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DENVER - Veritone, Inc. (NASDAQ:VERI), an AI technology company currently valued at $66.7 million, has secured a sole source contract with the United States Air Force Office of Special Investigations (AFOSI) to deploy its AI-powered solutions for law enforcement modernization, the company announced in a press release. According to InvestingPro data, the company maintains a high gross profit margin of 69%, despite recent operational challenges.
The contract, awarded on June 24, will implement Veritone’s aiWARE platform and Intelligent Digital Evidence Management System (iDEMS) to support investigative, intelligence and counterintelligence capabilities. The agreement includes an option to extend for five years, with revenue recognition beginning in the second quarter of 2025.
Veritone also reported its Veritone Data Refinery (VDR) pipeline has grown to over $15 million, a 50% increase since May 2025. The company has signed contracts with additional AI model providers and intellectual property owners during the second quarter.
In June, Veritone implemented cost reduction initiatives expected to generate annualized savings of up to $10 million, with over $7.5 million already executed. The restructuring aims to streamline operations and accelerate the company’s path to profitability, which it projects could occur as early as the second half of 2026. InvestingPro analysis reveals the company faces significant challenges with its $119.5 million debt burden and negative EBITDA of -$61.1 million in the last twelve months.
The company expects to incur one-time costs between $0.5 million and $0.7 million related to severance and termination expenses.
Veritone maintained its financial guidance for Q2 2025, projecting revenue between $23.5 million and $24 million, and non-GAAP net loss between $8.5 million and $8 million. For full-year 2025, the company continues to forecast revenue between $104 million and $115 million, with non-GAAP net loss between $30 million and $20 million.
"The recent strategic wins across our Public Sector and VDR initiatives, and the decisive action we have taken to implement cost savings for the business... position Veritone for continued success," said CEO Ryan Steelberg in the press release. While the stock has declined nearly 58% over the past six months, InvestingPro analysis suggests the company is currently undervalued. Discover 8 additional key insights and a comprehensive Pro Research Report, along with real-time analysis of 1,400+ US stocks, available exclusively on InvestingPro.
In other recent news, Veritone announced its Q1 2025 earnings, reporting a larger-than-expected loss with an EPS of -$0.44, missing the forecast of -$0.15. Revenue also fell short, reaching $22.5 million against the anticipated $24.8 million. Despite these setbacks, Veritone expressed optimism about future growth, particularly in public sector revenue, expecting growth between 100% and 150% in 2025. Additionally, the company is projecting Q2 2025 revenue between $23 million and $25 million. Analysts from H.C. Wainwright and UBS have shown interest in the company’s public sector pipeline and VDR initiatives, which are expected to drive future growth. Veritone’s management highlighted the expansion of contracts in the public sector and new partnerships in their VDR business. The company also noted improvements in its operating loss and net loss from continuing operations, both showing year-over-year improvements. Despite the challenges, Veritone remains confident in its strategic growth plan and future prospects.
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