Veritone Inc (VERI) Options

Still curious why they didn't talk about consulting business
during the EC

When this new Professional Services page first appeared, I didn't bother to check
into Corelogic, which is listed on the page. Have around 1.5 to 2 billion in revenues.
https://www.veritone.com/services/professional-services/


And back in October, they came out with a couple of offerings that could possibly have aiWARE under the hood.

Corelogic Navigate

CoreLogic Navigate™, a new cloud-based analytical portal designed for flexible delivery of CoreLogic’s global suite of more than 185 high-fidelity catastrophe risk models. The new platform optimizes workflows, enabling scalability, accessibility and faster run times for efficient risk assessment and timely decision making.

https://www.corelogic.com/press-releases/corelogic-unveils-navigate-advanced-catastrophe-risk-modeling-simplified/


Corelogic Araya

https://www.corelogic.com/press-releases/corelogic-announces-araya-a-platform-for-advanced-property-portfolio-and-market-insights/

I think they spend to much time in Disneyland.

Yeah but this quote from RS must give you assurance. lol

"We are not just participating in AI revolution, we're leading it." - Ryan Steelberg, 11/12/24

Well when Veri had billions of end users and orders of magnitude and Ai OS was the future of Ai and when stock price at 36 and grossly undervalued was a no brainer.  

agree, not only was AI the rage, but money was nearly free with those ultra low interest rates. Still find it hard to believe they were willing to take on such a risky investment for 1.75%.

Just like they did I know i got dubbed. Don't know about you.

As Zemetra said it was a great piece of paper for Veri. Convert holders got dubbed in beginning of Ai rage.

All good points. So basically the convertible note holders blindly invested 200M with no thought at all about risk.

And for long term strategic plan, convert holders couldn't get out of holdings fast enough by taking huge discount on pay back. Again #s don't line up with any of their narrative .

B of A bailed and UBS only analyst left and he was disgusted by short on revenue guide

Strategic pathways to improve BS is just spin on running out of cash and need another cash infusion.

Not long ago I commented
on how dumb it must have been for Veritone to acquire Pando without any kind of assurances that Amazon would stick around.

But if Veritone was dumb to make this acquisition without any Amazon contract, then that means that the convertible notes investors were really dumb to invest 200M with a conversion price of over 36 bucks, and only at 1.75%.

At the end of the 3rd quarter 2021, Veritone was down to just 17M in unencumbered cash, largely the result of cash portion of payment to acquire Pando.

Just a few days after the 3rd quarter 2021 earnings call in November, they announced the convertible notes offering. If I recall correctly, UBS and BOA were behind this deal. Not only are the above amounts generous to Veritone, but the indenture was very lenient for Veritone. As we have seen, Veritone was able to sell Veritone One without any consequences from the note holders, and applied all debt pay-down to the term loan, and not anything towards the notes.

So what were they thinking in giving 200M to Veritone at the time? Wouldn't they have seen the risk of Amazon bailing?

The reason I bring this up is because of the 11/20/24 date coming up. This date is basically 3 years after the convertible notes announcement. The 11/20 date seems entirely irrelevant right now, since the stock price is a long way from, and nowhere even near the conversion price, although it is my understanding that the conversion rate and price can be amended.

But it is interesting to me to bring it up, in light of the new talk of beginning phases of announcing exciting new partnerships with cloud providers, and "currently exploring additional strategic pathways to further improve our balance sheet and reduce our consolidated debt in the near-term".

So was this convertible note an entirely incompetent investment arranged by UBS and BOA, or was there some sort of long term strategic plan associated with it. And even if it was an incompetent investment by the note holders, the 11/20 date could be a significant factor in any negotiations concerning "strategic pathways to further improve balance sheet".

Yes. "degenerative" AI is clearly an error. He said "to expand our offerings into generative AI".

Degenerative AI is a bad thing, and definitely not something a CFO would say they are expanding into.

Degenerative AI is a term that describes when AI models become less effective over time, or "degenerate", due to a number of factors

Or is it regenerative Ai which also fits. Would love to see their prepared remarks which would resolve all these questions.

Also says degenerative Ai which goes along with LOM. Are you saying the Ai transcription is incorrect. Lol.

I guess when you listen to it, it could go either way, but to me, I believe he said LLMs, because it makes more sense to me in the context of the sentence.

We are also in the beginning phases of announcing exciting new partnerships with some of the largest AI LOMs and cloud providers to expand our offerings in degenerative AI.

LLMs more associated with generative AI. Plus when he says "some of the largest". Makes more sense to me referring to LLMs


Easy to provide examples of some of the largest LLMs. Don't think I could even find examples of some of the largest LOMs. just my opinion.

I listened to EC call again and he definitely said Ai LOMs. And annual contract value.

Don't see it either. Don't think do very good job in updating website. This was first q in long time that didn't post prepared remarks pdf. That EC very positive with renewals and new contracts and potential new contracts but don't see it in guidance. I emailed Zemetra about that annual 20 mil contract. My gut feeling is that it is not accurate. We shall see.

This Needham conference on 11/20 would be interesting, but I have a feeling it may not happen.

Before closing the call, I'd like to remind everyone listening that we will be presenting at the Needham's Sixth Annual Needham Virtual Infrastructure, Data Analytics Software and Cloud Communications Conference on November 20 at 1:30 p.m. Eastern Time. The webcast link is available on our Investor Relations website. On-demand replay will be available shortly after the presentation for 90 days. That concludes my prepared remarks. Operator, we would now like to open up the call for questions.

I am not seeing the webcast link yet for this conference, despite Zemetra saying it is available.

But this conference would be a waste of time for everyone, unless they have something significant and material to say that would serve to overshadow the lame guidance. jmo

These are the contacts for investors. I know Zemetra has responded in the past with the investors@veritone.com email. Could also try mzemetra@veritone.com



Company Contact: Mike Zemetra Chief Financial Officer Veritone, Inc. investors @jrb-7678 cgoldsmith@prosek.com

Does someone have Zemetra's email. I emailed investor relations asking to confirm the statement that the renewal in 4q for one of largest customers has annual contract value in excess if 20 million is accurate. Of course they never responded to me. If someone else wants to email him be my guest. Think that is very critical info

Think also a possibility that the LLM announcements, aiWARE news, and near term efforts to improve balance sheet could all be related.

Pretty sure if you listen to the EC, Zemetra says LLMs. Think LOM is a mistake on the transcript.

LOM --- learning object metadata

Think they said LOMs learning object models and not LLMs large language models. LOMs would seem to fit better with Aiware technology.

Yeah good point, the LLM announcements could come hand in hand with an opening up of aiWARE

I think they said somewhere was open source. Will be interesting to see these exciting new partnerships and what cloud providers and LOMs they are partnering with.

Since it does not appear that Veritone has any plans to derive revenue solely from the aiWARE platform anyway, could be a good way to attract more demand to their applications and consulting services. Could be even bigger opportunity if AWS is on board with this.

This comment from RS has me thinking.

This is all part of our strategy to be an "open technology solution" that can aggregate data from all the disparate evidence solutions particularly audio, video and unstructured data and allow investigators to take advantage of our AI applications and aiWARE technology. Notice he says "technology" instead of platform.

I think a lot of people could interpret that comment as making aiWARE open source, while Veritone retains its proprietary applications, workflows, and solutions. And it may be part of the strategy of the consulting business, which according to the May PR, is based on "aiWARE technology".

And it would support the October presentation under "what we sell". Not selling aiWARE SASS, only apps, workflows annd solutions that "leverage" aiWARE.

From a Google search:

An open technology solution is a platform that uses open source software, open data, and open standards to build a system that can be modified and extended. Open technology solutions allow businesses to integrate their business tools, such as CRM and ERP, into their contact center solution.
Here are some examples of open technology solutions:
Eikon
A financial markets solution that provides access to data, insights, and news. Eikon's open technology platform allows users to consume and use data in a flexible way.
LSEG Workspace
A financial professional solution that combines Reuters News with other news sources, market data, analytics, and workflow.
Devexperts Market Data Delivery
An open technology solution that provides real-time and delayed market data. Devexperts also offers other solutions for exchanges, including fraud detection, risk management, and charting.
Open technology solutions are different from closed systems, which are sometimes called proprietary or closed source.

Yea the mysteries continue. Peak investors interest only to lead to disappointment. Well need cash again in near term. So if want to reduce debt not going to debt markets. Only other options are capital markets and via partnership investment. Stock offering could be in works after 1 or 2 good announcements. But everything they says always leads to a let down.

Another useless PR today for shareholders but will say this.
Issuing PRs on AWS M&E certification, and job advertising in Australia clearly is not an effort to pump the stock price as an AI play. They could be catering to the AI frenzy in the market.

So when Zemetra says this in the earnings call: we are currently exploring additional strategic pathways to further improve our balance sheet and reduce our consolidated debt in the near-term, which we will discuss in more detail as these initiatives progress.


Sure doesn't look like they are trying to pump the stock ahead of any offering.

But so tired of this relentless lack of any announced execution for the benefit of shareholders.

Good to finally see something. I thought this comment was interesting which mentions the JAIC and I can only hope this operation continued on with the CDAO.

Veritone’s capabilities support the Public Sector with deployments that include solutions for government operations like the Joint AI Command, where Veritone’s platform aggregates and analyzes data from public and private sources to generate timely intelligence.

Wow, finally marketing aiWARE. Could be the start of new things to come.

https://gestaltit.com/exclusive/stephen/veritones-modular-ai-os-is-ready-to-meet-the-demands-of-modern-enterprises/

Kind of interesting when you think back on Chad S, when he maintained guidance of 190M for 2022. He said they speak to Amazon weekly and feel very comfortable in their guidance.

The next quarter, Chad said we were "blindsided" by Amazon. And maybe more than coincidence, the "tipping point" comments were no more. Looks to me like Amazon took Chad to school.

One of the dumbest things
I think in Veritone's history was buying Pandologic without there being any long term hiring contract with Amazon. Basically when they bought Pando without an Amazon contract, Veritone's financial future was largely "owned" by Amazon. If Amazon had any interest in aiWARE, Veritone sure gave Amazon a huge amount of leverage in any negotiations.

Anyway, what's done is done. As far as concentration of revenue, I am sure Veritone would not mind getting that revenue back in the form of a contracted or subscription based revenue stream instead of consumption based.

Also as you know, I engage in wild speculation. I have also thought about the idea that maybe Veritone has been receiving development work from Amazon in lieu of hiring revenue the past couple years. But again, that is wild speculation and I don't take the thought seriously.

If that was the case why less than a mil in revenue this q. Makes no sense. They have been constantly rehashing g how they don't want concentration of revenue.

Another one in another different location within last week.

Amazon Warehouse Operator - Flexible Shifts Available
Location: Orton
Employment Type: Permanent
Salary: per year
Job Description:
0.37
New hires who show proof of their Covid-19 vaccination earn a $100 bonus their first day

Shifts:
Overnight, Early Morning, Day, Evening, Weekend

Location:
Bolton
Job opportunities vary by location. We update postings daily with open positions.

Hourly pay rate: Earn $18.20 to $18.70 , plus up to $1,000* sign-on bonus, when you start your Day 1 prior to 11/14/2021
*Bonus terms:
Bonuses offered for a limited time only
Bonuses are only applicable to specific job types and shifts; additional terms and conditions may apply
Associates must be employed at the time of the payout
Payouts will occur in installments

Immediate openings available now.


Amazon is committed to employment equity. We believe passionately that employing a diverse workforce that reflects Canada is central to our success. We make recruiting decisions based on your experience and skills and value your passion to discover, invent, simplify, and build. Amazon is committed to providing employment accommodation in accordance with applicable laws of the province. If you require accommodations, please notify us at .

PandoLogic. Category: Logistics, Keywords: Warehouse Worker

Another one in a different location, within the last week.

Amazon Warehousing Worker (Full-Time) - Overnight Shifts Available
Location: Oakland
Employment Type: Permanent
Salary: per year
Job Description:
0.32
New hires who show proof of their Covid-19 vaccination earn a $100 bonus their first day.

Shifts:
Overnight, Evening, Weekend

Location:
Job opportunities vary by location. We update postings daily with open positions.

Hourly pay rate: $16.70 - $18.70

Immediate openings available now.


Amazon is committed to employment equity. We believe passionately that employing a diverse workforce that reflects Canada is central to our success. We make recruiting decisions based on your experience and skills and value your passion to discover, invent, simplify, and build. Amazon is committed to providing employment accommodation in accordance with applicable laws of the province. If you require accommodations, please notify us at .
PandoLogic. Category: Logistics, Keywords: Warehouse Worker

Atop this one of our largest customers is set to renew in Q4 2024 with annual contract value in excess of $20 million."

Could be Amazon. As speculated earlier, could strike a strategic deal that includes a fat Veritone Hire contract.


BTW, appears Amazon still using Pando

This posting is just within the last week.

Warehouse Team Member - Multiple Shifts Available Job at Amazon Warehouse
Amazon Warehouse Moreland, GA 30259


Job Information
Date Posted
2024-11-10
Location
Moreland, GA 30259
Job Title
Warehouse Team Member - Multiple Shifts Available
Gender
Both
Type: Full Time
Duration: Seasonal
Pay Rate: Up to $16.65
Amazon Fulfillment Center Warehouse Associate

PandoLogic. Keywords: Warehouse Worker, Location: Moreland, GA - 30259 , PL: 546597749

And if true would think the pipeline would be over 110 mil. If that contract is 3 years it's worth 60 mil and Fed mid 8 figure contract is 50 mil that's the 110 mil right there and includes nothing else. Again like usual their #s do not add up.

I missed that. If annual contract value is in excess of 20 mil. On 100 mil of revenue that is 20% concentration. That is a huge contract if true. So where were they in 2024 and prior?

They said no customer was over 5% in 3q. So no one including AWS over a mil. AWS largest hiring q is 3q. So looks like AWS abandoned Veri hiring. As far as other customers hard to believe that not 1 customer was over a mil. So much for the big contracts. As far as guidance goes don't believe anything they say. Not relying on  or making g any decisions on their guidance cause they are constantly wrong. It is unbelievable and incompetent that they can be constantly over guiding on ultra conservative assumptions.

On the subject of guidance Veritone say revs for 2024 will be about 93M

Also say that not one customer makes up more than 5% of revenues. so that would mean that the largest customer provides under 5M in revenues per year.

So currently running at 93M per year. Guiding to midpoint at around 115M for 2025.

They talk about 7 to mid 8 figure deals in near term. Also said "Moreover, we recently renewed ESPN for a multiyear deal that included expanded Software Products & Services. Atop this one of our largest customers is set to renew in Q4 2024 with annual contract value in excess of $20 million."

So if they get this one 20M deal, that should add 15M to current run rate, (20M minus 5M=15M) assuming everything else stays the same. current run rate of 93M plus 15M = 108M, and that does not include the 7 to mid 8 figure deals. Could be giving 2025 guidance extremely conservative.

Well I'm of the opinion it's the bear case. Another thing that bothers me is the ARR or annual recurring revenue. In 3q 2023 it was 89 mil and has been going down every quarter to 63 mil for this current q. If it is recurring why has it gone down so much in a year. I believe or even know they are a bunch of deceivers and liars and BS artists. I am absolutely convinced of this. They have badicly run this company into the ground and co tinder to do so. Pushing profitability till at least 2026. I truly think just plain incompetence.

Is it realistic to think that Veritone has been developing aiWARE on its own for the last couple years?

From the EC
aiWARE, our core platform is truly an operating system for AI, supporting dynamic and scalable cognitive architectures and workflows. This proven platform, which is today serving hundreds of enterprise customers around the world combines dynamic data integration, hundreds of cognitive and generative AI models, intelligent model routing, vector databases, compliance frameworks and application workflow logic that can mirror human reasoning.

Was Chad, as consultant, and his team doing this all on their own? If so, how, and with what resources?

Add to that, the only time they go into any detail on aiWARE is with investors. Hardly go into any detail on Linkedin, or interviews or webinars since RS took over. More interested in talking about AI for good and ecosystem applications and verticals, not at all about how they differentiate with the underlying tech. And now give all credit to AWS tech on the marketplace. But then tell investors on earnings call about how great aiWARE is.

As for why doesn't somebody come in and buy Veritone on the cheap. Could be that a deal with aiWARE was struck back in 2022 when Chad switched to become a consultant.

Entered into an aiWARE development deal with one or more strategic partners. Small company Veritone started focusing on ecosystem and applications. Spent 52M on Broadbean. The actions since RS took over does not appear to me that Veritone has been pouring money into aiWARE development since RS took over.

If I had to guess, I would say that AWS is involved with development work. They struck a deal with AWS back in 2022. AWS agreed to build out aiWARE. AWS will help Veritone scale its verticals. In return, AWS gets aiWARE capabilities for its own use. CS worked with AWS and maybe others on consulting during development.

So could be that Veritone has never been snatched up because deal was already in place.

That's my bull case. The bear case is that Veritone has not been focusing on or developing aiWARE to commercial grade status because they saw the writing on the wall back in 2022. Knew they couldn't afford to develop it, and knew they could not compete. But still leading investors to believe aiWARE is a gem.
So while they espouse the greatness of aiWARE to investors, what they are really doing is using AWS tech. This bear case would obviously be very deceitful to shareholders, and I would like to think that is not the case. Bottom line in my opinion, is that since RS took over, and changed strategy, I don't think they were in any position to invest in ongoing aiWARE development and evolve aiWARE into commercial grade enterprise status without the involvement of strategic partners.

If Aiware so valuable why no interest now or in the past. If valuable why would major Ai players spend billions on startups and other Ai initiatives when can have Aiware on the cheap. Makes no sense. Why isn't Veri revenues growing at all if Aiware even half of what they make it out to be. Waiting for this big Fed contracts and how they get this cash infusion whether by stock offering or an actual outside investment cause those seem to be the only options particularly if want to reduce debt. Can't drag this on because will be out of cash in next 6 months. Do have potentially 20 mil earnout etc but won't be till 2026.

They stated one Fed contract in mid 8 figures. So 50 mil. If they announce that then we get some Ai recognition and stock price increases.

Looks like same speculation for 2024 now for 2025. Some things don't change.

Let's see if any these major potential contracts materialize and how going to address BS and cash and debt