Artificial intelligence (AI) software company C3.ai (NYSE:AI) will be reporting earnings tomorrow after the bell. Here’s what to look for.
C3.ai met analysts’ revenue expectations last quarter, reporting revenues of $87.21 million, up 20.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.
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 24.3% year on year to $91.02 million, improving from the 17.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.
Analysts covering the company have generally 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 1.7% on average.
Looking at C3.ai’s peers in the data infrastructure segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Elastic delivered year-on-year revenue growth of 17.6%, beating analysts’ expectations by 3.1%, and Confluent reported revenues up 25%, topping estimates by 2.1%. Elastic traded up 14.7% following the results while Confluent was also up 13.3%.
Read our full analysis of Elastic’s results here and Confluent’s results here.
There has been positive sentiment among investors in the data infrastructure segment, with share prices up 8.1% on average over the last month. C3.ai is up 46.9% during the same time and is heading into earnings with an average analyst price target of $25.55 (compared to the current share price of $41.40).
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