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.
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.
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.