Core Insights - C3.ai, Inc. reported a quarterly loss of $0.12 per share, outperforming the Zacks Consensus Estimate of a loss of $0.25, marking a 52% earnings surprise [1] - The company achieved revenues of $98.78 million for the quarter ended January 2025, exceeding the Zacks Consensus Estimate by 0.83% and showing a year-over-year increase from $78.4 million [2] - C3.ai has consistently surpassed consensus EPS estimates over the last four quarters [2] Financial Performance - The company has shown a significant improvement in earnings surprises, with a previous quarter's loss of $0.06 against an expected loss of $0.16, resulting in a 62.50% surprise [1] - C3.ai shares have declined approximately 23.5% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.26 on revenues of $108.64 million, and for the current fiscal year, it is -$0.63 on revenues of $388.16 million [7] - The Zacks Rank for C3.ai is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Computers - IT Services industry, to which C3.ai belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact C3.ai's stock performance [5]

Core Insights - C3.ai reported third-quarter revenue of $98.8 million, a 26% increase year-over-year, surpassing the consensus estimate of $98.1 million [1][2] - The company achieved a non-GAAP net loss of 12 cents per share, better than the expected loss of 25 cents per share [2] - C3.ai closed 66 agreements during the quarter, including 50 pilots, marking a 72% increase year-over-year [3] Financial Performance - Subscription revenue for the quarter was $85.7 million, up 22% year-over-year, accounting for 87% of total revenue [1] - The company ended the quarter with $724.3 million in cash and cash equivalents [4] - C3.ai is guiding for fourth-quarter revenue between $103.6 million and $113.6 million, with full fiscal year revenue expected to be between $383.9 million and $393.9 million [6] Strategic Developments - C3.ai expanded its global distribution network and strategic partnerships with Microsoft, AWS, and McKinsey Quantumblack [2][4] - The joint qualified opportunity pipeline with Microsoft increased by 244% year-over-year [4] - The company entered into new agreements with the U.S. Air Force, U.S. Navy, and U.S. Department of Defense [3] Future Outlook - C3.ai will host the C3 Transform 2025 conference from March 18-20, 2025, aimed at showcasing the value of Enterprise AI [5][6] - The CEO emphasized the company's readiness to transform the Enterprise AI landscape through its technology and partnerships [7]

C3 AI Announces Fiscal Third Quarter 2025 Financial Results 26% Year-Over-Year Revenue Growth Dramatically Expanded Strategic Partnerships with Microsoft, AWS, and McKinsey QuantumBlack C3 Generative AI Makes History with First Ever Agentic AI Earnings Call REDWOOD CITY, Calif. — February 26, 2025 — C3.ai, Inc. ("C3 AI," "C3," or the "Company") (NYSE: AI), the Enterprise AI application software company, today announced financial results for its fiscal third quarter ended January 31, 2025. "In the third quar ...

Core Viewpoint - C3.ai is expected to report its third-quarter fiscal 2025 results on February 26, with anticipated revenue growth driven by strong demand for its generative AI solutions and enterprise AI software [1][2][4]. Revenue Expectations - C3.ai forecasts revenues between $95.5 million and $100.5 million for the third quarter, with a Zacks Consensus Estimate of $97.97 million, reflecting a year-over-year increase of 27.96% [2]. - The consensus estimate for loss per share remains stable at 25 cents, indicating a significant year-over-year decline of 92.31% [2]. Performance Drivers - The company's performance is likely bolstered by its C3 Generative AI solutions and increased demand for enterprise AI software [4]. - C3.ai has seen growing interest in generative AI applications across various industries, including manufacturing, pharmaceuticals, and energy [5]. - The Generative AI Accelerator program is expected to facilitate new agreements and transitions from pilot projects to full-scale implementations [5]. Customer Base and Agreements - C3.ai's efforts to diversify its customer base across multiple sectors, including manufacturing and defense, are anticipated to significantly contribute to revenue growth [6]. - In the fiscal second quarter, C3.ai closed 58 agreements, including new and expanded deals with major corporations such as Exxon Mobil and Rolls-Royce, which are expected to positively impact the upcoming quarter [6]. Stock Performance and Valuation - C3.ai shares have declined by 8.3% year-to-date, underperforming the Zacks Computer & Technology sector, which has returned 0.8% [7]. - The stock is trading at a premium, with a forward 12-month Price/Sales ratio of 7.95X compared to the sector's 6.45X, indicating a stretched valuation [10]. Partnerships and Collaborations - C3.ai has established a strong partner base, including major cloud providers like Amazon, Alphabet, and Microsoft, which is expected to drive growth [12]. - Partnerships with hyperscalers contributed to 62% of the company's agreements in the second quarter, highlighting the importance of its partner network in revenue generation [13]. - Collaborations with Google Cloud resulted in a 180% year-over-year increase in agreements, showcasing the effectiveness of these partnerships [14]. Government Sector Engagement - C3.ai's expanding presence in the government and defense sectors, including new contracts with U.S. federal agencies, is expected to provide a steady revenue stream [16]. - The company secured a task order from the U.S. Army to modernize information collection management processes, indicating strong growth in its federal business [17][18].

Core Viewpoint - C3.ai is experiencing impressive revenue growth but remains unprofitable, making it a speculative investment with potential risks ahead of its earnings report on February 26 [2][7][11]. Group 1: Company Performance - C3.ai has shown accelerating sales growth over the past three years, indicated by a steepening revenue trend [3]. - Over 60% of C3.ai's business is generated through its partner ecosystem, which includes major cloud providers and consulting firms [4][5]. - Despite the growth, C3.ai has not achieved profitability, with consistent net losses and negative free cash flow [7]. Group 2: Market Position and Comparisons - C3.ai is significantly smaller than its peers, such as Palantir, which raises questions about its valuation and investment appeal [8]. - The stock typically rises before earnings reports but tends to fall immediately afterward, indicating a pattern of investor disappointment [10]. Group 3: Investment Sentiment - The company is viewed as more of a trading stock rather than a long-term investment due to its speculative nature and lack of consistent profitability [10][11]. - Analysts suggest looking for more established AI software companies that demonstrate robust revenue growth and profitability instead of investing in C3.ai [11].

Core Insights - C3.ai, Inc. is expected to report a quarterly loss of $0.25 per share, a decline of 92.3% year-over-year, with revenues forecasted at $97.97 million, reflecting a 25% increase compared to the same period last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts have reassessed their initial estimates [1] Revenue Projections - Analysts project 'Revenue- Professional services' to reach $12.68 million, marking a 58.4% increase from the year-ago quarter [4] - The 'Revenue- Subscription' is estimated to be $85.27 million, representing a 21.1% increase from the previous year [4] Gross Margin Estimates - The 'Gross margin- Professional services' is expected to be 83.0%, down from 89% in the same quarter last year [5] - The 'Gross margin- Subscription' is projected to reach 55.1%, slightly up from 54% year-over-year [5] Stock Performance - Over the past month, C3.ai shares have declined by 12.2%, while the Zacks S&P 500 composite has increased by 2.2% [6] - C3.ai currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6]

Core Viewpoint - C3.ai Inc (NYSE:AI) stock is experiencing a decline ahead of its fiscal third-quarter earnings report, but it is trading near a historically bullish trendline that may support a rebound in the near future [1][2]. Stock Performance - The stock is currently down 6.3% to $28.87 and has lost 17.5% over the past three months, with a year-to-date decline of 16.1% [1]. - C3.ai is testing its 126-day moving average, which has historically led to bullish returns [2]. - In the past three years, the stock has approached this moving average after spending 80% of the last two months above it, with four previous instances [2]. Historical Trends - Following previous signals of approaching the moving average, the stock has averaged an 8.6% gain one month later, which would place it above $31 if a similar move occurs [3]. - The stock has shown mixed post-earnings performances, with notable gains of 24.5% and 19.4% after earnings in February and May, respectively [4]. - Over the past two years, the average post-earnings move has been 15.3%, with current options pricing indicating an expected swing of 18.1% [4]. Market Sentiment - The sentiment in the options market indicates elevated pessimism, with a 10-day put/call volume ratio in the 86th percentile of annual readings [5]. - If traders unwind their bearish positions, it could provide positive momentum for the stock [5]. Analyst Ratings - Analyst coverage remains cautious, with 10 out of 14 brokerages rating the stock as a "hold" or worse [6]. - A strong earnings reaction could lead analysts to reassess their ratings, potentially driving additional upside [6].

Group 1 - C3.ai aims to maintain its trend of accelerating revenue growth in the upcoming quarterly results report [1] - The stock price of C3.ai was noted at a decline of 3.18% as of February 17, 2025 [1] - The video discussing these developments was published on February 19, 2025 [1]

Group 1 - YieldMax AI Option Income Strategy ETF (NYSEARCA: AIYY) is designed to track the price movements of C3.ai, Inc (AI) and was launched in November 2023 [1] - The ETF aims to provide investors with a strategy that combines growth and income, potentially enhancing investment income while achieving total returns comparable to traditional index funds like the S&P [1] Group 2 - The article emphasizes the importance of a diversified investment approach, including high-quality dividend stocks, Business Development Companies, REITs, and Closed End Funds to boost income [1]

Over the past year, stocks with interest in the artificial intelligence (AI) space have seen significant returns as investors continue to bet on the technology. For instance, chipmaker Nvidia (NASDAQ: NVDA) and American software giant Palantir (NASDAQ: PLTR)  are key leaders in this sector, helping investors register massive profits.Although the outlook on AI is widely positive, not all equities in the space are poised for success, as several headwinds hamper them.  To this end, Finbold has identified the f ...