C3.ai (AI), which pre-announced some fiscal fourth-quarter results in mid-May, released a full-year 2024 revenue outlook on Wednesday that missed analysts’ estimates. AI stock plunged into the news.
X
For the full 2024 fiscal year, which begins with the July quarter, C3.ai has forecast revenue in the range of $295 million to $320 million. Analysts had expected revenue growth of 19% to $317 million, according to FactSet, meaning the company’s outlook missed the midpoint.
Revenue for fiscal 2023 rose just 5.6% to $266.8 million, from 38% the year before. C3.ai expects revenue growth to accelerate as more pilot projects ramp up production.
In the April quarter, C3.ai said it lost 13 cents per share on an adjusted basis compared to a loss of 21 cents a year earlier.
Predictions for a loss
C3.ai said it expects an adjusted operating profit loss of between $50 million and $75 million in fiscal 2024. Analysts have forecast an operating profit loss of $61. $8 million.
AI stock fell 18% to 32.81 in extended trading in the stock market today. In Wednesday’s regular session, shares fell nearly 9%. The stock has been extremely erratic lately, with shares climbing 33% on Tuesday.
C3.ai stock is extended from an entry point of 31.02 as investor interest in artificial intelligence stocks has increased.
Action AI: targeting multiple markets
The software maker helps companies build artificial intelligence applications. It targets the energy, financial services and defense markets.
C3.ai’s IPO in early December 2020 raised $651 million. In December, the enterprise AI software provider changed its pricing model from a subscription to a consumption-based model.
Shares of C3.ai had jumped 194% in 2023 amid buzz around startup OpenAI, ChatGPT and generative AI technology. During the April quarter, C3.ai said it closed three generative AI deals.
C3.ai is one of many AI stocks to watch. Additionally, C3.ai holds a relative strength rating of 98 out of the best possible 99, according to IBD Stock Check-up.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
YOU MIGHT ALSO LIKE:
How to use the 10 week moving average to buy and sell
Get Free IBD Newsletters: Market Readiness | Technical report | How to invest
IBD Live: a new daily stock market analysis tool
Want to get quick profits and avoid big losses? Try SwingTrader