Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at C3.ai (NYSE:AI), and the best and worst performers in the data infrastructure group.
Generating insights from system level data is an increasing priority for most businesses, but to do so requires connecting and analyzing piles of data stored and siloed in separate databases. This is the demand driver for cloud based data infrastructure software providers, who can more readily integrate, distribute and process information vs. legacy on-premise software providers.
The 4 data infrastructure stocks we track reported a weaker Q4; on average, revenues beat analyst consensus estimates by 2.67%, while on average next quarter revenue guidance was 0.44% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth , but data infrastructure stocks held their ground better than others, with the share prices up 20.2% since the previous earnings results, on average.
Best Q4: C3.ai (NYSE:AI)
Founded in 2009 by enterprise software veteran Tom Seibel, C3.ai (NYSE:AI) provides software that makes it easy for organizations to add artificial intelligence technology to their applications.
C3.ai reported revenues of $66.7 million, down 4.45% year on year, beating analyst expectations by 3.77%. It was a mixed quarter for the company, with a decent beat of analyst estimates but declining revenue.
“As we enter Q4 FY 23, we are seeing tailwinds from improved business optimism and increased interest in applying C3 AI solutions to address an increasing range of applications across a broad range of industries,” said Thomas M. Siebel, C3 AI CEO.
C3.ai scored the strongest analyst estimates beat and highest full year guidance raise of the whole group. The stock is up 58% since the results and currently trades at $33.66.
Is now the time to buy C3.ai? Access our full analysis of the earnings results here, it's free.
Confluent (NASDAQ:CFLT)
Started in 2014 by the team of engineers at LinkedIn who originally built it as an internal tool, Confluent (NASDAQ:CFLT) provides infrastructure software for organizations that makes it easy and fast to collect and move large amounts of data between different systems.
Confluent reported revenues of $168.7 million, up 40.6% year on year, beating analyst expectations by 2.7%. It was a mixed quarter for the company, with a significant improvement in gross margin but underwhelming guidance for the next year.
Confluent achieved the fastest revenue growth among its peers. The company added 70 enterprise customers paying more than $100,000 annually to a total of 991. The stock is up 4.95% since the results and currently trades at $24.18.
Is now the time to buy Confluent? Access our full analysis of the earnings results here, it's free.
Teradata (NYSE:TDC)
Part of point-of-sale and ATM company NCR from 1991 to 2007, Teradata (NYSE:TDC) offers a software-as-service platform that helps organizations manage their data across multiple storages and analyze it.
Teradata reported revenues of $452 million, down 4.84% year on year, beating analyst expectations by 3.76%. It was a weak quarter for the company, with declining revenue and gross margin.
Teradata had the slowest revenue growth in the group. The stock is up 17.5% since the results and currently trades at $40.28.
Read our full analysis of Teradata's results here.
Elastic (NYSE:ESTC)
Started by Shay Banon as a search engine for his wife's growing list of recipes at Le Cordon Bleu cooking school in Paris, Elastic (NYSE:ESTC) helps companies integrate search into their products and monitor their cloud infrastructure.
Elastic reported revenues of $274.6 million, up 22.6% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth.
Elastic had the weakest performance against analyst estimates and weakest full year guidance update among the peers. The company added 60 enterprise customers paying more than $100,000 annually to a total of 1,110. The stock is up 0.52% since the results and currently trades at $58.7.
Read our full, actionable report on Elastic here, it's free.
The author has no position in any of the stocks mentioned