Core Insights - Artificial intelligence stocks are experiencing significant growth, but a comparison indicates that only one stock may emerge as the superior investment option [1] Group 1 - The stock prices referenced were from the afternoon of December 8, 2024, highlighting the timing of the analysis [1] - The video discussing this comparison was published on December 10, 2024, indicating a recent evaluation of the market [1]

Core Viewpoint - C3.ai Inc. reported a narrower-than-expected earnings loss for Q2 of fiscal year 2025, but concerns remain about its path to profitability and high valuations in the current market environment [2][3]. Financial Performance - C3.ai reported an earnings per share (EPS) loss of six cents, which was better than the anticipated loss of 14 cents per share [2]. - The stock initially dropped about 10% in premarket trading following the earnings report but rebounded to a 3% increase during mid-day trading [1]. Market Position and Demand - C3.ai has established itself as a provider of customizable AI applications for enterprise-level customers, filling a niche in the AI market [5]. - The company added 58 new agreements in the quarter, indicating strong demand for its services [6]. Partnerships and Growth - C3.ai's stock has surged over 78% since announcing an expanded partnership with Microsoft, where it became a preferred application provider on the Azure platform [6]. - The partnership includes a joint go-to-market strategy leveraging Azure sales channels [6]. Revenue Sources - Approximately 33% of C3.ai's revenue comes from government contracts, a decrease from 49% in the same quarter of 2023 [8]. - The company faces challenges in diversifying away from government contracts, which are costly to obtain and have long sales cycles [9]. Investment Sentiment - Short interest in C3.ai stock is over 17% of the float, suggesting potential volatility and a possible short squeeze [10]. - Analyst sentiment is mixed, with a consensus price target of $33.10, indicating a downside of over 23% from current levels [11]. Future Outlook - Many of C3.ai's current agreements are pilot programs, and it will take several quarters to determine which will lead to sustainable revenue [12].

Revenue Growth - Total revenue for the three and six months ended October 31, 2024, was $94.3 million and $181.6 million, representing a 29% and 25% increase compared to the same period last year[172]. - Subscription revenue grew to $81.2 million and $154.6 million for the three and six months ended October 31, 2024, representing a 22% and 21% increase compared to the same period last year[172]. - Total revenue for the quarter ended October 31, 2023, was $73.229 million, representing a year-over-year growth of 17%[1]. - Subscription revenue growth year-over-year was 23% for the quarter ended October 31, 2023[1]. - Subscription revenue accounted for 86% of total revenue for the three months ended October 31, 2024, increasing by $14.7 million, or 22%, compared to the same period last year[243]. - Subscription revenue for the six months ended October 31, 2024, was $154.6 million, a 21% increase from $127.8 million in the same period last year[244]. - The increase in subscription revenue was driven by 19% of total subscription revenue coming from new customers for the six months ended October 31, 2024[244]. Market and Product Expansion - C3 AI booked over $1.4 billion in additional contracts and recognized $1.3 billion in revenue from 2019 to 2024[166]. - C3 AI has expanded its product offerings to include over 100 AI production applications across various industries[165]. - The C3 Generative AI launched in early fiscal year 2024 includes 28 domain-specific offerings tailored to various industries[2]. - The company expects to continue attracting new customers through its consumption-based pricing model, which simplifies adoption[2]. - The company is focused on expanding its ecosystem of strategic partners, including notable partners like Baker Hughes, AWS, Microsoft, and GCP, to enhance customer engagement[215]. - A new global alliance agreement with Microsoft has been established, positioning the company as a preferred AI application software provider on Microsoft Azure, which includes joint sales and go-to-market strategies[216]. Financial Performance - Total cost of revenue for the three months ended October 31, 2024, was $36.5 million, a 14% increase from $32.1 million in the same period last year[248]. - Gross profit for the three months ended October 31, 2024, was $57.8 million, representing a 41% increase from $41.1 million in the same period last year[251]. - The subscription gross margin for the three months ended October 31, 2024, was 57%, up from 53% in the same period last year[251]. - Total operating expenses for the three months ended October 31, 2024, were $133.1 million, compared to $120.5 million in the same period last year[251]. - Net loss for the three months ended October 31, 2024, was $66.0 million, compared to a net loss of $69.8 million in the same period last year[243]. - Total operating expenses for the six months ended October 31, 2024, were $257,880 thousand, a 10% increase from $235,151 thousand in the same period last year[254]. Investment and Expenses - Research and development spending is anticipated to remain high as the company introduces new applications and features[2]. - Sales and marketing expenses are expected to increase in absolute dollar amounts as the company invests in brand awareness and programmatic spend to generate demand[229]. - Research and development expenses for the three months ended October 31, 2024, increased to $55,715 thousand, an 11% increase from $50,399 thousand in the same period last year[254]. - Operating expenses are expected to increase as a percentage of total revenue in the near term but are anticipated to stabilize and decline as the business matures[226]. Cash Flow and Financial Position - Free cash flow for the six months ended October 31, 2024, was $(32,390) thousand, an improvement from $(64,035) thousand in the same period last year[268]. - Net cash used in operating activities for the six months ended October 31, 2024, was $(30,651) thousand, compared to $(44,654) thousand in the same period last year[271]. - Cash and cash equivalents as of October 31, 2024, were $121.3 million, down from $167.1 million as of April 30, 2024[269]. - The accumulated deficit as of October 31, 2024, was $1.2 billion, indicating ongoing operating losses[269]. - The company expects to continue incurring operating losses and generating negative cash flows in the upcoming quarters due to planned investments[270]. International Market Presence - Approximately 13% of total revenue for the three months ended October 31, 2024, and 17% for the same period in 2023, was derived from international customers, indicating growth potential in international markets[217]. - The company derived approximately 13% and 16% of total revenue for the six months ended October 31, 2024, and 2023, respectively, from international customers, highlighting ongoing international growth[217]. - The company plans to increase its direct sales team in international markets and supplement efforts with strategic partners to expand market coverage[217]. Economic and Regulatory Factors - The impact of adverse macroeconomic conditions, such as inflation and supply chain disruptions, is being monitored as it may affect customer budgets and consumption[218]. - The company does not believe inflation has had a material effect on its business or financial condition[286]. - A hypothetical 10% change in foreign currency exchange rates may have a material impact on the company's financial statements[285]. - The company has entered into foreign currency forward contracts to hedge a portion of its forecasted foreign currency-denominated expenses[285]. Compliance and Governance - Management concluded that the disclosure controls and procedures were effective at the reasonable assurance level as of the end of the reporting period[288]. - There were no material changes in critical accounting policies and estimates compared to the previous fiscal year[281]. - The company has not used any derivative financial instruments to manage interest rate risk exposure[284].

C3 AI Announces Fiscal Second Quarter 2025 Financial Results Revenue Accelerated 29% Year-Over-Year and Guidance Raised for FY 2025 C3 AI and Microsoft Strategic Alliance to Accelerate Enterprise AI Adoption REDWOOD CITY, Calif. — December 9, 2024 — C3.ai, Inc. ("C3 AI," "C3," or the "Company") (NYSE: AI), the Enterprise AI application software company, today announced financial results for its fiscal second quarter ended October 31, 2024. "We had an outstanding quarter with strong top- and bottom-line perf ...

Shares of C3.ai (AI 2.29%) were surging last month as investors cheered a new partnership with Microsoft, a sign that the AI software company may finally be turning the corner after years of wide losses. Additionally, the company benefited from a strong report from Palantir, the software company that has best proven the market for AI services thus far.According to data from S&P Global Market Intelligence, the stock finished the month up 51%. As you can see from the chart below, the stock popped after the Mi ...

Wall Street analysts forecast that C3.ai, Inc. (AI) will report quarterly loss of $0.16 per share in its upcoming release, pointing to a year-over-year decline of 23.1%. It is anticipated that revenues will amount to $91.01 million, exhibiting an increase of 24.3% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a ...

C3.ai, Inc. (AI) closed at $36.75 in the latest trading session, marking a +1.55% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.05%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 0.4%.The company's stock has climbed by 45.69% in the past month, exceeding the Computer and Technology sector's gain of 4.59% and the S&P 500's gain of 5.75%.Investors will be eagerly watching for the performance of C3.ai, Inc. in its upcoming earnings disclosure. The co ...

Explore the exciting world of C3.ai (AI -2.66%) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!*Stock prices used were the prices of Oct. 16, 2024. The video was published on Dec. 2, 2024. ...

C3.ai (AI 0.08%) has seen a faster rate of growth over the past several quarters thanks to its connections to artificial intelligence (AI). Its business is focused on providing turnkey AI solutions to businesses, and it believes it can simplify AI adoption for companies looking to take advantage of next-gen technologies.C3.ai's latest quarterly update on earnings is scheduled for release on Dec. 9. What the report says will likely play a key role in determining where the stock goes in the weeks and months t ...

I've grown increasingly impressed with the company's execution.The great thing about being a long-term investor is that it gives you time to change your mind when the facts demand it. C3.ai (AI -3.96%) didn't have the most impressive fundamental qualities a year or two ago, but the company has made strides to the point that it's time to give it its recognition as a potential stock investment.There aren't many companies selling artificial intelligence (AI) application software to governments and enterprises, ...