Veritone, Inc. (NASDAQ:VERI) Q1 2019 Earnings Conference Call - Final Transcript

May 08, 2019 • 04:30 pm ET

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Veritone, Inc. (NASDAQ:VERI) Q1 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Brian Alger

Good afternoon. Welcome to Veritone's First Quarter 2019 Earnings Conference Call. I'm Brian Alger, Senior Vice President of Corporate Development, Investor Relations. After the market closed today, Veritone issued a press release announcing results for the first quarter ended March 31st, 2019. The press release is available in the Investor section of our website.

Joining me for today's call are Veritone's Chairman and CEO; Chad Steelberg and the Company's CFO; Pete Collins. Following their remarks, we'll open up the call for questions. Please note that certain information discussed on the call today will include forward-looking statements about future events and Veritone's business strategy and future financial and operating performance, including its expected net revenues for the second quarter of 2019.

These forward-looking statements are subject to risks, uncertainties and assumptions that may cause actual results to differ materially from those stated or implied by the statements. Certain of these risks and assumptions are discussed in Veritone's SEC filings, including its annual report on Form 10-K. These forward-looking statements are based on assumptions, as of today May 8th, 2019 and Veritone undertakes no obligation to revise or update them.

In addition to the Company's GAAP financial results, during this call we'll be presenting and discussing the Company's earnings before interest expense, depreciation, amortization, and stock-based compensation, adjusted to exclude certain acquisition, integration, and financial-related expenses or adjusted EBITDA, which is a non-GAAP financial measure, a reconciliation of the Company's adjusted EBITDA to its net loss is included in the Company's press 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 Investor Relations section of the Company's website at www.veritone.com.

Now I'd like to turn the call over to our chairman and CEO Chad Steelberg. Chad.

Executive
Chad E. Steelberg

Thank you, Brian. Welcome everyone and thank you for joining us today. I'm very pleased with our strong financial and operating performance in the first quarter. Our revenue was a record $12.1 million, an increase of 177%, compared with the first quarter of 2018, reflecting both the contributions of our recent acquisitions and organic growth. We exceeded our forecasted revenues and delivered new products, which continue to expand our customer base and overall TAM, while improving our adjusted EBITDAS loss rate.

Last month our Attribute application received a Product of the Year Award in the Best New Radio Technology category at the 2019 NAB Radio Show. Also our IDentify and Redact applications, which serve critical needs in the law enforcement community, are rapidly driving new opportunities at home and abroad. And finally, our Veritone One advertising business posted almost 40% organic growth year-over-year as it continues to leverage aiWARE to differentiate its advertising services. On the whole, Veritone's 2019 is off to a tremendous start.

On last quarter's call, I reviewed the progress we have made on the key objectives we outlined during our IPO in 2017. I am pleased to report that progress is continuing and