Shares of C3.ai (AI) have plunged 12% after the provider of enterprise generative A.I. software issued weak forward guidance.
For what was its fiscal second quarter, C3.ai announced an earnings per share (EPS) loss of $0.13 U.S., which was better than the loss of $0.18 U.S. expected on Wall Street.
Revenue in the quarter totaled $73.2 million U.S., up 17% from a year ago but below the consensus forecast of $74.3 million U.S.
Looking ahead, C3.ai forecast revenue of $74 million U.S. to $78 million U.S. for the current quarter, and an operating loss of $40 million U.S. to $46 million U.S.
The guidance fell short of Wall Street estimates for $77.7 million U.S. of revenue and an operating loss of $21.1 million U.S.
Previously, C3.ai had withdrawn its forecast of achieving profitability by the end of 2024.
For all of next year, C3.ai now expects $295 million U.S. to $320 million U.S. in sales and a loss from operations of $115 million U.S. to $135 million U.S.
The loss forecast for 2024 is greater than a previous forecast that had called for a loss of $70 million U.S. to $100 million U.S.
Prior to today (Dec. 7), C3.ai’s stock had risen 163% in 2023 to trade at $29.16 U.S. per share.
