C3.ai shares surged Monday after the company announced it would beat its previous earnings guidance for the fourth quarter of its fiscal year ending April 30, amid soaring corporate demand for its AI software.
Shares of C3.ai (ticker: AI) surged 16% to $22.48 on Monday. The stock has doubled so far this year despite being hit by reports from short-sellers, but this is artificial among investors following the launch of OpenAI’s ChatGPT chatbot late last year. This is due to the growing interest in intelligence.
C3.ai CEO Tom Siebel said, “There is no CEO or board where the issue of applying predictive analytics to business processes is not one of the top three items on their agenda.” said Tom Siebel. Barons. “The enterprise AI market has changed. , has a sales organization.”
C3.ai (NYSE: AI) said it expects an adjusted operating loss of $23.7 million to $23.9 million for the April quarter, compared with its previous range of $24 million to $28 million.
The company now expects sales for the April quarter to be between $72.1 million and $72.4 million, up from its forecast of $70 million to $72.2 million.
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In the third quarter of the fiscal year ended January, C3.ai reported revenue of $66.7 million and an adjusted operating loss of $15 million.
C3.ai closed 43 deals in the quarter and said its consumption-based pricing model continues to be well received by customers. A shift away from a subscription-based model has been met with skepticism by some analysts and is likely to hurt revenue growth, he said.
Siebel said the company is on track to become profitable by the end of fiscal 2024 on a non-GAAP, or adjusted, basis. He said the company expects growth to accelerate in fiscal 2024, but declined to provide more specific forecasts.
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The head of C3.ai said artificial intelligence will change the nature of enterprise search engines. “We take their ERP, CRM, manufacturing and supply chain applications and make them predictable,” he said. “Predict system and device failures before they occur.”
“C3.ai continues to fuel corporate interest in artificial intelligence cHe praised the healthy growth of the pipeline.Scheduled for his $10,000 audited [annual filing] That will add to the last confidence in stocks for the foreseeable future,” analysts at DA Davidson led by Gil Luria said in a research note Monday. DA’s Davidson has a Buy rating and a price target of $30 for him.
The company plans to announce fourth quarter results on May 31.
Email Adam Clark (adam.clark@barrons.com) and Eric J. Savitz (eric.savitz@barrons.com).
