C3.ai Q2 Earnings Highlights: Revenue Miss, EPS Beat, 'Unprecedented Interest And Traction' In Generative AI Offerings

C3.Ai Inc AI reported fiscal second-quarter financial results Wednesday after the bell. Here's a look at the key metrics from the quarter. 

Q2 Earnings: C3.ai said second-quarter revenue increased 17% year-over-year to $73.23 million, which missed the consensus estimate of $74.33 million, according to Benzinga Pro. The company reported a quarterly adjusted loss of 13 cents per share, which beat analyst estimates for a loss of 18 cents per share.

Subscription revenues were up 12% year-over-year. Customer engagement grew by 81% on a year-over-year basis. C3.ai said it closed 62 customer agreements during the quarter, including 36 pilots. The company ended the quarter with $762.3 million in cash, equivalents and investments.

"We saw unprecedented interest and traction in our generative AI offerings. Importantly, we are seeing a return to accelerating revenue growth as we continue our transition to a consumption-based pricing model," said Thomas Siebel, chairman and CEO of C3.ai.

Outlook: C3.ai sees third-quarter revenue in the range of $74 million to $78 million. The company reaffirmed that full-year 2024 revenue is still expected to be between $295 million and $320 million.

C3.ai noted that it plans to further accelerate investments in generative AI as it anticipates a significant increase in opportunities for Enterprise AI. The company also said it believes it's well-positioned to accelerate growth, gain market share and attain sustainable non-GAAP profitability. 

A conference call to discuss these results kicked off at 5 p.m. ET.

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AI Price Action: C3.ai shares were down 8.88% after hours at $26.57 at the time of publication, according to Benzinga Pro.

Photo: Gerd Altmann from Pixabay.