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