Veritone (VERI, Financial) just drew a clearer line to profitability—aiming to save up to $10 million a year through cuts and still keeping its AI pipeline humming.
On Thursday, the California AI shop said it'll take a small one-time hit—around $500K–$700K—for severance and transition costs as it trims unnecessary projects and headcount. In exchange, they expect to shave roughly $10 million off annual expenses.
For Q2, they're calling for about $23.5–$24 million in revenue (right in line with the Street's ~$23.6 million estimate) and a slightly smaller adjusted loss of $8–$8.5 million. Meanwhile, their Veritone Data Refinery tool has seen its sales pipeline swell by over 50% since May—proof that customers still want its AI data services.
Burning cash is par for the course in AI, so a real path to break-even can be a game-changer. By cutting the fat and leaning into a hot AI product, Veritone is betting it can turn the corner by late 2026.
Investors will be watching closely: if those savings don't materialize or the pipeline fizzles, the profit target could slip.
The stock already popped about 5% in pre-market on the news.
