C3.ai Earnings: What To Look For From AI
Radek Strnad 2023/03/01 4:52 am EST
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.
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 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.
![C3.ai Total Revenue](https://news-assets.stockstory.org/chart-images/C3.ai-Total-Revenue_2023-03-01-095201_kgjm.png)
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.
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.