C3.ai (AI) – Get Report was falling Tuesday after the artificial intelligence software application service provider posted a-wider-than expected loss in its first report as a public company.
Shares of the Redwood City, Calif. business were dropping 10.4% to $108.50 in premarket trading.
C3.ai reported a loss of 23 cents a share on an adjusted basis compared with a loss of 27 cents a year earlier.Analysts were anticipating the company to report a loss of 19 cents a share.
Profits increased 19% to $49.1 million, compared with Wall Street’s agreement of $47.3 million.
Subscription income for the quarter was $42.7 million, up from $34.6 million one year ago.
Looking ahead, C3.ai said it anticipates fourth-quarter profits of $50 million to $51 million, compared to Wall Street’s projection of $48.3 million. The company is anticipating a loss from operations to range from $28 million to $27 million.
The company sees fiscal 2021 revenue varying from $180.9 million to $181.9 million, compared with analysts’ price quotes of $177.1 million.
” This is a big and quickly growing market; we continue to innovate; we continue to expand our market-partner ecosystem and associated circulation capability; and we continue to show technology leadership,” CEO Thomas Siebel stated in a declaration.
Wedbush analyst Dan Ives maintained his outperform rating on the stock, however cut his rate target to $175 from $200 “to show more irregularity in the company’s AI deal trajectory going forward.”
” We see C3.ai as one of the more disruptive business software vendors in the last years with the business laser concentrated on the convergence of AI, big information, and cloud computing,” Ives stated.
C3.ai, the analyst continued, “has actually generated an impressive recommendation client list from Shell to AstraZeneca to the biggest financial institutions that have successfully deployed the business’s AI solution set within its particular companies to acquire crucial and valuable insight into the petabytes of information flowing through the network.”
C3.ai began trading in December $100 a share, up 138% from its initial public offering price of $42.