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C3.ai shares surge over 10% as Q1 results top expectations

EditorRachael Rajan
Published 29/05/2024, 21:16
© Reuters.
AI
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REDWOOD CITY, Calif. - C3.ai, Inc. (NYSE:AI), a leading enterprise AI application software provider, reported a notable earnings beat for its fiscal fourth quarter, with adjusted net loss per share of -$0.11, surpassing analyst expectations of -$0.30.

C3.ai's stock responded positively to the news, climbing 10.7%

The company's revenue also exceeded forecasts, coming in at $86.6 million against the consensus estimate of $84.39 million.

The company's fourth-quarter revenue represented a 20% increase compared to the same period last year, indicating sustained growth. Subscription revenue, which makes up 92% of the total revenue, saw a significant jump of 41% year-over-year. This growth trajectory has been consistent, marking the fifth consecutive quarter of accelerating revenue growth for C3.ai.

For the first quarter of fiscal 2025, C3.ai anticipates revenue to be between $84 million and $89 million. The midpoint of this guidance, $86.5 million, is above the analyst consensus of $85.891 million, suggesting that the company expects its growth momentum to continue.

CEO and Chairman Thomas M. Siebel commented on the results, "We finished a strong quarter and closed out a huge year for C3 AI. This was our fifth consecutive quarter of accelerating revenue growth." He attributed the success to the increasing demand for Enterprise AI and highlighted the company's leading position in the market.

The company's federal revenue, which grew by more than 100% for the year, was a significant contributor to the overall growth. C3.ai's diverse application of AI across 19 industries was also noted as a key factor in its robust performance.

Looking ahead, C3.ai is poised to continue investing in growth to solidify its position as a profitable market leader in Enterprise AI. With a strong cash reserve of $750.4 million and positive free cash flow, the company is well-positioned to capitalize on the expanding opportunities in the AI sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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