NASDAQ$VERI

Veritone Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported record quarterly revenues and outperformed expectations in Advertising and Content Licensing.

Veritone reported Q2 2020 net revenues of $13.3 million, up 8.1% year-over-year. The company saw significant rebounds in its Advertising and Content Licensing businesses. They are forecasting an even better performance in the third quarter.

  • Net revenues were $13.3 million, an increase of 8.1% year-over-year.
  • Advertising net revenues were $7.0 million, an increase of 20.5% year-over-year.
  • aiWARE Content Licensing and Media Services net revenues were $3.2 million, a decrease of 13.9% year-over-year.
  • Net loss was $11.8 million, improving $4.9 million compared with Q2 of 2019.

Headline financials

Total Revenue

$13.3M

Previous: $12.3M+8.1%
EPS (adj)

-$0.21

Previous: -$0.44+52.3%
Capital Expenditures

-$30K

Previous: -$208K+85.6%
Free Cash Flow

-$11.8M

Previous: -$16.9M+30.0%
Net Income

-$11.8M

Previous: -$16.7M+29.3%
Operating Income

-$11.6M

Previous: -$16.7M+31.0%
Gross Profit

$8.94M

Previous: $7.71M+16.0%
Cash & Equivalents

$50.1M

No prior period
Total Assets

$107M

No prior period

Revenue & EPS history

Veritone · Revenue · Quarterly

$13.3M

Q2 2020+8.1%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Veritone · $20.3M total across 2 segments · Q1 2026

  • Software Products & Services
    $13.8M
  • Managed Services
    $6.44M

Forward guidance

For the third quarter of 2020, Veritone expects sequential revenue growth in its Advertising business and from SaaS customers in the Government, Legal and Compliance markets. The Company expects its total net revenues for the third quarter of 2020 to be in the range of $14.2 million to $14.6 million, and expects to reduce its non-GAAP net loss sequentially again in the third quarter, to be in the range of $5.7 million to $5.3 million.

Tailwinds

  • Expects sequential revenue growth in Advertising business.
  • Expects sequential revenue growth from SaaS customers in the Government, Legal and Compliance markets.
  • Expects total net revenues for Q3 2020 to be in the range of $14.2 million to $14.6 million.
  • Assuming that major sporting events occur in line with current schedules.
  • Assuming that the Company’s Advertising clients do not experience further supply chain disruptions.

Headwinds

  • Major sporting events may not occur in line with current schedules.
  • Advertising clients may experience further supply chain disruptions.
  • Expected non-GAAP net loss for Q3 2020 to be in the range of $5.7 million to $5.3 million.
  • Impact of the economic disruption caused by COVID-19 pandemic on the business of the Company and that of its existing and potential customers
  • The Company’s ability to achieve broad recognition and customer acceptance of its products and services

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-2.7%

Avg return

Earnings day

-2.6%

Avg return

5 days after

+2.3%

Avg return

30 days after

38%

14 / 37 earnings

Positive

+23.2%

Q2 2025

Best reaction

-38.5%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.0%-3.5%-23.9%
Q4 2025-1.4%-5.2%-35.2%
Q3 2025-10.5%-20.8%-18.5%
Q2 2025+23.2%+13.9%+15.2%
Q1 2025-8.7%-11.1%-24.6%
Q4 2024+11.5%+17.5%-6.8%
Q3 2024-15.0%-18.2%-35.0%
Q2 2024+3.5%+25.0%+25.7%
Q1 2024+6.9%-9.7%-27.5%
Q4 2023+17.3%+110.3%+155.8%
Q3 2023-33.0%-27.5%-19.4%
Q2 2023-38.5%-31.4%-29.9%
Q1 2023-13.9%-15.7%-33.9%
Q4 2022+15.5%+6.4%-9.5%
Q3 2022-13.9%+10.6%+21.0%
Q2 2022-16.9%-22.9%-29.6%
Q1 2022-1.6%-17.9%-27.8%
Q4 2021-3.5%-6.8%+9.0%
Q3 2021-1.1%+5.8%-27.2%
Q2 2021-1.6%+4.1%+2.1%
Q1 2021-12.2%-10.5%-18.7%
Q4 2020-9.0%-16.7%-32.8%
Q3 2020+6.5%+22.3%+185.5%
Q2 2020-7.1%-16.8%-40.0%
Q1 2020+20.4%+16.7%+121.2%
Q4 2019+1.7%-19.7%-25.4%
Q3 2019+0.0%-2.3%+11.3%
Q2 2019-22.8%-25.5%-35.4%
Q1 2019+17.0%+12.9%+40.8%
Q4 2018+6.2%+30.2%+26.4%
Q3 2018-3.6%-24.9%-19.5%
Q2 2018-16.2%-22.5%-30.8%
Q1 2018+9.3%+7.8%+1.7%
Q4 2017-7.2%-13.4%-10.8%
Q3 2017-16.3%-36.0%-37.9%
Q2 2017-2.1%-9.8%+86.6%
Q1 2017+12.4%+10.3%-16.3%
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015

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