Veritone, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in revenue and ongoing operational challenges. The company generated revenue of $21.993 million for Q3 2024, down 21.4% from $27.968 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $70.204 million, a decrease of 3.7% from $72.883 million in the same period last year. The decline in revenue was primarily attributed to a significant drop in Commercial Enterprise Software Products & Services revenue, which fell by 30.6% in Q3 2024 compared to the previous year.
Despite the revenue decline, Veritone reported a reduction in operating expenses, which totaled $44.485 million for Q3 2024, down from $53.151 million in Q3 2023. For the nine-month period, operating expenses decreased to $137.371 million from $152.656 million. The company recorded a loss from operations of $(22.492 million) for Q3 2024, an improvement from $(25.183 million) in Q3 2023, and a loss of $(67.167 million) for the nine months, compared to $(79.773 million) in the prior year.
Net loss for Q3 2024 was $(21.746 million), compared to $(24.541 million) in Q3 2023. For the nine months, the net loss was $(69.175 million), slightly improved from $(70.800 million) in the same period last year. The company’s accumulated deficit increased to $(499.071 million) as of September 30, 2024, from $(429.896 million) at the end of 2023.
Strategically, Veritone divested its full-service advertising agency, Veritone One, on October 17, 2024, for a total purchase price of up to $104 million, with net cash proceeds of $59.1 million. This divestiture is part of a broader operational restructuring aimed at reducing annualized operating expenses by approximately $40 million, which included a 13% reduction in the workforce. The company is also focusing on its core software and applications, particularly in artificial intelligence solutions.
As of September 30, 2024, Veritone had cash and cash equivalents of $11.422 million, a significant decrease from $46.609 million at the end of 2023. The company’s total liabilities rose to $361.586 million, up from $340.711 million at the end of 2023, raising concerns about its ability to continue as a going concern due to debt service obligations and historical negative cash flows.
About Veritone, Inc.
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