Veritone, Inc. (VERI) Earnings Call Transcript & Summary

All right. Good afternoon, everybody. Mike Latimore here with Northland Capital. Thanks for joining. We have the management team from Veritone today. Ryan Steelberg, the President; Michael Zemetra, CFO; and Brian Alger, SVP and IR, Capital Markets. So thanks for joining, guys.

Thank you for having us.

So a lot of big news this year. So I thought it was worth hosting a call here to kind of catch up on things, especially since the big acquisition just closed, I think there'll be some interesting topics to discuss today. So I guess one of the -- just starting with some high-level topics, I mean, you've sort of changed the name or how you describe the company recently. I mean I think you're now referring to it as an enterprise AI platform as opposed to kind of OS for AI. So maybe we just want to touch a little bit on that change of the descriptor there?

Yes. Well, I think we're not shying away from, I mean, the OS. So the technology platform, aiWARE, is -- and the tagline is, it's an OS for AI, so to be clear. And so that's something that we're still building its proprietary product solution. We are a product company first, but the enterprise side is applying that technology stack to, let's say, more larger, diverse problem sets, is really what we're focused on when we talk about a migration into enterprise AI. I think the history is interesting is we -- both from our grounds in sort of the early days of Veritone, we've had, up to this point, been almost exclusively product, right? And software-based, right? We build -- we build hard and narrow applications, and we've been very successful of selling those applications. All of those applications have been and continue to be built and sort of optimized on our own operating system, aiWARE. But frankly, we were, I think, missing the mark a little bit in terms of communication with larger customers, even our own customers that didn't realize that we could do a lot of other things, right? We're not just an application product company but the platform that we have built, aiWARE, which obviously has greatly improved in terms of efficiency and scale and functionality. And if you add on our low-code platform, Automate Studio on top of that, frankly, we're well equipped to compete for really any complex digital transformation project that requires advanced AI machine learning. So I think what you're seeing here is a progression, not a change of direction, where, we, again, are still going to embrace and continue to nurture and grow our application business, but the approach and movement into enterprise AI is we -- by the way, which we're doing a bunch of business already in that category is we just need to formally introduce it that Veritone is in that business, that we can adequately and confidently support and help build and deploy very complex larger solutions built on our stack.

Okay. Got it. So then, I guess, maybe another high-level topic is just how would you describe the health of Veritone's business in general? And also sort of how is the competitive landscape changing?

Well, I think, I mean, the numbers speak for itself. I think that we've been doing a great job continuing to stay focused of growing the business at a pretty good clip organically. I think we've done a fantastic job of maintaining that growth, while also being very disciplined on our expense line. As you can see, quarter-over-quarter, we continue to improve. So I think -- organically, I think our strategy has been sound, san, obviously, I'd say, with the improvement of communication and narrative, which we just described with enterprise AI, but I think the core business fundamentals and the core business strategy and the TAM, the respective TAMs that we are going after and servicing in our respective markets are all strong. I don't really see a weak point in anywhere of our organic business. Now that being said, we do, again, feel that we have a lot of IP and a lot of leverage from aiWARE. And so as we've been communicating, and obviously evident by our recent close of the Pando acquisition, it's another significant area of growth that we want to continue to focus on and maintain a somewhat consistent disciplined cadence, is inorganic growth through intelligent and strategic acquisitions as well. So I think organically, we're kind of hitting on all cylinders with a strong pipeline, strong demand. And we do have, I think, thanks under Mike and Brian's leadership, and we've really built out our muscle tissue and capacity in the CorpDev department. So we can, I'd say, look at more and more attractive targets that we believe are strategic, not just to from us -- from a business perspective, but strategic for integration with aiWARE to take advantage of our competitive advantages.

Got it. Got it. Okay. Great. So then you talked about this kind of enterprise AI. How would you sort of view that -- sort of how would you view the similarities or differences between what that offers and what, say, a C3.ai or Palantir has?

Yes. Well, again, I think it starts with where those companies started from, right? So as we discussed earlier, we started from, let's say, the product software side of the equation, right? With no service element, right? I'll say, consulting or Proserve, however you want to define that. And we've done a very good job at that. But as we've progressed and probably driven most from the demand and needs in some of our GLC initiatives, government, legal and compliance, specifically Fed, that software at times has not been enough, right? Some of these projects are very complex that they require a human element, right, to assist in the transformation, right, of these initiatives to use right, a data-driven model with AI machine learning. So that's something that we have not had the ability to go service like a C3, like in Palantir. So for example, if they're doing a large project where they have to -- the need is you can't invoke machine learning AI if you don't have quality structured data. Fair enough? And so -- and part of this is they need to transform or digitize elements of their business or just access different data silos and aggregate them. So then in turn, you can actually apply the AI machine learning to advance the project, right? And so those are the things that we have not -- historically, we've pushed off to partners. But some of the problems is, these problems are so complex that it's hard enough us working directly with an end customer, but when you're forced to go through a middle tier, right, a third-party partner, a channel partner, let's say, who may have government clearance, we've just been leaving, I think, a lot of opportunity in revenue on the table that our competitors have been able to go after. So we look at it is, we're in a very advantageous position because we know how to build and scale -- hard and scalable product solutions and applications. And now we're confident that we will be able to take that expertise and that competitive advantage to help us accelerate our growth into the enterprise AI, which is more akin to some of the business opportunities that C3 and Palantir and others go after.

Yes. Okay. Got it. Good. Well, just shifting over to PandoLogic then. So the deal closed on Tuesday, I guess, was that on time as expected?

I think it was in the range of when we were hoping to. I think Mike and team did a very good job. And so I think, when it closed, it was smack-dab in the middle of September. So therefore, I think we sort of checked the box that we were going to get this done before the end of the quarter. So again, really hats off to Mike and the CorpDev team and our legal team that really busted hard over the last several weeks to get this done. And you never know when you kind of get the blessing from the registrar from the Israeli government, but that finally came through. And so we're very pleased with how it closed, and just the entire process. I think just as you know, it's in -- when you're looking to maintain the entire staff, how you close the deal, how you work through the deal in terms of building that relationship and trust is critical, right? And since we do intend to integrate more with Pando over the next few quarters, we want to make sure that we are viewed and all of our employees are viewed as part of one common and aligned company and not a holding company where this is just a fraction -- a faction group that's doing a new product line. So I think, not only do we get it done on time, but I think how we did it effectively in a collaborative fashion with the management of Pando, I think will pay great dividends and help accelerate our integration goals.

Yes. So maybe just remind us of what PandoLogic is exactly and maybe how big, profitable it is and then maybe the terms of the deal as well, just as a reminder?

Yes. Well, I'll -- I will detail what they do and how they do it, and then I'll turn it over to maybe Mike, and he can walk through some of the financial metrics. So PandoLogic has been in the HR recruiting space for years. And they've gone through a couple of different iterations going from a more manual human-based initiatives, going back 10-plus years to now what they are is have built a very effective market-leading, programmatic, AI-driven recruiting platform for historically large volume employers. So meaning their software, as a SaaS-based solution, makes it easy for large groups like an Amazon to consolidate a lot of their hiring efforts and job post list management efforts onto a common infrastructure and be able to scale that very effectively with great real-time visibility and transparency of exactly how much are they spending to acquire the right candidate in the right market, right? In the right period of time? And so they've created a very interesting tool set. We were obviously very interested in the business when we sort of -- when it was presented to us, simply because, I think, it fits perfectly into our vision of how can we slowly improve upon the human effort, right, in terms of recruiting a formation using AI machine learning to make a business process much more efficient, which is what we do in almost every single one of our other lines of business at Veritone. And -- but just, I think a higher level is what they're doing is really impactful to our society, right? I mean we have a major issue in this country today where we have 11 million open job roles, right? It's the highest in history right now. We are collectively struggling, right, to find right candidates to fill these positions. So -- and I think -- and Pando is front and center, working with the largest employers in the country to help automate that effort to find the right candidates and get them over the wall and hire cost effectively, efficiently and at scale, which I think they do a great job of. Mike, why don't you go over a little bit of the financial make up in the pro forma a little bit?

Sure, no problem. Yes. On a pro forma basis, and we're talking December 31, 2021, PandoLogic will do over $50 million of revenue. That represents approximately 60% increase in our pro forma revenue base. And then on -- from a gross margin perspective, they're plus 90%. And then on an operating basis, they're a little over 50% in terms of operating contribution. So on a combined basis, pro forma, they take us upwards to, we'll call it, $130 million plus of combined pro forma revenue and GAAP actually profitability on an EBITDA basis of a little over $10 million.

Got it. And you're paying about $150 million for it. One of the questions I get asked is why did they sell for 3x revenue? Yes and maybe that implies growth is going to slow, something like that. But like what -- this is more a question maybe for PandoLogic, but why do you think you were able to get them for such an attractive valuation?

Yes. I mean, there's different ways. I mean they've been doing this for a long time so not until recently, did they start to see that big uptick in terms of their revenue performance, right? So this programmatic ecosystem and framework is newer to their long-term history. So I think they had some visibility in looking at us and what we could help them do with their own platform, their technology stack with our expertise and backgrounds. They were bullish on what we could do together. And I think they, obviously, have looked at where kind of our stock price has been trading for a while. We obviously have been maintaining the position that we're grossly undervalued. And so they kind of looked at the combination is, this could be very accretive -- even if we just took the middle of the road benchmark against comps of what we should be trading at, I think that they felt that this was not just about trying to get an exit because a fund wanted to divest of an asset, but they, I think, generally looked at what the combined opportunity would be in terms of growth, and they viewed Veritone as one of very few companies that had the potential mindset and strategy to show a clear path of significantly growing the company in a combined nature and subsequently driving significantly higher stock price. So you may look at it as a short-term attractive deal for us, or maybe not as attractive a deal for them. But again, both parties are looking at this as the mid- to long term, and we're obviously very bullish of where our stock price has the potential upgoing.

And, Ryan, you touched on this a little bit earlier when you described what PandoLogic does, but can you just describe the logic of the acquisition a little bit more? I think, at sort of a high level, people see recruiting application and other than Veritone has some government customers doing image analysis and so forth, or in the legal vertical. And maybe just talk about the logic behind the combination.

Yes. Well, again, we don't want to be pegged into any vertical, right? So obviously, based upon where we started, media and entertainment has -- was the initial focus. And then the opportunity for government legal compliance work kind of presented itself. And I'd say, from a proactive perspective, an outbound sales and BizDev perspective, we pushed into those fields. But to be clear, anybody who has structured, unstructured data that are looking to activate and leverage and turn that into valuable solutions, whether that's improving efficiencies, driving revenues, we can accommodate all those. Candidly, it's one of the reasons why we need to be more definitive and clear that we're an enterprise AI shop, right? We are not limited to just any specific verticals. Now that being said, Pando was very appealing to us because what -- the nature of their business is really applicable to any enterprise, right? Both from a commercial perspective and a regulated industry perspective. Every company can use PandoLogic's services, right? So it greatly increases the profile and the type of customers that we can start to market to. And they -- I think that they already have a nice portfolio of large customers already that we can immediately tap into and try to expand. So I think market expansion, us being able to introduce all things Veritone and aiWARE to a broader and diverse pool of commercial and regulated companies was very interesting to us. Second is, it's -- the hiring aspect is, I mean, for any company, is one of their most critical functions, right? You can look at all the different attributes of my business. But if I don't have a great understanding of where my people are coming from, right? And managing the human capital part of the equation for any business, so it's -- we are at the highest echelon at any corporation of what their CEOs and management teams are looking at is what are the important factors, input functions to my business for us to continue to exceed. Human capital is right there at the very, very top. And so this puts Veritone in, again, a very advantageous position to have a discussion and a seat at the most senior level of these corporations for us to sort of build and grow and extend upon. So market expansion, but also just, again, the profile and importance of the HR and recruiting aspects for every business really puts Veritone front and center with almost every single company.

Yes, makes sense. Great. And then shifting over to the federal government sector for a little bit here. You were awarded a FedRAMP authorization a while back. And just wondering how that business is developing?

So we are very bullish on that business. Speaking a little bit to the ATO and, hopefully, we'll be able to communicate additional news around the ATO authorization to operate here over the next several weeks. But that initial ATO, although we have a great sponsor in the Department of Justice, that ATO was pretty much limited to the state attorney's offices, right? So I'd say one division -- a decent size, but one division out of like 80-plus of every -- all things Department of Justice. So we've been working for a while. We don't have the cat out of the bag, and we're hopeful we'll be able to put some press out of this, again, in the next several weeks is an expansion -- the aspirations to announce the expansion of that which will be, say, at a minimum, all DOJ wide. So in effect, now we will be compliant to service, right? Any group within the Department of Justice. So for example, we've been in discussions with different groups like the Bureau of Prisons in a lot of areas that are very applicable -- the FBI, very applicable to what products and solutions we can bring to bear, but again, our ATO didn't satisfy that because it was limited to the state attorney's office. So that's one. We have pent-up demand, and we have, as I just mentioned, a couple of names, that we do believe, when we get our expanded ATO, that should translate over the next few quarters to a significantly larger TAM opportunity, at least as it relates to the Department of Justice, right? So we're very excited about that. And I think our activity across the board, where we're not just a subcontractor, but a prime in certain instances continues to accelerate. So our deal flow continues, and sort of the frequency of our deal flow continues to improve in the Fed space. So we're thrilled. We're doing some really interesting, amazing and impactful things, right, for the federal government today as it relates to satellite imagery analysis. Obviously working in the Department of Justice on some very critical, very high-profile cases. So we're very proud of what we're doing, and I think that's also going to translate into a very large business for us. On the state and local law enforcement side, I really think we've nailed it with a product market fit for our portfolio of applications, servicing state and local enforcement, and that is specifically Redact, Identify and Illuminate, which are the 3 applications built on aiWARE that we're actively selling to state and local law enforcements. Our newest product Contact, which is really based upon the RIPA laws, so in effect, the obligations that most states are going to be needing to adhere to, where they have to log and document from a racial analysis or ethnic analysis on every time they stop somebody, right? And whether it's a traffic -- traffic stop or called out to somebody's home, it's a mandate now, right? We need to have transparency of the details of that, right? What are the races and ethnic backgrounds of these individuals and stuff like that. Contact is, again, our solutions built on aiWARE that helps greatly automate that program. I can say now that we have thousands of sworn officers already signed to as it relates to through different agencies that are now under contract for Contact, and as well as the rest of our portfolio of applications. So we love that business. It's -- those products are very clean for rents and repeat selling. So they're very easy to consume. They're priced -- they're priced competitively. And I think the more -- I think -- and, thankfully, I think we're ahead of the curve that the laws are providing more tailwinds for us to drive continued adoption of those products where we are a cost-effective, next-generation AI-based solution that is helping these government-mandated initiatives, right, happen very cost effectively and efficiently. So pretty bullish on all things Fed and public safety related.

Okay. Got it. And then I'd just shift to content licensing a little bit here. On Monday, you had this announcement, I think it was with the RECUR regarding tokens and the Pac-12, it sounded interesting. But how is this different from kind of what you already view at the Pac-12?

What's different is, and this goes back to, once you get a client's content ingested into aiWARE, and we've, in effect, created that data lake for them, and then we've applied cognition to it, so we've created -- expanded upon that data lake by adding structured metadata around it. It really is just -- I mean that's like the base level, right? And then all -- and what we've done historically is we've used that intelligent index to make it easier for Veritone and the end customers of like Pac-12 content, CBS News, the Masters Golf Tournament, we've made it easier and more cost-effective and programmatic to license content, right? Because we've indexed it, and we've put it up, we hosted it and made it readily available in aiWARE. NFTs and what we're doing with NIL, name and likeness, activations for student athletes, these are all very easy derivatives, right? That are so easy to activate. Because, again, we've already done all the hard work, right? We've already ingested all data, we've already indexed it, and we already have the infrastructure for distribution, right? And so NFTs, frankly, is -- for us, is nothing more than working with our content partners like a Pac-12, making them understand that all of their content now can be readily turned into, right, NFTs, right, for distribution into if they so choose to do a deal with a RECUR in one platform or a DraftKings in another platform, right? And there's probably 7 or 8 of crypto NFT marketplaces that we've kind of gotten involved in and that we have great understanding with. So we just make it very easy and efficient for our content partners to take advantage of these new revenue and distribution opportunities. And NFT is just happens to be, I would say, the flavor of the month. And I think it will be a material revenue driver for a lot of our content partners here over the next several years.

Yes. Good. So are there any other conferences or sports leagues that we're having similar conversations so you've [indiscernible]?

We are. We're in discussions with all of our active clients that -- and we've been representing the Big12 -- I'm sorry, the Big10 for years in other conferences. So we're in discussions with both our existing conferences and conferences that we don't actually work with today about the differentiation of what we can do, right, by them coming over to aiWARE and coming over to Veritone, what are all the new innovative things that we can do together, and NFTs and NIO activation are just a few of them. MARVEL.ai or synthetic voice content is a whole another initiative on top of that, right? Where we're working with both our existing content partners and others where they have -- another way of looking at the content we have is it's training data, right? I can build based upon the data that we've already ingested and indexed, obviously, with approval of the talent, I have all the training I need to create these synthetic voices, right? And the synthetic content, again, to drive more distribution and adoption of their contents. So I think we are well positioned to really go after all these new derivatives -- applications of content.

So how should we think about the size of the opportunity back on the NFT and college sports in that category? I mean is there a way to kind of size the opportunity?

I mean we're writing the book ourselves. So it's -- yes, it's -- I mean I'd put it into nontraditional revenue buckets right now, right? That, again, will be meaningful when it becomes a major percentage of the revenue of like a CBS News in terms of licensing that will be -- to be determined. I think the good news is the efficiency of generating that next nontraditional revenue dollar through these initiatives, whether it's MARVEL, NFTs, the expense structure is so incredibly low since, again, all the hard work has already been done, right? So I mean it's almost all -- these new dollars almost drop immediately to the bottom line because very little work has to be done, right? Again, we've already done the ingestion. We've already done all the indexing, right? And now it's just simply packaging in terms of packaging and distribution. And so again, any dollar there is just -- is great high-margin revenues, both for us and for our partner customers.

Great. And then I guess there was an -- USA TODAY article, September 1. It seemed to indicate Veritone, you were pretty active in the name and likeness conversation with college sports, and you kind of referenced that a little bit here. But I mean how do you see this evolving? And what is Veritone's role there specifically?

So in the [indiscernible], we, today, are purely focused on again, activating the content that we represent, right? So we are not building a marketplace to help facilitate student athlete transactions. So we are sort of staying in line with the assets that we are already working with, which is the content. So the Pac-12 network content, for example, very similar to how we've been licensing and distributing that footage to commercial enterprises and editorial shops for years, we're now -- thankfully, that the Pac-12 and, hopefully, other conferences have acquiesced to is that we are now enabling student athletes to use that footage as part of their name and likeness campaigns, meaning the Reggie Bush footage of Fresno State back in the day, right? That -- if you wanted to activate a student athlete, it would have to be without any footage, right? About the athlete, right? About watching that player in the field. And frankly, that's how we know who these players are anyway, right? Is primarily from what they've done on the field and what has been broadcast of them on television. So what is so novel about this is these groups got together and made it accessible. So an active student athlete can -- or a retired one, can use real game footage as part of a name and likeness opportunity for them, right, which has never been done before. So anyway, we're -- I'd like to put this back in that same category as this is very low-hanging fruit, very efficient new revenue generation for us and our partners. Again, since we're really not doing that much, it's just a new business application of the content and the index that we already have.

Yes. Got it. Great. And then on MARVEL.ai, I guess, you announced this mythical entertainment agreement a couple of weeks ago. Maybe walk us through that use case, and then how do you guys make money from that?

Sure. So MARVEL -- the big demand for MARVEL we're seeing right now fall into 2 main buckets or so I would say, elements of value that we're bringing to the equation. One is bringing improved efficiency and scalability in productions. So for example, I'm proud to state that some of the recent drafting ads that recently aired on sort of national podcast and radio were synthetic, right? Powered by MARVEL. So getting voice over talent, and particularly if that talent is a celebrity, right? A major big host or like somebody a famous actor or actress, it is incredibly time-consuming and expensive to try to get that talent back into the studio to cut spots, to produce commercials. So step one is just making that process more -- significantly more efficient. Once I build a synthetic clone voice of the voices and the talent, with their approval, of course, we don't do -- we're not in the deep fake business. We're on the iTunes, the approved side of the equation. But once you have that voice, we then can create hundreds of derivatives of these produced spots. So it's very efficient, not only to quickly iterate new copy, but we can also then localize it and regionalize it very cost effectively. So for example, if that same advertisement is voiced in Toledo as compared to L.A., I don't need to get the talent back into the studio to recut copy, okay? That's a big one. Localization of content is a pretty good-sized business. It's a $54 billion industry worldwide. This is taking all forms of content and translating them, right? And putting them into the right context, so that movie, that podcast can be distributed internationally and consumed by foreign language customers. That's another key area of MARVEL impact that we're helping greatly automate that localization, right? I programmatically can take a single U.S.-based English podcast, translate it and immediately convert it into 38 different languages, right? Immediately overnight. So very little, like almost 100% programmatic using MARVEL and our own AI. So that's another example of the category that is bringing new efficiency and distribution to the localization market. And then there's just a lot of really fun, innovative things like people are just -- new content generation. We're working with a lot of animated production studios that are looking to, again, drive their creative vision and not be beholden into a voice-over actor, right? So whatever they think about, whatever they want their actors, I mean, their characters, their animated characters to say and talk about, they can do that on a fully programmatic basis now without actually having a human do the voiceover. So it kind of ranges the gamut from what we say is what helps pay the bills in the short term and where the immediate dollars are is bringing efficiency to the production side, which is material to, I'd say, the art of the possible for some, I'd say, new content derivatives such as taking animated film opportunities to a whole new level using programmatic synthetic voice.

And is this a usage-based revenue model? Or is this annual subscription or mixed?

It's mixed. We do have to charge for an upfront cost to actually build the voices. So I'll say there's an upfront project-based revenues from us charging our end customers monies to build a voice. And then there's a SaaS agreement because we have to host and manage the voice models over time, right? And so that's part 2 of the equation for how we structure a deal for MARVEL. And part 3 is the volume, which you touched on. So there's really 3 components that go into really almost every deal is, are we building custom voices from scratch, how long that's going to take and there's a dollar amount associated with that, to an annual license on us hosting and managing the models on a pure SaaS side. And then on top of that SaaS, the variable component is the consumption side.

Got it. Okay. Great. Earlier on, you talked about the organic business sort of being strong. Is there 1 or 2 areas within that organic business that's particularly strong?

No, not so much even in the last quarter. I mean, M&E has -- was really strong in the last few quarters. So I think it's pretty diversified this. So I think it's been a contribution from really every [indiscernible], and we didn't touch on energy, but I think energy, over the next couple of quarters, is going to be pretty meaningful for us. I'm optimistic about that. We did disclose that we are in production and deployed software and production at our major utility customer. That has been running now for a few weeks in full production and on a fully automated basis now for their solar arrays and the performance is great. So we're really excited about what we are expecting the software to predict and help forecast to what is actually happening in full production. So we are optimistic that we will be able to start to talk about that with in great detail here, again, over the next several weeks or a few -- or at least the next couple of quarters. But most importantly is, it works, it's differentiated, and we have a lot of IP around it. So we're very excited about our prospects for the energy market.

So if that data is good, which just sounds like it will be, what's the next step? Do they expand the use of the software to that revenue to you guys? Or is it -- were you able to [indiscernible] your other customers? Or what's the next step?

Well, yes, I mean there's same-store growth with these existing customers because, again, the way we kind of price our models is we look at the number of, like, let's say, solar farms, we're obviously in discussions with leveraging the same technology or derivative of our technology for the battery optimization as well. So this is part 1. So it's scaling up significantly the penetration of what we're doing for this individual major utility. But again, obviously, then it allows us to -- and it's a small industry. Everybody knows if you're in the know, people talk to this customer of ours. So everybody is kind of waiting for us to be able to release the news. So there is significant growth opportunity within this existing customer. But then obviously, as you alluded to, is our ability to communicate the success metrics to help expedite our sales penetration to new logos and new micro grids and utilities.

Okay. Great. And then just PandoLogic is just so incredibly profitable. It seems like now, combined with Veritone, that Veritone overall should be profitable going forward. Is that fair to think about it that way?

It is -- but, again, to be clear, we are hyper focused on growth. I think, from a -- if you kind of compare us to our peers, I think we're by far the most fiscally sound company to some of the benchmarks and some of the names you mentioned. But again, we look at that as just providing us more flexibility to what we want to try to do in the future. As you know, and we've stated earlier is, we're going to be very, very focused on maintaining our high level of organic growth, but we want to be in a position to expedite that growth through inorganic acquisitions. Obviously, having a more fundamentally sound business, both top and bottom line, just gives us more options, a lot more options of how we want to potentially finance these opportunities in the future. We do expect and are hopeful that our stock will start to move here, that people just simply look at the raw data and see that we're grossly undervalued. But again, we -- let's be clear, we are all focused about growth. If we can do that in an efficient, cost-effective manner that maintains the bottom line, we will be thrilled. But again, I think our #1 priority is growth.

Got it. Awesome. Well, great. Well, thanks, guys. Thanks, Ryan. Thanks, Mike. Super helpful. Exciting acquisition, and it sounds like things are going really well.

Yes, it is. And again, back to -- this is another -- this will be our largest acquisition that we've made by a pretty material margin. We're -- I think, the people dynamic is probably the most exciting, right? We're going to be picking up a large contingency of new Veritonians, right, in Israel in Tel Aviv. They have over 40 people in product and engineering there. So building out that dominant hub for Veritone and expanding that, I think, just, again, opens up a lot of opportunity both organically and inorganically. And we're well away. I think we're going to start to be -- I think we'll be hitting the ground running here, and in some instances, we already have from cross-selling and co-marketing our solutions. So it's been all sort of green lights through the acquisition in close process to what we feel very confidently about is what post acquisition and integration looks like.

Yes. that's nice. All right. Super. Thanks, guys. Thanks for joining, everybody. Have a good afternoon.

Thank you, Mike. [indiscernible] today.

Take care.

Bye-bye.