Veritone Bundle
What is Veritone's AI Operating System?
Veritone, founded in 2014, is an AI company focused on an AI operating system for cognitive processing. Its goal is to enable individuals and enterprises to leverage AI across various industries.
This AI operating system aims to process and analyze unstructured data, moving beyond single AI solutions to offer a scalable and adaptable platform.
What is the brief history of Veritone?
Founded in 2014 by brothers Chad and Ryan Steelberg in Newport Beach, California, Veritone's initial vision was to create an AI operating system for cognitive processing. The company has since evolved, deploying its aiWARE platform across media, entertainment, government, and legal sectors. Despite a revenue decrease to $92.6 million in fiscal year 2024 from $100.0 million in fiscal year 2023, Veritone is focusing on higher-margin SaaS offerings and public sector growth. The aiWARE platform acts as an AI operating system, enabling tailored solutions for diverse use cases, including those detailed in a Veritone PESTEL Analysis.
What is the Veritone Founding Story?
The Veritone company history began with a vision to tackle complex data challenges. Founded by a team of experienced entrepreneurs, the company's inception marked the start of its journey in the artificial intelligence space.
The Genesis of Veritone
Veritone, Inc. was officially incorporated on June 12, 2014, in Irvine, California. The company was brought into existence by serial entrepreneurs Chad Steelberg, Ryan Steelberg, Patrick Lennon, and Zeus Peleuses. Their shared passion for technology and addressing fundamental advertising problems, particularly around audio data, laid the groundwork for Veritone's evolution.
- Veritone was founded by brothers Chad and Ryan Steelberg, along with Patrick Lennon and Zeus Peleuses.
- The founders previously collaborated on successful ventures like AdForce and dMarc Broadcasting.
- The company's initial focus was on processing and analyzing vast amounts of unstructured data.
- The name 'Veritone' signifies 'truth in the signal,' reflecting its mission.
The core problem identified by the Veritone founding team was the difficulty in processing and deriving insights from large volumes of unstructured data. This led to the conceptualization of aiWARE, a proprietary operating system designed for artificial intelligence, which became the company's foundational product and offering. This innovation aimed to unlock the potential hidden within complex datasets, aligning with the company's Mission, Vision & Core Values of Veritone.
From Startup to Public Offering
While specific seed funding details remain private, Veritone successfully secured capital through various private funding rounds. A significant milestone in Veritone's journey from startup to public company was its Initial Public Offering (IPO) in 2017. This event raised approximately $37.5 million, providing the necessary capital for its subsequent expansion and technological advancements in Veritone AI.
- Veritone's initial business focus was on creating a comprehensive system for unstructured data.
- The company's proprietary operating system for AI is known as aiWARE.
- Veritone's IPO occurred in 2017.
- The IPO raised approximately $37.5 million.
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What Drove the Early Growth of Veritone?
Veritone's early growth was significantly shaped by its strategic decision to develop aiWARE, a proprietary operating system for AI. This platform approach enabled the company to offer scalable and adaptable AI solutions across diverse industries, moving beyond single-point applications.
aiWARE Platform Development
The company's core technology, aiWARE, saw key iterations with the release of aiWARE 2.0 in March 2019, introducing real-time processing and expanded cognitive capabilities. This was followed by aiWARE 3.0 in July 2021, which further enhanced app support and workflow development, solidifying its position in the Competitors Landscape of Veritone.
Client Base Expansion and Team Growth
Veritone rapidly expanded its client roster to include major entities like ESPN, CBS, and the U.S. government, alongside numerous media and law enforcement organizations. By Q2 2025, the company reported serving 3,067 software products and services customers, with its global team exceeding 500 employees by late 2024.
Strategic Acquisitions for Market Penetration
Strategic acquisitions were pivotal for Veritone's growth. The 2018 acquisition of Wazee Digital bolstered its digital asset management for media. In 2021, the $150 million acquisition of PandoLogic significantly expanded its HR tech market presence, a move further strengthened by the May 2023 acquisition of Broadbean for $52 million, enhancing its AI-driven HR solutions.
Financial Growth and Revenue Model Shift
Veritone's Annual Recurring Revenue (ARR) reached $62.6 million in Q2 2025. The company demonstrated a strategic shift towards a more predictable revenue model, with subscription-based ARR constituting 81% of its total ARR in Q1 2025, an increase from 68% in Q1 2024. This period also saw over 100 new business and renewal software agreements in Q1 2025.
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What are the key Milestones in Veritone history?
The Veritone company history is a narrative of technological innovation and strategic adaptation. From its inception, the company focused on developing a robust AI platform, evolving its offerings to meet the demands of various sectors, including public safety and enterprise AI. This journey has seen significant product launches, key partnerships, and strategic financial maneuvers aimed at solidifying its position in the AI market.
| Year | Milestone |
|---|---|
| 2019 | Began collaboration with Microsoft Azure Government to boost AI adoption in government. |
| 2020 | The U.S. Department of Justice contracted Veritone for AI-enabled transcription and translation services. |
| 2023 | Launched Veritone Generative AI, enhancing enterprise content creation capabilities. |
| 2024 | Introduced the Intelligent Digital Evidence Management System (iDEMS) and Veritone Data Refinery (VDR). |
| October 2024 | Divested its media agency, Veritone One, for up to $104 million to focus on its core AI software business. |
| June 2025 | Awarded a sole source contract with the United States Air Force Office of Special Investigations (AFOSI) for aiWARE and iDEMS deployment. |
| June 2025 | Initiated cost reduction and restructuring efforts targeting up to $10.0 million in annualized savings. |
Veritone's core innovation is its aiWARE platform, an operating system designed to manage and orchestrate hundreds of AI engines. The company holds over 48 U.S. awarded patents, demonstrating a strong commitment to intellectual property and technological advancement. Veritone Generative AI, launched in February 2023, natively supports large language models, enabling businesses to scale content creation. In 2024, the company further expanded its offerings with the Intelligent Digital Evidence Management System (iDEMS) and Veritone Data Refinery (VDR), both built on aiWARE, to serve public safety and AI model training needs.
aiWARE Platform
aiWARE serves as an operating system for AI, orchestrating numerous cognitive engines to convert unstructured data into actionable intelligence.
Veritone Generative AI
Launched in February 2023, this product natively supports and orchestrates large language models, empowering enterprises with unprecedented content creation and extension capabilities.
Intelligent Digital Evidence Management System (iDEMS)
Introduced in 2024, iDEMS enhances public safety by leveraging AI for managing digital evidence.
Veritone Data Refinery (VDR)
Also launched in 2024, VDR assists hyper-scalers and generative AI model companies in training and fine-tuning their AI models.
Microsoft Azure Government Partnership
Since 2019, this collaboration has been key in accelerating AI adoption within government agencies.
U.S. Air Force Office of Special Investigations (AFOSI) Contract
The June 24, 2025, sole source contract signifies a critical phase for its public sector growth, deploying aiWARE and iDEMS across the Department of Defense.
Veritone has encountered financial headwinds, reporting a revenue decrease in fiscal year 2024 to $92.6 million from $100.0 million in 2023, attributed to reduced consumption by commercial clients and a drop in one-time software revenue. The company also experienced a net loss from continuing operations of $26.8 million in Q2 2025, an increase from the previous year, with GAAP gross margins declining to 63.9% from 68.2% in Q2 2024. These financial results reflect a higher proportion of lower-margin revenue. The company's Growth Strategy of Veritone has involved significant restructuring, including the divestiture of Veritone One in October 2024 for up to $104 million, which helped reduce debt. Additionally, cost reduction initiatives initiated in June 2025 aim to generate annualized savings of up to $10.0 million, with $8.0 million already realized, to improve financial performance and accelerate the path to profitability.
Revenue Decline in FY2024
Total revenue for fiscal year 2024 was $92.6 million, a 7% decrease from $100.0 million in 2023. This was primarily due to lower consumption from commercial enterprise customers and a decline in one-time software revenue.
Increased Net Loss in Q2 2025
The company reported a net loss from continuing operations of $26.8 million in Q2 2025, a 14.5% increase compared to Q2 2024. This period also saw a decrease in GAAP gross margins to 63.9% from 68.2%.
Divestiture of Veritone One
In October 2024, the company divested its media agency for up to $104 million. This strategic move aimed to streamline operations and focus on being a pure-play enterprise AI software provider, also helping to pay down $30.5 million in term debt.
Cost Reduction and Restructuring
Initiated in June 2025, these efforts are expected to generate annualized savings of up to $10.0 million, with $8.0 million already achieved. The goal is to improve financial condition and accelerate the path to profitability.
Paycheck Protection Program Loan Scrutiny
In April 2020, the company received a $6.5 million PPP loan, which it returned in May 2020, citing adequate financial flexibility. This event drew public attention regarding the company's financial management during that period.
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What is the Timeline of Key Events for Veritone?
The Veritone company history is a narrative of consistent technological advancement and strategic acquisitions, beginning with its founding in Irvine, California, in 2014. The company's evolution from a startup to a publicly traded entity on NASDAQ under the ticker VERI on May 12, 2017, marked a significant milestone. This journey has been characterized by key developments such as the acquisition of Wazee Digital in 2018 to bolster digital asset management and the release of advanced versions of its AI operating system, aiWARE, in 2019 and 2021. Veritone's expansion into new sectors is evident through its acquisition of PandoLogic in 2021, strengthening its HR tech presence, and its strategic divestment of the Energy division in July 2023 to focus on its core AI offerings. The company's commitment to innovation is further highlighted by the introduction of Veritone Generative AI in 2023 and the launch of Veritone Data Refinery (VDR) and Intelligent Digital Evidence Management System (iDEMS) in 2024.
| Year | Key Event |
|---|---|
| 2014 | Veritone, Inc. is founded in Irvine, California. |
| May 12, 2017 | The company goes public, listing on NASDAQ under the ticker VERI, raising approximately $37.5 million. |
| 2018 | Veritone acquires Wazee Digital, expanding its digital asset management capabilities. |
| March 2019 | aiWARE 2.0 is released, enhancing the AI operating system. |
| May 2020 | The U.S. Department of Justice signs a contract with Veritone for AI-enabled transcription and translation. |
| July 2021 | aiWARE 3.0 is launched with improved app support and performance. |
| 2021 | Veritone acquires PandoLogic for $150 million, boosting its HR tech offerings. |
| February 2023 | Veritone Generative AI is deployed on aiWARE, supporting large language models. |
| May 2023 | Veritone closes the acquisition of Broadbean for $52 million. |
| July 9, 2023 | Veritone divests its Energy division to GridBeyond. |
| 2024 | Veritone launches Veritone Data Refinery (VDR) and Intelligent Digital Evidence Management System (iDEMS). |
| October 17, 2024 | Veritone divests its media agency, Veritone One, for up to $104 million to focus on enterprise AI. |
| June 24, 2025 | Veritone secures a sole source contract with the U.S. Air Force Office of Special Investigations. |
| June 2025 | The company initiates cost reduction and restructuring initiatives, aiming for up to $10.0 million in annualized savings. |
| August 7, 2025 | Veritone reports its Q2 2025 financial results. |
Strategic Focus on AI Software Expansion
Veritone is prioritizing the growth of its AI software solutions, with a particular emphasis on the public sector and its Veritone Data Refinery (VDR) offering. The company's public sector pipeline saw significant expansion, growing from $110 million in Q1 2025 to $189 million in Q2 2025.
Partnerships and Financial Projections for 2025
The company anticipates forming formalized partnerships with all major hyperscalers by the end of 2025. For the full year 2025, Veritone projects revenue between $108 million and $115 million, a 20% increase at the midpoint from fiscal 2024's $92.6 million. The non-GAAP net loss is expected to decrease by 33% to a range of $25.0 million to $30.0 million.
Path to Profitability and Growth Forecasts
Veritone aims to achieve profitability in the second half of 2026. The company forecasts robust earnings growth of 46.8% per annum and revenue growth of 18% per annum, reflecting its forward-looking strategy to leverage AI for efficiency and potential. Understanding the Target Market of Veritone is key to appreciating this growth trajectory.
Operational Efficiency and Future Vision
In June 2025, Veritone initiated cost reduction and restructuring efforts projected to yield up to $10.0 million in annualized savings. This aligns with the company's founding vision of empowering people and organizations through AI, driving efficiency and unlocking potential in a data-centric world.
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