C3.ai Reports Q1 Earnings Above Estimates, Revenue Misses
Overview
C3.ai (AI) reported its fiscal first-quarter earnings on Wednesday, surpassing estimates for earnings per share (EPS) but falling short on revenue. The company also provided a revenue outlook for AI stock that was below Wall Street expectations.
Q1 Results
- Adjusted EPS: C3.ai reported a loss of 9 cents per share, compared to a loss of 12 cents per share in the same quarter last year.
- Revenue: The company’s revenue increased by 11% to $72.36 million.
Analyst Expectations
Wall Street analysts had predicted a loss of 17 cents per share on revenue of $73.8 million.
Q2 Revenue Outlook
C3.ai forecasted revenue in the range of $72 million to $76.5 million for the current quarter ending in October. Analysts had expected a loss of 12 cents per share on revenue of $78 million.
Stock Performance
Following the earnings report, AI stock declined by 4.2% to $30.15 in extended trading on the stock market today. However, AI stock had gained 181% in 2023 prior to the report, reaching a peak of 257% amid the hype surrounding artificial intelligence stocks.
Pilot Projects and Revenue Growth
C3.ai has seen a surge in its stock price due to the excitement surrounding startup OpenAI, ChatGPT, and generative AI technology. The company expects revenue growth to accelerate as more AI pilot projects move into production.
Company Background
C3.ai is a software maker that specializes in helping companies build artificial intelligence applications. The company primarily targets the energy, financial services, and defense markets. In December 2020, C3.ai raised $651 million through its initial public offering (IPO).
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