Enterprise AI software company C3.ai (NYSE:AI) will be announcing earnings results this Wednesday after market hours. Here’s what investors should know.
C3.ai beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $108.7 million, up 25.6% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations.
Is C3.ai a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting C3.ai’s revenue to grow 7.9% year on year to $94.1 million, slowing from the 20.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.21 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. C3.ai has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.
Looking at C3.ai’s peers in the data infrastructure segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Teradata’s revenues decreased 6.4% year on year, beating analysts’ expectations by 1.5%, and Elastic reported revenues up 19.5%, topping estimates by 4.5%. Teradata traded up 8% following the results while Elastic was down 3%.
Read our full analysis of Teradata’s results here and Elastic’s results here.
There has been positive sentiment among investors in the data infrastructure segment, with share prices up 3.2% on average over the last month. C3.ai is down 27% during the same time and is heading into earnings with an average analyst price target of $21.75 (compared to the current share price of $16.93).
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