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C3.ai (AI) Shares Jump on Upbeat Q4 Preliminary Earnings
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C3.ai (AI - Free Report) reported strong preliminary results for fourth-quarter fiscal 2023. The enterprise AI software solution provider anticipates revenues between $72.1 million and $72.4 million, above the previous revenue guidance of $70-$72 million.
The company also expects to become a profitable business on a non-GAAP basis by the end of fiscal 2024.
The AI stock jumped 23.43% to close at $23.97 on May 15. C3.ai shares have soared 114.2% year to date, thanks to bolstering prospects, driven by the strong adoption of its AI software solutions.
Top Line Benefits From Expanding Clientele
C3.ai’s preliminary update expects revenues to remain flat at the mid-point on a year-over-year basis for the fiscal fourth quarter. This also beats the Zacks Consensus Estimate for fiscal fourth-quarter revenues of $70.97 million.
Fiscal 2023 revenues are expected between $266.5 million and $266.8 million, better than the previous guidance of $264-$266 million. At the mid-point, this indicates 5.48% growth over the fiscal 2022 reported figure.
C3.ai is expected to have benefited from an expanding clientele. In the fiscal fourth quarter, it closed 43 deals, including 19 pilots that were initiated in the quarter.
The company has also been benefiting from an active partner base that includes the likes of Google Cloud, AWS, Microsoft, Baker Hughes and Booz Allen. It has been strengthening its footprint in the federal end-market through its partnership with Booz Allen.
C3.ai expects a fiscal fourth-quarter non-GAAP loss from operations between $23.7 million and $23.9 million, slightly narrower than the previous guidance of a loss of $24-$28 million.
The fiscal 2023 loss from operations is expected between $68.2 million and $68.4 million, narrower than the previous guidance of a loss of $69-$73 million.
Positive Free Cash Flow in Q4
C3.ai expects a free cash flow between $18 million and $19.4 million for the fiscal fourth quarter. For fiscal 2023, the free cash outflow is expected between $184.2 million and $185.6 million.
Net cash flow from operating activities for the fiscal fourth quarter is expected between $28.1 million and $29.5 million.
For fiscal 2023, net cash flow from operating activities is expected between $113.3 million and $114.7 million.
However, all three stocks have underperformed C3.ai shares.
CoStar shares have declined 1.7% year to date, underperforming the broader sector and the industry. The broader Computer & Technology sector has returned 22.7%, whereas the industry has gained 1.7% over the same time frame.
The Zacks Consensus Estimate for CSGP’s second-quarter 2023 earnings stands at 30 cents per share, up 20% over the past 30 days.
Vertiv shares have lost 10% year to date, underperforming the sector and the industry. The Zacks Consensus Estimate for VRTV’s second-quarter 2023 earnings stands at $5.01 per share, unchanged over the past 30 days.
CyberArk shares have moved down 15.4% in the past year. The consensus mark for CYBR’s second-quarter 2023 loss stands at 15 cents per share, narrower by a penny over the past 30 days.
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C3.ai (AI) Shares Jump on Upbeat Q4 Preliminary Earnings
C3.ai (AI - Free Report) reported strong preliminary results for fourth-quarter fiscal 2023. The enterprise AI software solution provider anticipates revenues between $72.1 million and $72.4 million, above the previous revenue guidance of $70-$72 million.
The company also expects to become a profitable business on a non-GAAP basis by the end of fiscal 2024.
The AI stock jumped 23.43% to close at $23.97 on May 15. C3.ai shares have soared 114.2% year to date, thanks to bolstering prospects, driven by the strong adoption of its AI software solutions.
Top Line Benefits From Expanding Clientele
C3.ai’s preliminary update expects revenues to remain flat at the mid-point on a year-over-year basis for the fiscal fourth quarter. This also beats the Zacks Consensus Estimate for fiscal fourth-quarter revenues of $70.97 million.
Fiscal 2023 revenues are expected between $266.5 million and $266.8 million, better than the previous guidance of $264-$266 million. At the mid-point, this indicates 5.48% growth over the fiscal 2022 reported figure.
C3.ai is expected to have benefited from an expanding clientele. In the fiscal fourth quarter, it closed 43 deals, including 19 pilots that were initiated in the quarter.
C3.ai, Inc. Price and Consensus
C3.ai, Inc. price-consensus-chart | C3.ai, Inc. Quote
The company has also been benefiting from an active partner base that includes the likes of Google Cloud, AWS, Microsoft, Baker Hughes and Booz Allen. It has been strengthening its footprint in the federal end-market through its partnership with Booz Allen.
C3.ai expects a fiscal fourth-quarter non-GAAP loss from operations between $23.7 million and $23.9 million, slightly narrower than the previous guidance of a loss of $24-$28 million.
The fiscal 2023 loss from operations is expected between $68.2 million and $68.4 million, narrower than the previous guidance of a loss of $69-$73 million.
Positive Free Cash Flow in Q4
C3.ai expects a free cash flow between $18 million and $19.4 million for the fiscal fourth quarter. For fiscal 2023, the free cash outflow is expected between $184.2 million and $185.6 million.
Net cash flow from operating activities for the fiscal fourth quarter is expected between $28.1 million and $29.5 million.
For fiscal 2023, net cash flow from operating activities is expected between $113.3 million and $114.7 million.
Zacks Rank & Stocks to Consider
C3.ai currently carries a Zacks Rank #3 (Hold).
CoStar Group (CSGP - Free Report) , Vertiv (VRT - Free Report) and CyberArk (CYBR - Free Report) are some better-ranked stocks in the broader Computer & Technology sector and Zacks Computers – IT Services industry.
Costar and Vertiv currently sport a Zacks Rank #1 (Strong Buy), and CyberArk carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
However, all three stocks have underperformed C3.ai shares.
CoStar shares have declined 1.7% year to date, underperforming the broader sector and the industry. The broader Computer & Technology sector has returned 22.7%, whereas the industry has gained 1.7% over the same time frame.
The Zacks Consensus Estimate for CSGP’s second-quarter 2023 earnings stands at 30 cents per share, up 20% over the past 30 days.
Vertiv shares have lost 10% year to date, underperforming the sector and the industry. The Zacks Consensus Estimate for VRTV’s second-quarter 2023 earnings stands at $5.01 per share, unchanged over the past 30 days.
CyberArk shares have moved down 15.4% in the past year. The consensus mark for CYBR’s second-quarter 2023 loss stands at 15 cents per share, narrower by a penny over the past 30 days.