C3.ai, Inc. (NYSE: AI), has released its revenue projections for fiscal year 2024, which have fallen short of analyst expectations. The company’s stock experienced a significant drop in response to this news.
For full-year fiscal 2024, C3.ai projects its revenue to be in the range of $295 million to $320 million. However, analysts had anticipated a higher growth rate of 19% and a revenue figure of $317 million, according to FactSet. This means that C3.ai’s outlook missed the midpoint of expectations.
In fiscal year 2023, C3.ai experienced a modest revenue increase of only 5.6%, amounting to $266.8 million. This growth rate represents a slowdown compared to the previous year, which saw a significant 38% increase. C3.ai remains optimistic, though, as it expects revenue growth to pick up again as more pilot projects move into production.
During the April quarter, C3.ai reported an adjusted loss of 13 cents per share, an improvement from the 21-cent loss recorded in the same period the previous year.
Predictions For a Loss
Looking ahead to fiscal year 2024, C3.ai anticipates an adjusted operating income loss ranging from $50 million to $75 million. In contrast, analysts had projected a smaller operating income loss of $61.8 million.
The news has taken a toll on C3.ai’s stock, which dropped by 18% in extended trading, reaching a price of $32.81. During the regular session on Wednesday, shares fell by nearly 9%. The stock has been volatile recently, with a notable 33% surge just a day prior.
C3.ai’s stock had seen significant growth as investor interest in artificial intelligence stocks soared. However, the company’s latest revenue outlook has caused concerns among investors, leading to a sharp decline in stock value.