C3.ai stock tumbles on soft outlook despite earnings beat

NEW YORK - C3.ai, Inc. (NYSE:AI ), the Enterprise AI application software company, saw its stock plummet 15% after hours on Wednesday despite beating earnings expectations, as investors focused on the company's cautious outlook.

The company reported a first-quarter adjusted loss of $0.05 per share, significantly better than the analyst estimate of a $0.13 loss. Revenue for the quarter came in at $87.2 million, slightly above the consensus estimate of $86.94 million and up 21% YoY from $72.4 million.

However, C3.ai's guidance for the second quarter and full fiscal year 2025 fell short of market expectations. The company forecasts second-quarter revenue between $88.6 million and $93.6 million, compared to the analyst consensus of $91 million. For the full fiscal year 2025, C3.ai expects revenue in the range of $370 million to $395 million, versus the consensus estimate of $383.4 million.

Thomas M. Siebel, Chairman and CEO of C3.ai, commented on the results, stating, "We had a solid start to the fiscal year, with rising demand for Enterprise AI driving our sixth consecutive quarter of accelerating revenue growth."

The company reported positive free cash flow of $7.1 million for the quarter and maintains a strong cash position with $762.5 million in cash, cash equivalents, and marketable securities.

C3.ai highlighted significant progress in broadening its market presence, particularly in Manufacturing and State and Local Government sectors. The company closed 71 agreements in the quarter, a 122% increase YoY, including 52 pilots, up 117% YoY.

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Source: Investing.com