Top movers | AI, CHPT, BB plunge over 10% on revenue and loss warnings

1. $C3.ai, Inc.(AI)$ 's challenging quarter: operating loss and deferred profitability goals

C3.ai experienced a sharp decline of over 12% after it forecast a larger-than-expected operating loss for the fiscal second quarter.

The company is calling for an operating loss of $27 million to $40 million, while analysts polled by StreetAccount anticipated a loss of $20.5 million.

Adjusted EPS: -9 cents vs. -17 cents

Revenue: $72.4 mln vs. $71.6 mln

The company's previous goal of achieving non-GAAP profitability by Q4 fiscal 2024 has been postponed. While there are positive signs of subscription growth and the potential of Gen AI, top-line metrics have not seen a significant uptick.

2. $ChargePoint Holdings Inc.(CHPT)$ -10.91%: revenue shortfall and impairment charges

ChargePoint slipped 10% and reached a new low after disappointing Q2 results and a concerning forward outlook.

The company's Q2 revenue of $150 million fell short of analyst estimates of $153 million, and its adjusted EBITDA of -$81.2 million was worse than expected.

Revenue: $150 mln vs. $153 mln

GAAP EPS: -$0.35, misses by $0.14

The company reported an adjusted gross margin of 3%, down from 19% the previous year. The impairment charges were attributed to legacy supply chain-related costs and supply overruns on a specific product.

Despite the challenges, ChargePoint reaffirmed its guidance to achieve adjusted EBITDA profitability by the end of CY24.

3. $BlackBerry(BB)$-15.52%: struggles continue due to government customers and revenue warnings

BlackBerry reported lower-than-expected preliminary Q2 revenues of $132 million, attributing the shortfall to government customers. The Q2 revenue is the lowest since CEO John Chen took over nearly 10 years ago.

Revenue: $132 mln vs. 161.8 mln

Revenues in the cybersecurity segment dropped by over $30 million year-over-year, while IoT segment revenues are projected to be $49 million, down $2 million from the previous year.

This resulted in a reduced full-year revenue outlook for the IoT segment. 

Despite the revenue challenges, management reiterated its yearly forecast for the cybersecurity segment. However, skepticism remains due to the ongoing revenue struggles. This marks the second significant revenue warning for BlackBerry in the current fiscal year.