C3.ai Inc., a leading provider of enterprise artificial-intelligence software, revealed its financial results for the second quarter. Although the company fell slightly short on revenue expectations, it showed promising growth in other areas.
Q2 Net Loss and Adjusted Earnings
During the fiscal second quarter, C3.ai reported a net loss of $69.8 million, or 59 cents per share, compared to $68.9 million, or 63 cents per share, in the same quarter of the previous year. On an adjusted basis, the company incurred a loss of 13 cents per share, exceeding analysts’ projections of an 18-cent per-share loss.
Revenue Growth and Outlook
C3.ai generated $73.2 million in revenue for the second quarter, marking an increase from $62.4 million in the prior year. However, this fell slightly below the FactSet consensus estimate of $74.3 million.
Chief Executive Thomas Siebel expressed satisfaction with the company’s performance, emphasizing the significant interest and progress in their generative AI offerings. He also highlighted the return to accelerating revenue growth, driven by their transition to a consumption-based pricing model.
Positive Market Reception and Partnership Expansion
C3.ai experienced remarkable success in its transition to a consumption-based pricing model, with over 100 pilots closed since implementing the new plan. The company closed a total of 62 agreements, including 36 pilots, during the second quarter, demonstrating strong market demand.
Fiscal Third Quarter and Full-Year Projections
Looking ahead to the fiscal third quarter, C3.ai anticipates generating $74 million to $78 million in revenue, slightly below the FactSet consensus of $77.7 million. For the full fiscal year, the company projects revenue ranging from $295 million to $320 million. This forecast compares to the consensus view of $307.9 million.
C3.ai stock has shown impressive growth throughout 2023, with a year-to-date increase of 161%.
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