C3.ai: Cheaper AI Than You Think
Update - Mar. 2
C3.ai didn't report a great quarter in the sense the quarterly revenues were down, but the AI company did guide to a rebound in revenues.
- Q3 Non-GAAP EPS of -$0.06 beats by $0.16.
- Revenue of $66.66M (-4.5% Y/Y) beats by $2.41M.
- Subscription Revenue: Subscription revenue for the quarter was $57.0 million, constituting 85.6% of revenue.
- Q4 Outlook: Total revenue $70M-$72M vs. consensus of $69.85M, Non-GAAP loss from operations ($24) - ($28)M.
Original article posted on Feb. 14
- C3.ai soared on the hype surrounding any business related to AI.
- The enterprise AI software company traded down to irrational levels to end 2022 due to weak short-term results from a switch in the pricing model.
- Even after the big rally, the stock only trades at just 4.5x EV/FY24 sales targets.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
The stock of C3.ai (NYSE:AI) was dumped by wise investors on the recent rally from under $10 to over $30 in just over a month. The enterprise AI software company is cheaper than one thinks after the dip back to $20 following the end of the hype. My investment thesis remains very Bullish on the AI technology company, trading at a major discount due to the painful transition to a pay-as-you-go consumption model.
Read the full article on Seeking Alpha.
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