Veritone, Inc.

Good day and welcome to the Veritone second quarter 2021 financial results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. And to withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to Brian Alger, Senior Vice President, Investor Relations and Capital Markets. Please go ahead, sir.

Good afternoon, and welcome to Veritone's second quarter 2021 conference call. I am Brian Alger, Senior Vice President, Investor Relations and Capital Markets. After the market closed today, Veritone issued a press release announcing results for the second quarter ended June 30th, 2021. The press release and other supplemental information is available in the investor section of our website. Joining me for today's call are Veritone's Chairman and CEO, Chad Stilberg, President, Ryan Stilberg, and CFO, Mike Zometra. Following their remarks, we'll open up the call for questions. Please note that certain information discussed on the call today will include forward-looking statements about future events in Veritone's business strategy and future financial and operating performance, including its expected net revenues and non-GAAP net loss for the third quarter and full year of 2021. These forward-looking statements are subject to risks, uncertainties, and assumptions that may cause the actual results to differ materially from those stated or implied by those statements. Certain of these risks and assumptions are discussed in Veritone's SEC filings, including its annual report on Form 10-K. These forward-looking statements are based on assumptions as of today, August 3rd, 2021, and Veritone undertakes no obligation to revise or update them. During this call, the actual and forecasted financial measures we'll be discussing, other than revenue, will be presented on a non-GAAP basis, unless noted otherwise. Reconciliations of these measures to the corresponding GAAP measures are included in the press release we issued today. These non-GAAP measures include a breakout of our results between core operations and corporates. Core operations consist of our AI-aware operating platform of software, SaaS, and related services, our content licensing and advertising services, and their supporting operations, including direct cost of sales as well as the operating expenses for our sales, marketing, and product development, and to a lesser extent, certain general and administrative costs. Corporate consists principally of general administrative functions such as executive, finance, legal, people, and IT, and other areas that support the entire company, including any public company-driven initiatives and supporting functions. Finally, I would like to remind everyone that this call is being recorded and will be made available for a replay via a link in the investor section on any company's website at www.veritone.com. Now, I'd like to turn the call over to our Chairman and CEO, Chad Stilbert. Chad?

Thank you, Brian. And thanks, everyone, for joining us on today's call. Q2 was once again another exceptional quarter for Veritone. From a financial perspective, we delivered 45% year-over-year revenue growth. This continues our performance streak as we achieved our fifth consecutive record quarter. Confidence and visibility in our continued growth are also improving. And as a result, today we are raising our full-year guidance from $81 million to $100 million in consolidated revenue at the midpoint. This updated guidance represents a 73% increase in revenue and 66% improvement in our bottom line over 2020. On the technology front, we delivered AIWare 3.0, which significantly expanded our core value proposition of accelerating and simplifying the adoption of artificial intelligence through an AI operating system that's both infrastructure and AI model agnostic. This proprietary technology is foundational to our diversified and differentiated products and services that continue to lead the AI revolution. Our go to market strategy is also maturing. We continue to land new accounts and are rapidly expanding our product penetration within existing customers, which is a direct result of having a mature AI platform with strong go to market partners. This organic land and expand strategy has been implemented across our three vertical business units, media entertainment, government, and energy. Our SaaS growth and net revenue retention rates remain over 90% and 120% respectively. So clearly, our strategy is working. Ryan will provide more detail on the success of each of our verticals, yet I'd like to highlight that we have successfully deployed our energy forecaster and controller solution to our lead energy utility customer in July. This important milestone is a precursor to what we continue to view as an unparalleled and disruptive force in the energy market and an obvious accelerant to Veritone's expansion. Regarding continued expansion, Two weeks ago, we signed a definitive agreement to acquire PandoLogic, an AI-enabled talent acquisition platform. As a leading human capital management tool, PandoLogic's solution can be applied universally and has the potential to transform talent acquisition and extend the adoption of AIware across nearly every industry. We expect this deal to close in late September of 2021 and be instantly accretive. Immediately after closing, we expect to have over $70 million in cash, no debt, and a P&L at scale. With this strong foundation, we intend to drive further AIWare adoption and explosive growth going into 2022. Whether it be through organic development or inorganic combinations, We believe we have inherent advantages driven by the power of AIWare that lower customer acquisition costs, increase the total lifetime value of the customer, and strengthen both the depth and breadth of our customer relationships through artificial intelligence. So when we announce acquisitions like PandoLogic, the value creation extends well beyond the obvious financials because we are expanding the integrated reach and penetration of both AIWare and the PandoLogic platform and consequently exponentially growing our serviceable market across all verticals. With that, I would like to now hand the call over to Ryan, our president and co-founder, to discuss our operational achievements in greater detail. Over to you, Ryan.