Veritone (NASDAQ:VERI) Releases Earnings Results, Misses Estimates By $0.02 EPS

Veritone (NASDAQ:VERI) posted its quarterly earnings data on Tuesday. The company reported ($0.14) earnings per share 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 Down 12.3%

Shares of NASDAQ:VERI traded down $0.28 during trading on Tuesday, reaching $1.96. The stock had a trading volume of 2,758,966 shares, compared to its average volume of 2,452,689. Veritone has a 52 week low of $1.22 and a 52 week high of $9.42. The firm has a market capitalization of $181.72 million, a price-to-earnings ratio of -2.92 and a beta of 2.25. The stock has a fifty day simple moving average of $2.38 and a two-hundred day simple moving average of $3.82.

Analysts Set New Price Targets

VERI has been the topic of a number of recent research reports. Weiss Ratings reiterated a “sell (e+)” rating on shares of Veritone in a research note on Wednesday, January 21st. HC Wainwright reissued a “buy” rating and set a $9.00 target price on shares of Veritone in a research report on Monday, March 30th. Wall Street Zen lowered Veritone from a “hold” rating to a “sell” rating in a research report on Saturday, March 21st. Finally, D. Boral Capital reissued a “buy” rating and set a $8.00 target price on shares of Veritone in a research 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 MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $9.00.

Hedge Funds Weigh In On Veritone

A number of institutional investors have recently modified their holdings of VERI. State of Wyoming bought a new position in Veritone during the fourth quarter worth $25,000. Franklin Resources Inc. bought a new position in Veritone during the third quarter worth $50,000. Sherbrooke Park Advisers LLC bought a new position in Veritone during the third quarter worth $80,000. Jefferies Financial Group Inc. bought a new position in Veritone during the third quarter worth $82,000. Finally, EntryPoint Capital LLC bought a new position in Veritone during the fourth quarter worth $84,000. Institutional investors own 39.18% of the company’s stock.

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.