C3.ai Reports Wider Losses, Revenues Rise: Key Financial Insights

C3.ai shows mixed financial results. Despite a narrower loss and revenue growth, its stock has declined significantly in 2023, raising concerns about competition and market adoption pressures.

Date: 01-03-2025

AI Rating: 6

Earnings Per Share (EPS): C3.ai reported a third-quarter fiscal 2025 adjusted loss of 12 cents per share, which was better than the Zacks Consensus Estimate of a loss of 25 cents. This result indicates a positive movement towards lowering its losses compared to the previous year, where it reported a non-GAAP loss of 13 cents.

Revenue Growth: The company achieved revenues of $98.78 million, reflecting a substantial year-over-year increase of 26%. This growth surpassed the Zacks Consensus Estimate by 0.83%, thereby showcasing strong demand for its AI-driven enterprise solutions. Particularly notable was the 22% year-over-year growth in subscription revenues, which constituted a significant portion of the total revenues.

Future Guidance: Looking ahead, C3.ai is expecting fourth-quarter revenues to range between $103.6 million and $113.6 million and estimates total fiscal 2025 revenues to be between $383.9 million and $393.9 million. These projections align with the ongoing growth trends in its AI service offerings.

Overall Outlook: Despite the positive aspects of revenue growth and improved loss figures, C3.ai faces significant challenges, including macroeconomic uncertainties and stiff competition that could hinder their growth trajectory. Investors should note the prevailing market conditions and evaluate the potential risks alongside the recent earnings report.

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