Veritone, a leading provider of artificial intelligence computing solutions, saw their shares plummet by 31% to $2.77 in response to a disappointing second-quarter performance and a reduced outlook for 2023. The company’s shares are now down 48% for the year, and if this trend continues, they may close at their lowest level since 2020. This decline also marks the largest percentage decrease in Veritone’s recorded history.
During the second quarter, Veritone reported a widened loss of $23.3 million, or 63 cents per share, compared to $3.3 million, or 9 cents per share, in the same period last year. The adjusted losses were 35 cents per share, exceeding analysts’ predictions of 26 cents. Meanwhile, revenue dropped to approximately $28 million, down from $34.2 million. Although analysts expected revenue to reach $28.1 million, the decline was primarily driven by reduced sales in software products and services. Managed services revenue also decreased due to lower advertising revenue and spend.
Furthermore, Veritone’s total new bookings suffered a significant decline of 62%, amounting to $8.4 million. This drop was attributed to reduced consumption by key customer Amazon.com.
Looking ahead, Veritone’s third-quarter revenue forecast aligns with analysts’ estimates, projected to fall between $35.5 million and $37.5 million. However, the company’s 2023 outlook has been revised downward from the initial range of $158 million to $166 million to a new range of $128 million to $135 million.
Despite these challenges, Veritone remains committed to providing innovative AI computing solutions across various industries.