Why Did Veritone Stock Fall 17% Today?

Veritone (VERI) stock became the third-most trending ticker on Stocktwits, and its shares fell nearly 17% in early trading after the company announced an equity offering of approximately 12.87 million shares of common stock at a purchase price of $5.83 per share.

Notably, despite the slide, the stock was still trading at $6.98 at the time of writing. The aggregate gross proceeds from the offering are expected to be about $75 million, before deducting offering expenses payable by the company. 

Veritone said that it intends to use the net proceeds from the offering, together with its existing cash and cash equivalents, for working capital and general corporate purposes. The company said this could also include capital expenditures, debt service, and repayment of indebtedness.

Retail sentiment on Veritone remained unchanged in the ‘extremely bullish’ territory compared to a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

On Tuesday, the company announced that it has secured major contract wins to deploy its Veritone Data Refinery (VDR) product offering. The firm also reported preliminary third-quarter results and said it expects revenue of $28.5 million to $28.7 million, compared with the prior forecast of $28 million to $30 million.

Veritone also said it is now estimating an adjusted loss of $5.5 million to $6 million, compared to its initial expectation of an adjusted loss of $6.5 million to $6 million.

Shares of Veritone have gained over 121% this year and have jumped 74.5% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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