Veritone, Inc. (NASDAQ:VERI) Q2 2019 Earnings Conference Call - Final Transcript

Aug 07, 2019 • 04:30 pm ET

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Veritone, Inc. (NASDAQ:VERI) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the Veritone Second Quarter 2019 Financial Results Earnings Call. [Operator Instructions]. After the presenters remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

Brian Alger, you may begin your conference.

Executive
Brian Alger

Good afternoon. Welcome to the Veritone's second quarter 2019 earnings conference call. I am Brian Alger, Senior Vice President of Corporate Development and Investor Relations. After the market close today Veritone issued a press release announcing results for the second quarter ended June 30, 2019. The press release is available on the Investor section of our website. Joining me for today's call are Veritone's Chairman and CEO; Chad Steelberg, President, Ryan Steelberg and 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 third 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 those 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 August 7, 2019 and Veritone undertakes no obligation to revise or update them. In addition to the Company's GAAP financial results, during this call we will be presenting and discussing the Company's earnings before interest expense, depreciation, amortization, and stock-based compensation, adjusted to exclude certain acquisition, integration, and financing related expenses or adjusted EBITDAS, as well as our non-GAAP net loss excluding those same items. Both of which are non-GAAP financial measures.

Reconciliations of these measures to the Company's GAAP net loss are 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 at the Investor Relations section of the Company's website at www.veritone.com.

Now, I would 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 pleased with our financial and operating performance in the second quarter. Our revenue was a record $12.3 million, an increase of a 194% compared with the second quarter of 2018, reflecting both the contributions of our recent acquisitions and organic growth. On an organic basis, revenues were up 45% year-over-year. Consistent with our comments on last quarter's call, we delivered 150 basis points sequentially improvement in our adjusted EBITDAS loss rate and we more than doubled the number of trials for Identify and Redact to-date. In Q2, our advertising business continued to outpace the competition, with first half revenues growing organically by 30% year-over-year. In addition, our Performance Bridge brings