C3.ai (AI) Reports Q1: Everything You Need To Know Ahead Of Earnings

Adam Hejl /
2023/09/05 6:18 am EDT

Artificial intelligence (AI) software company C3.ai (NYSE:AI) will be announcing earnings results tomorrow after market close. Here's what you need to know.

Last quarter C3.ai reported revenues of $72.4 million, flat year on year, beating analyst revenue expectations by 1.5%. It was a weaker quarter for the company, with full-year revenue guidance missing analysts' expectations and a decline in its 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 9.63% year on year to $71.6 million, slowing down from the 24.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.17 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.08%.

Looking at C3.ai's peers in the data infrastructure segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Teradata delivered top-line growth of 7.44% year on year, beating analyst estimates by 3.85%, and Elastic reported revenues up 17.5% year on year, exceeding estimates by 3.26%. Teradata traded flat on the results, and Elastic was up 5.5%.

Read our full analysis of Teradata's results here and Elastic's results here.

Investors in the data infrastructure segment have had steady hands going into the earnings, with the stocks down on average 0.78% over the last month. C3.ai is down 15.6% during the same time, and is heading into the earnings with analysts' average price target of $27.2, compared to share price of $30.9.

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