Veritone’s Earnings Call Highlights Growth and Challenges

Veritone ((VERI)) has held its Q3 earnings call. Read on for the main highlights of the call.

Veritone’s recent earnings call conveyed a largely positive sentiment, underscored by impressive revenue growth, substantial debt reduction, and expansion in both the Veritone Data Refinery (VDR) and public sectors. However, the company acknowledged challenges in Managed Services and Veritone Hire, alongside some margin pressures and minor impacts from the federal government shutdown.

Strong Revenue Growth

Veritone reported a robust revenue of over $29 million, marking a 32% year-over-year increase. The Software Products & Services sector was a standout performer, achieving a 55% growth. Notably, when excluding Veritone Hire, this sector saw an impressive 200% increase.

Significant Debt Reduction

The company has made significant strides in reducing its debt burden, having retired 100% of its term debt and repurchased 50% of its convertible debt. This strategic move has slashed annual debt service costs from over $14 million to approximately $800,000.

VDR Pipeline Growth

Veritone’s VDR business experienced remarkable growth, with a 100% quarter-over-quarter increase in its pipeline. Bookings have now exceeded $40 million, highlighting the strong demand and potential in this sector.

Public Sector Expansion

The company closed 82 contracts in Q3 with various federal, state, and local agencies. The public sector pipeline has grown significantly, now approaching $218 million, up from $110 million earlier this year.

Successful Capital Raises

Veritone bolstered its liquidity position by securing over $100 million in equity capital during September and October 2025, providing a strong financial foundation for future growth.

Managed Services Decline

Despite overall growth, Veritone’s Managed Services revenue saw a decline of $1 million, attributed to a decrease in representation services.

Veritone Hire Challenges

Veritone Hire remained flat year-over-year, reflecting hiring softness in the broader macroeconomic environment, which has impacted growth in this segment.

Gross Margin Pressure

The company experienced a slight decline in its non-GAAP gross margin, which fell by 60 basis points to 70.6%. Further compression is expected in Q4 due to a higher mix of VDR revenue.

Federal Government Shutdown Impact

The federal government shutdown caused some delays in federal sector deals. However, Veritone expects these delays to have a negligible long-term impact on its operations.

Forward-Looking Guidance

Looking ahead, Veritone provided an optimistic outlook for Q4 2025, forecasting revenue between $33.4 million and $39.4 million. The company anticipates strong growth in its Public Sector and Commercial Enterprise segments. For fiscal 2025, revenue is projected to be between $109 million and $115 million, with a 29% year-over-year improvement in non-GAAP net loss at the midpoint.

In summary, Veritone’s earnings call highlighted a positive trajectory with strong revenue growth and strategic debt reduction. While challenges persist in certain areas, the company’s forward-looking guidance suggests continued expansion and financial improvement, positioning Veritone well for future success.