Veritone (NASDAQ:VERI) Posts Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Veritone (NASDAQ:VERI) issued its earnings results on Tuesday. The company reported ($0.14) EPS for the quarter, missing the consensus estimate of ($0.12) by ($0.02), Zacks reports. Veritone had a negative net margin of 115.52% and a negative return on equity of 266.00%.

Here are the key takeaways from Veritone’s conference call:

• Veritone said Q1 momentum in its VDR business accelerated, with Google and NVIDIA now signed as customers and the near-term pipeline rising to nearly $70 million. Management reiterated full-year 2026 revenue guidance of $130 million-$145 million.
• The company announced a strategic Oracle partnership to scale aiWARE, VDR, and its applications on OCI, which it says should lower compute costs by more than 20% and support future growth. Veritone also expects to use the partnership as a co-selling and enterprise/public sector sales advantage.
• Veritone highlighted strong public sector momentum, with revenue in that segment growing 69% year over year in Q1. Management said demand is broadening across federal, state, local, and international agencies, with record pipeline levels and expansion expected through 2026.
• Management said it is actively reducing the company’s breakeven floor by about 30% through operating efficiency initiatives, and still sees a path to operating profitability as early as Q4 2026. The company also plans to keep investing in R&D for VDR and public sector products.
• Q1 revenue was $20.3 million, down year over year, as several large hyperscaler and public sector deals were delayed into later quarters. Cash and restricted cash ended the quarter at $15.4 million, while total debt was about $45 million after prior debt paydown.

Veritone Stock Performance

NASDAQ VERI traded down $0.28 during trading hours on Tuesday, hitting $1.96. The company had a trading volume of 2,758,966 shares, compared to its average volume of 2,452,689. Veritone has a 1-year low of $1.22 and a 1-year high of $9.42. The company has a market cap of $181.72 million, a PE ratio of -2.92 and a beta of 2.25. The business has a 50 day moving average of $2.38 and a 200-day moving average of $3.82.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on VERI shares. HC Wainwright reiterated a “buy” rating and set a $9.00 price target on shares of Veritone in a research report on Monday, March 30th. Wall Street Zen downgraded shares of Veritone from a “hold” rating to a “sell” rating in a research report on Saturday, March 21st. Weiss Ratings reiterated a “sell (e+)” rating on shares of Veritone in a research report on Wednesday, January 21st. Finally, D. Boral Capital reissued a “buy” rating and set a $8.00 price objective on shares of Veritone in a report on Wednesday, April 15th. Three equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $9.00.

Institutional Investors Weigh In On Veritone

A number of institutional investors and hedge funds have recently made changes to their positions in the business. State of Wyoming purchased a new stake in shares of Veritone in the fourth quarter valued at about $25,000. Franklin Resources Inc. raised its holdings in shares of Veritone by 78.3% in the fourth quarter. Franklin Resources Inc. now owns 18,325 shares of the company’s stock valued at $85,000 after buying an additional 8,045 shares during the last quarter. LPL Financial LLC raised its holdings in shares of Veritone by 55.9% in the fourth quarter. LPL Financial LLC now owns 45,938 shares of the company’s stock valued at $214,000 after buying an additional 16,481 shares during the last quarter. Sherbrooke Park Advisers LLC purchased a new stake in shares of Veritone in the third quarter valued at about $80,000. Finally, Wells Fargo & Company MN raised its holdings in shares of Veritone by 450.0% in the fourth quarter. Wells Fargo & Company MN now owns 20,460 shares of the company’s stock valued at $95,000 after buying an additional 16,740 shares during the last quarter. 39.18% of the stock is owned by hedge funds and other institutional investors.

About Veritone

Veritone, Inc (NASDAQ: VERI) is a technology company specializing in artificial intelligence solutions for media, legal, government and enterprise applications. Its flagship offering, aiWARE™, is a cloud-based operating system that orchestrates and automates an ecosystem of machine learning models to transform unstructured data—such as audio, video and text—into actionable intelligence. By providing a modular AI environment, Veritone enables organizations to deploy, manage and scale cognitive engines that address diverse use cases from transcription and translation to sentiment analysis and facial recognition.

Through aiWARE and its suite of purpose-built applications, the company delivers turnkey solutions for content licensing, media monitoring, eDiscovery, compliance and public safety.