With over $250 million in cash today, increased demand for aiWARE from new and existing customers, and forecasted growth and profitability in 2022, Veritone is in the best position since its inception to accelerate our business through increased investments in our O/S platform, delivering on new and exciting AI-enabled applications and offerings to our customers. 2022 revenues are expected to grow by more than 60% year over year, and coupled now with sufficient capital, we are just at the tipping point.”
Full Year 2021 Financial Highlights
- Revenue increased year over year 99% to $115.3 million on a GAAP basis and 41% to $148.1 million on a Pro Forma basis.
- Gross profit increased year over year 122% to $93.3 million on a GAAP basis and 41% to $124.6 million on a Pro Forma basis.
- GAAP net loss was $70.6 million, as compared to $47.9 million in 2020. Pro Forma net income was $18.5 million, as compared to $11.8 million in 2020.
- First year with positive non-GAAP net income of $6.8 million, as compared to 2020 non-GAAP net loss of $20.6 million.
- Raised $201.3 million in gross proceeds in a 1.75% Convertible Debt Offering, and ended 2021 with $254.7 million cash and cash equivalents(1), as compared to $114.8 million at the end of 2020.
Pro Forma basis assumes Veritone owned PandoLogic since the beginning of 2020.
Fourth Quarter 2021 Financial Highlights
- Revenue increased to $55.1 million, up 230% and 30% year over year on a GAAP basis and on a Pro Forma basis, respectively.
- Gross profit increased to $48.9 million, up 284% and 26% year over year on a GAAP basis and on a Pro Forma basis, respectively.
- GAAP net loss was $15.9 million, as compared to $12.4 million in Q4 2020.
- Non-GAAP net income was $17.0 million, improving $20.8 million year over year from a non-GAAP net loss of $3.9 million and growing 9% year over year from Pro Forma net income of $15.6 million.
| (1) Including approximately $66.4 million of cash received from Managed Services clients for future payments to vendors. |
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
| Unaudited (in $000s, except ending customers) | 2021 | 2020 | Percent Change | 2021 | 2020 | Percent Change | ||||||||||||||
| Revenue | $ | 55,149 | $ | 16,818 | 228% | $ | 115,305 | $ | 57,708 | 100% | ||||||||||
| Gross Profit(1) | $ | 48,883 | $ | 12,721 | 284% | $ | 93,176 | $ | 42,045 | 122% | ||||||||||
| Net Loss | $ | (15,867 | ) | $ | (12,386 | ) | 28% | $ | (70,593 | ) | $ | (47,876 | ) | NM | ||||||
| Non-GAAP Net Income (Loss)(1) | $ | 16,966 | $ | (3,913 | ) | NM | $ | 6,832 | $ | (20,593 | ) | NM | ||||||||
| Non-GAAP Net Income (Pro Forma) | $ | 16,966 | $ | 15,567 | 9% | $ | 18,478 | $ | 11,825 | 56% | ||||||||||
| Software Products and Services Supplemental Financial Information(1) | ||||||||||||||||||||
| Software Revenue – Pro Forma | $ | 40,223 | $ | 30,869 | 30% | $ | 92,339 | $ | 61,249 | 51% | ||||||||||
| Ending Customers | 529 | 360 | 47% | |||||||||||||||||
| AAR | $ | 209 | $ | 206 | 1% | |||||||||||||||
| Total New Bookings | $ | 8,181 | $ | 1,437 | 469% |
| (1) See tables for reconciliation of non-GAAP financial measures to directly comparable GAAP measures and for the definition of Software Products and Services Supplemental Financial Information |
Recent Business Highlights
- Selected by the Department of Defense to participate in a $249 million Bulk Purchase Agreement (BPA) to accelerate AI capabilities of Joint Artificial Intelligence Center (JAIC).
- Partnered with Snowflake to deliver an AI-powered data cloud.
- Partnered with iHeartMedia to utilize Veritone’s synthetic voice technology, Veritone Voice, to translate and produce podcasts for new markets.
- Launched AI-driven Intelligent Distributed Energy Resource Management Solution (iDERMS) to enhance reliability, maximize DER investments and meet decarbonization targets.
- Partnered with iconic voice of The Bert Show host and Georgia Radio Hall of Fame member Bert Weiss to launch Veritone Voice.
- PandoLogic partnered with SmartRecruiters to empower hiring efficiency at scale.
- Partnered with Vixen Labs to accelerate the enterprise adoption of AI-enabled Sonic Identity.
- Named Winner in the 2021 Deloitte Technology Fast 500.
- Won 2021 NAB Show Product of the Year Award.
Business Outlook
First Quarter 2022
- Revenue is expected to be in the range of $32.5 million to $33.5 million, as compared to revenue of $18.3 million in the first quarter 2021.
- Non-GAAP net loss is expected to be in the range of $3.5 million to $4.5 million, as compared to non-GAAP net loss of $3.9 million in the first quarter of 2021.
Full Year 2022
- Revenue is expected to be in the range of $180 million to $190 million, as compared to $115.3 million in 2021.
- Non-GAAP net income is expected to be in the range of $10 million to $20 million, as compared to $6.8 million in 2021.
Financial Results for Three Months Ended December 31, 2021
Revenue was a record $55.1 million, which more than tripled from $16.8 million in the fourth quarter of 2020. Software Products & Services revenue, including revenue from the recently acquired PandoLogic Ltd., was $40.2 million, 814% greater than the fourth quarter of 2020, driven by the September 2021 acquisition of PandoLogic and over 40% growth from organic Software Products & Services. Managed Services revenue grew to $14.9 million, up 20% compared to the fourth quarter of 2020. Gross profit increased to $48.9 million in the fourth quarter of 2021, up $36.2 million, or 185% year over year, compared to the fourth quarter of 2020, driven by the PandoLogic contribution and organic revenue growth. Gross margin improved to 89%, compared to 76% in the fourth quarter of 2020.
GAAP net loss was $15.9 million, compared to $12.4 million in the fourth quarter of 2020. Non-GAAP net income was $17.0 million, improving $20.9 million year-over-year compared to non-GAAP net loss of $3.9 million in the fourth quarter of 2020. This was driven by Core Operations non-GAAP net income contribution of $21.2 million, reflecting higher gross margins, partially offset by greater operating expenses to support the Company’s growth.
As of December 31, 2021, the Company had cash and cash equivalents of $254.7 million, including approximately $66.4 million of cash received from Managed Services clients for future payments to vendors.
Financial Results for Twelve Months Ended December 31, 2021
Revenue totaled $115.3 million, up from $57.7 million in 2020. GAAP net loss was $70.8 million, compared to $47.9 million in 2020. Non-GAAP net income was $6.8 million, improving $27.4 million year-over-year compared to non-GAAP net loss of $20.6 million in 2020.
Conference Call
Veritone will hold a conference call on Thursday, March 3, 2022, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its results for the fourth quarter and full year 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.
Veritone will debut its synthetic voice technology, Veritone Voice, to deliver management’s prepared remarks, followed by a live management Q&A.
| ● Preregister*: | www.incommglobalevents.com/registration | |
| ● Live audio webcast: | investors.veritone.com | |
| ● Domestic call number: | 844-200-6205 | |
| ● International call number: | 833-950-0062 | |
| ● Call ID: | 350425 |
* Callers who pre-register will be emailed, upon registering and again on the day of the call, a conference pass code and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.
A replay of the audio webcast will be available on the Company’s website approximately one hour after the call ends. A telephonic replay of the call will be available through March 17, 2022:
| ● Replay number: | 866 813 9403 | |
| ● International replay number: | +44 204 525 0658 | |
| ● Replay ID: | 808515 |
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