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Next important date will be Dec. 15, the deadline to go through with the debt transaction. Pretty lame if they can't get a better deal than that. jmo
They had filed for the delay, and then didn't even delay the10q. Don't get it.
If aiWare not viable, then have no idea what the catalyst is for 2024 disruptive growth. Also, still nothing on the Pando Broadbean combo Veritone Hire.
also noticed on Linkedin, Greg Loose Head of Product for aiWare is looking for a new job.
Today's PR, and yesterday they put out this video.
In just over 30 days, how does a steaming pile of dog shit transform itself into a disruptive growth company?
The OpenAI fiasco could be the best thing that ever happened for aiWare. Now companies will no longer trust or rely on just one AI model.
encouraging but time for some news.
Noticed CS no longer mentioned in aiWare history. Now says, "A team of product managers, designers, data scientists and engineers founded aiWARE in 2014"
https://aiware.com/about
it's back up now
took down the November investor presentation. Now back to August.
They were going to provide more detail on the term loan in the 10q. Now the 10q being delayed. Think maybe delayed for other reasons than stated. Hopefully for good news. But I suspect that with the announcement of entering into this term loan, and have one month to go through with it, there may be other Strategic options being discussed with other players. jmo
wonder if Chad would have bought Briadbean, for that matter.
You could be right, but its incredible that Veritone would think they can afford to wait until March to start talking about aiWare.
Wonder where the stock price would be right now, if CS had been touting aiWare all year.
They talk about disruptive growth in 2024. Inflection point for growth beginning of 2024. They make no mention whatsoever any catalyst for this.
At the same time, they don't mention the aiWare.com site, and they never mention anything about Chad S and his work as a consultant long with the aiWare team. We do know that Chad's work extends through the first quarter of 2024. We've seen on Linkedin about end of year aiWare goals (roadmap) accomplished.
Could very well be that the disruptive growth goes hand in hand with aiWare roadmap and aiWare.com. And per the new investor presentation looks like they are finally going to start talking about aiWare capabilities again, jmo
Ryan said " going to take a conservative view on the hiring side of the relationship with Amazon going into, obviously in Q4, but even into 2024."
So can probably add another year to that.
Sure appreciate your efforts. I'm sure you will be very thorough in your conversation.
According to this page, "Amazon has also negotiated deals with third-party providers on recruitment tool discounts." You are probably right, that each DSP entity could choose not to use the recruitment tool discounts. https://logistics.amazon.com/marketing/opportunity
So, in light of the Google searches showing Pando involvement with DSP hiring, I assume Pando and Amazon have a negotiated agreement that is being executed by those DSP's that participate. Jury still out on warehouse jobs, etc.
But conference call very tight lipped, only saying we're taking "conservative view on the hiring side of the relationship with Amazon"
Nice to have a mention of Veritone here by AWS. https://www.linkedin.com/feed/update/urn:li:activity:7128485727390109697/
Highbridge and lenders probably don't care so much because under certain circumstances, Veritone can make loan payments in the form of stock. So lenders could end up owning more of Veritone than the 3M shares from warrants.
They spoke about disruptive growth in 2024, both in the August call and in the November call, but still have never elaborated.
UBS analyst even tried to get more color, and Zemetra response was blunt, almost rude. Then RS followed up with a complete Non-answer.
Jason Park
Got it. Thanks a lot. And in the prepared remark, you also said 2024 will be an inflection point for growth trajectory. So can we break that down a little bit by different verticals? Can you talk about some of the trends that you see as we go into ‘24 for software, advertising, hiring trends, anything you can share will be helpful. Thank you.
Mike Zemetra
Yeah, we'll give more guidance on 2024 in our annual call in March.
In light of their present cash situation, I just don't understand the Broadbean acquisition. Yeah, looks like they were trying to replace lost revenues, but to do this by depleting your precious cash, while in a very soft market, possible recession, couple with lost Amazon revenue, it just makes no sense to me.
Thanks for sharing that info semperwm.
What is your take on the absence of Amazon as far as revenues, yet as we've discussed earlier, google searches showing a long list of Amazon hiring drivers which appear to be using Pandologic?
That would be nice.
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