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C3.ai (AI) Q4 Earnings Report Preview: What To Look For


Adam Hejl /
2022/05/31 7:06 am EDT
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Artificial intelligence (AI) software company C3.ai (NYSE:AI) will be reporting results tomorrow after market close. Here's what investors should know.

Last quarter C3.ai reported revenues of $69.7 million, up 42% year on year, beating analyst revenue expectations by 3.89%. It was a very strong quarter for the company, with an exceptional revenue growth and a significant improvement in gross margin.

Is C3.ai buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting C3.ai's revenue to grow 36.3% year on year to $71.2 million, improving on the 25.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.29 per share.

C3.ai Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.12%.

Looking at C3.ai's peers in the data and analytics software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Confluent delivered top-line growth of 63.7% year on year, beating analyst estimates by 6.45% and Amplitude reported revenues up 46.6% year on year, exceeding estimates by 4.36%. Confluent traded down 7.93% on the results, Amplitude was up 6.2%. Read our full analysis of Confluent's results here and Amplitude's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 10.8% over the last month. C3.ai is up 9.16% during the same time, and is heading into the earnings with analyst price target of $26.6, compared to share price of $19.78.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.