C3.ai Shares Surge on Back of Impressive Financial Results and Renewed Significant Contract
C3.ai, a prominent provider of enterprise AI software, experiencing growth spurred by the demand for generative AI products, reported better-than-expected results on Thursday. The company's shares soared by more than 25%, following the news.
C3.ai's fourth-quarter adjusted loss was $0.16 per share, a decrease compared to analysts' estimated loss of $0.19 per share. The company's revenue for the same period surged by 26% to reach $108.7 million, surpassing the expected revenue of $107.9 million.
Subscription revenue increased by 9% to $87.3 million, while engineering services revenue saw a significant jump of 196%. Combined, these two revenue streams accounted for 96% of C3.ai's total revenue and registered a 22% increase compared to the previous year.
The company noted that revenue from its generative AI business more than doubled in the fiscal year, demonstrating strong demand for its AI applications.
C3.ai also announced the renewal and expansion of its strategic partnership with oilfield services provider Baker Hughes. The multi-year agreement aims to deepen co-selling efforts, co-invest in AI solutions, and scale deployments of joint solutions that increase operational visibility and improve production efficiency across assets in major oil and gas companies.
Despite the 26% gains, shares of C3.ai have lost more than 15% of their value year-to-date.
While C3.ai is recognized as a leader in the composable AI market, offering modular AI solutions, the focus on generative AI has enabled the company to serve a broader range of industries effectively, including manufacturing, financial services, government, utilities, and healthcare. This expansion enhances its market position and potential for future growth.
C3.ai's success in the generative AI market has extended beyond predictive applications, as token sales from this division more than doubled in the fiscal year. Further, the company is exploring the integration of artificial-intelligence technology in its future trading solutions, aiming to revolutionize various industries, including finance, through AI-powered strategies.
