Artificial intelligence (AI) software developer C3.ai reported fourth-quarter earnings after the bell on Wednesday, beating expectations in top and bottom earnings as the tide of artificial intelligence continues to shake Wall Street and the tech industry. Despite this, the company’s shares fell more than 12% after hours.
C3.ai expects to see Q1 revenue of between $70 million and $72.5 million, which was higher than Wall Street’s forecast of $72.1 million.
C3. aiHowever, the revenue forecast for the full year appears to be at odds with Wall Street’s expectations. The company said it expects revenues for the fiscal year 2024 to be between $295 and $320 million. Data from S&P Global Market Intelligence showed that analysts are looking for revenue closer to $321 million for the full year.
And after AI players like Nvidia (NVDA) and Marvell Technology (MRVL) raised their forecasts last week dramatically due to increased demand, investors are making harsh judgments. C3. ai Wednesday.
Here are the top numbers in the report compared to what analysts were looking for, based on data compiled by Bloomberg.
“We believe it is generally agreed today that the market for enterprise AI applications is exponentially larger and growing at a much greater growth rate than experts had predicted,” the company said in a statement.
“C3 AI It has been at the forefront of the enterprise AI market for over a decade as this market has evolved from its roots in the Internet of Things, to unsupervised learning, supervised learning, natural language processing, deep learning, reinforcement learning, and now generative AI.”
Despite these assurances, investors weren’t impressed with C3.ai’s outlook.
Artificial intelligence is the hottest trend on Wall Street, as companies ranging from Nvidia (NVDA) and Marvell (MRVL) to Microsoft (MSFT) and Google (GOOG, GOOGL) are riding the hype wave that began with the launch of ChatGPT in 2022.
And while AI darling Nvidia shares are up 162% since the start of 2023, C3.ai stock is up a whopping 252%.
C3.ai produces AI software for organizations that are used by a wide range of industries including transportation, healthcare, and manufacturing. The company announced on Tuesday that its C3 Generative AI product is available via Amazon’s AWS marketplace. It is already available via the Google Cloud Marketplace.
Unlike generative AI platforms such as ChatGPT, C3.ai’s offering is tailored to enterprise settings. To this end, it allows users to access company data via a natural language interface, while preventing users from accidentally sharing this information with the outside world.
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