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C3.ai Q1 earnings beat expectations, but shares collapse more than 12%

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Artificial intelligence software developer C3.ai (AI) reported its fourth quarter earnings after the bell on Wednesday, beating expectations on the top and bottom lines as the AI wave continues to shake up Wall Street and the tech industry. Despite that, shares of the company plummeted more than 12% after hours.

C3.ai expects to see Q1 revenue of between $70 million and $72.5 million, a hair more than Wall Street's expectation of $72.1 million.

Here are the most important numbers from the report compared to what analysts’ were looking for, based on data compiled by Bloomberg.

  • Revenue: $72.4 million versus $71 million expected

  • Adj. loss per share: $0.13 versus $0.17 expected

AI is the hottest trend on Wall Street, as companies ranging from Nvidia (NVDA) and Marvell (MRVL) to Microsoft (MSFT) and Google (GOOG, GOOGL) ride the hype wave that kicked off with the launch of ChatGPT in 2022.

And while shares of AI darling Nvidia are up 162% since the start 2023, C3.ai's stock is up a whopping 252%.

C3.ai produces enterprise AI software used by a wide range of industries including transportation, healthcare, and manufacturing. On Tuesday, the firm announced that it's own C3 Generative AI product is available via Amazon's AWS marketplace. It is already available via Google's Cloud Marketplace.

UKRAINE - 2021/02/01: In this photo illustration a C3.ai, Inc. logo is seen displayed on a smartphone screen. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)
C3.ai reported Q4 earnings after the bell Wednesday. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)

Unlike generative AI platforms like ChatGPT, C3.ai's offering is specifically designed for enterprise settings. To that end it allows users to access corporate data via a natural language interface, while preventing users from accidentally sharing that information with the outside world.

Daniel Howley is the tech editor at Yahoo Finance. He's been covering the tech industry since 2011. You can follow him on Twitter @DanielHowley.

Read the latest financial and business news from Yahoo Finance

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