C3.ai stock price unchanged after the report
2022.12.08 07:32
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C3.ai stock price unchanged after the report
Budrigannews.com – C3.ai shares (NYSE:) are trading nearly flat following the company’s fiscal second quarter results.
Computer based intelligence said its income rose 7% year-more than year to $62.4 million, beating the $60.82M agreement. Additionally, the company reported an adjusted loss of $0.11, which was higher than the anticipated $0.22 per share loss. The consensus estimate of $50.4 million was exceeded by subscription revenue, which increased 26% year-over-year to $59.5 million.
CEO Thomas M. Siebel stated, “It was a solid second quarter, with subscription revenue growing 26% year over year.” Our customers, partners, and sales organization have praised our significant progress ramping up our consumption-based sales motion effort. In the upcoming quarters, we anticipate that consumption-based sales will significantly contribute to growth.
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For the year, AI expects revenue of $255 million to $270 million, again missing the average analyst estimate of $260.83 million. The adjusted operating loss is seen between $98 million and $85 million. Morgan Stanley analysts cut the price target by $1 to $12 per share and remain bearish on AI stock. AI expects third-quarter revenue of $63 million to $65 million, which is lower than the consensus of $66.79 million. The company expects to post an adjusted operating loss of $29 million to $25 million.
They stated in a note that they would “reiterate our UW rating given the overhang created by the model transition and lack of visibility on accelerating top-line growth.” However, they added that they would “closely monitor C3.Ai’s progress on the transition to consumption and on the path to profitability given an undemanding valuation at 2.5x CY24 sales.”
After “mixed” results, analysts at Bank of America also decreased their price target for AI stock from $16 to $14.
The stock continues to be a transitional and me-too story. We emphasize our Fail to meet expectations rating and are bringing our PO down to $14 from $16 (was 3.3x EV/C23e fire up) for declining build-up as still restricted perceivability to key development measurements during the change. The analysts wrote, “We look for revenue/RPO growth and improved sales productivity.”
