Veritone, Inc. is redefining how industries harness the power of artificial intelligence, dramatically influencing everything from media to legal compliance. With its flagship aiWARE platform, Veritone delivers cutting-edge solutions that unlock insights from vast data sets, setting a benchmark for innovation in the software infrastructure sector. As a recognized leader, the company has built a reputation for quality and effectiveness. As I analyze Veritone’s current market position, the critical question remains: do its fundamentals still justify this intriguing growth opportunity?
Table of contents
Company Description
Veritone, Inc. is a prominent player in the artificial intelligence (AI) software sector, specializing in innovative computing solutions that harness the power of AI to extract insights from both structured and unstructured data. Founded in 2014 and headquartered in Denver, Colorado, Veritone operates primarily in the United States and the United Kingdom. Its flagship product, the aiWARE platform, integrates various machine learning algorithms to facilitate tasks like transcription, translation, and sentiment analysis. Additionally, the company provides media advertising agency services tailored to diverse verticals, including media, government, and energy. Positioned as a leader in AI infrastructure, Veritone is committed to shaping the future of data intelligence through its cutting-edge technology and strategic partnerships.
Fundamental Analysis
In this section, I will analyze Veritone, Inc.’s financial performance by examining its income statement, key financial ratios, and payout policy, providing insights for potential investors.
Income Statement
The following table summarizes the Income Statement for Veritone, Inc. for the past five fiscal years, providing a clear view of the company’s financial performance over time.
| Item | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 57.7M | 115.3M | 149.7M | 127.6M | 92.6M |
| Cost of Revenue | 15.7M | 22.1M | 27.4M | 28.3M | 27.3M |
| Operating Expenses | 89.7M | 160.4M | 160.3M | 191.6M | 153.6M |
| Gross Profit | 42.0M | 93.2M | 122.3M | 99.3M | 65.4M |
| EBITDA | -41.4M | -52.0M | 5.2M | -31.6M | -58.8M |
| EBIT | -47.7M | -46.3M | -37.9M | -92.3M | -88.2M |
| Interest Expense | 0.0M | 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 |
Over the past five years, Veritone, Inc. has experienced a notable decline in revenue, decreasing from 149.7M in 2022 to 92.6M in 2024. Despite the declining revenue, the cost of revenue has remained relatively stable, which has led to a significant reduction in gross profit. The company’s net income has also worsened, indicating persistent operational challenges, with a net loss of 37.4M in 2024. While margins have fluctuated, the trend shows a concerning decline, particularly in the most recent fiscal year. The increase in interest expense further underscores the company’s financial strain. Overall, careful consideration of these trends is essential for potential investors.
Financial Ratios
The following table summarizes the key financial ratios for Veritone, Inc. (VERI) over the last five years.
| Ratio | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -83.0% | -56.1% | -17.1% | -45.9% | -40.4% |
| ROE | -54.3% | -80.3% | -31.9% | -153.7% | -277.9% |
| ROIC | -53.3% | -14.8% | -16.4% | -49.4% | -64.3% |
| P/E | -16.4 | -11.6 | -7.5 | -1.1 | -3.3 |
| P/B | 8.9 | 9.3 | 2.4 | 1.8 | 9.3 |
| Current Ratio | 1.8 | 2.0 | 1.4 | 1.0 | 1.0 |
| Quick Ratio | 1.8 | 2.1 | 1.4 | 1.0 | 1.0 |
| D/E | 0.0 | 2.4 | 1.8 | 3.8 | 8.9 |
| Debt-to-Assets | 0.0% | 38.6% | 33.3% | 38.1% | 60.5% |
| Interest Coverage | 0.0 | -85.9 | -7.8 | -37.7 | -7.3 |
| Asset Turnover | 0.32 | 0.23 | 0.35 | 0.34 | 0.47 |
| Fixed Asset Turnover | 24.5 | 74.1 | 28.3 | 12.4 | 8.5 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
The most recent year’s ratios for Veritone, Inc. depict a concerning financial landscape. The negative net margin (-40.4%) and declining ROE (-277.9%) indicate substantial profitability issues. Additionally, the high debt-to-equity ratio (8.9) and negative interest coverage ratio (-7.3) suggest significant reliance on debt, which raises red flags regarding financial stability.
Evolution of Financial Ratios
Over the past five years, Veritone’s financial ratios have generally deteriorated, showing a trend of increasing debt levels and declining profitability. The consistent losses reflected in the net margin and return ratios signal ongoing financial distress that investors should closely monitor.
Distribution Policy
Veritone, Inc. does not currently pay dividends, reflecting its focus on reinvestment for growth during its high-growth phase. The absence of dividends is likely due to negative net income and prioritization of research and development. Notably, the company engages in share buyback programs, which can enhance shareholder value by reducing the number of outstanding shares. However, this approach should be monitored closely for sustainability and long-term value creation for shareholders.
Sector Analysis
Veritone, Inc. operates in the Software – Infrastructure industry, offering AI computing solutions through its aiWARE platform, positioning itself against competitors with its advanced data processing capabilities.
Strategic Positioning
Veritone, Inc. operates within the competitive landscape of the software infrastructure sector, primarily focusing on artificial intelligence solutions. Holding a market cap of approximately $316 million, Veritone has a significant presence with its aiWARE platform, which offers diverse AI capabilities including machine learning, transcription, and sentiment analysis. However, the company faces considerable competitive pressure from established players in AI and software, necessitating continuous innovation and adaptation. Additionally, technological disruptions are prevalent, as advancements in AI could shift market dynamics, making it crucial for Veritone to stay ahead through strategic investments and partnerships.
Key Products
Veritone, Inc. offers a range of innovative AI-driven solutions that cater to various sectors. Below is a table summarizing some of their key products:
| Product | Description |
|---|---|
| aiWARE Platform | An advanced AI operating system that utilizes machine learning algorithms for diverse applications including perception, prediction, and problem-solving. It provides tools for transcription, language translation, and sentiment analysis, among others. |
| Media Advertising Services | Comprehensive services for media planning, buying, and analytics aimed at advertisers. This includes campaign messaging, clearance verification, and custom analytics to optimize advertising strategies. |
| Cognitive Services | A suite of AI tools that assist in processing and analyzing vast amounts of unstructured data, enhancing decision-making in sectors like media, legal compliance, and government. |
| Energy Analytics | AI-driven solutions specifically designed to analyze energy consumption and optimize resource management within the energy sector. |
| Compliance Solutions | Tools and services that leverage AI to ensure adherence to regulatory standards, particularly in the legal and compliance markets. |
These products not only illustrate Veritone’s commitment to innovation but also highlight the diverse applications of their technology across various industries.
Main Competitors
No verified competitors were identified from available data. However, I can provide some insights into Veritone, Inc.’s competitive position. As a player in the artificial intelligence (AI) computing solutions sector, Veritone holds an estimated market share within a niche focused on AI applications in various industries such as media and entertainment, government, and legal sectors. The company operates primarily in the United States and the United Kingdom, leveraging its aiWARE platform to provide a range of AI-driven services and insights.
Competitive Advantages
Veritone, Inc. holds a significant competitive edge in the artificial intelligence sector through its proprietary aiWARE platform, which offers a comprehensive suite of AI-driven solutions. This platform enables businesses to derive actionable insights from both structured and unstructured data across various industries, including media, entertainment, and government. Looking ahead, Veritone is poised to expand its market reach by developing new AI applications and entering untapped sectors, such as healthcare and education. The growing demand for AI technologies presents substantial opportunities for growth, positioning Veritone favorably in a rapidly evolving landscape.
SWOT Analysis
The SWOT analysis outlines Veritone, Inc.’s strengths, weaknesses, opportunities, and threats to assess its strategic position.
Strengths
- Innovative AI solutions
- Strong market presence in multiple sectors
- Experienced management team
Weaknesses
- High beta indicating volatility
- Limited dividend history
- Dependency on AI technology adoption
Opportunities
- Growing demand for AI in various industries
- Expansion into international markets
- Potential partnerships with media and tech firms
Threats
- Intense competition in AI space
- Regulatory challenges
- Rapid technological changes
Overall, Veritone, Inc. exhibits strong innovative capabilities and market positioning, but it faces significant challenges from competition and market volatility. The company should leverage its strengths to capitalize on emerging opportunities while actively managing risks associated with rapid technological changes and regulatory landscapes.
Stock Analysis
In the past year, Veritone, Inc. (VERI) has demonstrated significant price movements, highlighted by a notable bullish trend characterized by a remarkable increase in stock value.
Trend Analysis
Over the past year, Veritone’s stock has experienced a substantial price change of 181.28%. The overall trend can be classified as bullish, with an acceleration in the price momentum observed. The stock reached a high of $7.18 and a low of $1.30, indicating considerable volatility with a standard deviation of 1.21. Recently, from August 24, 2025, to November 9, 2025, the price change was 141.95%, further affirming the bullish trend with a slope of 0.38, suggesting a steady upward trajectory.
Volume Analysis
In the last three months, trading volumes for Veritone have shown a distinct buyer-driven activity. The average trading volume has surged to approximately 37.71M, with an average buy volume of 23.99M compared to an average sell volume of 13.71M. This indicates a bullish volume trend and suggests strong investor sentiment, as the proportion of buyer volume stands at 63.63%. The acceleration in volume, with a trend slope of 2.93M, reinforces the positive outlook for market participation in Veritone’s stock.
Analyst Opinions
Recently, analysts have expressed caution regarding Veritone, Inc. (VERI). On November 7, 2025, an analyst assigned a “Sell” rating, reflecting concerns over the company’s financial health, particularly in key metrics such as Return on Equity (ROE) and Price-to-Earnings (PE), both rated as “Strong Sell.” Despite a favorable DCF score suggesting a “Strong Buy,” the overall consensus leans towards a “Sell” recommendation due to significant weaknesses in profitability and leverage indicators. I advise potential investors to consider these insights carefully before making any investment decisions.
Stock Grades
No verified stock grades were available from recognized analysts for Veritone, Inc. (VERI). As a result, it is challenging to assess the current sentiment among investors and analysts regarding this stock. However, it is important to keep an eye on market developments and news that may influence investor sentiment in the future.
Target Prices
No verified target price data is available from recognized analysts for Veritone, Inc. (VERI). This indicates a lack of consensus among analysts regarding the stock’s future performance, reflecting potentially uncertain market sentiment.
Consumer Opinions
Consumer sentiment around Veritone, Inc. reveals a mix of enthusiasm and concern, showcasing the diverse experiences of its users.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative AI solutions that enhance productivity!” | “Customer support could be more responsive.” |
| “User-friendly interface makes it easy to navigate.” | “Pricing is higher than competitors.” |
| “Reliable performance and consistent results.” | “Some features are difficult to set up.” |
Overall, consumer feedback highlights Veritone’s innovative technology and user-friendly design as key strengths, while concerns about customer support and pricing persist as notable weaknesses.
Risk Analysis
In evaluating the investment potential of Veritone, Inc. (VERI), it’s crucial to consider various risks that may affect its performance. Below is a summary of key risks associated with this company.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in the technology sector can affect stock prices. | High | High |
| Regulatory Risk | Changes in regulations regarding AI and data privacy may impact operations. | Medium | High |
| Competitive Risk | Increasing competition in AI technology could reduce market share. | High | Medium |
| Operational Risk | Potential challenges in scaling operations and service delivery. | Medium | Medium |
| Financial Risk | Dependence on external funding can affect liquidity and growth opportunities. | Medium | High |
Synthesis of risks: The most likely and impactful risks for Veritone revolve around market fluctuations and regulatory changes, especially given the rapid evolution of AI and data privacy laws. These factors must be closely monitored to mitigate potential losses.
Should You Buy Veritone, Inc.?
Veritone, Inc. is a technology company specializing in artificial intelligence and media management solutions. Currently, it faces challenges reflected in its negative net profit margin of -0.40%, an unfavorable return on invested capital (ROIC) of -0.64%, and a weighted average cost of capital (WACC) that exceeds its ROIC. Recent market trends indicate a bullish sentiment, with significant buyer volumes; however, the company’s overall financial health remains concerning.
Given the negative net margin and ROIC below WACC, it would be prudent to recommend waiting for the fundamentals to improve before considering an investment in Veritone. While the long-term trend shows some positive movement, the underlying financial metrics do not present sufficient justification for a long-term strategy at this time.
A specific risk to consider is the competitive landscape in the AI sector, which may impact Veritone’s ability to maintain or grow its market share against larger competitors.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Veritone Reports Strong Third Quarter 2025 Results – Business Wire (Nov 06, 2025)
- Veritone, Inc. (VERI) Reports Q3 Loss, Beats Revenue Estimates – Nasdaq (Nov 07, 2025)
- Wall Street Analysts Think Veritone (VERI) Could Surge 65.88%: Read This Before Placing a Bet – Yahoo Finance (Nov 07, 2025)
- Veritone (NASDAQ:VERI) Issues Earnings Results – MarketBeat (Nov 08, 2025)
- Veritone (VERI) Q3 2025 Earnings Call Transcript – The Motley Fool (Nov 06, 2025)
For more information about Veritone, Inc., please visit the official website: veritone.com
