C3.ai (AI) on Wednesday reported fiscal first-quarter earnings that topped estimates while revenue missed Wall Street targets. The company’s revenue outlook for AI stock also came in below views.
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In the July quarter, C3.ai said it lost 9 cents per share on an adjusted basis versus a 12-cent loss a year earlier. Revenue rose 11% to 72.36 million.
Wall Street analysts had predicted a loss of 17-cents a share on revenue of $73.8 million.
For the current quarter ending in October, the company predicted revenue in a range of $72 million to $76.5 million. Analysts had called for a 12-cent loss on revenue of $78 million.
AI stock lost 4.2% to 30.15 in extended trading on the stock market today.
AI stock had gained 181% in 2023 ahead of the C3.ai earnings report. But AI stock had been up 257% at one point amid hype over artificial intelligence stocks.
AI Stock: Pilot Projects Underway
Meanwhile, shares in C3.ai had surged in 2023 amid buzz over startup OpenAI, ChatGPT and generative AI technology.
C3.ai expects revenue growth to reaccelerate as more AI pilot projects ramp up production.
C3.ai is one of many AI stocks to watch. Also, C3.ai had a Relative Strength Rating of 97 out of a best-possible 99 heading into the earnings report, according to IBD Stock Check-up.
C3.ai’s initial public offering in early December 2020 raised $651 million.
The software maker helps companies build artificial intelligence applications, and targets the energy, financial services and defense markets. In December, the enterprise AI software provider changed its pricing model from subscription to consumption-based.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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