Shutthiphong Chandaeng
C3.ai (AI) stock tumbled over 22% after the bell on Wednesday as traders were underwhelmed by the software provider’s outlook, given the recent hype around AI.
Note that the stock rallied ahead of earnings amid high expectations, more than doubling in value in May. The shares’ value increased over threefold (+261.4%) YTD.
C3.ai (AI) expects FY24 revenue of $295M-$320M, compared with $315.37M consensus. Adjusted loss from operations is projected to be $50M-$75M.
It forecast Q1 revenue of $70M-$72.5M, compared with $71.45M consensus, while adjusted loss from operations is estimated at $25M-$30M.
C3.ai (AI) remains on track to achieve adjusted profitability by FY24-end. “We are guiding for operating loss due to the potential investments we made for generative AI applications. We expect cash and investments to be at their lowest at ~$700M during FY24,” said CFO Juho Parkkinen in the post-earnings call.
C3.ai (AI) reported Q4 adjusted EPS of -$0.13 vs. $0.21 in Q4 2022, and revenue ticked up 0.1% Y/Y to $72.41M. It closed 43 enterprise AI deals, including 19 pilots. Pilots are generally two quarters long.
Prior to earnings, SA contributor Bold Investor said acquiring customers and recognizing revenues can take time for C3.ai (AI). “Even if it experiences rapid growth as interest in AI balloons, it is possible that much of this growth will not be reflected in this quarter’s guidance.”
