The stock price of artificial intelligence software company C3.ai surged by 157% last year, however, the unclear business prospects have always made Wall Street very skeptical of its prospects.
Morgan Stanley analyst Keith Weiss once pointed out in a report that the short position of the stock accounts for approximately 38% of the freely traded stock volume. According to other data, this stock is one of the US stocks with the highest proportion of short positions.
Some analysts, unable to see the profit future of C3.ai's main business, satirize that the company is not even an artificial intelligence company. The previous stock price fluctuations were largely due to speculation and blind pursuit of gains.
However, the quarterly report released by C3.ai on Wednesday clearly broke some stereotypes from Wall Street, as its quarterly performance and annual revenue forecast were better than Wall Street's expectations. As a result, its stock price saw a 13.24% increase in post market trading after the quarterly report was released.
Surprise Wall Street's expectations
According to the financial report, C3.ai currently expects its revenue for the fiscal year 2024 to be between 306-31 million US dollars as of April, higher than analysts on the London Stock Exchange expected of 306.1 million US dollars.
As of the third quarter ended January 31 this year, C3. ai's total revenue was $78.4 million, higher than analyst expectations of $76.14 million. The quarterly subscription revenue was 70.4 million US dollars, higher than the expected 66.77 million US dollars. After adjustment, the company's net loss in the US stock market was 13 cents, lower than the expected 28 cents.
Meanwhile, the company expects fourth quarter revenue to be between $82 million and $86 million, while analysts expect it to be $84.45 million.
Tom Siebel, CEO of C3.ai, stated in a statement that C3.ai has had an excellent quarter. As the market's interest in adopting artificial intelligence accelerates, its significant first mover advantage in the field of enterprise artificial intelligence is forming a favorable trend.
C3.ai has a rich business. According to its official website, the company offers up to 40 artificial intelligence applications to businesses, covering customers in manufacturing, financial services, government services, utilities, oil and gas, and more. Its partners include Koch Industries, Shell, and the US Army.