C3.ai Stock Soars On Q3 Results - Here's Why

C3.ai, Inc. AI shares are climbing after the company reported its third-quarter financial results after the bell Wednesday. Here's a look at the highlights.

C3.ai reported quarterly losses of 13 cents per share, which beat the analyst consensus estimate of losses of 28 cents per share by 15 cents.

The company reported quarterly sales of $78.4 million, which beat the analyst consensus estimate of $76.14 million, a 17.6% increase over sales of $66.67 million from last year.

"We had a great quarter. Total revenue of $78.4 million grew 18% year-over-year, exceeding our guidance range. Customer engagement grew 80% year-over-year," said C3.ai CEO Thomas M. Siebel.

"Our significant first mover advantage in Enterprise AI is generating tailwinds as market interest in adopting AI accelerates," Siebel added.

Partner-supported bookings grew 337% year-over-year and 62% quarter-over-quarter, and C3.ai closed 50 agreements, an increase of 85% year-over-year, including 29 new pilots, an increase of 71% year-over-year.

Outlook: C3.ai sees fourth-quarter revenue in a range of $82 million to $86 million versus an estimated $84.44 million. It anticipates fiscal year revenue between $306 million and $310 million versus an estimated $306.1 million. 

The company expects a non-GAAP loss from operations for the fourth quarter between $43.5 million and $51.5 million and a non-GAAP loss from operations for fiscal year 2024 of between $115 million and $123 million.

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AI Price Action: According to Benzinga Pro, C3.ai shares are trading up 15.80% after-hours at $34.33 at the time of publication.

Image: Gerd Altmann from Pixabay