The perspective of C3.ai has been incorporated into this article. The company’s net loss from operations was misrepresented in a previous edition as an adjusted loss per share.
As the firm reported a lower-than-expected loss for the most recent quarter, but sales growth slowed, C3.ai Inc. shares fell more than 5% during extended trading on Wednesday.
Following a loss of 60 cents per share in the previous year’s quarter, the enterprise software business (AI) reported a fiscal third-quarter loss of 62 cents per share. The FactSet analyst consensus predicted a loss of 25 cents per share for the third quarter, but C3.ai’s adjusted loss was 12 cents.
The company’s quarterly losses persisted as a result of the results. Since its December 2020 initial public offering, C3.ai has posted a net loss each quarter. But C3.ai has never fallen short of financial projections.
Revenue increased 26% from the previous year’s quarter’s $78.4 million to $98.8 million, exceeding the analyst’s prediction of $98.1 million. However, that growth rate decreased from the second quarter’s pace of 29%.
Related: Analysts downgrade C3.ai due to worries about the increase of subscription revenue
Subscription revenue for the third quarter of C3.ai was $85.7 million, a 22% increase over the $77.5 million earned during the same period last year. FactSet polled analysts who were hoping for $85.5 million in subscription revenue.
According to a statement from the firm, C3.ai closed 47 deals with and through its partner network during the quarter, a 74% increase over the previous year.
When C3.ai and Microsoft Corp. (MSFT) established a strategic agreement in November to expedite the adoption of Enterprise AI on the software giant’s Azure platform, the two businesses deepened their partnership. According to C3.ai, Microsoft and the company closed 28 deals in nine different industries during the quarter, a 460% increase from the previous quarter.
“In the third quarter, C3.ai achieved significant milestones – expanding our global distribution network, advancing our leadership in agentic and generative AI, and delivering total revenue reaching $98.8 million, up 26% year over year,” Thomas Siebel, chief executive officer of C3.ai, said in
Related: According to an analyst, C3.ai is still “extremely unprofitable,” thus avoid purchasing the stock.
While generative AI may be trained to use enormous amounts of data to create precisely customized content, agentic AI technology can carry out activities on its own.
C3.ai anticipates an adjusted operating loss of $30 million to $40 million for the fourth quarter, along with revenue of $103.6 million to $113.6 million. According to a FactSet survey, analysts anticipate $108.6 million in revenue.
The business anticipates revenue of $383.9 million to $393.9 million and an adjusted operating loss of $87 million to $97 million for the entire year. Analysts anticipate $388.3 million in revenue for the entire year.
In the last 12 months, C3.ai shares have lost 11%, while the S&P 500 index has gained 17.5%.
