Veritone, Inc. Common Stock H.C. Wainwright 28th Annual Global Investment Conference

Can you hear me okay? Yeah. Great. That's better. All right.

Thank you very much. Good to be here. Ryan Steelberg, Chairman, CEO. The presentation I'm going to do today is I'm going to walk through. Actually, a little different. I'm going to go through some customer deep dive profiles. Talk a little bit over the business, and then at the end here, we'll give you some updates on our finance. Talk a little bit about reaffirming our guide, which we did from Q2. Obviously, we're sitting here in the middle of September, and if we got time again, answer a few questions. Thank you. Veritone, we started the business in 2014. After we left Google from an ad tech career for going back a few decades, we really saw the need for AI being applied to unstructured data.

Back then, we were primarily needing to understand what was inside audio and video at Google to try to frankly understand what's the best way for us to monetize audio and video assets for selling advertising space. But we saw and felt that there was something bigger around the horizon. In 2014, obviously, this is before the large language models came to market. This is the days of early transcription, bespoke AI-based models. But we had a vision, we had a passion that if we could create a solution called aiWARE, which is our core technology stack, if we could ingest petabytes and petabytes of audio video data, and we could index that with high degree of accuracy and precision, it could open up a tremendous amount of interesting use cases and monetization opportunities. That's where we started. The business, Veritone, which means a little play on the words truth in the signal, Veritas and tone.

We've been around now and servicing thousands of customers with our solutions, both in the U.S. and around the world. Our business really focuses on 2 main verticals, commercial, which is for us, commercial in a dominant position in media, entertainment, sports, and news, and more recently, public sector. That would be law enforcement agencies, the Department of Justice, the Department of Defense. I'm going to walk you through customer journeys on a couple of those type of customers who are using our technologies and solutions today. For us, from day 1, it's been all about data. Every single day we wake up and the amount of unstructured data that we are producing as a society continues to increase.

Whether it's us as citizens and individuals with our phones, whether it's municipalities with cameras all over the streets, citizen upload, body cameras, dash cams, we are producing a tremendous amount of unstructured data. Unstructured like audio and video is messy, meaning machines and other things can't readily understand it, let alone use it as a utility value, potential monetary value. We've set out on a mission, and we've been successful in solving that equation. Our solution is called aiWARE, and we've applied it now to thousands and thousands of customers, which I'm going to go through in detail. Our customers are some of the biggest brands you know. I'm going to walk you through them. I'm going to talk about, for example, the USTA just wrapped up. Groups like Disney, CBS News, again, the Department of Justice, the Home Office in the U.K.

Those are kind of the caliber of the customers that we sell to and service every single day. We like to say as our solutions are now mission-critical, they are not novel or optional. They are germane and instrumental to their normal and their consistent operations. I go back to what is our core technology stack. aiWARE is our stack. It is a full end-to-end software and data stack for AI. That includes data ingestion. That includes the orchestration and onboarding of bespoke and different AI models. We have our own models. We have on our platform, over 60 of our models are actually proprietary, trained, and tuned AI models that Veritone developed. We also have a complete application and API stack, which means we are not just processing data and delivering JSON data payloads back to our customers.

They're actually using the end applications that Veritone develops every single day. At any point, we have tens of thousands of active end users that use our end applications every single day around the world, and I'll walk you through a few examples. As I mentioned, 2 biggest areas of go-to-market for us are commercial, really defined for us as media, entertainment, sports, and news. Then I'm going to go later and talk about what we're doing in the government and public sector. In the commercials world, what we do for almost everybody is we help them understand what are their data assets, what are their data assets that they are trying to figure out how to better monetize or get better utility value from.

We help them build an instance of aiWARE, whether that's going to be run in their own tenant or we're hosted it in a tenant, a shared like a hotel or a tenant for them, and we help ingest all their data assets. We help orchestrate and tune models to understand those datasets, and then they license end applications from us that turns that into very discreet and tangible value. Again, that could be if you watch SportsCenter, for those who are sports fans, every night at the end of SportsCenter, you'll see Veritone in sort of the credits. We help ESPN and other sport organizations sift through petabytes and petabytes of audio and video every single month and help them understand what's the greatest highlights I can pull together in near real-time.

Can I create personalized clips that I can push out and distribute through social media in near real time? We are not just creating better search, but we're creating better utility for distribution and monetization for some of the largest media entertainment customers that you know. Movie studios, live sporting events, the Masters Golf Tournament, CBS News. The list goes on and on and on. Here's just a couple examples, and two customer client profiles. Obviously, we're in New York. We just wrapped up the US Open from the USTA. Veritone was there on a hybrid environment. Our solution, the full stack of AI, was both on-prem and readily available in the cloud for an instance of AWS deployed in AWS for the USTA. What do we do for them?

Every single camera, every voice that's recorded on a press interview, everything is ingested into aiWARE for the USTA. In near real time, we are indexing and preparing that content for immediate distribution, highlight generation, collaboration, and distribution. We're talking terabytes and terabytes of audio and video being processed and ingest in real time. This is more than just what you see that gets broadcast on CBS, for example. This is every single camera that's running 24 hours across the two-week event at the USTA. Veritone, we are both a technology solution for them as a SaaS customer, but we are also a licensing partner. We help them actually package and sell and license their footage from the US Open to thousands of buyers around the world. It's rare that you see deals that are multi-year.

This is actually a 5-plus year deal that we have with the USTA. One of many customers like this, where again, we're not just selling them technologies, we're actually showing them true ROI and helping them generate millions of dollars of net new dollars each year. The NCAA, another customer. Been a customer now for several years. Everything the NCAA produces and owns, whether that's the big conference events or March Madness that we've all seen, same thing. We help ingest, index, organize, package, and distribute all of the assets that the NCAA owns. We're also a licensing partner. They pay us subscription technology fees, and we help license that content to third parties.

If you ever see footage show up in a documentary, a movie, a commercial, Veritone is there helping them, again, not just prepare the content, leveraging AI and helping distribute it, we are helping them monetize it. What I just described for the USTA and NCAA, we have hundreds of customers around the world like that. Think of we are like a hybrid of next generation Getty Images. What Getty, as you know for imagery, Veritone, because of our technology, is like the Getty Images, but for video. Hundreds of customers around the world do that every day. We, right now, manage over almost 30 petabytes of audio and video for our active customers today. That is how we started. It is probably one of our largest, big business segments for the business today. Again, worldwide type of customers.

About several years ago, we were approached by DARPA from the U.S. government saying, "Hey, what you guys have done at Scale AI we have not seen before for sports media entertainment, can you do for the public sector?" That was the beginning of our journey. Still on aiWARE, the exact same technology stack, now has been brought into and is servicing state and local law enforcement, the Department of Defense, federal civ, like Department of Justice, and international governments like the Home Office in the U.K. What are we doing there? aiWARE today historically has been running in multitude of public clouds like AWS, Azure, Google. We have containerized and sort of re-architected the whole stack, and now we are completely Kubernetes based, containerized, and so the entire stack of aiWARE and all the applications now are in FedRAMP in both moderate level and soon to be high level.