C3.ai Shares Surge 7% on Better Than Expected Q2 Results

C3.ai (NYSE:AI) experienced a notable surge in its stock price of over 23% intra-day Thursday after reporting fiscal third-quarter results that exceeded expectations and provided an optimistic outlook. The company reported a fiscal third-quarter loss of $0.13 per share, significantly outperforming the anticipated loss of $0.28 per share. Revenue for the quarter reached $78.4 million, exceeding the consensus forecast of $76.14 million.

Subscription revenue was a major contributor, accounting for 90% of total revenue at $70.4 million, up 23% from $57.0 million in the comparable period the previous year.

For the upcoming fourth quarter of fiscal year 2024, C3.ai projects revenue to range from $82 million to $86 million, against Wall Street expectations of $83.91 million. The company's full fiscal year 2024 revenue is expected to be between $306 million and $310 million, surpassing Wall Street's projection of $305.5 million.

C3.ai (NYSE:AI), a provider of AI software solutions, reported mixed results for its fiscal second quarter. While the company's revenue fell short of estimates, there was discussion about the potential for faster growth due to a transition to a consumption-based pricing model.

Following the report, C3.ai experienced a more than 11% drop in its stock price intra-day today.

The company posted an adjusted loss of $0.13 per diluted share on revenue of $73.2 million. This is in contrast to the anticipated adjusted loss of $0.18 on revenue of $73.2 million.

Looking forward, C3.ai forecasts an adjusted loss from operations between $40 million to $46 million for the third quarter, on projected revenue of $74 million to $78 million. This projection contrasts with Wall Street's estimates, which anticipated revenue of $77.69 million.

For the full year, C3.ai now expects its revenue to be in the range of $295 million to $320 million. The adjusted operating loss is anticipated to be between $115 million to $135 million, a revision from the previously forecasted loss range of $70 million to $100 million.

C3.ai (NYSE:AI) reported fiscal first quarter results on Wednesday that exceeded analysts' expectations, but the software maker now anticipates broader annual losses and no longer expects to achieve profitability in Q4, as it aims to increase investments in generative AI solutions. Following this report, C3.ai shares experienced more than a 12% decline in pre-market today.

The AI software company disclosed an adjusted loss of $0.09 per share with revenue amounting to $72.4 million, surpassing expectations for a loss of $0.17 per share and revenue of $71.56 million.

Looking ahead to fiscal 2024, the company now anticipates an adjusted loss ranging from $70 million to $100 million on revenue ranging from $295 million to $320.0 million. This contrasts with previous estimates of a loss between $50 million and $75 million on revenue ranging from $295 million to $320 million.

C3.ai (NYSE:AI) shares surged more than 33% on Friday after the company reported a Q3 beat and a better-than-expected outlook.

Q3 EPS came in at ($0.06), better than the Street estimate of ($0.22). Revenue was $66.7 million, beating the Street estimate of $64.22 million, with the help of increased Services revenue contribution from related party Baker Hughes, and on operating margin as the company took steps to prudently manage OpEx spending (down 8% year-over-year).

The company provided its fiscal 2023 outlook, expecting revenue to be in the range of $264-266 million, compared to the Street estimate of $261 million.

Looking forward, the company didn’t provide formal revenue guidance for 2024 but reiterated that it is tracking in line to slightly better than the initial plan laid out two quarters ago that called for revenue growth of 30% year-over-year in 2024.