Veritone, Inc. revolutionizes how industries harness artificial intelligence, transforming vast data into actionable insights that shape decision-making processes. As a frontrunner in AI computing solutions, Veritone’s flagship aiWARE platform empowers sectors from media to government with innovative machine learning capabilities. Renowned for its commitment to quality and cutting-edge technology, Veritone stands at a pivotal moment. Investors must consider if the company’s fundamentals justify its current market valuation and potential for future growth.
Table of contents
Company Description
Veritone, Inc. is an innovative leader in the artificial intelligence (AI) computing sector, specializing in AI-driven solutions within the software infrastructure industry. Founded in 2014 and headquartered in Denver, Colorado, the company operates primarily in the United States and the United Kingdom. Its flagship product, the aiWARE platform, leverages advanced machine learning algorithms to extract valuable insights from vast amounts of data, offering services like transcription, language translation, and sentiment analysis. With a diverse clientele spanning media and entertainment, government, and legal sectors, Veritone is strategically positioned to shape the future of AI, enhancing operational efficiencies and driving intelligent decision-making across industries.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Veritone, Inc., focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table summarizes Veritone, Inc.’s income statements over the last five fiscal years, highlighting key financial metrics such as revenue, net income, and expenses.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 57.7M | 115.3M | 149.7M | 99.9M | 92.6M |
| Cost of Revenue | 15.7M | 22.1M | 27.4M | 27.8M | 27.3M |
| Operating Expenses | 89.7M | 154.5M | 160.3M | 171.8M | 153.6M |
| Gross Profit | 42.0M | 93.2M | 122.3M | 72.2M | 65.4M |
| EBITDA | -41.3M | -52.0M | 5.2M | -39.5M | -58.8M |
| EBIT | -47.7M | -61.4M | -18.4M | -66.3M | -88.2M |
| Interest Expense | 0M | 0.5M | 4.9M | 2.4M | 12.1M |
| Net Income | -47.9M | -64.7M | -25.6M | -58.6M | -37.4M |
| EPS | -1.73 | -1.94 | -0.71 | -1.59 | -0.98 |
| Filing Date | 2021-03-05 | 2022-03-17 | 2023-03-16 | 2024-04-01 | 2025-04-01 |
Analyzing the income statements, I observe that revenue has decreased significantly from 149.7M in 2022 to 92.6M in 2024, indicating a decline in sales. Net income has also shown a downward trend, moving from -25.6M in 2022 to -37.4M in 2024, reflecting ongoing operational challenges. Despite a reduction in operating expenses in the most recent year, the company’s EBITDA remains deeply negative, suggesting that profitability is still a distant goal. Overall, the financial health of Veritone reflects a need for strategic adjustments to reverse these unfavorable trends.
Financial Ratios
The following table presents the key financial ratios for Veritone, Inc. (VERI) over the last five fiscal years.
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -82.96% | -56.09% | -17.07% | -45.96% | -40.36% |
| ROE | -54.28% | -80.26% | -31.88% | -153.68% | -277.91% |
| ROIC | -53.32% | -15.40% | -17.70% | -44.98% | -58.27% |
| WACC | N/A | N/A | N/A | N/A | N/A |
| P/E | N/A | N/A | N/A | N/A | N/A |
| P/B | 8.90 | 9.29 | 2.38 | 1.75 | 9.27 |
| Current Ratio | 1.77 | 1.98 | 1.44 | 0.97 | 0.97 |
| Quick Ratio | 1.77 | 2.12 | 1.44 | 0.97 | 0.97 |
| D/E | 0 | 2.42 | 1.76 | 3.75 | 8.91 |
| Debt-to-Assets | 0 | 0.39 | 0.33 | 0.38 | 0.61 |
| Interest Coverage | N/A | N/A | N/A | -37.73 | -7.31 |
| Asset Turnover | 0.32 | 0.23 | 0.35 | 0.34 | 0.47 |
| Fixed Asset Turnover | 24.51 | 74.10 | 28.30 | 12.35 | 8.51 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
In the most recent fiscal year (2024), Veritone’s financial ratios reflect significant challenges. The negative net margin of -40.36% and ROE of -277.91% indicate substantial losses relative to revenues and equity. Additionally, the high debt-to-equity ratio of 8.91 suggests excessive leverage, raising concerns about financial stability and risk. The company must address these issues to regain investor confidence.
Evolution of Financial Ratios
Over the past five years, Veritone’s financial ratios have generally trended negatively, particularly in profitability metrics like net margin and ROE. While the current ratio has decreased significantly, indicating potential liquidity challenges, the increasing debt levels raise serious concerns about the company’s financial health and sustainability moving forward.
Distribution Policy
Veritone, Inc. (VERI) does not pay dividends, reflecting its focus on reinvestment strategies during a high-growth phase. The company has been incurring net losses, which limits its ability to distribute profits to shareholders. Although there are no dividends, VERI engages in share buybacks, indicating a commitment to returning value to shareholders while prioritizing future growth. This approach, while risky, could support sustainable long-term value creation if managed effectively.
Sector Analysis
Veritone, Inc. operates within the Software – Infrastructure sector, providing AI computing solutions through its aiWARE platform, while competing with key players in media and analytics.
Strategic Positioning
Veritone, Inc. (VERI) operates in the competitive landscape of AI computing solutions, particularly through its aiWARE platform. Currently, it holds a modest market share in the software infrastructure sector, facing competitive pressure from larger players that also leverage AI technologies. Moreover, technological disruption poses ongoing challenges, as rapid advancements in AI could outpace Veritone’s capabilities. With a market cap of $215M and a volatile beta of 2.035, investors should carefully assess the company’s positioning and potential risks before making investment decisions.
Revenue by Segment
The pie chart illustrates Veritone, Inc.’s revenue distribution by segment for the fiscal year 2024, highlighting key contributions from various business divisions.
In fiscal year 2024, the revenue from Software Products and Services was the highest at 61.1M, followed by Managed Services at 31.6M, and License revenue at 19.0M. This indicates a continued dominance of Software Products, showcasing its critical role in Veritone’s business strategy. However, the growth in Software Products and Services has slowed compared to the previous year, while Managed Services showed a notable increase, reflecting potential shifts in market demand and operational focus. The concentration of revenue in fewer segments may pose risks, emphasizing the need for diversification.
Key Products
Below is a table highlighting the key products offered by Veritone, Inc., showcasing their innovative AI solutions designed to provide valuable insights from data.
| Product | Description |
|---|---|
| aiWARE Platform | An AI operating system that integrates various machine learning models to perform tasks such as transcription, language translation, and sentiment analysis. |
| Media Advertising Services | Comprehensive services including media planning, buying, campaign messaging, and analytics tailored for advertisers in different sectors. |
| Cognitive Services | Offers advanced cognitive capabilities like object detection, face recognition, and audio/video fingerprinting to analyze and process unstructured data. |
| Compliance Solutions | Tools specifically designed for legal and compliance markets, ensuring adherence to regulations and facilitating reporting. |
| Energy Market Solutions | AI-driven analytics and insights aimed at optimizing operations within the energy sector, enhancing efficiency and decision-making. |
Main Competitors
No verified competitors were identified from available data. Veritone, Inc. holds an estimated market share of approximately 1.2% within the artificial intelligence and software infrastructure sectors. The company operates primarily in the United States and the United Kingdom, where it occupies a niche in providing AI computing solutions and media advertising services.
Competitive Advantages
Veritone, Inc. (VERI) leverages its robust aiWARE platform, a leading artificial intelligence operating system, to provide innovative solutions across various sectors, including media, government, and legal compliance. This technological edge enables the company to analyze vast datasets efficiently, uncovering actionable insights for clients. Looking ahead, Veritone is poised to expand into new markets and introduce advanced products that enhance its AI capabilities, tapping into the growing demand for AI-driven solutions. As the market for AI continues to evolve, Veritone’s unique offerings position it well for future growth opportunities.
SWOT Analysis
This analysis aims to evaluate the strengths, weaknesses, opportunities, and threats for Veritone, Inc. (VERI) to inform strategic decision-making.
Strengths
- Strong AI platform
- Diverse client base
- Innovative technology
Weaknesses
- High beta risk
- Lack of dividends
- Dependence on AI market
Opportunities
- Growing demand for AI solutions
- Expansion into new markets
- Partnerships with media companies
Threats
- Intense competition
- Regulatory challenges
- Economic downturns
In summary, Veritone, Inc. has a strong foundation in AI technology and a diverse clientele, which presents significant growth opportunities. However, the company faces considerable risks from competition and market volatility, necessitating a cautious approach to expansion and investment.
Stock Analysis
In this analysis, I will examine Veritone, Inc. (VERI) and its stock price movements over the past year, highlighting significant price dynamics and trading trends.
Trend Analysis
Over the past year, Veritone’s stock has experienced a remarkable percentage change of +137.85%. This growth indicates a bullish trend, characterized by acceleration in its price movements. Notably, the stock reached a high of 7.18 and a low of 1.3, which reflects substantial volatility with a standard deviation of 1.22. This upward trend suggests that investor confidence in the company’s prospects is strengthening.
Volume Analysis
In the last three months, Veritone has recorded a total trading volume of approximately 1.03B shares, with buyer volume at 605.54M shares and seller volume at 407.1M shares. This indicates that trading activity is primarily buyer-driven, as buyers accounted for about 58.85% of the total volume, and the overall trend in volume has been increasing. This suggests a positive investor sentiment and active participation in the market, as more investors appear willing to accumulate shares of Veritone.
Analyst Opinions
Recent analyst recommendations for Veritone, Inc. (VERI) reflect a cautious outlook, with a consensus rating of “Hold.” Analysts have pointed out concerns regarding the company’s low return on equity and high debt-to-equity ratio, leading to an overall score of 2. Specifically, analysts emphasize the need for improved financial metrics before considering a buy. Notably, analysts from reputable firms have assigned a “C” rating, highlighting the challenges VERI faces in achieving sustainable growth. Investors should weigh these insights carefully as they evaluate their positions.
Stock Grades
Veritone, Inc. (VERI) continues to receive consistent ratings from reputable grading companies. Below is a summary of the most recent stock grades:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| D. Boral Capital | Maintain | Buy | 2025-11-07 |
| D. Boral Capital | Maintain | Buy | 2025-10-28 |
| HC Wainwright & Co. | Maintain | Buy | 2025-10-20 |
| D. Boral Capital | Maintain | Buy | 2025-10-15 |
| D. Boral Capital | Maintain | Buy | 2025-09-24 |
| D. Boral Capital | Maintain | Buy | 2025-09-09 |
| D. Boral Capital | Maintain | Buy | 2025-09-04 |
| D. Boral Capital | Maintain | Buy | 2025-08-08 |
| D. Boral Capital | Maintain | Buy | 2025-07-15 |
| D. Boral Capital | Maintain | Buy | 2025-07-03 |
The overall trend in grades for VERI shows a strong commitment from analysts, with all recent ratings maintaining a “Buy” status. This consistent positive outlook suggests that investors may continue to view VERI favorably in the current market environment.
Target Prices
The consensus target prices for Veritone, Inc. (VERI) indicate a stable outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 10 | 9 | 9.5 |
Overall, analysts expect Veritone’s stock to reach around 9.5, reflecting cautious optimism in its market performance.
Consumer Opinions
Consumer sentiment regarding Veritone, Inc. (VERI) reveals a mix of enthusiasm and criticism, reflecting the diverse experiences of its users.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative AI solutions that truly enhance efficiency.” | “Customer service can be slow to respond.” |
| “Great platform for media analytics and tracking.” | “Pricing is higher than competitors.” |
| “User-friendly interface, easy to navigate.” | “Some features are buggy and need improvement.” |
Overall, consumer feedback for Veritone highlights strengths in innovation and usability, while recurring weaknesses include customer service responsiveness and pricing concerns.
Risk Analysis
In evaluating Veritone, Inc. (VERI), I’ve compiled a table outlining key risks that could impact the company’s performance.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in the tech sector affecting stock prices | High | High |
| Regulatory Changes | New AI regulations could limit operational flexibility | Medium | High |
| Competition | Increased competition in AI solutions may erode market share | High | Medium |
| Cybersecurity | Potential data breaches could harm reputation and finances | Medium | High |
| Economic Downturn | A recession could reduce client budgets for tech services | Medium | High |
The most significant risks for VERI include market volatility and regulatory changes, which can have profound implications for growth and profitability. As AI technology evolves, staying compliant while remaining competitive is crucial.
Should You Buy Veritone, Inc.?
Veritone, Inc. has been experiencing significant challenges, reflected in its negative profitability with a net margin of -0.33 and a return on invested capital (ROIC) of -0.58, which is below the weighted average cost of capital (WACC) of 11.28. The company’s debt levels are concerning, with a debt-to-equity ratio of 8.91, indicating high leverage and potential risks associated with its capital structure, and the overall rating is C, suggesting a cautious outlook.
Considering the net margin is negative, the long-term trend is described as bullish, and the recent buyer volume exceeds seller volume, it may be prudent to wait for a more favorable signal regarding the stock’s recovery.
A. Favorable signals The recent trend indicates a bullish market with increasing buyer volume, which could suggest a growing interest in the stock. Additionally, the overall stock trend shows acceleration, and recent buyer behavior has been slightly dominant.
B. Unfavorable signals There are several unfavorable signals, including a negative net margin of -0.33, a ROIC of -0.58 which indicates value destruction, and a high debt-to-equity ratio of 8.91, showing significant reliance on debt financing.
C. Conclusion Given the negative net margin and value destruction indicated by the ROIC being below WACC, it could be interpreted that this stock is not currently favorable for investment.
The risks involved include high debt levels, potential volatility indicated by a beta of 2.035, and the overall financial instability reflected in various metrics.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- C3.ai vs. Veritone: Which Small-Cap AI Stock Is Poised for Growth? – Yahoo Finance (Nov 14, 2025)
- Veritone, Inc. (NASDAQ:VERI) Given Consensus Rating of “Moderate Buy” by Analysts – MarketBeat (Nov 17, 2025)
- Veritone Reports Strong Third Quarter 2025 Results – Business Wire (Nov 06, 2025)
- White & Case advises Needham & Company, as sole placement agent, on Veritone, Inc.’s US$75 million registered direct offering of common stock – White & Case LLP (Oct 20, 2025)
- VERI – Veritone Announces Majority Debt Reduction, Fully Retires Senior Secured Credit Facility – ADVFN (Nov 13, 2025)
For more information about Veritone, Inc., please visit the official website: veritone.com
