Veritone Inc. (NASDAQ: VERI) saw its stock plummet 5.48% in a 24-hour period on Thursday, as investors reacted negatively to the company's third-quarter earnings report despite beating analyst estimates. The artificial intelligence company's shares experienced a sharp decline in after-hours trading, which contributed to the overall daily loss.

Veritone reported Q3 revenue of $29.118 million, surpassing the analyst consensus estimate of $28.6 million. The company's adjusted loss per share came in at $0.09, beating the expected loss of $0.15 per share. However, these better-than-expected results were overshadowed by a substantial GAAP net loss of $26.88 million for the quarter, raising concerns about the company's path to profitability.

The stock's negative performance can be attributed to several factors. Despite the earnings beat, investors appear to be focusing on the significant net loss and the company's cautious full-year outlook. Veritone provided guidance for full-year adjusted net income ranging from -$31.6 million to -$26 million, which may have disappointed market participants. This outlook suggests that the company continues to face challenges in achieving sustainable profitability, prompting a reassessment of its valuation by investors.