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News Reports Quarterly Results, Adjusts Profit Expectations

0 (ticker: AI) reported robust financial results for its fiscal first quarter, surpassing revenue expectations. However, the company revised its full-year loss forecast and withdrew its previous prediction of achieving non-GAAP profitability by the end of fiscal 2024.

Impressive Revenue Growth and Earnings Beat

For the period ending July 31, recorded revenue of $72.4 million, marking an 11% increase compared to the same quarter the previous year. This result exceeded the company’s guidance range of $70 million to $72.5 million and outperformed Wall Street’s consensus forecast of $71.6 million.

Adjusted for non-GAAP measurements, reported a narrower-than-expected loss of 9 cents per share, while analysts had predicted a loss of 17 cents per share. However, with a generally accepted accounting principles perspective, the company incurred a loss of 56 cents per share.

Revised Profit Outlook and Strategic Decision

CEO Thomas Siebel addressed the revised profitability expectations in a statement. He revealed that after careful consideration with internal leaders and marketing partners, the company has decided to prioritize investing in lead generation, branding, market awareness, and customer success specifically regarding their Generative AI solutions.

Siebel highlighted the immediate market opportunity and affirmed’s determination to capitalize on it. Consequently, although the company still anticipates positive cash flow in Q4 FY 24 and FY 25, it will be channeling resources into its Generative AI solutions. As a result, does not foresee achieving non-GAAP profitability in Q4 FY 24.

Moving forward, aims to expand its market presence and establish itself as a key player in the AI software industry. Releases Q4 Revenue Projection and Announces New AI Software Suites, a leading provider of enterprise AI solutions, has projected revenue of $72.5 million to $76.5 million for the October quarter. However, it expects to incur a non-GAAP loss from operations ranging from $27 million to $40 million. This is slightly higher than Wall Street estimates, which predicted revenue of $73.8 million and an operating loss of $26.6 million.

Looking ahead to the fiscal year ending in April 2024, maintains its revenue projection of between $295 million and $320 million. However, there has been a revision to its non-GAAP loss from operations, now estimated to be between $70 million and $100 million. This update reflects a change from the earlier forecasted loss of $50 million to $75 million. Although slightly higher than anticipated, the Wall Street consensus estimate had predicted a loss of $64 million.

CEO Thomas Siebel emphasized the company’s growing prominence in enterprise AI adoption. He stated, “It is difficult to describe the scale of the increasing interest that we are seeing globally.” Siebel further highlighted the strong traction gained with their enterprise AI applications, particularly in regard to C3 Generative AI.

Additionally, announced the release of 28 domain-specific AI software suites. These suites cater to various industries such as aerospace, financial services, and healthcare. Each suite is tailored to address specific challenges faced by businesses operating within those sectors.

Despite this positive news, shares experienced a decrease of 4.3% in after-hours trading.

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