:max_bytes(150000):strip_icc()/GettyImages-1230918239-e11d6a0518f443d794b56f9b38ca2b1a.jpg "A Scaled-Back Outlook is Pulling C3.ai’s Stock Lower Today")
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Key Takeaways
- Shares of C3.a1 tumbled Thursday morning, pulled lower by a projected loss for the current quarter that was wider than analysts expected.
- The AI software maker reported a smaller loss than analysts expected for the latest quarter, but analysts said the company’s subscription growth was disappointing.
- The morning’s share-price drop extended the stock’s year-to-date losses, pulling it to levels last seen in 2023.
C3,a1 (AI) shares sank to their lowest point in months Thursday after the artificial intelligence (AI) software maker projected a larger loss than expected for the current quarter.
The company released fiscal first-quarter results for fiscal 2025 after the bell Wednesday, with revenue less than $1 million above estimates compiled by Visible Alpha at $87.2 million, and a smaller net loss than expected at $62.8 million.
For the current quarter, C3 projects revenue within a range of $88.6 million to $93.6 million, compared to the analyst consensus of $91 million. The company projects an adjusted net loss of $26.7 million to $34.7 million for the quarter, compared with the $20.3 million loss analysts currently project.
The shares were recently down 14%, extending the stock’s year-to-date losses and dropping to near levels last seen in 2023.
Several Wall Street analysts cut price targets after the results, citing the higher-than-expected loss, disappointing subscription revenue growth, and unchanged full-year projections. Wall Street’s consensus recommendation on the shares is currently a hold, according to Visible Alpha data.