Shares of Veritone Inc. (NASDAQ: VERI) plummeted 12.75% in Friday's trading session, extending its losses from the previous day and pre-market trading. The artificial intelligence company's stock took a significant hit despite beating analyst estimates in its third-quarter earnings report, as investors focused on the substantial net loss and cautious full-year outlook.
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, better than the expected loss of $0.15 per share. However, these positive results were overshadowed by a significant GAAP net loss of $26.88 million for the quarter, raising concerns about the company's path to profitability.
The sharp decline in Veritone's stock price can be attributed to the company's cautious full-year guidance, which projects an adjusted net loss ranging from $31.6 million to $26 million for the full year. This outlook suggests ongoing challenges in achieving sustainable profitability, disappointing market participants and prompting a reassessment of Veritone's valuation. As a result, investors seem to be reevaluating their positions, leading to the significant sell-off observed in the market.
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