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Highbridge Capital owned by JP Morgan. Maybe an opportunity for them to make even more money on the warrants than the loan itself.
and why do the lenders want warrants for 3 million shares exercisable at 2.576.
Time for RS to start publicly showing some accountability to shareholders. Could see a lowball bid for the company. If a PE firm offered over 100M for a non software asset, why not just make a public bid 100M for the company at current stock price
also noticed this quote: Total new bookings were 15.5 million, up 85% sequentially from Q2, 2023, but down year-over-year, largely due to Amazon's reduced spend. The sequential improvement in bookings was largely driven by our hire solutions in GRI.
So maybe getting traction with hiring for government.
agree, just don't understand how the numbers jive with the long list of Pando Amazon delivery driver ads. Maybe Pando had to lower their price? I don't know.
On another note, on the investor presentation for "growth drivers", they say "Convert trial customers, particularly in
government and regulated industries, to longterm customers"
So guessing there are some significant trial customers, maybe like Deloitte, that aren't paying anything. They announced Deloitte reseller agreement Nov 2022. Maybe contract called for a trial period while Chad spends the year hardening aiWare and getting ready for prime time. I don't know.
One of the growth drivers is this:
CAPITALIZE ON DATA & INTEGRATION
CAPABILITIES
• Deliver best-in-class ecosystem to drive
operational efficiencies, accelerate decision
making and increase profitability
• Market ability to integrate and orchestrate
disparate data and workflows
I've been complaining all year about how they don't market aiWare capabilities. Maybe all planned for 2024. "Deliver best-in-class ecosystem" . Well why haven't they been "delivering" it before? Maybe going finally get going with aiWare. I have just thought this year with all the hype on AI, why have they buried all the talk on aiWare. 2023 has been the year that Chad Steelberg should have been out there BSing to the press about aiWare every chance he could. Instead they buried it and went with "wilderness guide"
Yeah another point on the earnings call. No mention of aiWare.com. Why do they stay silent on this? Never mention anything with respect to aiWare and Chad S.
Also can't figure out why the name Pandologic is on a long list of Amazon delivery job openings. Those weren't there before.
This is pure speculation and probably not true, but will throw it out there.
Veritone's SEC filing about Amazon notifying Veritone of the reduced spend happened right before the Broadbean purchase. I still say, now more than ever, that the Broadbean acquisition was irresponsible, knowing full well that they would have to seek funding. The only way I can justify the Broadbean purchase is if a strategic partner behind it.
Maybe now Veritone and Amazon are going to be partners in HR solutions. That would explain why Amazon not paying for HR services. If you notice, at the bottom of Veritone.com, Recruiting not listed as an industry. But at the bottom of aiWare.com, recruiting IS listed as an industry. Even if the reason is that Veritone wants to keep HR services as a separate entity, how hard would it be to get a Veritone Hire website up and running. They have a ton of useless websites like Veriverse, Veritone Voice, etc.
I don't know. After todays, shit show, it looks like the Broadbean purchase was completely idiotic. Tired of giving them the benefit of the doubt, only to be burned.
But sure looks to me like Amazon using Pando services.
Still can't figure this out.
unrestricted cash and cash equivalents of at least $55 million immediately prior to the funding of the Term Loan
I don't entirely believe the reasons they said they terminated. Guessing there were other reasons.
In late Q3, 2023 we terminated discussions with the PE firm, due in large part from the uncertainty around the timing to close coupled with macroeconomic challenges.
But you are probably right,
Just thought of it probably legacy advertising business and licensing.
Thought that too, but those are still software based assets to a degree, with content licensing using digital media hub, and advertising using attribute. Both advertising and content licensing supposedly supported by aiWare.
Also thought of patent portfolio.
Looks like that website is just Chad's hobby.
Cragi Hallum downgrades to sell.
Maybe so, and besides, Pando brings in 120M a year, so plenty of cash.
They were going to sell a "non-software based asset" for in excess of 100M to a PE firm.
Yeah, so the current interest cost today is 1.75%. This one is going to go up just on the new debt facility. It'll be a SOFR, so call it prime, plus 850 basis points. It'll be a four-year loan, so 2027. And the covenants, while the minimum liquidity covenant, that'll be pegged at $15 million of consolidated cash.
So they have to keep a minimum of 15M in cash at all times during the term of the debt facility. But according to the SEC filing, they have to have 55M in unencumbered cash on the BS in order to get the debt facility. My take.
investor presentation is up.
https://d1io3yog0oux5.cloudfront.net/_71d396525eb44e49846eeb541d3f2cb7/veritone/db/2223/21155/pdf/VERI+3Q23+Investor+Presentation+%2811-8-23%29+vF.pdf
• Convert trial customers, particularly in
government and regulated industries, to longterm customers
So still lots of trials out there. Maybe Amazon trialing the Pando/Broadbean combination, I don't know.
Also did not catch RS response to the analyst question regarding the fact that Amazon is hiring like crazy right now.
again I need to see the transcript. But the language in the SEC filing seems clear to me.
The Commitment Letter provides that the closing of the Term Loan is conditioned on, among other things, the Company having unrestricted cash and cash equivalents of at least $55 million immediately prior to the funding of the Term Loan on the closing date and satisfaction of certain other conditions. The Commitment Letter will expire on December 15, 2023 if the Term Loan has not been consummated on or prior to that date
https://www.sec.gov/ix?doc=/Archives/edgar/data/1615165/000095017023060668/veri-20231107.htm
I'll need to look at the transcript. Yeah heard bit about 100M deal with private equity firm falling through.
Don't know how to reconcile the numbers and Amazon absence, despite what looks like Pando very active with Amazon Delivery Service hiring.
Also, seems there has to be some type of transaction occurring within a month, or by 12/15/23. How else is VERI going to come up with 55M unencumbered cash.
The Commitment Letter provides that the closing of the Term Loan is conditioned on, among other things, the Company having unrestricted cash and cash equivalents of at least $55 million immediately prior to the funding of the Term Loan on the closing date and satisfaction of certain other conditions. The Commitment Letter will expire on December 15, 2023 if the Term Loan has not been consummated on or prior to that date. The Lenders will select a third party to serve as the sole administrative agent, collateral agent, and documentation agent in connection with the Term Loan.
Where are they going to get $55M in unrestricted cash?
still have August investor presentation on website.
Pando must be helping Amazon hire Delivery drivers for free.
Why pay down the convertible notes with less attractive financing when the notes are not due until 2026
Think I'll go see the doctor too.
I don't have a subscription so can't read the article. Wonder if it has anything to do with Deloitte and Amazon Olympus.
https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/deloitte-and-aws-announce-the-formation-of-olympus-global-industry-cloud-accelerator-fund.html
SVP of Corporate Development and Strategy also was at Ingram Micro for 7 years
https://www.linkedin.com/in/benxiang/
Both the 120M pando info, and todays PR new board member including the reiterating of 2024 disruptive growth comment, add confidence for me.
The Ingram Micro CFO brings a sign of outside credibility that was lacking on the board. The mysterious Fleming Meng that was hired as CIO, who we never hear about since the January PR. Fleming Meng came from Ingram Micro.
Yeah, we will see tomorrow. But anything near 120M has to include Amazon. So to me, it's either a sign that Amazon is back in a big way, or maybe he's just padding the numbers to look good. But that is quite a stretch if he is inflating.
Agree, Veri remains a standalone company
maybe strategic deal with Ingram Micro?
yes respectable addition.
Was thinking could get something after the bell, since they moved earnings up to the A.M.
Was that one of you guys buying at the close? lol
"dramatically expanding the footprint of our current customer install base. "
Could be new contract that takes into consideration Amazon using both Pando and Broadbean services.
Just speculating. But 12OM figure, (if accurate), may be the run rate going forward.
We have speculated that back in May, the reason Amazon reduced Pando usage could have been for negotiation purposes. Maybe now they have a contract secured.
would think it would have to assume Amazon revenue fully recovered. And then some. Think Pando did 57 million in 2022? . They did about 50M in 2021, and that was when Amazon was going strong for them all year. Broadbean supposed to be arounf 35M?
Even adding Broadbean revenues, that's a lot.
sent you an email. You can respond here, I just didn't want to post the link
Agree, I believe Amazon has their hand on the switch to determine whether Veritone survives or not.
But encouraging to see the Pando Amazon delivery job ads. Amazon could have dumped Pando altogether back in May, but they returned. Why.
Also regarding Pando, RS said back in August that "PandoLogic with Broadbean or Veritone HR solutions will leverage aiWARE to orchestrate cognitive, predictive and generative AI workflows across the talent acquisition ecosystem."
They drained most of what little free cash they had left in buying Broadbean. Would seem that integrating Broadbean with aiWare would be disastrous if aiWare not viable or ready for prime time. Why not integrate with a more reputable AI platform. And why Amazon using Pando again knowing integrated with aiWare.
7000 shares traded in first 15 minutes. There must be a leak. lol