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On Monday, H.C. Wainwright reaffirmed its Buy rating and $6.00 price target for Veritone (NASDAQ:VERI), a $116 million market cap company currently trading at $2.61, following the company’s fourth-quarter and full-year 2024 financial results released after the market closed on Thursday. According to InvestingPro data, the stock has shown significant volatility, with a beta of 3.44, making it particularly sensitive to market movements. Veritone’s performance aligned with both H.C. Wainwright’s and Wall Street’s expectations. The company also confirmed its revenue guidance for 2025, projecting growth of 23.6% at the midpoint, with anticipated revenues ranging from $107.0M to $122.0M.
This forecast marks a significant turnaround for Veritone, which experienced a 7.4% revenue decline in 2024, with InvestingPro data showing total revenue of $92.64 million in the last twelve months. The predicted growth is attributed to the company’s strong performance in the public sector, though investors should note that the company operates with a significant debt burden of $119.2 million and a concerning debt-to-equity ratio of 8.86. Veritone added 19 new customers in public safety and government in the last quarter, including a notable addition of the Bureau of Alcohol, Tobacco, and Firearms. Management expects public sector revenue to surge by 100.0% to 150.0% in 2025.
The company has also seen positive developments in its recently launched VDR business, with expectations that much of the new revenue will be realized in the latter half of 2025. Moreover, Veritone anticipates an improvement in its consumption-based business, with more favorable year-over-year comparisons starting in the second quarter of 2025, following a period of headwinds.
H.C. Wainwright highlighted Veritone’s cost-cutting measures and proactive steps to reduce debt as factors that should help investors see a clear route to profitability. Despite recent shifts in investor sentiment regarding AI stocks, the firm believes the acceleration in revenue growth and a clearer path to profitability should make Veritone’s shares more attractive to investors. InvestingPro analysis suggests the stock is currently undervalued, with 12 additional exclusive ProTips and a comprehensive Pro Research Report available to help investors make informed decisions about this volatile AI player.
In other recent news, Veritone reported its Q4 2024 earnings, significantly surpassing expectations with an earnings per share (EPS) of $0.72, compared to the forecasted loss of $0.26. Despite a year-over-year revenue decline to $22.4 million from $27.1 million, the company attributes its positive EPS outcome to robust cost management and strategic divestitures. Veritone has also provided an optimistic revenue guidance for fiscal 2025, projecting between $107 million and $122 million, indicating a 24% increase at the midpoint. The company successfully divested Veritone One for up to $104 million, which has strengthened its financial position. In terms of analyst coverage, firms like H.C. Wainwright and Co. have shown interest in Veritone’s strategic direction, particularly with the launch of the Veritone Data Refinery, which is expected to contribute significantly to revenue growth. Additionally, the company is focusing on expanding its AI solutions in the public sector, which is anticipated to drive substantial growth in the coming year. These developments reflect Veritone’s strategic focus on AI solutions and public sector growth as key drivers for 2025.
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