C3.ai (AI) on Thursday reported mixed results for its fiscal second quarter, including a weaker-than-expected revenue outlook. AI stock fell more than 9% in after-hours trading.
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C3.ai posted a smaller-than-expected adjusted loss for AI stock while revenue growth stock missed Wall Street targets. Revenue guidance came in below expectations.
For the quarter ending Oct. 31, C3.ai said it lost 13 cents per share on an adjusted basis. That compared with a 11-cent loss a year earlier.
Revenue rose 17% to $73.2 million. Wall Street analysts polled by FactSet had predicted a loss of 18 cents a share on revenue of $74.3 million.
For the current quarter ending in January, the company predicted revenue of $76 million at the mid-point of guidance. Further, analysts projected revenue of $77.7 million.
The software maker has backed off its target to turn profitable on an adjusted basis by the fourth quarter of this fiscal year amid growing investments in artificial intelligence.
AI Stock: Profitability Pushed Out
On the stock market today, AI stock tumbled 9.2% to near 26.47 in extended trading.
AI stock had gained 172% in 2023 ahead of the C3.ai earnings report.
The company has told analysts it expects revenue growth to reaccelerate as more AI pilot projects ramp up into commercial production.
The software maker has backed off its target to turn profitable on an adjusted basis by the fourth quarter of this fiscal year amid growing investments in artificial intelligence.
Meanwhile, C3.ai is one of many AI stocks to watch.
Also, C3.ai had a Relative Strength Rating of 93 out of a best-possible 99 heading into the earnings report, according to IBD Stock Check-up.
Further, 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. But it hasn’t disclosed pricing for new generative AI products.
In late 2022, the enterprise AI software provider changed its pricing model from subscription to consumption-based.
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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