Veritone Q1 2025 slides: Revenue dips 7% as company pivots to AI training data

Published 08/05/2025, 21:28
Veritone Q1 2025 slides: Revenue dips 7% as company pivots to AI training data

Introduction & Market Context

Veritone Inc (NASDAQ:VERI) released its Q1 2025 investor presentation on May 8, highlighting the company’s financial performance and strategic direction as it navigates challenges in the enterprise AI market. The presentation comes as Veritone’s stock trades at $1.93 in aftermarket trading, reflecting ongoing investor concerns despite management’s optimistic outlook.

Founded in 2014 and positioned as "the enterprise AI company that makes humans even better," Veritone has built its business around transforming unstructured data into actionable intelligence through its aiWARE platform. With over 450 employees serving more than 3,150 customers, the company is attempting to leverage its decade of experience in AI to capitalize on emerging opportunities in the premium training data market.

As shown in the following timeline, Veritone has evolved significantly since its founding, with recent strategic moves including the divestiture of Veritone One and the launch of its Data Refinery offering:

Quarterly Performance Highlights

Veritone reported total revenue of $22.5 million for Q1 2025, representing a 7% decrease from $24.2 million in Q1 2024. Software (ETR:SOWGn) Products & Services revenue, which comprises the core of the company’s business, declined to $14.5 million from $15.2 million in the prior-year period.

The company’s financial snapshot reveals mixed results, with declining revenue offset by improved operational losses:

Despite the revenue decline, Veritone highlighted several positive metrics, including a gross revenue retention rate above 90% and total new bookings of $15.8 million, representing a 22% year-over-year increase. The company ended the quarter with $16.1 million in cash and cash equivalents.

Veritone’s quarterly revenue has been trending downward over the past year, though Q1 2025 showed a slight sequential improvement from Q4 2024:

Strategic Initiatives

A key focus of Veritone’s presentation was its aiWARE platform, which the company positions as an "operating system for AI" that processes vast amounts of unstructured data. In 2024 alone, the platform utilized 862 unique AI models, processed 10.69 petabytes of data, and handled 58.43 million hours of media.

The company’s aiWARE platform ingests and processes multiple types of unstructured data, as illustrated in this slide:

Veritone is targeting both commercial enterprises and government agencies with its AI solutions. For commercial customers, the company offers data insight, content management, and hiring solutions:

For government and law enforcement agencies, Veritone provides solutions for biometric identification, redaction, and transcription:

A significant new initiative is the Veritone Data Refinery (VDR), designed to help enterprises transform unstructured data into AI-ready assets:

Detailed Financial Analysis

Veritone’s financial performance shows a company in transition. While revenue has declined, the composition of that revenue has shifted significantly toward more predictable SaaS revenue, which now represents 81% of total Annual Recurring Revenue (ARR), up from 68% in Q1 2024:

The breakdown of Software Products & Services revenue reveals challenges in both commercial and public sector segments, with year-over-year declines of 4.4% and 13.3%, respectively:

Despite these challenges, Veritone has improved its bottom line, with loss from operations decreasing 26% year-over-year to $20.2 million and net loss improving 24% to $19.9 million. The company completed a registered direct offering in early 2025, raising gross proceeds of $20.3 million to strengthen its financial position.

Forward-Looking Statements

Veritone’s management is particularly bullish on the premium training data market for AI, which they identify as a $17 billion opportunity. The company is targeting an ambitious 345% CAGR from 2024 to 2027 in this segment, with $2.8 million already booked for 2025:

For the full fiscal year 2025, Veritone provided guidance of $104.0 million to $115.0 million in revenue and a non-GAAP net loss of $20.0 million to $30.0 million. For Q2 2025, the company expects revenue between $23.0 million and $25.0 million with a non-GAAP net loss of $8.0 million to $9.0 million.

These projections suggest management expects a return to growth in the coming quarters, driven by the company’s focus on premium training data, the Veritone Data Refinery, and expansion in the public sector. However, investors may remain cautious given the company’s recent performance and the competitive landscape in enterprise AI.

As Veritone navigates this transition period, its ability to execute on its strategic initiatives while improving financial performance will be critical to regaining investor confidence and driving long-term growth.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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