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.
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%.
