Veritone, Inc. (NASDAQ:VERI) Q1 2020 Earnings Conference Call - Final Transcript

May 11, 2020 • 04:30 pm ET

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Veritone, Inc. (NASDAQ:VERI) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Suzanne, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Veritone First Quarter 2020 Financial Results Conference Call. [Operator Instructions]

Brian Alger, Senior Vice President of Corporate Development and Investor Relations, you may begin your conference.

Executive
Brian Alger

Good afternoon and welcome to Veritone's First Quarter 2020 Conference Call. I am Brian Alger, Senior Vice President of Corporate Development and Investor Relations. After the market closed today, Veritone issued a press release announcing results for the first quarter ended March 31, 2020. This press release is available in the Investors 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 and non-GAAP net loss for the second quarter of 2020. These forward-looking statements are subject to risks, uncertainties and assumptions that may cause the 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 and its quarterly report on Form 10-Q filed today. These forward-looking statements are based on assumptions as of today, May 11, 2020, and Veritone undertakes no obligation to revise or update them.

During this call, the actual and forecasted financial measures we will be discussing, including gross margin, operating expenses and net loss, will be presented on a non-GAAP basis. Reconciliations of these measures to corresponding GAAP measures are included in the press release we 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 on the Investors 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 Steelberg

Thank you, Brian. Welcome, everyone, and thank you for joining us today. I hope you and your families are staying safe and healthy in light of these extraordinary circumstances. When I last spoke with you in early March, no one could have imagined how much and how quickly the world would change. Our prayers are with everyone who has been hit by this pandemic, especially those who have lost loved ones.

The pandemic had an immediate impact on our content licensing and advertising businesses in March with approximately $1.5 million in expected revenue lost or delayed in the last few weeks of the quarter. Despite the significant revenue pressure, I am pleased with our Q1 results which demonstrates the resiliency of our team and the value of our differentiated and diverse portfolio. Veritone's Q1 revenue was $11.9 million.

On the cost side, we were in a strong position given