Thomas Siebel, founder, chairman, and CEO of C3.ai.
F. Carter Smith/Bloomberg
shares are lower in late trading Wednesday after the AI software company posted solid results for its latest quarter, while forecasting a larger full-year loss than previously expected.
The company also withdrew a previous forecast that it would reach non-GAAP profitability by the end of fiscal 2024.
“After careful consideration with our leadership and our marketing partners, we have made the decision to invest in lead generation, branding, market awareness, and customer success related to our Generative AI solutions,” CEO Thomas Siebel said in a statement. “The market opportunity is immediate, and we intend to seize it. While we still expect to be cash positive in Q4 FY 24 and in FY 25, we will be investing in our Generative AI solutions and at this time do not expect to be non-GAAP profitable in Q4 FY 24.”
For its fiscal first quarter ended July 31, C3.ai (ticker: AI) posted revenue of $72.4 million, up 11% from the year-earlier quarter, toward the high end of the company’s guidance range of $70 million to $72.5 million, and slightly ahead of the Wall Street consensus forecast at $71.6 million.
On an adjusted basis, the company lost 9 cents a share, narrower than the Street consensus forecast for a loss of 17 cents. Under generally accepted accounting principles, the company lost 56 cents a share.
For the October quarter, C3.ai sees revenue of $72.5 million to $76.5 million, with a non-GAAP loss from operations of between $27 million and $40 million. Wall Street estimates call for revenue of $73.8…