C3.ai Stock Is Rising Thursday: What's Going On?

Zinger Key Points
  • C3.ai reports quarterly results that beat analyst estimates on the top and bottom lines.
  • Following the print, Needham analyst Mike Cikos reiterates C3.ai with a Hold rating.

C3.Ai Inc AI shares are trading higher Thursday after the company reported better-than-expected financial results for its fiscal fourth quarter.

What Happened: C3.ai reported fourth-quarter revenue of $86 million, beating analyst estimates of $84.395 million. The enterprise AI software company reported an adjusted loss of 11 cents per share, beating estimates for a loss of 30 cents per share, according to Benzinga Pro.

C3.ai said it generated $18.8 million in free cash flow during the fourth quarter. The company ended the quarter with $750.4 million in cash, equivalents and marketable securities.

“We finished a strong quarter and closed out a huge year for C3 AI. This was our fifth consecutive quarter of accelerating revenue growth … Demand for Enterprise AI is intensifying, and our first to market advantage in Enterprise AI positions us well to capitalize on it,” said Thomas Siebel, chairman and CEO of C3.ai.

C3.ai said it plans to continue to invest in growth to build a “long-term cash generating profitable market leader in Enterprise AI.”

C3.ai expects first-quarter revenue to be in the range of $84 to $89 million versus estimates of $85.88 million. The company sees full-year revenue of $370 million to $395 million versus estimates of $367.51 million.

“The interest we are seeing in our generative AI applications is staggering,” Siebel added.

Following the company’s quarterly results, Needham analyst Mike Cikos reiterated C3.ai with a Hold rating.

Don’t Miss: C3.ai Q4 Earnings Highlights: Revenue Beat, EPS Beat, Q1 Guidance, ‘Demand For Enterprise AI Is Intensifying’

AI Price Action: C3.ai shares were up 9.9% at $26.26 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock.

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