C3.ai
shares were heading lower in late trading Wednesday, after the provider of enterprise generative artificial intelligence software posted mixed financial results for the October quarter—while issuing January quarter guidance that fell shy of Street estimates.
C3.ai shares were 8.4% lower in after-hours trading at $26.70.
For the fiscal second quarter quarter ended Oct. 31, C3.ai posted revenue of $73.2 million, up 17% from a year ago—towards the lower end of the company’s guidance range of $72.5 million to $76.5 million, and below the Street consensus forecast as tracked by FactSet of $74.3 million.
Under generally accepted accounting principles, the company lost 59 cents a share. Yet on a non-GAAP basis, the company lost 13 cents a share in the quarter, beating the consensus forecast by about a nickel a share. C3.ai posted a non-GAAP loss from operations on a non-GAAP basis of $25 million, smaller than the forecast loss of between $27 million to $40 million.
For the January quarter, C3.ai sees revenue of between $74 million and $78 million, with a non-GAAP operating loss of between $40 million and $46 million. Street consensus had called for revenue of $77.7 million, and a non-GAAP operating loss of $21.1 million.
Last quarter, C3.ai stock slumped after the company withdrew a previous forecast that it would reach profitability by the end of 2024, and guided to a wider loss for the April 2024 fiscal year.
“After careful consideration with our leadership and our marketing partners, we have made the decision to invest in lead generation, branding, market awareness, and customer success related to our Generative AI solutions,” CEO Thomas Siebel said in a statement in September. “The market opportunity is immediate, and we intend to seize it. While we still expect to be cash positive in [the fourth quarter of fiscal 2024] and in [fiscal 2025], we will be investing in our Generative AI solutions and at this time do not expect to be non-GAAP profitable in [the fourth quarter of fiscal 2024].”
For the April 2024 fiscal year, C3.ai reiterated its guidance for revenue of between $295 million and $320 million. But the company now sees a non-GAAP loss from operations of between $115 million and $135 million—widening from a previous forecast range calling for a loss of $70 million to $100 million.
In a statement accompanying the latest quarter results, Siebel said that the company saw “unprecedented interest and traction in our generative AI offerings.”
Write to Eric J. Savitz at eric.savitz@barrons.com
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