Veritone (VERI) AI Stock Analysis

• Market Cap: $100.88M
• Dividend Yield: N/A
• Average Volume (3M): 461.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.60
• Revenue Growth: -16.08%
• EPS Growth: -72.09%
• Country: US
• Employees: 664
• Sector: Technology
• Sector Strength: 49
• Industry: Software - Infrastructure
• EPS (TTM): -2.75
• Shares Outstanding: 44,834,460
• 10 Day Avg. Volume: 537,312
• 30 Day Avg. Volume: 461,128
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.89
• Price to Cash Flow (P/CF): 7.40
• P/FCF Ratio: 5.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.50
• Price Target Upside: 152.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Veritone's overall score reflects significant financial and operational challenges, evidenced by persistent losses and high leverage. While there is potential for growth, particularly in the public sector and AI solutions, current market conditions and valuation concerns weigh heavily on the stock. Technical indicators suggest bearish momentum, and although strategic initiatives offer some optimism, the company's financial instability remains a critical concern.

Positive Factors

Financial Health

The company has been proactive in deleveraging the balance sheet, which is likely to continue.

Public Sector Expansion

The shift to revenue growth is being driven by powerful momentum in the company’s public sector vertical, which added 19 new public and safety and government customers.

Revenue Growth

AI demand drives accelerating revenue growth, putting business on path to profitability.

Negative Factors

Profitability Timeline

Expanding gross margins and expense discipline suggest quarterly profitability as early as 2026.

Veritone Business Overview & Revenue Model

Company Description

Veritone, Inc. is a leading provider of artificial intelligence (AI) technology and solutions. The company operates primarily in the AI software and services sectors, offering a proprietary operating system for AI, aiWARE, which orchestrates an expanding ecosystem of machine learning models to transform audio, video, and other data sources into actionable intelligence. Veritone serves a wide range of industries, including media, entertainment, government, legal, and compliance, providing tools for content management, analytics, and monetization.

How the Company Makes Money

Veritone generates revenue through a combination of software licensing, subscription services, and professional services. The company's primary revenue stream comes from its aiWARE platform, where customers pay subscription fees to access its AI-powered capabilities. Additionally, Veritone offers custom AI applications and solutions tailored to specific industry needs, generating revenue through licensing and service contracts. Veritone also engages in strategic partnerships with organizations in various sectors to expand its AI applications and drive further sales. These partnerships often lead to co-developed solutions that leverage Veritone's AI technology, enhancing its market reach and revenue potential.

Veritone Financial Statement Overview

Summary

Veritone faces significant financial challenges with declining revenue, persistent losses, high leverage, and negative equity. Cash flow issues further exacerbate the financial instability, suggesting high financial risk and potential sustainability concerns.

Income Statement

Veritone's income statement reflects significant challenges with negative net income and declining revenue year-over-year. The gross profit margin for TTM is approximately 66.4%, showing a decrease compared to previous years. The net profit margin remains negative, highlighting ongoing profitability issues. Revenue has decreased from $127.56 million in 2023 to $118.82 million in the TTM period, indicating a negative growth trajectory. Operating losses are evident with negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet shows a concerning negative stockholders' equity of -$25.16 million as of the TTM period, indicating potential financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, but the presence of high total liabilities relative to assets suggests significant leverage. The equity ratio is negative, reflecting a potential risk of insolvency. Overall, the balance sheet indicates high financial risk.

Cash Flow

Veritone's cash flow statement reveals negative operating and free cash flows, with a free cash flow of -$58.73 million in the TTM period. The operating cash flow to net income ratio is unfavorable due to both metrics being negative. The company has not demonstrated free cash flow sustainability, and the free cash flow growth rate is negative, indicating worsening cash flow health over time.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
118.82M	127.56M	149.73M	115.31M	57.71M	49.65M
	Gross Profit
78.92M	99.30M	122.30M	93.18M	42.05M	32.36M
	EBIT
-71.97M	-92.34M	-37.99M	-67.25M	-47.67M	-64.07M
	EBITDA
-20.39M	-31.56M	5.16M	-52.02M	-41.39M	-57.58M
	Net Income Common Stockholders
-57.00M	-58.63M	-25.24M	-70.59M	-47.88M	-62.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.75M	79.44M	184.42M	254.72M	114.82M	44.06M
	Total Assets
0.00	375.81M	424.75M	504.75M	177.65M	108.53M
	Total Debt
0.00	143.05M	137.77M	195.08M	0.00	0.00
	Net Debt
18.75M	63.61M	-46.66M	-59.64M	-114.82M	-44.06M
	Total Liabilities
0.00	337.67M	344.58M	424.17M	89.44M	61.12M
	Stockholders Equity
8.61M	38.15M	80.17M	80.58M	88.21M	47.41M
Cash Flow		Free Cash Flow
-58.73M	-81.54M	-1.03M	6.22M	1.26M	-30.89M
	Operating Cash Flow
-52.53M	-76.42M	3.74M	7.23M	1.43M	-30.12M
	Investing Cash Flow
-4.47M	-54.88M	-12.10M	-53.84M	-119.00K	11.96M
	Financing Cash Flow
30.92M	26.33M	-61.93M	186.51M	69.44M	24.61M

Veritone Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERI, the sentiment is Negative. The current price of 2.18 is below the 20-day moving average (MA) of 2.47, below the 50-day MA of 2.73, and below the 200-day MA of 3.02, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.48 is Neutral, neither overbought nor oversold. The STOCH value of 10.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VERI.

Veritone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLTR	77 Outperform	$207.78B	468.27	10.90%	―	28.79%	112.38%
DDOG	66 Neutral	$32.12B	179.20	7.75%	―	26.12%	274.50%
Sector *	57 Neutral	$19.52B	9.58	-12.47%	2.79%	5.43%	-24.71%
AI	54 Neutral	$2.69B	―	-32.07%	―	23.79%	4.10%
UPST	52 Neutral	$3.66B	―	-20.27%	―	24.50%	49.38%
FSLY	48 Neutral	$765.57M	―	-16.25%	―	7.45%	-10.76%
VERI	41 Neutral	$100.88M	―	-365.12%	―	-16.08%	-72.09%

Veritone Corporate Events

Veritone Appoints Francisco Morales to Board of Directors

On March 12, 2025, Chad Steelberg resigned from the Board of Directors of Veritone, Inc., but will continue as a strategic advisor. Francisco Morales, Co-Founder and Executive Chairman of 5.11 Tactical, was appointed to the Board effective March 20, 2025. Morales brings expertise in public sector and global business operations, which is expected to enhance Veritone’s AI platform and its reach in commercial and public sectors. His appointment is seen as a strategic move to bolster Veritone’s presence in critical law enforcement, first responder, and military communities.

Veritone CEO’s Salary Adjustment Approved for 2025

In May 2023, Ryan Steelberg, President and CEO of Veritone, voluntarily reduced his salary to $1 from an initial $525,000 as per his 2023 employment agreement. Recently, the Compensation Committee of Veritone’s Board approved an increase in his annual base salary to $665,000, effective January 1, 2025, aligning it with market levels.