Proactive Investors - C3.ai shares tumbled by almost 17% after the AI company said it no longer expects to achieve adjusted quarterly profitability by the end of the fiscal year, instead opting to invest in its Generative AI solutions.
The provider of turnkey enterprise AI applications expects to achieve adjusted profitability in the 2025 financial year instead, C3.ai CEO Thomas Siebel told investors on the company’s first-quarter fiscal 2024 earnings call on Wednesday evening.
“Now after careful consideration with our leadership and our marketing partners, we have made the decision to invest in Generative AI, to invest in lead generation, to invest in branding, to invest in market awareness, and to invest in market and customer success related to our Generative AI solutions,” Siebel said.
The company expects to be cash flow positive for 4Q fiscal 2024 and the full 2025 financial year.
When handing down its first quarter fiscal 2024 results after the closing bell on Wednesday, the firm also upped its loss forecast for fiscal 2024.
It expects to report a loss of $70 to $100 million, compared to its earlier projection of a loss between $50 and $75 million.
C3.ai maintained its full-year revenue guidance of $295 to $320 million.
For the fiscal first quarter, it reported a loss per share of $0.09 on revenue of $72.4 million topping the Street estimates of a loss per share of $0.17 and revenue of $71.5 million.
C3.ai shares were down 16.8% at US$26.18 on Thursday morning, down from its year-to-date highs of about $46 in June.