Veritone, the software company that provides artificial intelligence services to radio and other industries, may have spun off its advertising business, but the company remains focused on leveraging ways to use artificial intelligence in the audio and media space. That business continues to grow, as the company reports it inked 42 media and entertainment deals during the fourth quarter. They include fresh agreements with Cumulus Media, Alpha Media, CBS News, ESPN, Sony Pictures, the Game Show Network and A&E Networks, among others.
“Media organizations are grappling with macroeconomic pressures, industry mergers, consolidation, remote work and leaner teams while trying to keep revenue streams intact,” CEO Ryan Steelberg said. During a conference call with investors, he explained that Veritone’s aiWARE platform helps broadcast media, sports and entertainment companies leverage AI to transform content workflows. “In short, we are not only helping organize our customers’ data, but we are also helping them extend and monetize their data, generating both significant efficiencies and new revenue opportunities,” Steelberg said.
Veritone said Thursday it had fourth-quarter revenue of $22.4 million, a decrease of 17% compared with a year earlier. And for all last year, its revenue declined 7% to $92.6 million. One reason for the dip was that Veritone sold its media agency arm Veritone One to Insignia Capital Group for $104 million in October as it streamlined its focus on software products and services and managed services.
Steelberg said the sale of its legacy advertising agency accomplished several objectives for the company. “The divestiture focused our operations and concentrated our resources on what we believe is our greatest business opportunity, delivering the most advanced AI solutions to our customers and partners at scale,” he said. The company remains involved in advertising, however, with a focus on programmatic advertising related to its solutions for the HR and job recruiting industries. Steelberg said that business remained stable between third and fourth quarters, despite broader macroeconomic challenges.
The company posted a net loss of $37.4 million in 2024, which followed a $58.6 million loss a year earlier. But Steelberg said they have made “significant strides” in their strategic initiatives, including making several “decisive moves” to optimize their operating structure and strengthen their balance sheet. He says they will allow Veritone to focus and prioritize investments in core AI software and services offerings.
“This disciplined approach has laid a strong foundation and we’re already seeing the benefits in the early part of 2025,” he said.
The company has also announced that it has appointed Francisco Morales to its board as company co-founder, and former CEO Chad Steelberg has resigned his seat on the board.
“Chad will be pursuing other business and philanthropic endeavors,” said Ryan Steelberg, his brother, who took over the CEO role in January 2023 and then added Chairman duties in February 2024. The two brothers founded the Denver-based company in 2014.