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Investing.com - H.C. Wainwright reiterated its Buy rating and $6.00 price target on Veritone (NASDAQ:VERI) stock on Thursday, following the company’s business update. The stock, currently trading at $1.47, has shown significant volatility with a 13% gain over the past week, though it remains 58% lower over the past six months. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment.
Veritone narrowed its second-quarter 2025 revenue guidance to between $23.5 million and $24.0 million on Thursday, while maintaining its full-year guidance. The company expects significant revenue growth in the second half of 2025, driven by demand for its Veritone Data Refinery (VDR) product. InvestingPro data shows the company’s revenue reached $90.95 million in the last twelve months, with analysts forecasting 15% growth for fiscal year 2025.
The artificial intelligence company announced its qualified and near-term opportunity set for VDR now exceeds $15.0 million, up from $10.0 million reported in early May 2025. Recent contract wins include a sole source agreement from the Department of the Air Force and a contract with Riverside County Sheriff’s Office for AI redaction technology.
Veritone also revealed cost restructuring initiatives expected to generate up to $10.0 million in annual expense savings. The company has already implemented approximately $7.5 million in cuts, which should accelerate its path to profitability despite one-time restructuring costs affecting second-quarter results.
H.C. Wainwright projects second-half 2025 revenue to increase 39.0% compared to the same period in 2024, recommending investors "accumulate a position today ahead of more meaningful revenue growth beginning in 2H25." The company maintains a gross profit margin of 69%, though analysts do not anticipate profitability this year, with an EPS forecast of -$0.61 for 2025.
In other recent news, Veritone, Inc. announced its Q1 2025 earnings, reporting a larger-than-anticipated loss with an EPS of -$0.44, which missed analyst expectations of -$0.15. Revenue also fell short of projections, coming in at $22.5 million compared to the forecasted $24.8 million. Despite these setbacks, the company is optimistic about future growth, particularly in its public sector revenue, expecting an increase between 100% and 150% for 2025. Veritone has secured a contract with the U.S. Air Force Office of Special Investigations to deploy its AI-powered solutions, with revenue recognition beginning in the second quarter of 2025.
The company has also implemented cost reduction measures expected to save up to $10 million annually, with $7.5 million already executed. Veritone maintained its financial guidance for Q2 2025, projecting revenue between $23 million and $25 million. For the full year, the company forecasts revenue between $104 million and $115 million. Additionally, Veritone’s Data Refinery pipeline has grown to over $15 million, a 50% increase since May 2025. The company’s restructuring aims to streamline operations and accelerate its path to profitability, projected as early as the second half of 2026.
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