Shares of C3.ai (NYSE:AI) soared in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2023. Earnings per share came in at -$0.06, which beat analysts’ consensus estimate of -$0.22 per share. Sales decreased by 4.5% year-over-year, with revenue hitting $66.66 million. This beat analysts’ expectations of $64.25 million.
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C3.ai’s subscription revenue for the quarter was $57 million. That represents fully 85.6% of revenue. Further, C3.ai now has 236 total customers to its credit. Its remaining performance obligations now represent 151% of third-quarter annualized revenue, coming in at $436.3 million on a non-GAAP basis. Current remaining performance obligations, meanwhile, are up 7% against last quarter, reaching $164.5 million total.
Looking forward, management now expects revenue for Q1 2023 to be in the range of $70 million to $72 million. For reference, analysts were expecting $69.85 million.
Overall, Wall Street has a consensus price target of $16.14 on C3.ai, implying 24.26% downside risk, as indicated by the graphic above.
