Veritone (VERI) to be acquired by Apis Capital Management for $10.26/share in cash

  

 Apis Capital submits all-cash offer to acquire Veritone for $10.26/share in cash, or approximately $198 mln
Apis Capital Management has engaged in an initial productive discussion with Veritone to explore the merits and potential terms of a transaction, yet Veritone has stalled in moving forward with substantive discussions. Apis looks forward to continuing to work with Veritone to complete this transaction in an expeditious manner, for the benefit of the shareholders. The proposal is subject to confirmatory due diligence and negotiation of definitive documentation.

** chart before **

=Veritone (VERI) reported earnings on Mon 13 Aug 2018 (a/h)

Veritone misses by $0.13, misses on revs 

• Reports Q2 (Jun) loss of $0.88 per share, $0.13 worse than the Capital IQ Consensus of ($0.75); revenues rose 2.4% year/year to $4.2 mln vs the $4.92 mln Capital IQ Consensus
• SaaS licensing revenues from the Company's aiWARE operating system totaled $0.9 million, an increase of 147% compared with the prior year period. The strength in SaaS revenues was offset in part by a decrease in net revenues of 12% in the Company's media agency business, which delivered total net revenues of $3.3 million.

For the third quarter ending September 30, 2018, Veritone expects to achieve the following KPIs for its aiWARE operating system:

• Bring AI customer count to 95, an addition of 9 customers
• Bring AI account total to 655, an addition of 30 accounts
• Bring third-party cognitive engines integrated with aiWARE to 234, an addition of 20 engines
• Process 2.7 million total hours of video and audio content on aiWARE

Earnings this week : Aug 13 - 17, 18 (wk 33)

Earnings confirmed to report this week:

Monday (August 13)

• Morning: CNNE  JKS  SYY TSG  
• Afternoon: AG  HUYA  SWCH TDW VERI  VIPS YY 

Tuesday (Aug 14)

• Morning: AAP ARRY BZUN CAE CDK CSIQ  CVIA EAT EYE GDS HD MMYT TPR 
• Afternoon: A CASA CDLX CGC CREE DDS FENG HOLI MYGN PETQ VIAV  WPM

Wednesday (Aug 15)

• Morning: LXFT M MSGN  PFGC
• Afternoon: BGG CACI CSCO NTAP SPTN

Thursday (Aug 16)

• Morning: DESP JCP JD MSG QIWI WMT   WUBA
• Afternoon: AMAT ATGE  JWN  NVDA  ZOES

Friday (Aug 17)

• Morning: DE

=Veritone (VERI) reported earnings on Mon 26 Feb 2018 (a/h)

Veritone misses by $0.24, misses on revs 

• Reports Q4 (Dec) loss of $0.83 per share, $0.24 worse than the two analyst estimate of ($0.59); revenues rose 75.4% year/year to $3.49 mln vs the $4.41 mln Capital IQ Consensus.
  • 57 customers on the platform at the end of the quarter, compared with 18 at the prior-year quarter
  • 467 total accounts on the platform at the end of the quarter, compared with 23 at the prior year quarter-end

Shares of artificial intelligence startup Veritone (VERI) are down $2.42, over 13%, at $15.67, in late trading after the company this afternoon reported Q4 revenue and profit that missed analysts’ expectations by a wide margin.

Despite the miss, CEO Chad Steelberg said the company was “very pleased with our execution,” including Veritone’s increase in accounts.

Revenue in the three months ended in December rose by 40%, year over year, to $3.5 million, yielding a net loss of 83 cents.

Analysts had been modeling $4.4 million in revenue and a 49-cent loss per share.

The company did not offer a forecast.

Steelberg, reviewing the year ended, said the company had “added significant depth and expertise to our software engineering and data science teams and greatly expanded our sales and marketing team and channels."

"With these additions,” he said, "we have great confidence in our ability to continue to enhance the capabilities of our aiWARE platform and generate significant increases in net revenues in 2018 and beyond.”

Veritone (VERI) reported earnings on Mon 6 Nov 2017 (a/h)

** charts before earnings **

** chart after earnings **

• 2 weeks later

Veritone misses by $0.81, misses on revs 

• Reports Q3 (Sep) loss of $1.31 per share, $0.81 worse than the Capital IQ Consensus of ($0.50); revenues rose 60.3% year/year to $3.72 mln vs the $4.95 mln Capital IQ Consensus.
• Net revenues in the third quarter of 2017 increased 60% to $3.7 million from $2.3 million in the same period in 2016. The increase in net revenues was due to an increase in media agency revenues of $1.1 million, or 48%, and to an increase of $0.3 million, or 340%, in SaaS licensing revenues from the Company's AI platform.
• Gross profit in the third quarter of 2017 increased 83% to $3.4 million (92.1% of net revenues)
• Co states, "We expect to end the year with approximately 425 accounts and approximately 150 active third-party cognitive engines on our AI platform, as well as having processed approximately 2.75 million total hours of video and audio files during the year. And while we remain increasingly optimistic about our organic growth prospects, we are also continuing to selectively explore acquisition opportunities. We are very encouraged by the prospects of our business and we expect to continue to deliver on the metrics that will drive long-term business value for our company and our stockholders." 

VERI — is it a buy?

• 10/24:  Is VERI a buy?

• 2 weeks later:  NO

Long trade : Veritone (VERI) +100% (9/17)

• Aug. 21:   vol. 1.0M  $11
• Sept. 11;  $22.60  →  +100%

• 3 weeks later

• 1 week later