AI Stock Tumbles As C3.ai Fiscal 2024 Revenue Outlook Misses
C3.ai (AI), which preannounced some fiscal fourth-quarter results in mid-May, on Wednesday issued a full-year fiscal 2024 revenue outlook that missed analyst estimates. AI stock plunged on the news.
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For full year fiscal 2024, which starts with the July quarter, C3.ai predicted revenue in a range of $295 million to $320 million. Analysts expected revenue growth of 19% to $317 million, according to FactSet, meaning the company's outlook missed at the midpoint.
Fiscal 2023 revenue rose only 5.6% to $266.8 million, slowing from 38% the previous year. C3.ai expects revenue growth to reaccelerate as more pilot projects ramp up production.
In the April quarter, C3.ai said it lost 13 cents per share on an adjusted basis versus a 21-cent loss a year earlier.
Predictions For A Loss
C3.ai said it expects an adjusted operating income loss in a range of $50 million to $75 million in fiscal 2024. Analysts projected an operating income loss of $61.8 million.
AI stock tanked by 18% to 32.81 in extended trading on the stock market today. In Wednesday's regular session, shares fell nearly 9%. The stock has been wildly erratic of late as shares rocketed 33% higher on Tuesday.
C3.ai stock is extended from an entry point of 31.02 as investor interest in artificial intelligence stocks has surged.
AI Stock: Targeting Several Markets
The software maker helps companies build artificial intelligence applications. It targets the energy, financial services and defense markets.
C3.ai's initial public offering in early December 2020 raised $651 million. In December, the enterprise AI software provider changed its pricing model from subscription to consumption-based.
Shares in C3.ai had surged 194% in 2023 amid buzz over startup OpenAI, ChatGPT and generative AI technology. In the April quarter, C3.ai says it closed three generative AI deals.
C3.ai is one of many AI stocks to watch. In addition, C3.ai holds a Relative Strength Rating of 98 out of a 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.
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Source: Investor's Business Daily
