Benzinga - Enterprise artificial intelligence company C3.ai Inc (NYSE: AI) reported fourth-quarter financial results after market close Wednesday. Here are the key highlights.
What Happened: C3 AI announced fourth-quarter revenue of $72.4 million, up from the $72.3 million reported in the same time period last year. The revenue total beat a Street estimate of $71.3 million according to data from Benzinga Pro.
The company reported subscription revenue of $56.9 million in the fourth quarter.
C3 AI reported a loss of 13 cents per share for the first quarter, compared to a Street consensus estimate of a loss of 17 cents per share.
For the full fiscal year, the company had revenue of $266.8 million, with $230.4 million coming from subscription revenue.
The company closed 126 deals for the full fiscal year, with 71 coming from partners. Qualified enterprise opportunities for closure have increased by 100% in the past year.
For the full year, oil and gas and the federal/aerospace/defense sectors made up the largest amount of bookings at 33.8% and 28.9% respectively.
C3 AI said the market for enterprise AI applications is growing faster than predicted.
“As the enterprise AI market develops, it appears that the bulk of the demand is increasingly for turnkey enterprise AI applications, rather than development tools,” the company said.
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What’s Next: C3 AI is guiding for first-quarter revenue to come in a range of $70 million to $72.5 million, a year-over-year increase of 7% to 11%.
For the full fiscal year, the company is guiding for revenue of $295 million to $320 million, which would be up 11% to 20% year-over-year.
First-quarter and full-year revenue guidance is ahead of Street estimates, according to data from Benzinga Pro.
The company highlighted a strong pipeline of deals through partners like Google Cloud and AWS.
C3 AI is projecting to hit profitability by the end of fiscal year 2024.
“I believe we now have broad consensus that the addressable market for Enterprise AI is extraordinarily large and rapidly growing,” C3 AI CEO Thomas Siebel said.
The CEO said the company has over 40 production enterprise AI applications.
The company lists an addressable market size of $791.5 billion in its earnings presentation.
“We are well positioned to accelerate growth, gain market share, attain sustainable non-GAAP profitability, and establish a market-leading position globally in enterprise AI. FY 2024 will be exciting.”
AI Price Action: C3 shares are down 15% to $33.69 in after-hours trading Wednesday.
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