C3.ai(US:AI) The Motley Foolยท2025-03-05 10:10Core Viewpoint - C3.ai's stock has faced a significant decline of 35% year-to-date, but the company's fundamentals indicate strong long-term growth potential that the market may not fully recognize [1][2]. Financial Performance - C3.ai reported a 26% year-over-year increase in revenue, reaching nearly $99 million, although this was slightly lower than the 29% growth in the previous quarter [3][4]. - The company is projected to achieve a 25% revenue growth for the current quarter, an improvement over the 20% growth reported in the same quarter last year [5]. - For the entire fiscal year, C3.ai is on track for a 25% top-line growth, surpassing the 16% growth from the previous fiscal year [6]. Customer Engagement and Market Activity - C3.ai closed 66 customer agreements last year, marking a 72% increase from the previous year, with notable clients including Flex, Shell, and the U.S. Department of Defense [7]. - The company is involved in pilot projects with large corporations and government agencies, which could enhance revenue growth in the future [8]. Market Outlook - The AI software market is expected to grow at an annual rate of 30% through 2033, positioning C3.ai to sustain healthy growth levels [9]. Valuation and Investment Opportunity - C3.ai is currently trading at a price-to-sales (P/S) ratio of 8, significantly lower than peers like Palantir Technologies, which has a P/S ratio of 73 [10][11]. - Analysts have set a 12-month price target of $27.50 for C3.ai, indicating a potential 17% increase from current levels, suggesting it may be a good time to invest [12].