Veritone raises $10 million in stock offerings as CEO invests $1 million

DENVER - Veritone, Inc. (NASDAQ:VERI), an enterprise AI solutions provider with a market capitalization of $66.4 million, announced Monday it has secured approximately $10 million through a registered direct offering and a private placement. According to InvestingPro data, the company has been quickly burning through cash, making this financing crucial for its operations.

The company entered into a definitive agreement to sell 6,452,293 shares of common stock and pre-funded warrants for up to 1,804,587 additional shares at $1.09 per share (or $1.08 per warrant). The registered direct offering is expected to close around July 2, subject to customary conditions. Esousa Group Holdings, an existing investor, led with a $6 million investment. With a significant debt burden of $119.5 million and a current ratio of 0.99, this financing addresses immediate capital needs.

In a concurrent private placement, CEO Ryan Steelberg purchased shares worth $1 million at a price equal to the greater of the June 27 closing bid price or $1.41 per share, and the closing bid price two trading days after Veritone files its Q2 2025 quarterly report.

"The Company intends to use the net proceeds from the offerings, together with its existing cash and cash equivalents, for working capital and general corporate purposes," Veritone stated in its press release.

The registered direct offering is being conducted under a shelf registration statement that became effective on June 21, 2024. D. Boral Capital LLC acted as placement agent for certain investors.

Veritone builds AI solutions for clients in media, entertainment, public sector, and talent acquisition industries. The company’s aiWARE platform orchestrates machine learning models to transform data into actionable intelligence.

The shares sold in the private placement have not been registered under the Securities Act and may not be resold in the United States except pursuant to an effective registration statement or applicable exemption from registration requirements. For deeper insights into Veritone’s financial health and valuation metrics, including 10 key ProTips, check out the comprehensive research available on InvestingPro.

In other recent news, Veritone has announced its first-quarter 2025 earnings, reporting a larger-than-expected loss with earnings per share at -$0.44, missing the forecasted -$0.15. Revenue also fell short, coming in at $22.5 million against an anticipated $24.8 million. Despite these setbacks, Veritone maintained its financial guidance for the second quarter of 2025, projecting revenue between $23.5 million and $24 million, and for the full year, forecasting between $104 million and $115 million. The company has secured a significant contract with the United States Air Force Office of Special Investigations, involving its aiWARE platform and Intelligent Digital Evidence Management System, with revenue recognition beginning in the second quarter of 2025.

Furthermore, Veritone has implemented cost reduction initiatives expected to generate annualized savings of up to $10 million, with over $7.5 million already executed. These efforts aim to streamline operations and accelerate the company’s path to profitability. Analyst firm H.C. Wainwright reiterated its Buy rating on Veritone, suggesting investors "accumulate a position" ahead of anticipated revenue growth in the second half of 2025. The company’s Veritone Data Refinery (VDR) pipeline has grown to over $15 million, a 50% increase since May 2025, indicating strong demand for its AI solutions. These developments highlight Veritone’s strategic moves to strengthen its market position and financial performance.

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