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Needham maintains Hold rating on C3.ai shares citing higher losses and moderated pilot count

Published 10/12/2024, 15:54
Needham maintains Hold rating on C3.ai shares citing higher losses and moderated pilot count
AI
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C3.ai (NYSE:AI) is experiencing continuing challenges with higher-than-expected churn rates in its pilot programs, even as the overall number of active pilot projects begins to stabilize. The company's strategic focus remains on expanding its customer base and improving its product offerings through sustained investment in key business areas.

Despite maintaining a solid gross profit margin of 60%, InvestingPro research reveals the company is not yet profitable, with analysts projecting continued losses this fiscal year. For deeper insights into C3.ai's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Despite maintaining a solid gross profit margin of 60%, InvestingPro research reveals the company is not yet profitable, with analysts projecting continued losses this fiscal year. For deeper insights into C3.ai's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

C3.ai is experiencing continuing challenges with higher-than-expected churn rates in its pilot programs, even as the overall number of active pilot projects begins to stabilize. The company's strategic focus remains on expanding its customer base and improving its product offerings through sustained investment in key business areas.

Despite maintaining a solid gross profit margin of 60%, InvestingPro research reveals the company is not yet profitable, with analysts projecting continued losses this fiscal year. For deeper insights into C3.ai's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The company's management has also revised its cash flow expectations, indicating that C3.ai will not achieve positive free cash flow for the fiscal year 2025. This adjustment comes despite the company's reported growth in Remaining Performance Obligations (RPO), marking the first increase since the first quarter of fiscal year 2024. However, the significance of RPO is diminished due to the company's shift towards a pilot program approach.

C3.ai is experiencing continuing challenges with higher-than-expected churn rates in its pilot programs, even as the overall number of active pilot projects begins to stabilize. The company's strategic focus remains on expanding its customer base and improving its product offerings through sustained investment in key business areas.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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