C3.ai Stock Falls After Company Withdraws Profit Forecast

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While July quarter results topped estimates, the AI company sees mounting losses ahead.

C3.ai shares are lower in late trading Wednesday after the AI software company posted solid results for its latest quarter, while forecasting a larger full-year loss than previously expected.

“After careful consideration with our leadership and our marketing partners, we have made the decision to invest in lead generation, branding, market awareness, and customer success related to our Generative AI solutions,” CEO Thomas Siebel said in a statement. “The market opportunity is immediate, and we intend to seize it.

On an adjusted basis, the company lost 9 cents a share, narrower than the Street consensus forecast for a loss of 17 cents. Under generally accepted accounting principles, the company lost 56 cents a share. For the April 2024 fiscal year, C3.ai continues to see revenue between $295 million and $320 million, but it now sees a non-GAAP loss from operations of between $70 million and $100 million, compared with a previous forecast loss of $50 million to $75 million. The Wall Street consensus estimate had called for a loss of $64 million.

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