Veritone Q2 2025 slides: Flat revenue, growing losses amid strategic pivot

Introduction & Market Context

Veritone Inc (NASDAQ:VERI) released its Q2 2025 earnings presentation on August 7, 2025, revealing flat year-over-year revenue but widening losses as the company continues its strategic pivot toward software-as-a-service (SaaS) offerings and public sector growth. The enterprise AI company’s stock, which has struggled in recent months, showed signs of recovery in premarket trading on August 8, up 6.93% to $2.47 after closing at $2.31 the previous day.

The Q2 results follow a disappointing Q1 2025, when Veritone missed analyst expectations with an EPS of -$0.44 against a forecast of -$0.15, and revenue of $22.5 million versus an anticipated $24.8 million. The company’s market capitalization stands at approximately $89.44 million, with the stock having fallen over 44% in the past six months according to available data.

Quarterly Performance Highlights

Veritone reported total revenue of $24.0 million for Q2 2025, essentially flat compared to $24.1 million in Q2 2024. However, the company’s net loss increased to $26.8 million, up 21% from $22.2 million in the same period last year. Non-GAAP net loss also grew by 27% to $8.7 million.

As shown in the following snapshot of key earnings results, the company maintained a solid gross revenue retention rate above 90% while serving 3,067 software products and services customers:

Software (ETR:SOWGn) Products & Services revenue reached $17.5 million in Q2 2025, showing improvement from $14.5 million in Q1 2025. The company’s Annual Recurring Revenue (ARR) stood at $62.6 million, though this represents a decline from $67.9 million in Q2 2024.

The following chart illustrates the quarterly performance of Software Products & Services revenue over the past year:

A bright spot in Veritone’s performance was its public sector business, which grew 90% year-over-year, while commercial revenue increased by a more modest 6%. This growth in the public sector aligns with recent business developments, including a sole source contract from the U.S. Air Force announced in June and an agreement with the Riverside County Sheriff’s Office in May.

Strategic Initiatives

Veritone’s presentation emphasized its strategic shift toward a more diverse and stable revenue mix, with SaaS revenue now comprising 81% of total ARR, up from 72% in Q2 2024. This evolution is illustrated in the following chart:

The company is positioning itself to capitalize on the growing market for AI training data, highlighting its unique access to premium audio and video content through partnerships with major media companies. Veritone processes massive amounts of unstructured data through its aiWARE platform, which it describes as an "operating system for AI."

As shown in the following slide, the company has processed 10.69 petabytes and 58.43 million hours of media using 862 unique AI models in 2024 alone:

Veritone sees significant revenue opportunities in the training data market, projecting growth from $5-20 million in 2025 to $60 million by 2027, targeting a compound annual growth rate (CAGR) of 345% from 2024 to 2027. This aligns with industry projections showing the global training data market expanding from $2.39 billion in 2023 to $17.04 billion by 2032:

Forward-Looking Statements

Despite current financial challenges, Veritone provided an optimistic outlook for the remainder of 2025. For Q3 2025, the company expects revenue between $28.0 million and $30.0 million, with a non-GAAP net loss between $6.5 million and $6.0 million. For the full fiscal year 2025, Veritone projects revenue between $108.0 million and $115.0 million and a non-GAAP net loss between $30.0 million and $25.0 million.

The company’s growth strategy centers on three key drivers: unlocking the potential of existing customers through upselling and cross-selling, capitalizing on data and integration capabilities, and harnessing expanding market opportunities, particularly in the training data space.

Veritone’s aiWARE platform remains central to its value proposition, serving as an enterprise AI operating system that integrates hundreds of cognitive and generative AI models:

Financial Analysis

While Veritone highlights growth opportunities, its balance sheet reveals some concerning trends. Cash and cash equivalents declined to $13.6 million as of June 30, 2025, down from $16.9 million at the end of 2024. More significantly, stockholders’ equity dropped precipitously from $13.5 million to just $1.2 million during the same period.

These financial pressures likely prompted the company’s June announcement of cost reduction and restructuring initiatives, as well as a $10 million equity offering that included participation from CEO Ryan Steelberg. The company’s managed services segment also showed weakness, with revenue declining from $8.4 million in Q2 2024 to $6.5 million in Q2 2025, primarily due to lower licensing revenue.

Despite these challenges, Veritone maintains a robust partner ecosystem that includes major corporations across various industries:

Conclusion

Veritone’s Q2 2025 presentation reveals a company in transition, pivoting toward higher-margin SaaS revenue and public sector growth while betting heavily on the emerging training data market. While the company has shown some positive signs, including public sector growth and new bookings up 12% year-over-year, its widening losses and diminishing stockholders’ equity raise questions about long-term sustainability.

The market appears cautiously optimistic about these strategic shifts, as evidenced by the premarket stock movement. However, Veritone will need to demonstrate that its investments in AI technology and training data can translate into sustainable revenue growth and a path to profitability in the coming quarters.

Full presentation:

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