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Innodata vs. Veritone: Which AI Services Stock Has More Upside in 2025?
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Key Takeaways
Innodata's Q2 revenue rose 79% YoY, with 2025 growth guidance raised to at least 45%.
Veritone's core AI software revenue grew more than 45%, driven by SaaS and public sector momentum.
INOD is profitable with $59.8M cash; VERI is cutting losses and sees profitability by late 2026.
Innodata (INOD - Free Report) and Veritone (VERI - Free Report) are both focused on the red-hot field of AI data services, helping companies build and deploy artificial intelligence solutions. Innodata is a 35-year-old data engineering firm that provides high-quality training data and AI model support for tech and enterprise clients. Veritone is a provider of enterprise AI software platforms, known for its aiWARE operating system for AI, and develops applications for media, government, and other sectors. Both companies have been riding the current AI boom, winning new projects as businesses invest heavily in AI development.
Why consider Innodata and Veritone now? So far this year, both companies have released significant news and financial results that could shape their futures. Innodata just posted explosive revenue growth and turned profitable, whereas Veritone is in the midst of a strategic turnaround, securing big contracts and narrowing its losses.
Despite their shared focus on AI services, Innodata and Veritone differ in scale, strategy, and financial performance. Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for Innodata Stock
Innodata has emerged as a major beneficiary of the generative AI wave. The company specializes in preparing and annotating the complex datasets that large AI models require. This is evident from its second-quarter 2025 revenues that soared 79% year over year to $58.4 million. This performance reflects not only strong execution but also accelerating demand. Management raised full-year 2025 organic revenue growth guidance to 45% or more, up from 40%, citing significant new deals and an expanding pipeline. Innodata has been winning marquee customers, including multiple “big tech” firms racing to scale generative AI models. For example, it forecasts $10 million of revenue in the second half of 2025 from a single large tech customer—compared to just $200,000 over the trailing 12 months.
Strategically, Innodata is aligning itself with the “agentic AI” era, where autonomous systems will require vast amounts of simulation and evaluation data. Management believes its services will be critical to testing, diagnosing, and improving AI models at scale. Importantly, Innodata’s profitability sets it apart from many AI peers.
That said, heavy reinvestment in talent and capabilities could temper near-term earnings expansion. Innodata’s biggest hurdle remains concentration risk, as its heavy dependence on a few large clients could pose challenges if budgets shift or projects move in-house. Even so, the company’s solid pipeline, $59.8 million cash balance, and untapped credit facility provide ample financial flexibility to sustain aggressive growth. Beyond capturing the current generative AI momentum, Innodata is strategically positioning itself in frontier areas like agentic AI and robotics—signaling that it aims to ride not just today’s wave, but also the next phases of innovation in artificial intelligence.
The Case for Veritone Stock
Veritone is in the midst of a turnaround, reshaping itself into a pure-play AI software company. After divesting its non-AI media business in late 2024, the firm now generates revenues from AI products and services. In the second quarter of 2025, total revenues held steady at $24 million, but the mix tells the story—software and SaaS sales rose 12% to $17.5 million, while legacy services declined as expected. Stripping out the sluggish Veritone Hire unit, core AI software revenues surged more than 45% year over year, signaling a return to solid organic growth. Management highlighted that momentum is being driven by expanding SaaS adoption in both commercial and public sector markets.
Veritone’s growth outlook is strengthening on multiple fronts. Public sector demand is surging, with second-quarter revenue from government clients nearly doubling, boosted by a sole-source U.S. Air Force contract. Its pipeline of potential government deals has grown to $189 million, highlighting long-term opportunities. At the same time, the new Veritone Data Refinery is gaining traction, with a $20 million near-term pipeline and adoption by hyperscalers, positioning Veritone as a key AI data provider.
Financial visibility is also improving. Annual recurring revenue or ARR reached $62.6 million, 81% of its subscription-based revenue, while cost cuts and a $10 million capital raise are narrowing losses. The second-quarter non-GAAP loss improved to $8.7 million, and third-quarter guidance calls for smaller losses with revenue growth of about 30%. For 2025, management expects $108–115 million in revenues, up roughly 20% year over year, with profitability targeted by late 2026.
Veritone still faces notable risks. Losses remain steep, with a negative $25 million operating cash flow in the first half of 2025 and only $14 million in cash at the second-quarter end (before its $9–$10 million raise). Debt, including 2026 convertible notes, adds pressure, and refinancing will depend on execution. Competition is intense, from Palantir (PLTR - Free Report) to niche AI players, and converting its $189 million pipeline—particularly long-cycle government contracts—carries uncertainty. Legacy units like VeriAds and Veritone Hire continue to drag, while customer concentration heightens vulnerability.
Share Price Performance of INOD and VERI Stocks
Innodata stock is trading around $41.10 per share (as of Sept. 4), showing an improvement of about 12.1% on the latest trading day. Its 52-week price is between $13.02 and $71.00, indicating that it is trading below its recent highs but well above its low for the year.
Veritone stock is currently priced around $2.76. Its 52-week high is $5.635, and the 52-week low is $1.22. This means the current price is significantly below its 52-week high by about 51% and above its 52-week low by roughly 126% as of September 2025.
Over the past three months, VERI stock has skyrocketed by approximately 84%, significantly outperforming INOD’s performance, which declined 19.8% during the same time frame.
3-Month Share Price Performance
Image Source: Zacks Investment Research
Valuation of INOD & VERI Stocks
At a $1.3 billion market cap, Innodata’s forward 12-month price/sales (P/S) ratio is 4.64 – a rich multiple compared to traditional IT services firms, reflecting its higher growth but also implying high expectations. As a smaller company, Innodata must execute flawlessly to justify its valuation; it is aggressively investing in new capabilities that may pressure near-term margins.
With a market cap near $152.6 million, Veritone stock’s forward 12-month P/S ratio is 1.23, much lower than INOD’s.
INOD Vs VERI Valuation
Image Source: Zacks Investment Research
INOD & VERI Estimate Revision Trend
For INOD, the Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased over the past 60 days to 74 cents, as you can see below, depicting analysts’ optimism. However, the estimated figure indicates a 16.9% decline from the year-ago reported EPS of 89 cents.
The Zacks Consensus Estimate for 2025 revenues implies year-over-year growth of 42.8%.
For INOD Stock
Image Source: Zacks Investment Research
For VERI stock, analysts are growing increasingly optimistic about its earnings potential. Over the past 30 days, the Zacks Consensus Estimate for VERI’s 2025 loss per share has narrowed to 55 cents per share from 58 cents, reflecting a positive shift in sentiment. The estimated figure depicts a narrower loss for 2025 compared to the 2024 level of 80 cents per share, as shown below.
The Zacks Consensus Estimate for 2025 revenues implies year-over-year growth of 1.1%.
For VERI Stock
Image Source: Zacks Investment Research
Conclusion
Both Innodata and Veritone are riding powerful AI adoption waves, but they appeal to investors in different ways. Innodata is delivering explosive growth and profitability today, backed by marquee customer wins and strengthened guidance. However, its higher valuation and reinvestment strategy could moderate near-term returns. Veritone, by contrast, is still loss-making but has demonstrated accelerating momentum in its core AI software businesses, a growing government pipeline and an improving cost structure that could drive significant operating leverage in the coming years.
Between the two, Veritone — a Zacks Rank #2 (Buy) stock — likely has more upside in 2025 due to its combination of low valuation, accelerating revenue growth, and improving outlook. Its shares could appreciate significantly if the company executes on new deals. The market has already rewarded Innodata’s achievements with a hefty valuation, which could limit further short-term upside unless the company delivers even bigger beats and accelerates its earnings. Innodata — a Zacks Rank #3 (Hold) company — remains a terrific growth company, but much of that optimism may be “priced in” after its huge run. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Innodata vs. Veritone: Which AI Services Stock Has More Upside in 2025?
Key Takeaways
Innodata (INOD - Free Report) and Veritone (VERI - Free Report) are both focused on the red-hot field of AI data services, helping companies build and deploy artificial intelligence solutions. Innodata is a 35-year-old data engineering firm that provides high-quality training data and AI model support for tech and enterprise clients. Veritone is a provider of enterprise AI software platforms, known for its aiWARE operating system for AI, and develops applications for media, government, and other sectors. Both companies have been riding the current AI boom, winning new projects as businesses invest heavily in AI development.
Why consider Innodata and Veritone now? So far this year, both companies have released significant news and financial results that could shape their futures. Innodata just posted explosive revenue growth and turned profitable, whereas Veritone is in the midst of a strategic turnaround, securing big contracts and narrowing its losses.
Despite their shared focus on AI services, Innodata and Veritone differ in scale, strategy, and financial performance. Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for Innodata Stock
Innodata has emerged as a major beneficiary of the generative AI wave. The company specializes in preparing and annotating the complex datasets that large AI models require. This is evident from its second-quarter 2025 revenues that soared 79% year over year to $58.4 million. This performance reflects not only strong execution but also accelerating demand. Management raised full-year 2025 organic revenue growth guidance to 45% or more, up from 40%, citing significant new deals and an expanding pipeline. Innodata has been winning marquee customers, including multiple “big tech” firms racing to scale generative AI models. For example, it forecasts $10 million of revenue in the second half of 2025 from a single large tech customer—compared to just $200,000 over the trailing 12 months.
Strategically, Innodata is aligning itself with the “agentic AI” era, where autonomous systems will require vast amounts of simulation and evaluation data. Management believes its services will be critical to testing, diagnosing, and improving AI models at scale. Importantly, Innodata’s profitability sets it apart from many AI peers.
That said, heavy reinvestment in talent and capabilities could temper near-term earnings expansion. Innodata’s biggest hurdle remains concentration risk, as its heavy dependence on a few large clients could pose challenges if budgets shift or projects move in-house. Even so, the company’s solid pipeline, $59.8 million cash balance, and untapped credit facility provide ample financial flexibility to sustain aggressive growth. Beyond capturing the current generative AI momentum, Innodata is strategically positioning itself in frontier areas like agentic AI and robotics—signaling that it aims to ride not just today’s wave, but also the next phases of innovation in artificial intelligence.
The Case for Veritone Stock
Veritone is in the midst of a turnaround, reshaping itself into a pure-play AI software company. After divesting its non-AI media business in late 2024, the firm now generates revenues from AI products and services. In the second quarter of 2025, total revenues held steady at $24 million, but the mix tells the story—software and SaaS sales rose 12% to $17.5 million, while legacy services declined as expected. Stripping out the sluggish Veritone Hire unit, core AI software revenues surged more than 45% year over year, signaling a return to solid organic growth. Management highlighted that momentum is being driven by expanding SaaS adoption in both commercial and public sector markets.
Veritone’s growth outlook is strengthening on multiple fronts. Public sector demand is surging, with second-quarter revenue from government clients nearly doubling, boosted by a sole-source U.S. Air Force contract. Its pipeline of potential government deals has grown to $189 million, highlighting long-term opportunities. At the same time, the new Veritone Data Refinery is gaining traction, with a $20 million near-term pipeline and adoption by hyperscalers, positioning Veritone as a key AI data provider.
Financial visibility is also improving. Annual recurring revenue or ARR reached $62.6 million, 81% of its subscription-based revenue, while cost cuts and a $10 million capital raise are narrowing losses. The second-quarter non-GAAP loss improved to $8.7 million, and third-quarter guidance calls for smaller losses with revenue growth of about 30%. For 2025, management expects $108–115 million in revenues, up roughly 20% year over year, with profitability targeted by late 2026.
Veritone still faces notable risks. Losses remain steep, with a negative $25 million operating cash flow in the first half of 2025 and only $14 million in cash at the second-quarter end (before its $9–$10 million raise). Debt, including 2026 convertible notes, adds pressure, and refinancing will depend on execution. Competition is intense, from Palantir (PLTR - Free Report) to niche AI players, and converting its $189 million pipeline—particularly long-cycle government contracts—carries uncertainty. Legacy units like VeriAds and Veritone Hire continue to drag, while customer concentration heightens vulnerability.
Share Price Performance of INOD and VERI Stocks
Innodata stock is trading around $41.10 per share (as of Sept. 4), showing an improvement of about 12.1% on the latest trading day. Its 52-week price is between $13.02 and $71.00, indicating that it is trading below its recent highs but well above its low for the year.
Veritone stock is currently priced around $2.76. Its 52-week high is $5.635, and the 52-week low is $1.22. This means the current price is significantly below its 52-week high by about 51% and above its 52-week low by roughly 126% as of September 2025.
Over the past three months, VERI stock has skyrocketed by approximately 84%, significantly outperforming INOD’s performance, which declined 19.8% during the same time frame.
3-Month Share Price Performance
Image Source: Zacks Investment Research
Valuation of INOD & VERI Stocks
At a $1.3 billion market cap, Innodata’s forward 12-month price/sales (P/S) ratio is 4.64 – a rich multiple compared to traditional IT services firms, reflecting its higher growth but also implying high expectations. As a smaller company, Innodata must execute flawlessly to justify its valuation; it is aggressively investing in new capabilities that may pressure near-term margins.
With a market cap near $152.6 million, Veritone stock’s forward 12-month P/S ratio is 1.23, much lower than INOD’s.
INOD Vs VERI Valuation
Image Source: Zacks Investment Research
INOD & VERI Estimate Revision Trend
For INOD, the Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased over the past 60 days to 74 cents, as you can see below, depicting analysts’ optimism. However, the estimated figure indicates a 16.9% decline from the year-ago reported EPS of 89 cents.
The Zacks Consensus Estimate for 2025 revenues implies year-over-year growth of 42.8%.
For INOD Stock
Image Source: Zacks Investment Research
For VERI stock, analysts are growing increasingly optimistic about its earnings potential. Over the past 30 days, the Zacks Consensus Estimate for VERI’s 2025 loss per share has narrowed to 55 cents per share from 58 cents, reflecting a positive shift in sentiment. The estimated figure depicts a narrower loss for 2025 compared to the 2024 level of 80 cents per share, as shown below.
The Zacks Consensus Estimate for 2025 revenues implies year-over-year growth of 1.1%.
For VERI Stock
Image Source: Zacks Investment Research
Conclusion
Both Innodata and Veritone are riding powerful AI adoption waves, but they appeal to investors in different ways. Innodata is delivering explosive growth and profitability today, backed by marquee customer wins and strengthened guidance. However, its higher valuation and reinvestment strategy could moderate near-term returns. Veritone, by contrast, is still loss-making but has demonstrated accelerating momentum in its core AI software businesses, a growing government pipeline and an improving cost structure that could drive significant operating leverage in the coming years.
Between the two, Veritone — a Zacks Rank #2 (Buy) stock — likely has more upside in 2025 due to its combination of low valuation, accelerating revenue growth, and improving outlook. Its shares could appreciate significantly if the company executes on new deals. The market has already rewarded Innodata’s achievements with a hefty valuation, which could limit further short-term upside unless the company delivers even bigger beats and accelerates its earnings. Innodata — a Zacks Rank #3 (Hold) company — remains a terrific growth company, but much of that optimism may be “priced in” after its huge run. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.