Artificial intelligence (AI) software company C3.ai (NYSE:AI) will be reporting earnings tomorrow after market hours. Here's what you need to know.
Last quarter C3.ai reported revenues of $62.4 million, up 7.11% year on year, beating analyst revenue expectations by 2.62%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in gross margin.
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This quarter analysts are expecting C3.ai's revenue to decline 7.92% year on year to $64.2 million, a deceleration on the 42.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.22 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 2.32%.
Looking at C3.ai's peers in the data and analytics software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Confluent delivered top-line growth of 40.6% year on year, beating analyst estimates by 2.7% and Amplitude reported revenues up 32% year on year, exceeding estimates by 2.63%. Both companies (Confluent and Amplitude) traded flat on the results. Read our full analysis of Confluent's results here and Amplitude's results here.
Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 1.49% over the last month. C3.ai is up 16.9% during the same time, and is heading into the earnings with analyst price target of $15.4, compared to share price of $23.2.
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The author has no position in any of the stocks mentioned.