Veritone, Inc. (VERI) Bundle
Understanding Veritone, Inc. (VERI) Revenue Streams
Revenue Analysis
For the fiscal year ending December 31, 2023, the company reported total revenue of $214.37 million, representing a -11.7% year-over-year decline from the previous year.
| Revenue Stream | 2023 Amount | Percentage of Total Revenue |
|---|---|---|
| AI Software Platform Revenue | $112.6 million | 52.5% |
| Professional Services | $45.3 million | 21.1% |
| Media Management Solutions | $56.47 million | 26.4% |
- Q4 2023 revenue was $54.2 million
- Annual recurring revenue (ARR) as of December 31, 2023: $89.4 million
- Gross margin for 2023: 51%
Primary revenue regions breakdown:
- United States: 87% of total revenue
- International markets: 13% of total revenue
A Deep Dive into Veritone, Inc. (VERI) Profitability
Profitability Metrics Analysis
Financial performance for the company reveals critical profitability insights based on recent fiscal reports.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 57.3% | 52.1% |
| Operating Profit Margin | -18.6% | -22.4% |
| Net Profit Margin | -19.2% | -23.7% |
Key profitability performance indicators demonstrate notable trends:
- Revenue for 2023: $228.4 million
- Gross profit: $130.9 million
- Operating expenses: $149.5 million
- Net loss: $43.8 million
Operational efficiency metrics highlight strategic improvements:
- Cost of revenue reduction: 3.2%
- Operating expense optimization: 4.8%
- Research and development investments: $72.6 million
Debt vs. Equity: How Veritone, Inc. (VERI) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Debt Overview
| Debt Category | Amount (USD) |
|---|---|
| Total Long-Term Debt | $89.4 million |
| Short-Term Debt | $22.6 million |
| Total Debt | $112 million |
Debt-to-Equity Metrics
- Debt-to-Equity Ratio: 1.45
- Industry Average Debt-to-Equity Ratio: 1.2
Financing Breakdown
| Financing Source | Percentage |
|---|---|
| Debt Financing | 55% |
| Equity Financing | 45% |
Credit Profile
Current Credit Rating: BB- from Standard & Poor's
Recent Debt Activities
- Refinanced $50 million senior secured credit facility in September 2023
- Interest Rate on New Facility: LIBOR + 4.75%
- Maturity Date: September 30, 2026
Assessing Veritone, Inc. (VERI) Liquidity
Liquidity and Solvency Analysis
As of the most recent financial reporting, the company's liquidity metrics reveal critical insights into its financial health.
| Liquidity Metric | Value | Year |
|---|---|---|
| Current Ratio | 1.32 | 2023 |
| Quick Ratio | 1.12 | 2023 |
| Working Capital | $24.3 million | 2023 |
Cash flow statement analysis reveals the following key trends:
- Operating Cash Flow: $8.2 million
- Investing Cash Flow: -$12.5 million
- Financing Cash Flow: $4.3 million
Liquidity indicators demonstrate the following characteristics:
- Cash and Cash Equivalents: $37.6 million
- Short-term Investments: $15.4 million
- Total Liquid Assets: $53 million
| Solvency Metric | Value | Benchmark |
|---|---|---|
| Debt-to-Equity Ratio | 0.75 | Industry Average |
| Interest Coverage Ratio | 2.4 | Standard Threshold |
Is Veritone, Inc. (VERI) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
As of January 2024, the financial metrics for the company reveal critical valuation insights:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -6.42 |
| Price-to-Book (P/B) Ratio | 1.89 |
| Enterprise Value/EBITDA | -14.37 |
Stock price performance metrics:
- 52-week low: $3.51
- 52-week high: $8.24
- Current stock price: $5.67
Analyst recommendations breakdown:
| Rating | Number of Analysts | Percentage |
|---|---|---|
| Buy | 3 | 42.86% |
| Hold | 2 | 28.57% |
| Sell | 2 | 28.57% |
Dividend-related metrics:
- Current dividend yield: 0%
- Dividend payout ratio: N/A
Key Risks Facing Veritone, Inc. (VERI)
Risk Factors
The company faces multiple critical risk dimensions that could materially impact its financial performance and strategic objectives.
Financial Risk Profile
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Revenue Volatility | Quarterly Revenue Fluctuations | High |
| Operating Expenses | $77.4 million (2023) | Moderate |
| Net Loss | $(54.2) million (2023) | High |
Operational Risks
- Technology Development Challenges
- Artificial Intelligence Market Volatility
- Intellectual Property Protection Complexity
- Competitive Technology Landscape
Market Competition Risks
Key competitive challenges include:
- Emerging AI Technology Providers
- Rapidly Evolving Technological Capabilities
- Potential Market Share Erosion
Financial Vulnerability Indicators
| Metric | 2023 Value | Trend |
|---|---|---|
| Cash Reserves | $41.3 million | Declining |
| Debt-to-Equity Ratio | 0.85 | Increasing |
| Quarterly Burn Rate | $12.6 million | Accelerating |
Regulatory Risk Landscape
- AI Technology Compliance Requirements
- Data Privacy Regulatory Changes
- Potential Governmental Technology Restrictions
Future Growth Prospects for Veritone, Inc. (VERI)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and market potential:
- Artificial Intelligence Market Expansion: Projected global AI market size of $1,811.8 billion by 2030
- Enterprise AI Solutions: Estimated total addressable market of $593 billion by 2025
- Strategic Technology Investments: Annual R&D expenditure of $24.7 million in 2023
| Growth Segment | Projected Revenue | Market Potential |
|---|---|---|
| AI Enterprise Solutions | $87.3 million | 42% Year-over-Year Growth |
| Media Intelligence Platform | $53.6 million | 35% Market Expansion |
| Government AI Applications | $41.2 million | 29% Emerging Market Share |
Key strategic initiatives include:
- Expanding AI technology portfolio with 7 new product releases planned in 2024
- Targeting 15 new enterprise clients in government and private sectors
- Implementing machine learning enhancement with $12.5 million dedicated investment
Competitive advantages include proprietary AI algorithms with 53 registered patents and technology integration capabilities across multiple industry verticals.
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