C3.ai (NYSE: AI) stock soared over 24% on Thursday following the release of its third-quarter fiscal year 2024 financial results, which beat expectations.
C3.ai (AI) has just released its financial results for the third quarter, showcasing robust revenue growth. The company revealed a total revenue figure of $78.4 million, indicating an 18% year-over-year (YoY) upsurge, beating analysts’ estimates of $76.14 million.
Subscription revenue, a substantial portion amounting to 90% of the total revenue, surged by 23% year-over-year, hitting $70.4 million. Customer engagement also witnessed a notable uptick, reaching 445, marking an 80% increase compared to the previous year.
In terms of profitability, C3.ai reported an adjusted loss of 13 cents per share, which was notably narrower than the consensus estimates of a loss of 28 cents per share. Moreover, the company concluded the quarter with a strong cash position, boasting $723.3 million in cash, equivalents, and marketable securities.
Thomas Siebel, the chairman and CEO of C3.ai, highlighted the company’s advantageous position in Enterprise AI, citing it as a driving force behind their momentum amidst the growing interest in AI adoption across various markets.
He said in a press release,
“Our significant first mover advantage in Enterprise AI is generating tailwinds as market interest in adopting AI accelerates.”
C3.ai Outlook for Q4
Looking ahead, C3.ai projected fourth-quarter revenue between $82 million and $86 million, slightly below the estimated $84.45 million. In addition, the company anticipates full-year 2024 revenue ranging from $306 million to $310 million, aligning closely with analysts’ expectations of $306.08 million.
Earlier this week, C3.ai announced a leadership transition, appointing Hitesh Lath as the new CFO effective March 1, succeeding Juho Parkkinen, who will transition to the role of Vice President of finance within the company.
Furthermore, C3.ai revealed its CEO’s participation in two upcoming investor conferences on March 4: Morgan Stanley’s Technology, Media & Telecom Conference and the JMP Securities Technology Conference. In addition, the company will host its fifth annual international user group conference, C3 Transform, commencing on March 5.
C3.ai (NYSE: AI) Stock Price Action
AI stock jumped 24.52% to close at $36.97 on Thursday. The traders had exchanged hands with 56,096,036 (56.09 million) shares compared to the average daily trading volume of 8.92 million.
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