Enterprise artificial intelligence company C3.ai Inc AI is one of the few stocks linked to the artificial intelligence sector that have seen shares trade down year-to-date, something the company hopes could be reversed with a strong quarterly earnings report on Wednesday after the market close.
C3.ai Earnings Estimates: Analysts expect C3.ai to report first-quarter revenue of $86.9 million, according to data from Benzinga Pro.
The company reported revenue of $73.2 million in last year's first quarter. C3.ai has beaten analyst estimates for revenue in eight of the last 10 quarters, including two straight quarters.
Analysts expect the company to report a loss of 13 cents per share in the first quarter compared to a loss of 9 cents in the comparable quarter last year. The company has beaten analyst estimates on earnings per share in more than 10 straight quarters.
Guidance from the company calls for first-quarter revenue to come in a range of $84 million to $89 million.
Full-year guidance calls for revenue in a range of $370 million to $395 million, according to the company.
Wednesday's earnings report comes as C3.ai’s shares are down 19% year-to-date, as seen on the Benzinga Pro chart below.
Key Items to Watch: C3.ai is recognized as one of the companies that could benefit from increased AI use cases and partnerships. The company has benefitted from having the “AI” stock ticker during a boom for the sector.
In the fourth quarter, the company closed 47 agreements, including 34 new pilots. Investors and analysts will be watching to see if the company's deal pipeline continues to expand and pilot programs are being converted into full deals.
"Demand for Enterprise AI is intensifying, and our first to market advantage in Enterprise AI positions us well to capitalize on it," C3.ai CEO Thomas Siebel said after the company’s fourth-quarter results.
Federal deals could also be a key area to watch, with revenue more than doubling for the segment in the last fiscal year. The company said it closed 65 federal agreements in the last full fiscal year.
In July, the company introduced its C3 Generative AI for Government Program, which it said will be used to help federal, state and local governments.
"Understanding and accessing vital services and benefits programs can be an overwhelming process for many, and C3 Generative AI for Government Programs provides and easy way to get clear and quick answers to questions about the intricacies of these services," Siebel said.
Diversification into new sectors is another key item to watch. The company said its enterprise AI applications have been adopted in 19 industries as of the end of the last fiscal year.
"The interest we are seeing in our generative AI applications is staggering."
The company could reiterate, lower or raise its full-year guidance, which could be one of the most important signs for investors and analysts on what's to come for the enterprise AI company for the rest of the fiscal year.
AI Price Action: C3.ai shares are trading at $23.36 versus a 52-week trading range of $20.23 to $38.30.
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