C3.ai, the software firm, has reported quarterly results exceeding expectations and refined its full-year revenue forecast, surpassing Wall Street estimates. This development led to a surge of over 14% in the company’s shares during extended trading.
Effective March 1, Hitesh Lath will assume the role of Chief Financial Officer, succeeding Juho Parkkinen. Lath, the current Chief Accounting Officer, takes on the new responsibility as Parkkinen transitions to Vice President of Finance while remaining with the company.
The revised 2024 revenue outlook for C3.ai is now between $306 million and $310 million, outpacing analysts’ predictions of $306.1 million, according to LSEG data. The earlier projection ranged from $295 million to $320 million.
In the ever-evolving landscape of artificial intelligence, businesses seek solutions with generative AI capabilities to enhance operational efficiency. C3.ai has witnessed increased demand, especially with the advent of OpenAI‘s ChatGPT in November 2022, driving the adoption of AI-infused products in the competitive IT sector.
C3.ai, recognized as an AI-based software maker, holds popularity among retail traders. The company anticipates fourth-quarter revenue to fall between $82 million and $86 million, slightly below analysts’ estimates of $84.45 million.
For the third quarter, total revenue surpassed expectations at $78.4 million, exceeding estimates of $76.14 million. Notably, subscription revenue for the quarter stood at $70.4 million, surpassing estimates of $66.77 million.
On an adjusted basis, the company reported a narrower net loss of 13 cents per share for the quarter ending January 31, compared to the anticipated loss of 28 cents per share. C3.ai’s strong performance underscores its resilience and adaptability in the dynamic realm of AI-driven software solutions.