Veritone, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Consolidated Financial Statements Details

Consolidated Financial Statements Details

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated Financial Statements Details

NOTE 8. CONSOLIDATED FINANCIAL STATEMENTS DETAILS

Consolidated Balance Sheets Details

Cash and cash equivalents

As of December 31, 2022 and December 31, 2021, the Company had cash and cash equivalents of $184,423 and $254,722, respectively, including $93,118 and $66,401, respectively, of cash received from advertising customers for future payments to vendors.

Accounts Receivable, Net

Accounts receivable consisted of the following:


	As of
	December 31, 2022			December 31, 2021
Accounts receivable — Managed Services(1)	$	27,670		$	21,347
Accounts receivable — Software Products & Services(2)		26,969			59,568
Accounts receivable — Other		2,181			4,926
		56,820			85,841
Less: allowance for doubtful accounts		(819	)		(778	)
Accounts receivable, net	$	56,001		$	85,063

(1)

Accounts receivable – Managed Services reflects the amounts due from the Company’s advertising customers.

(2)

Accounts receivable – Software Products & Services reflects the amounts due from the Company’s PandoLogic customers.

Property, Equipment and Improvements, Net

Property, equipment and improvements, net consisted of the following:


	As of
	December 31, 2022			December 31, 2021
Property and equipment	$	8,532		$	4,262
Leasehold improvements		250			167
		8,782			4,429
Less: accumulated depreciation		(3,491	)		(2,873	)
Property, equipment and improvements, net	$	5,291		$	1,556

Depreciation expense was $1,312 and $538 for the years ended December 31, 2022 and 2021, respectively. Of the $8,532 in property and equipment as of December 31, 2022, $1,192 consisted of work in progress not yet placed in service for internal use software development costs. Depreciation of internal use software development costs was $418 and $65 for the years ended December 31, 2022 and 2021, respectively.

During 2021, primarily in connection with the sublease of its former corporate office space located in Costa Mesa, California, the Company wrote-off approximately $3,852 in property and equipment and leasehold improvements and recorded a net loss on disposal of $1,894.

Accounts Payable

Accounts payable consisted of the following:


	As of
	December 31, 2022		December 31, 2021
Accounts payable — Managed Services(1)	$	17,972	$	23,613
Accounts payable — Other		18,766		23,098
Total	$	36,738	$	46,711

(1)

Accounts payable – Managed Services reflects the amounts due to media vendors for advertisements placed on behalf of the Company’s advertising clients.

Consolidated Statements of Operations and Comprehensive Loss Details

Revenue

Revenue for the periods presented were comprised of the following:


	Year Ended December 31,
	2022		2021
Commercial Enterprise	$	145,899	$	111,274
Government & Regulated Entities		3,829		4,031
Total revenue	$	149,728	$	115,305

In the third quarter of fiscal year 2021, the Company realigned its organization to improve focus and growth into two customer groups: (1) Commercial Enterprise, which today consists of customers in the commercial sector, including media and entertainment customers, advertising customers, content licensing customers and PandoLogic customers; and (2) Government & Regulated Industries, which today consists of customers in the government and regulated industries sectors, including state, local and federal government, legal, compliance and energy customers.

Software Products & Services consists of revenue generated from the Company’s aiWARE platform and PandoLogic’s talent acquisition solutions, any related support and maintenance services, and any related professional services associated with the deployment and or implementation of such solutions.

Managed Services consists of revenues generated from content licensing customers and advertising agency customers and related services.

The table below illustrates the presentation of our revenues based on the above definitions:


	Year Ended December 31, 2022
			Government &
	Commercial		Regulated
	Enterprise		Industries		Total
Total Software Products & Services(1)	$	80,749	$	3,829	$	84,578

Managed Services
Advertising		44,665		—		44,665
Licensing		20,485		—		20,485
Total Managed Services		65,150		—		65,150

Total Revenue	$	145,899	$	3,829	$	149,728


	Year Ended December 31, 2021
			Government &
	Commercial		Regulated
	Enterprise		Industries		Total
Total Software Products & Services(1)	$	55,484	$	4,031	$	59,515

Managed Services
Advertising		40,800		—		40,800
Licensing		14,990		—		14,990
Total Managed Services		55,790		—		55,790

Total Revenue	$	111,274	$	4,031	$	115,305

Other Income (Expense), Net

Other income (expense), net for the periods presented was comprised of the following:


	Year Ended December 31,
	2022			2021
Interest expense, net	$	(4,862	)	$	(538	)
Gain on debt extinguishment	$	19,097			—
Other		512			(62	)
Other income (expense), net	$	14,747		$	(600	)