C3.ai increases full-year revenue outlook, stock rises

C3 AI AI, +3.44% recorded an adjusted loss per share of 7 cents, whereas it saw a 13-cent adjusted loss per share in the year-earlier period. Analysts tracked by FactSet were anticipating a loss of 26 cents a share on the metric.

Revenue increased to $69.8 million from $49.1 million a year ago, while the FactSet consensus was for $67.2 million.

“These results were driven by substantially increased sales momentum due to the successful refocusing of our sales organizations, expanded customer count, increased industry diversification for our AI products and the further recognition of our technology leadership in this industry,” Chief Executive Thomas Siebel said in the earnings release.

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The company said it was increasing its full-year revenue outlook to $252.0 million. That compares to the full-year revenue forecast of $248 million to $251 million that C3 AI gave during its prior earnings report. The FactSet consensus was for $249.6 million in revenue.

C3 AI also disclosed in a filing that its former chief financial officer, Adeel Manzoor, resigned in late February. Siebel added on the earnings call that Manzoor’s resignation was for “entirely personal reasons.” Juho Parkkinen, the company’s chief accounting officer, has taken over as acting CFO.

“[A]lthough rapid CFO turnover is typically cause for concern, we are impressed by Parkkinen’s background and are encouraged by his vote of confidence in the company’s financials,” Piper Sandler analyst Arvind Ramnani wrote in a note to clients.

He kept an overweight rating on the stock but reduced his price target to $28 from $40.

“We recommend the stock for long-term holders, as despite weak investor sentiment, we believe the company maintains unique AI platform technology, and is undervalued,” trading at about 4 times estimates of enterprise value to sales for the next 12 months, Ramnani wrote.

C3 AI’s stock is up 5% in midday trading Thursday. It’s lost about 21% over the past three months as the S&P 500 SPX, -0.37% has declined 3.2%.