c3.ai Stock Jumps Following Beat-And-Raise Q2: Sell-Side, Retail Cheer Results

Enterprise artificial intelligence software applications company c3.ai, Inc. ($AI) announced fiscal year 2025 second-quarter results that exceeded expectations, sending its shares higher in Tuesday’s premarket session.

c3.ai is currently the top-trending stock on Stocktwits.

The Redwood City, California-based company reported a third-quarter non-GAAP loss per share of $0.06, narrower than the year-ago loss of $0.13. Analysts, on average, estimated a loss of $0.16 per share for the quarter. 

Revenue climbed 29% year-over-year (YoY) to $94.3 million, exceeding the consensus of $91.02 million. Subscription revenue, accounting for 86% of the total revenue, climbed 22% to $81.2 million. 

The company closed 58 agreements during the quarter, including 36 pilots. 

c3.ai ended the quarter with a cash position of $730.4 million.

Thomas Siebel, c3.ai’s CEO, said, “We had an outstanding quarter with strong top- and bottom-line performance to mark our seventh consecutive quarter of accelerating revenue growth.”

During the quarter, c3.ai signed a new global alliance agreement with Microsoft that will run through an initial five-and-a-half-year term, ending in March 2030.

Siebel said, “By establishing C3 AI as a preferred AI application provider on Azure and creating a Microsoft-scale go-to-market engine, we’re making it easy for businesses to adopt and deploy C3 AI applications. This is an inflection point for Enterprise AI, driving growth.”

c3.ai guided third-quarter non-GAAP loss from operations to $38.6 million to $46.6 million and revenue to $95.5 million—$100.5 million, surrounding the consensus estimate of $97.91 million.

The company raised its full-year revenue guidance from a range of $370 million to $395 million to a range of $378 million to $398 million. It, however, widened its non-GAAP loss estimate from $95 million-$125 million to $105 million-$135 million.

c3.ai sentiment and message volume December 10, 2024, premarket as of 7:16 am ET | Source: Stocktwits

On Stocktwits, sentiment toward c3.ai stock improved from ‘neutral’ a day ago to ‘extremely bullish’ (94/100), marking the highest this year. The improved sentiment was accompanied by an ‘extremely high’ message volume.

Following the quarterly results, the stock received price target boosts from a host of sell-side firms, Fly reported. Morgan Stanley analysts, while maintaining an ‘Underperform’ rating, upped the price target for the stock from $21 to $32. JMP Securities and Piper Sandler lifted their price targets from $40 and $24, respectively, to $55 and $42.

In premarket trading, as of 7:16 a.m. ET, c3.ai shares climbed 1.97% to $42.50. The stock has gained over 45% for the year. 

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