Veritone (VERI) Stock Forecast & Price Target

Veritone Inc. is experiencing a robust upward trajectory in its revenue model, particularly with its Software as a Service (SaaS) segment, which has grown to represent 53.5% of total revenue as of the third quarter of 2023. Projections for 2026 indicate a revenue increase of 20.7% from 2025 levels, supported by anticipated substantial growth in public sector revenue, estimated to rise between 100% and 150%. Additionally, the company's gross margin is forecasted to reach 74.9% in 2026, marking a significant improvement and reflecting strong bookings activity and confidence in future earnings performance, which positions Veritone favorably in the market.

The financial outlook for Veritone Inc. appears negative, as the company is forecasting 2025 revenue of $111.6 million, a slight decrease from previous projections, and it falls within a declining trend of adjusted revenue that has decreased over the past two years. Additionally, the most recent quarterly revenue demonstrated a significant year-over-year decline of 21.4% alongside a concerning 17% drop in 4Q24 revenue, primarily attributed to a decrease in enterprise-based consumption revenue, particularly from Amazon. Furthermore, despite a reduction in operating expenses to $44.5 million, the company's gross margin has also declined, leading to a lower evaluation compared to high-quality peers, which could indicate challenges in maintaining competitive positioning within its market.