BUZZ-C3.ai slumps after quarterly subscription revenue misses estimates

Reuters2024-09-05

** Shares of AI software maker C3.ai fall 14.2% to $19.74

** Company, after market on Wednesday, reported fiscal Q1 subscription revenue of $73.5 mln, missing LSEG estimates of $79.1 mln

** C3.ai expects squeezed profit margins due to a focus on pilot projects, which have higher initial costs and lower immediate returns compared to established ones

** "C3.ai reported a mixed quarter, with total revenue growth accelerating though subscription revenue declined quarter-over-quarter," says D.A. Davidson; brokerage cuts PT to $20 from $30

** "Pilots will provide short-term pressure on gross margin" - Northland Securities

** Up to last close, stock down ~20% this year

(Reporting by Akash Sriram in Bengaluru)

((Akash.Sriram@thomsonreuters.com; ))

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