Artificial intelligence software developer C3.ai (AI) reported fourth-quarter results after bells on Wednesday and said it expected to disappoint Wall Street despite better-than-expected revenue and bottom line results.
The company reported first-quarter revenue of $72.4 million, which was above expectations of $71 million and an adjusted loss of $0.13 per share, below analyst estimates of a loss of $0.17. .
However, C3.ai’s full-year earnings outlook appears to have fallen short of Wall Street’s expectations. The company said it expects revenue to be between $295 million and $320 million in fiscal 2024. For the full year, the analyst expects earnings of nearly $321 million, according to data from S&P Global Market Intelligence.
And last week, investors seemed to be judging C3.ai after AI companies like NVDA (NVDA) and Marvell Technology (MRVL) raised their expectations significantly on a surge in demand, Thursday. Shares fell more than 15% in early trading.
“We believe there is general agreement today that the enterprise AI application market is significantly larger and growing at a much higher rate than experts predicted,” the company said in a statement. Stated.
“C3 AI has been leading the enterprise AI market for over a decade as it has its roots in IoT and has evolved into unsupervised learning, supervised learning, NLP, deep learning, reinforcement learning and generative AI. I came.”
But despite those assurances, investors weren’t impressed with C3.ai’s prospects.
AI is the hottest trend on Wall Street, with companies from Nvidia (NVDA) and Marvell (MRVL) to Microsoft (MSFT) and Google (GOOG, GOOGL) kicking off with the launch of ChatGPT in 2022. Riding the wave of hype.
And while AI’s beloved Nvidia stock is up 162% since early 2023, C3.ai stock is up a whopping 252%.
C3.ai manufactures enterprise AI software used in a wide range of industries including transportation, healthcare and manufacturing. The company announced Tuesday that its C3 Generative AI product is now available via Amazon’s AWS Marketplace. Already available from Google’s Cloud Marketplace.
Unlike generative AI platforms like ChatGPT, C3.ai’s products are specifically designed for the corporate environment. It does this by giving users access to corporate data through a natural language interface, while preventing users from accidentally sharing that information externally.
Daniel Howley Technical editor at Yahoo Finance. He has covered the tech industry since his 2011. You can follow him on Twitter. @Daniel Howley.
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