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Share in C3. eat (AI) fell after the software company reported second-quarter earnings that missed estimates and gave a weaker-than-expected earnings outlook for AI stocks.
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The software maker reported October quarter earnings after the market closed on Wednesday.
C3.ai said it lost 13 cents a share on an adjusted basis. That compares with an 11-cent loss a year earlier.
Revenue rose 17% to $73.2 million. Wall Street analysts polled by FactSet had predicted a loss of 18 cents a share on revenue of $74.3 million.
For the current quarter ending in January, the company predicted revenue of $76 million in the middle of the guidance. Additionally, analysts were expecting revenue of $77.7 million.
“New book growth is very strong and revenue guidance continues,” Oppenheimer analyst Tim Horan said in a report. “However, investments are increasing to meet demand and reduce revenue guidance. The company is prioritizing pilot projects and changes in customer service, encouraging growth and short-term investments, but the worst is behind us.”
The software company has dropped its forecast for revenue growth on an adjusted basis through the fourth quarter of this fiscal year. amid growing investment in artificial intelligence.
AI Marketing: Extra Cash Out
On the stock market today, AI’s stock fell 10.8% to close on 26.02.
AI stock gained 172% in 2023 ahead of C3.ai’s earnings report.
The company has told analysts that it expects revenue growth to accelerate again as more AI pilot projects increase in industrial production.
Deutsche Bank’s analyst, Brad Zelnick, is recording the buying trend on AI stocks.
“We remain cautious on the pace and conversion and investment in sales commitments for C3, where it is difficult to see the results or the direction going forward so far, the top line and the profits are still continue to be weighed down by higher pilots. ,” Zelnick said in a report.
The software company has dropped its forecast for revenue growth on an adjusted basis through the fourth quarter of this fiscal year. amid growing investment in artificial intelligence.
Currently, C3.ai is one of the many AI stocks to watch.
In addition, C3.ai had a Power Rating of 93 out of 99 which is the best that can be entered into the earnings report, according to IBD tests.
Additionally, C3.ai’s initial public offering in early December 2020 raised $651 million.
The software helps companies build customized profiles, targeting the energy, financial services and defense markets. But the price for the new AI products has not been revealed.
At the end of 2022, the AI software developer changed its pricing model from sharing to targeted marketing.
Follow Reinhardt Krause at X, formerly Twitter, @reinhardtk_tech for information on artificial intelligence, cybersecurity and cloud computing.
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