C3.Ai Inc AI shares are trading lower Thursday after the company reported mixed financial results for the second quarter.
- Q2 Revenue: $73.23 million missed estimates of $74.33 million
- Q2 EPS: 13 cent loss beat estimates for an 18 cent loss
Total revenues were up 17% year-over-year. Subscription revenues were up 12% year-over-year.
Customer engagement grew by 81% on a year-over-year basis. The company said it closed 62 customer agreements during the quarter, including 36 pilots. C3.ai ended the quarter with $762.3 million in cash, equivalents and investments.
"We saw unprecedented interest and traction in our generative AI offerings. Importantly, we are seeing a return to accelerating revenue growth as we continue our transition to a consumption-based pricing model," said Thomas Siebel, chairman and CEO of C3.ai.
Guidance: C3.ai sees third-quarter revenue in the range of $74 million to $78 million. The company reaffirmed that full-year 2024 revenue is still expected to be between $295 million and $320 million.
C3.ai noted that it plans to further accelerate investments in generative AI as it anticipates a significant increase in opportunities for Enterprise AI. The company also said it believes it's well-positioned to accelerate growth, gain market share and attain sustainable non-GAAP profitability.
See Also: Move Aside, Nvidia: Meta, Microsoft Opt For New AMD Artificial Intelligence Chip
AI Price Action: C3.ai shares were down 10.5% at $26.14 at the time of writing, according to Benzinga Pro.
Photo: Tung Nguyen from Pixabay.
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