C3.ai jumps as it boosts full-year guidance after strong Q2 results on AI momentum
Dec. 09, 2024 4:22 PM ET
By: Chris Ciaccia, SA News Editor
 BlackJack3D
C3.ai (NYSE: AI) shares rose more than 14% in late trading on Monday after the enterprise software company upped its full-year guidance after the company reported fiscal second-quarter results that topped expectations, led by continued strength in artificial intelligence-related spending.
The company now expects fiscal 2025 revenue to be between $378M to $398M, up from a previous range of $370M to $395M. Analysts had been expecting the company to generate $382.6M in annual revenue.
Looking to the third-quarter, C3.ai expects revenue to be between $95.5M and $100.5M, with the midpoint of $98M slightly above the $97.5 estimate.
Quarterly results
For the period ending October 31, the Thomas Siebel-led company lost an adjusted $0.06 per share as revenue rose 28.8% year-over-year to come in at $94.3M. Included in that was a 22% rise in subscription revenue to $81.2M, while professional services revenue surged 94% year-over-year to $13.2M.
Analysts expected the company to lose an adjusted $0.16 per share on $91M in revenue.
“We had an outstanding quarter with strong top- and bottom-line performance to mark our seventh consecutive quarter of accelerating revenue growth,” Siebel said in a statement. “It is difficult to overstate the potential of the Microsoft–C3 AI strategic alliance. By establishing C3 AI as a preferred AI application provider on Azure and creating a Microsoft-scale go-to-market engine, we’re making it easy for businesses to adopt and deploy C3 AI applications. This is an inflection point for Enterprise AI, driving growth.”
The company will hold a conference call at 5 p.m. EST to discuss the results. |
