Veritone, Inc. (NASDAQ:VERI) Q3 2018 Earnings Conference Call - Final Transcript
Nov 12, 2018 • 04:30 pm ET
Good afternoon. Welcome to Veritone's Third Quarter 2018 Earnings Conference Call. After the market closed today, Veritone issued a press release announcing its results for the third quarter ended September 30, 2018. The press release is available in the IR section of Veritone's website.
Joining us for today's call are Veritone's Chairman and CEO, Chad Steelberg; and the Company's CFO, Pete Collins. Following their remarks, we will open up the call for questions.
(Forward-Looking Cautionary Statements)
In addition to the Company's GAAP financial results, during this call, management will be presenting and discussing the Company's earnings before interest, expense, depreciation, amortization and stock-based compensation, adjusted to exclude certain acquisition, integration-related expenses or adjusted EBITDAS which is a non-GAAP financial measure, a reconciliation of the company's adjusted EBITDAS to its net loss is included in the Company's pres release issued today.
Finally, I would like to remind everyone that this call is being recorded and will be made available for replay via a link available in the IR section of the Company's website at www.veritone.com.
Now, I would like to turn the call over to Veritone's Chairman and CEO, Chad Steelberg. Sir, you may proceed.
Welcome everyone and thank you for joining us today.
I'm very pleased with our strong financial and operational performance in the third quarter. Our revenue was a record $7.5 million. We launched three exciting new applications for law enforcement and media customersand we closed three strategic acquisitions that strengthen and extend the capabilities of our businesses.
Our Q3 revenue was driven by both solid organic growth with our AI and Digital Content Solutions, up 150% year-over-year. And our media agency revenue up 31% year-over-year and by contributions from our recent acquisition of Wazee Digital and Performance Bridge which added $2.2 million in a quarter. We also leveraged this revenue growth together with good operating expense management to reduce our adjusted EBITDA loss to $8.6 million in Q3 from a $11 million in the prior quarter.
Our strong organic revenue growth this quarter showed the success we are seeing with our land-and-expand strategy of signing up new customers for our aiWARE operating system and then increasing our business with those customers as they add more users and take advantage of the exciting new applications and engines we're adding to our development efforts and strategic acquisitions.
The third quarter has strengthened my fundamental convection that the ubiquitous development of artificial intelligence required an AI operating system much in the same way that mainframes, personal computers and mobile devices require operating systems such UNIX, Windows and android respectively. Veritone's industry-leading AI operating system, aiWARE is uniquely position to lead the industry into a more powerful and ubiquitous cognitive computing future.
Operating systems perform three critical functions. First, they orchestrate a wide variety of third party peripherals and create common software architecture for applications to interoperate. Second, they lower the cost of software development and distribution by delivering high-level developer tools that enable engineers to leverage their communication and infrastructure capabilities