Enterprise AI software company C3.ai (NYSE: AI) will be announcing earnings results this Wednesday after the bell. Here’s what to expect.
C3.ai beat analysts’ revenue expectations last quarter, reporting revenues of $51.6 million, down 52.5% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ billings estimates.
Is C3.ai a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting C3.ai’s revenue to decline 25.7% year on year, a further deceleration from the 19.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. C3.ai has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at C3.ai’s peers in the data and analytics software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Elastic delivered year-on-year revenue growth of 15.1%, beating analysts’ expectations by 1.7%, and Teradata reported flat revenue, topping estimates by 3.5%. Elastic traded up 21.8% following the results while Teradata was down 23.7%.
Read our full analysis of Elastic’s results here and Teradata’s results here.
There has been positive sentiment among investors in the data and analytics software segment, with share prices up 14.7% on average over the last month. C3.ai is up 12% during the same time and is heading into earnings with an average analyst price target of $8.82 (compared to the current share price of $10.90).
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