Shares of Veritone Inc. (VERI) tumbled 10.02% in after-hours trading on Thursday, despite the company reporting better-than-expected third-quarter results. The artificial intelligence company's stock reaction suggests investors may be focusing on the substantial net loss and cautious full-year outlook.

Veritone reported Q3 revenue of $29.118 million, surpassing the IBES estimate of $28.6 million. The company's adjusted net loss of $5.796 million also beat expectations, coming in lower than the projected loss of $6.32 million. However, the GAAP net loss for the quarter stood at a significant $26.88 million, which might be raising concerns among investors about the company's path to profitability.

Adding to the bearish sentiment, Veritone provided a full-year outlook for adjusted net income ranging from -$31.6 million to -$26 million. This guidance may be viewed as disappointing by market participants, potentially explaining the sharp decline in share price despite the Q3 earnings beat. As the market digests these mixed signals, investors will be closely watching for any further commentary from management on the company's strategy to narrow losses and achieve sustainable growth.