Veritone Inc. (VERI) reported a narrower loss in the third quarter as the contributions from recent acquisitions and organic sales growth in each of its vertical markets drove revenue higher. The top line exceeded analysts expectations while the bottom line came in wider than consensus estimates.
Net loss attributable to common stockholders lowered to $15.9 million or $0.86 per share from $19.4 million or $1.31 per share in the previous year quarter.
Net revenues soared 103% to $7.5 million. This includes $2.2 million from its recent acquisitions. AI and Digital Content Solutions net revenues, excluding the company’s recent acquisitions, increased by 150%. Media Agency net revenues, excluding recent acquisition, rose by 31%.
The operating leverage provided by the increase in net revenues from its aiWARE operating system and the recent acquisitions drove gross profit higher by 74%.
At the aiWARE operating system, artificial intelligence customer count surged 151% to 93 by the end of the third quarter and the total AI accounts soared 273% to 634. At Veritone One Media Agency, active clients increased by 59% to 78 and net new clients under master service agreements rose 11% to 10 at the end of the third quarter.
The future workplace will be a mix of man, machine and algorithm
Looking ahead into the fourth quarter, the company expects AI customer count for its aiWARE operating system of 89 at year-end, a net decrease of 4 customers, due to expected non-renewals from certain Politics customers following the midterm election cycle, offset by new customer wins.
Total AI Accounts are anticipated to be 728 at year-end, an addition of 94 accounts. The company expects 275 Active Third-Party Cognitive Engines at year-end, an addition of 23 engines, and 2.9 million total hours of video and audio content processed on aiWARE during the quarter.
Shares of Veritone ended Monday’s regular session down 2.13% at $6.88 on the Nasdaq. The stock has fallen over 70% in the year so far and over 53% in the past three months.