Earnings To Watch: C3.ai (AI) Reports Q1 Results Tomorrow

Adam Hejl /
2022/08/30 5:16 am EDT

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

Last quarter C3.ai reported revenues of $72.3 million, up 38.3% year on year, beating analyst revenue expectations by 1.44%. It was a weak quarter for the company, with revenue guidance for both the next quarter and the full year below analysts' estimates.

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 25.9% year on year to $66 million, slowing down from the 29.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.24 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 2.84%.

Looking at C3.ai's peers in the data and analytics software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Elastic delivered top-line growth of 29.5% year on year, beating analyst estimates by 1.51% and Confluent reported revenues up 57.8% year on year, exceeding estimates by 5.71%. Elastic traded down 5.75% on the results, and Confluent was up 7.72%. Read our full analysis of Elastic's results here and Confluent's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 1.08% over the last month. C3.ai is up 1.6% during the same time, and is heading into the earnings with analyst price target of $18.1, compared to share price of $19.01.

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.