Veritone, Inc.

Welcome to the Veritone, Inc. First Quarter 2025 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 your questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Kate Goldsmith, Investor Relations. Please go ahead.

Thank you and good afternoon. After the market closed today, Baritone issued a press release announcing results for the first quarter, 2025, ending March 31st, 2025. The press release and other supplemental information are available on the investor relations section of Baritone's website. Joining us for today's call are Baritone's President and Chief Executive Officer, Ryan Steelberg, and Chief Financial Officer, Mike Zimetra. We will provide prepared remarks and then open the call up for a live question and answer session. Please note that certain information discussed on the call today, including certain answers to your questions, will include forward-looking statements. This includes, without limitation, statements about our business strategy and future financial and operating performance. These forward-looking statements are subject to risk uncertainties, and assumptions that may cause the actual results to differ materially from those stated. 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, May 8, 2025, and Veritone undertakes no obligation to revise or update them. During this call, the actual and forecasted financial measures we will be discussing include non-GAAP measures. Reconciliations of these measures to the corresponding GAAP measures are included in the press release we issued today. Finally, I would like to remind everyone that the call today is being recorded and will be made available for replay via link on the investor relations section of Veritone's website at www.veritone.com. Now, I would like to turn the call over to our President and Chief Executive Officer, Ryan Steelberg.

Thank you, Kate, and thank you everyone for joining us. We are excited to speak with you today and to provide an update on our first quarter 2025 results, financial performance, and progress against our strategic growth plan. I will begin by providing a strategic update and sharing my perspective on our current market environment and the opportunity that lies ahead. Mike Zimetra will then cover our quarterly performance and financials in more detail. We are pleased to report our Q1 2025 financial results, which reflect solid revenue performance and demonstrate strong progress against our growth strategy. Veritone secured over 100 new business and renewal software agreements during the first quarter. Notable contracts with marquee commercial clients include Fremantle, Odyssey, World Athletics, Cox Media Group, and Hubbard. On the public sector front, Notable deals include Fresno Police Department, Riverside County Sheriff's Department, as well as several agency components under the Department of Justice. And within Veritone Hire, notable new contracts include Rolls-Royce and a nine plus year deal with the Bank of France. These deals highlight the continued software as a service growth and the importance and reliability of Veritone's AI solutions for our clients. The media and entertainment industry is experiencing significant growth. fueled by evolving consumer behaviors and technological advancements. The surge is driving demand for content across a fragmented ecosystem of platforms and devices. However, media organizations are struggling to meet this demand while also dealing with economic pressure and limited capital budgets. Veritone's cost-effective AI solutions provide necessary efficiencies and automated workflows while also fueling growth. Our recent execution at this year's Masters Golf Tournament with our long-standing customer, Augusta National, is an excellent example of how Veritone provides mission-critical solutions at scale. Managing over 200 terabytes of footage, inclusive of over 90,000 video files and over 18,000 images, Veritone enabled unprecedented content access and distribution across the Masters Tournament, Augusta National's Women's Amateur, and Drive Chip and Putt Championship, strengthening their brand presence and enhancing fan experiences across all digital platforms. Our comprehensive media infrastructure powered by AIWare empowered both global broadcasters and content creators with seamless access to high quality assets, facilitating efficient content production and wider audience reach. Artificial intelligence has emerged as the requisite solution for media companies to address these challenges by enabling them to extend the distribution and yield of their content assets with greater efficiency and automated workflows. Simultaneously, the expanding AI foundational models and infrastructure sector has led to an insatiable appetite and need for high-quality training data. However, there is a significant shortage of accessible, clean, unstructured data, including audio and video. This is our time and our opportunity. Veritone's Data Refinery, or VDR, is solving this data gap by servicing the global training data market, which is expected to grow from $2.4 billion in 2023 to over 17 billion in 2032. As AI models data needs advance from text to images to audio and video, Veritone is uniquely and strategically positioned to capitalize on this audio and video market demand. In 2024 alone, Veritone AIWare processed almost 11 petabytes and nearly 60 million hours of media for our customers, providing further evidence of our ability to meet VDR fulfillment requirements. The big headline is this. VDR is gaining material traction and is now expected to generate significant revenue for the remainder of the year, with a qualified and near-term pipeline of over $10 million, up from $5 million just a few weeks ago. As a reminder, our targeted CAGR from 2024 to 2027 to address the large and growing training data market is over 300%. VDR transforms unstructured data into AI-ready assets, enabling enterprises to prepare and leverage their data efficiently and effectively, both for internal use, as well as for licensing such data for third-party AI model training and tuning. BDR is powered by Veritone's AIWare platform, supporting incredible scale, and now has contracts with major hyperscalers, AI model providers, and intellectual property owners. To put the scale into perspective, we have already ingested, prepared, and delivered the equivalent of over 200 billion tokens derived from premium audio and video to multiple hyperscalers and model developers for advanced model training and tuning. We are now targeting to achieve the higher end of our previously disclosed BDR pipeline of at least $10 million in 2025 alone. As the media and entertainment sector continues to evolve, Veritone is poised to lead the charge in providing AI driven solutions that empower organizations to meet the increasing demands for content, audience engagement, and data monetization. With the momentum we have built so far this year, we are confident that Veritone is well positioned to maintain its leadership in the AI space and deliver strong sustained growth in 2025 and beyond. I'll now shift to discussing Veritone Hire, our products and solutions for the HR and job recruiting industries. Despite the global challenges to the labor market, Veritone Hire remains focused on mid and long-term growth. This is being pursued through a concerted three-pronged approach, expanding the reseller network, enhancing ATS integrations, and growing our media services solution. Currently, our media services penetration within existing customers is less than 5% of their respective annual spend budgets, which we estimated to be close to $1 billion per year. Therefore, we see significant growth potential against both our installed client base as well as from net new accounts. In Q1 2025, Veritone Hire increased its number of media services clients, grew client budgets under management compared to the previous year, and extended media services to new international markets. To close my update on Veritone Hire, I want to highlight our partnership with Workday, one of the largest global HCM ATS providers. As a Workday certified platinum partner, Veritone is now co-selling with Workday, and through this collaboration, we have already generated numerous opportunities and leads. which have resulted in the swift acquisition of new clients, especially considering that our workday agreement only officially started just mid-quarter. As our partnership with Workday develops, we anticipate meaningful growth in both opportunities and signed clients. Baritone Hire is set for further expansion. The results of the first quarter demonstrate our effective strategic implementation and adaptability to market changes. With a solid groundwork established, we are optimistic about our direction for the remainder of the year ahead. Now, turning to the public sector. I'm proud to report that our Baritone Intelligent Digital Evidence Management System, or IDEMS, continues to gain traction, both domestically and internationally. In local law enforcement, we are now servicing hundreds of customers using our IDEMS applications for investigation workflows, public record requests, freedom of information requests, and redaction workflows. Our users include detectives, investigators, crime analysts, public affairs, and FOIA personnel. And they're all seeing the transformative impact of our AI-powered solutions, helping them streamline their operations and achieve improved outcomes faster. As we continue to grow, we are expanding our technical partnerships and integrations with new sales opportunities arriving on a weekly basis. The addition of our IDEMS application suite has been a game changer for us. driving increases in deal size and opening up new opportunities. We are in the final stages of procurement with several large counties in California, as well as law enforcement agencies and district attorney offices in major cities across North America. We are also expanding our footprint in Canada with a strategic partnership focused on opportunities across both the U.S. and Canada. Additionally, our partnership with technology and public safety leader GTAC is now moved into the operational stage and we are beginning to work closely with joint customers. As we continue to innovate, we are also working on new integrations with other major industry players, bringing our AI, scale, workflow, and expertise in video and audio analytics to create combined solutions that deliver enhanced value for our customers. On the U.S. federal side, we've made strong progress as well. Veritone Investigate has achieved awardable status within the Tradewinds marketplace, broadening our footprint in federal agencies. We're also assisting with a proof of concept for procurement fraud with the Department of Defense Agency. Additionally, we are working closely with the Defense Logistics Agency, or DLA, on the JET 2.0 contract for FOIA and investigative services. Our IDEMS applications are now the system of record for several service providers, fulfilling key tasks for the DLA, and we are also deploying IDEMS and AIWare on the DLA's private tenants in their own secure environment. This is a significant milestone for us as it proves our ability to meet the highest security standards required by the Department of Defense. We are also supporting multiple agencies across the DOD, DHS, and DOJ as they scope requirements and implement proof of concept deployments under Project Defender, a key initiative that aligns with the President's strategy for securing the border and modernizing law enforcement. We expect significant budget approvals and revenue generation for fiscal year 2026 and we are confident that Veritone will play a key role in this critical initiative. In the first quarter of 2025, we added eight new SLED customers and 40 expansion sales transactions in the public sector. Our public sector pipeline now exceeds 110 million, underscoring the increasing demand for our AI-based applications and services across all four of our public sector segments, SLED, FedSiv, Fed DoD Intel, and international markets. I am very excited about what lies ahead as we continue to leverage the momentum from the strategic milestones I've just detailed. We are confident that Veritone is well-positioned to capitalize on the increasing demand for AI-powered solutions in both the commercial and public sectors. I would now like to turn over to Mike Zimetra, who will provide more details on our quarterly performance and future guidance. Mike?