Veritone retreats after $75 mln direct stock sale

Veritone

16/10/2025 15:12

** Shares of AI software co Veritone VERI.O down 20.8% at $6.65 early Thurs after $75 mln equity raise

** Irvine, California-based Veritone says it agreed to sell ~12.9 mln shares at $5.83 in registered direct offering

** VERI shares on Weds jumped 54% and to close at $8.39 after co late Tues announced contract wins with "leading hyperscalers" and forecasted lower-than-expected Q3 non-GAAP loss of $5.5-$6.0 mln vs prior outlook of $6.0-$6.5 mln

** Co plans to use net offering proceeds for working capital and general purposes, including capex, debt repayment

** It has ~70.1 mln shares outstanding after nearly $29 mln equity raise, including full exercise of over-allotment option, about a month ago in public offering priced at $2.63, per the prospectus

** Needham acted as sole placement agent for the latest direct offering

** With decline on the session, shares have roughly tripled over the past three months

** 3 of 4 analysts covering the stock rate it "strong buy" or "buy", 1 rates "hold"; median PT is $6, LSEG data reflects

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))