C3.ai (NYSE:AI) stock gained about 13% in Wednesday’s after-hours trading following the release of impressive Fiscal third-quarter results and strong guidance. The company’s quarterly performance was driven by strong demand for artificial intelligence (AI)-related products during the quarter.
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C3.ai is an enterprise AI software provider focused on delivering solutions for various industries such as energy, manufacturing, healthcare, and finance.
Financial Highlights
The company reported an adjusted loss of $0.13 per share, narrower than the consensus estimate of a loss of $0.28 per share. However, the reported figure compares unfavorably with a loss of $0.06 in the same period last year.
Meanwhile, C3.ai generated total revenue of $78.4 million, up 18% year-over-year, and surpassed consensus estimates of $76.1 million. The top-line growth was driven by a 12% increase in Subscription revenue, which came to $70.4 million. Additionally, customer engagement increased by 80% year-over-year to 445 customers in Q3.
Outlook
For Fiscal Year 2024, C3.ai expects its total revenue to come in the range of $306 million to $310 million, compared with the prior forecast of $295 million to $320 million. Furthermore, the company anticipates that the adjusted loss from operations will fall between $115 million and $123 million for the full year.
In addition, C3.ai forecasts Q4 revenue between $82 million and $86 million, versus the Street estimate of $83.91 million.
What Is the Future Price of AI Stock?
Turning to Wall Street, analysts have a Hold consensus rating on AI stock based on three Buys, five Holds, and four Sells assigned in the past three months. The average price target of $27.50 per share implies a 7.4% downside risk. Shares of C3.ai have gained 43.2% over the past year, outperforming the S&P 500’s (SPX) rally of 28.3%.
