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C3.ai's (AI) Q1 Loss Narrower Than Expected, Revenues Rise Y/Y
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C3.ai, Inc. (AI - Free Report) reported a first-quarter fiscal 2024 adjusted loss of 9 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 17 cents. The company reported a non-GAAP loss of 12 cents in the year-ago quarter.
Revenues of $72.4 million increased 10.8% year over year and were in line with the higher end of the management’s guidance between $70 million and $72.5 million.
The company witnessed strong traction with its enterprise AI applications, particularly for C3 Generative AI.
In the fiscal first quarter, C3.ai entered into new and expanded agreements with Saudi Arabia's Smart City, NEOM, Nucor, Roche, Pantaleon in Central America, Ball, Cargill, Con Ed, Shell, Tyson Foods, and the U.S. Department of Defense.
C3.ai closed 60% of its agreements with and through its partner network, which includes Google Cloud, AWS, Microsoft and Booz Allen Hamilton.
Quarter Details
C3.ai’s subscription revenues (84.8% of revenues) increased 7.6% year over year to $61.4 million. Professional service revenues (15.2% of revenues) surged 32.9% to $11 million.
In the reported quarter, the non-GAAP gross margin was 68.6% compared with 80.6% reported in the year-ago quarter.
Research and development and general and administrative expenses decreased 9% and 6.4% on a year-over-year basis to $50.9 million and $19.9 million, respectively. Sales and marketing expenses increased 2.1% to $43.9 million.
In the fiscal first quarter, C3.ai reported a non-GAAP loss from operations of $20.7 million compared with a non-GAAP loss from operations of $14.5 million reported in the year-ago quarter.
Balance Sheet
As of Jul 31, 2023, C3.ai had total cash, cash equivalents and short-term investments of $750.88 million compared with $730.98 million as of Apr 30, 2023.
Cash flow from operations was $3.9 million against the previous quarter’s outflow of $115.7 million.
GAAP Remaining performance obligation was $334.6 million, down 27% year over year.
Guidance
For second-quarter fiscal 2024, C3.ai expects revenues between $72 million and $76.5 million. Non-GAAP loss from operations is anticipated within $27 million to $40 million.
For fiscal 2024, C3.ai expects revenues between $295 million and $320 million. Non-GAAP loss from operations is expected in the range of $70 million to $100 million.
Zacks Rank & Stocks to Consider
C3.ai currently carries a Zacks Rank #3 (Hold).
Check Point Software (CHKP - Free Report) , Freshwork (FRSH - Free Report) , and Splunk are some better-ranked stocks that investors can consider in the broader sector. While Check Point Software and Freshwork carry a Zacks Rank #2 (Buy) each, Splunk sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Check Point Software shares have gained 6% year to date. The long-term earnings growth rate is pegged at 7.57%.
Freshwork shares have gained 52.3% year to date. The long-term earnings growth rate is pegged at 30%.
Splunk shares have gained 43.5% year to date. The long-term earnings growth rate is pegged at 24.71%.
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C3.ai's (AI) Q1 Loss Narrower Than Expected, Revenues Rise Y/Y
C3.ai, Inc. (AI - Free Report) reported a first-quarter fiscal 2024 adjusted loss of 9 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 17 cents. The company reported a non-GAAP loss of 12 cents in the year-ago quarter.
Revenues of $72.4 million increased 10.8% year over year and were in line with the higher end of the management’s guidance between $70 million and $72.5 million.
The company witnessed strong traction with its enterprise AI applications, particularly for C3 Generative AI.
In the fiscal first quarter, C3.ai entered into new and expanded agreements with Saudi Arabia's Smart City, NEOM, Nucor, Roche, Pantaleon in Central America, Ball, Cargill, Con Ed, Shell, Tyson Foods, and the U.S. Department of Defense.
C3.ai, Inc. Price, Consensus and EPS Surprise
C3.ai, Inc. price-consensus-eps-surprise-chart | C3.ai, Inc. Quote
C3.ai closed 60% of its agreements with and through its partner network, which includes Google Cloud, AWS, Microsoft and Booz Allen Hamilton.
Quarter Details
C3.ai’s subscription revenues (84.8% of revenues) increased 7.6% year over year to $61.4 million. Professional service revenues (15.2% of revenues) surged 32.9% to $11 million.
In the reported quarter, the non-GAAP gross margin was 68.6% compared with 80.6% reported in the year-ago quarter.
Research and development and general and administrative expenses decreased 9% and 6.4% on a year-over-year basis to $50.9 million and $19.9 million, respectively. Sales and marketing expenses increased 2.1% to $43.9 million.
In the fiscal first quarter, C3.ai reported a non-GAAP loss from operations of $20.7 million compared with a non-GAAP loss from operations of $14.5 million reported in the year-ago quarter.
Balance Sheet
As of Jul 31, 2023, C3.ai had total cash, cash equivalents and short-term investments of $750.88 million compared with $730.98 million as of Apr 30, 2023.
Cash flow from operations was $3.9 million against the previous quarter’s outflow of $115.7 million.
GAAP Remaining performance obligation was $334.6 million, down 27% year over year.
Guidance
For second-quarter fiscal 2024, C3.ai expects revenues between $72 million and $76.5 million. Non-GAAP loss from operations is anticipated within $27 million to $40 million.
For fiscal 2024, C3.ai expects revenues between $295 million and $320 million. Non-GAAP loss from operations is expected in the range of $70 million to $100 million.
Zacks Rank & Stocks to Consider
C3.ai currently carries a Zacks Rank #3 (Hold).
Check Point Software (CHKP - Free Report) , Freshwork (FRSH - Free Report) , and Splunk are some better-ranked stocks that investors can consider in the broader sector. While Check Point Software and Freshwork carry a Zacks Rank #2 (Buy) each, Splunk sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Check Point Software shares have gained 6% year to date. The long-term earnings growth rate is pegged at 7.57%.
Freshwork shares have gained 52.3% year to date. The long-term earnings growth rate is pegged at 30%.
Splunk shares have gained 43.5% year to date. The long-term earnings growth rate is pegged at 24.71%.