Artificial intelligence software developer C3.ai (AI) announced its fourth-quarter results after the bell on Wednesday, beating expectations for numbers and results as the wave of AI continues to rock Wall Street and l tech industry. Despite this, the company’s shares fell more than 12% after hours.
C3.ai expects to see first-quarter revenue of between $70 million and $72.5 million, a hair above Wall Street’s expectation of $72.1 million.
C3.ai’s full-year revenue outlook, however, appeared to fall short of Wall Street expectations. The company said it expects its fiscal 2024 revenue to be between $295 million and $320 million; data from S&P Global Market Intelligence showed analysts looking for revenue closer to $321 million for the full year.
And after AI coins like Nvidia (NVDA) and Marvell Technology (MRVL) dramatically raised their forecasts last week on a surge in demand, investors are judging C3.ai harshly on Wednesday.
Here are the most important numbers in the report compared to what analysts were looking for, based on data compiled by Bloomberg.
“We believe it is generally accepted today that the market for enterprise AI applications is considerably larger and growing at a much higher growth rate than experts had anticipated,” the company said. company in a press release.
“C3 AI has been at the forefront of the enterprise AI market for over a decade, as this market has grown from its roots in the IoT, towards unsupervised learning, supervised learning, NLP, deep learning, reinforcement learning and now generative AI.”
Despite these assurances, investors were not impressed with C3.ai’s prospects.
AI is the hottest trend on Wall Street as companies ranging from Nvidia (NVDA) and Marvell (MRVL) to Microsoft (MSFT) and Google (GOOG, GOOGL) ride the wave of hype that has kicked off with the launch of ChatGPT in 2022.
And while shares of AI darling Nvidia are up 162% since the start of 2023, shares of C3.ai are up 252%.
C3.ai produces enterprise AI software used by a wide range of industries, including transportation, healthcare, and manufacturing. On Tuesday, the company announced that its own C3 Generative AI product is available through Amazon’s AWS marketplace. It is already available through the Google Cloud Marketplace.
Unlike generative AI platforms such as ChatGPT, C3.ai’s offering is specifically designed for enterprise environments. To this end, it allows users to access corporate data through a natural language interface, while preventing users from accidentally sharing this information with the outside world.
Daniel Howley is the technical publisher of Yahoo Finance. He has been covering the tech industry since 2011. You can follow him on Twitter @DanielHowley.
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