Veritone, Inc.

Hello everyone and welcome to the Veritone third quarter 2021 financial results call. My name is Daisy and I will be coordinating today's call. You will have the opportunity to register a question at the end of the presentation. If you would like to register a question, please press star followed by one on your telephone keypad. I'll now hand over to your host, Brian Alger from Veritone to begin. Brian, please go ahead.

Good afternoon and welcome to Veritone's third quarter of 2021 conference call. I'm Brian Alger, Senior Vice President, Investor Relations and Capital Markets. After the market closed today, Veritone issued a press release announcing the results for the third quarter ended September 30th, 2021. The press release and other supplemental information is available at the investor section of our website. Joining me for today's call are Veritone's Chairman and CEO, Chad Stilberg, President, Brian Stilberg, and CFO, Mike Zimetra. 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 and Veritone's business strategy and future financial and operating performance, including its expected net revenues and non-GAAP net income and loss for the fourth quarter and full year of 2021, respectively. 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, November 9, 2021, and Veritone undertakes no obligation to revise or update them. During this call, the actual and forecasted financial measures we will 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 consolidated software products and services, including recently acquired PandaLogic, and managed services that include our content licensing and advertising services, and their supporting operations, including direct cost of sales, as well as operating expenses for sales, marketing, and product development, and certain general and administrative costs dedicated to these operations. Corporate consists of general and administrative functions such as executive, finance, legal, people operations, fixed overhead expenses, including facilities and information technology expenses, other income or expenses and taxes, and other expenses that support the entire company, including public company driven costs. As we will discuss on this call, we have realigned our organization to focus on two distinct customer groups, commercial enterprise and government and regulated industries. Commercial enterprise, which today consists of customers in the commercial sector, including our media and entertainment customers, advertising customers, content licensing customers, and customers through PentaLogic that are not from government or regulated industries. Government and regulated industries, also known as GRI, which today consists of customers in the government and regulated industry sectors, including our state, local, and federal government, legal, compliance, and energy customers. Across the commercial enterprise and government and regulated industries businesses, we separate revenue into two categories, software products and services, and managed services. Software products and services consist of the revenues generated from our AIWare platform and through Panelogic software product solutions, any related support and maintenance services, and any related professional services associated with the deployment and or implementation of such solutions. Managed services consist of revenues generated from our advertising agency and related services and our content licensing services. Finally, I would like to remind everyone that this call is being recorded. and will be made available for replay via a link in the investor section of the company's website at www.veritone.com. Now, I'd like to turn the call over to our chairman and CEO, Chad Stilberg.

Chad. Thank you, Brian. And thanks everyone for joining us on today's call. Looks like we have many new investors that have joined us for the first time. Welcome. I'm delighted to report that Veritone's trend of raising the bar continues. Our top line revenue grew 44% year on year, making Q3 our sixth consecutive record quarter. Moreover, we are raising the midpoint of our full year 2021 revenue guidance to $104.3 million, which represents over 80% growth versus 2020. We remain steadfast in our mission to create a better world through the power of artificial intelligence, one that is dynamic, transparent, innovative, and safe. powered by our proven AI platform, AIWare, the first AI operating system. With our ever-expanding AI solutions and rich partner ecosystem, our customers are solving their current and future challenges with confidence, knowing that Veritone is there to help streamline processes through intelligent automation, enhance decision support, and optimize outcomes. We are very excited to have closed the recent acquisition and integration with PandaLogic, The impact to the overall business is transformative. By entering this new market, corporate intelligence, we increased our customer penetration into the Fortune 100 and broadened our international footprint. Including PandoLogic, our combined headcount is approaching 500, growing over 50% since the beginning of 2021, and more importantly, increasing our engineering and product capabilities. We also augmented our top line with the addition of PandoLogic's pro forma revenues of over 50 million in 2021 and operating margins greater than 50%. In addition to strengthening our financial position, PandoLogic perfectly fits our culture and aligns with our strategic objectives. We are aggressively integrating AIWare into PandoLogic's applications and are already seeing the fruits of our labor. As a company, Veritone's go-to-market strategy continues to mature. With the addition of PandoLogic and the technological advances in AIWare, we are now capturing more enterprise opportunities across an increasing number of businesses. With a mature technology platform and multiple proven applications, we are aligning our business to focus on the customer and more broadly deliver the full potential of AI. As Ryan and Mike will detail later in the call, In Q3, we realigned our organization to focus on two distinct markets, each with a unique customer base and go-to-market strategy, commercial enterprise and government and regulated industries. 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.