C3.ai shares plummeted afterhours Wednesday following its fiscal 1Q earnings release that showed the company fall of subscription revenue expectations.
The AI software provider reported a 21% year-over-year increase in total revenue for fiscal Q1 2025, reaching $87.2 million, in line with analysts' estimates.
While subscription revenue rose 20% to $73.5 million, accounting for 84% of total revenue, that missed the Bloomberg consensus estimate of $79.1 million.
CEO Thomas Siebel struck a positive tone in comments accompanying the earnings release.
"We had a solid start to the fiscal year, with rising demand for Enterprise AI driving our sixth consecutive quarter of accelerating revenue growth," said Siebel.
During the quarter, C3.ai secured 71 agreements in the quarter, marking a 122% increase from the previous year, including 52 pilot programs.
C3.ai provided guidance for Q2 and the full fiscal year 2025, forecasting continued revenue growth. The company expects Q2 revenue between $88.6 million and $93.6 million and full-year revenue in the range of $370.0 million to $395.0 million.
Shares of C3.ai sunk nearly 18% afterhours from its Wednesday closing price of $23.01.