C3.ai disappointed investors with its full-year fiscal 2024 revenue outlook, causing its stock to plummet.
The company, which had previously released some fiscal fourth-quarter results in mid-May, predicted a revenue range of $295 million to $320 million for the upcoming fiscal year. However, this fell short of analyst estimates, who anticipated revenue growth of 19% to reach $317 million, according to FactSet.
C3.ai's revenue growth in fiscal 2023 also underwhelmed, with an increase of only 5.6% to $266.8 million, significantly slower than the previous year's 38% growth. The company expects revenue growth to regain momentum as more pilot projects transition into full production.
Furthermore, C3.ai projected an adjusted operating income loss of $50 million to $75 million for fiscal 2024, whereas analysts had forecasted a loss of $61.8 million.
Following this news, C3.ai's stock dropped nearly 20 % in premarket trading Thursday, after already falling nearly 9% during Wednesday's regular session.
The stock has displayed significant volatility recently, surging 33% higher just a day earlier.
C3.ai's stock price has been bolstered by the increasing interest in artificial intelligence stocks among investors.
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