C3.ai Stock Is Surging Thursday: What's Going On?

C3.Ai Inc AI shares are trading higher Thursday after the company reported better-than-expected financial results.

• Q3 Revenue: $78.4 million, beat estimates of $76.14 million

• Q3 EPS: 13 cent loss, beat estimates for a loss of 28 cents

Total revenues were up 18% on a year-over-year basis. Customer engagement in the fourth quarter grew to 445, up 80% year-over-year. C3.ai said it ended the quarter with $723.3 million in cash, equivalents and marketable securities.

“Our significant first mover advantage in Enterprise AI is generating tailwinds as market interest in adopting AI accelerates,” said Thomas Siebel, chairman and CEO of C3.ai.

Outlook: C3.ai sees fourth-quarter revenue in the range of $82 million to $86 million versus estimates of $84.45 million. The company expects full-year 2024 revenue to be between $306 million and $310 million versus estimates of $306.08 million.

Late Wednesday, C3.ai also announced a leadership transition. The company appointed Hitesh Lath as CFO, effective March 1. Lath will replace Juho Parkkinen, who will remain at the company as Vice President of finance.

C3.ai announced that its CEO will participate in two investor conferences on March 4: Morgan Stanley’s Technology, Media & Telecom Conference and the JMP Securities Technology Conference. The company will hold its fifth annual international user group conference, C3 Transform, beginning on March 5.

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AI Price Action: C3.ai shares were up 21.2% at $35.99 at the time of publication, according to Benzinga Pro.

Photo: Igor Omilaev from Unsplash.