The C3.ai Inc (NYSE: AI) stock price edged lower today, extending yesterday’s losses after the release of its latest quarterly report. The company postponed its target profit date from Q4 2024 to a future date, saying that it was investing in generative AI, which would increase its operating expenses, delaying its profitability…
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The software company released its first quarter fiscal 2024 results on Wednesday after the market closed. It led to yesterday’s 12.24% decline as investors expressed their disappointment at the company’s delayed profitability date, initially slated for Q4 fiscal 2024.
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The company generated revenues worth $72.4 million, marking a 10.1% increase from the revenues generated in Q1 Fiscal 2023, beating analysts’ estimates of $71.6 million. The company also reported a loss per share of $0.09, which was much better than the $0.12 loss reported a year earlier.
Still, the company remained optimistic about its newly launched AI services despite its gross margins coming in at 68.6% versus Wall Street estimates of 73.1% as it invested in developing its AI software for enterprise clients.
Another factor that contributed to C3.ai’s decline was the higher expected operating loss of $100 million for the full year announced by the company during fiscal 2024, which was much higher than analyst estimates of $70 million. The firm maintained its full-year revenue guidance at between $295m and $320m.
Thomas M. Siebel, C3.AI ‘s CEO, said: “It is difficult to describe the scale of the increasing interest we are seeing globally in enterprise AI adoption. We are experiencing strong traction with our enterprise AI applications and especially C3 Generative AI. The market response to our Generative AI offerings is staggering. C3 Generative AI provides fine-tuned tailored Generative AI solutions that address the crippling problems that prevent widespread industry adoption of LLMs.”
“We believe that the advent of Generative AI may more than double the addressable market immediately available to C3 AI, and now, with our new C3 Generative AI Suite of products out the door, you can expect that we will be investing in the coming quarters to promote, market, and support these initiatives.”
C3.ai stock price.
The C3.ai stock was trading down 0.94% at $27.35, adding on to yesterday’s 12.24% decline.
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