Why C3.ai Shares Are Falling Thursday


C3.ai Inc AI shares are trading lower by 19.3% to $14.52 Thursday morning after the company reported worse-than-expected first-quarter sales results and issued third-quarter and FY23 sales guidance below analyst estimates.

What Happened?

C3.ai reported quarterly losses of 12 cents per share. The company also reported quarterly sales of $65.30 million which missed the analyst consensus estimate of $66.02 million by 1%. This is however a 24.60% over sales of $52.41 million in the same period last year.

Meanwhile, C3.ai sees third-quarter sales as low as $60 million or as high as $62 million, which is lower than the analyst consensus estimate of $71.7 million. The company sees FY23 sales as low as $255 million or as high as $270 million, which is lower than the analyst consensus estimate of $310.58 million.

What Else?

C3.ai highlighted this is the seventh consecutive quarter in which the company has met or exceeded revenue guidance.

"I'm pleased to announce that C3 AI is transitioning from a subscription model to a consumption-based pricing model, bringing us in line with what is becoming the standard among enterprise SaaS companies," said CEO Thomas M. Siebel.

"We have implemented a new pricing model, a new sales model, a new partner model, and new applications to accelerate sales cycles, accelerate product adoption, increase market share, and increase revenue growth and profitability in the medium and long-term," Siebel stated.

Read More: Here's Why MongoDB Stock Is Plunging Today

According to data from Benzinga Pro, C3.ai has a 52-week high of $55.58 and a 52-week low of $13.37.

Market News and Data brought to you by Benzinga APIs
Posted In: MoversTrading Ideaswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!