C3.ai (NYSE:AI) saw its shares surge more than 13% in after-hours trading Wednesday following the company’s better-than-expected Q3 report and upbeat guidance.
The enterprise AI technology developer posted a loss per share of $0.13 in the fiscal third quarter, notably better than the expected loss per share of $0.28. Revenue for the quarter came in at $78.4 million, surpassing the consensus estimate of $76.14 million.
Subscription stood at $70.4 million, making up 90% of the total revenue and marking a 23% increase from the $57.0 million reported in the same period last year.
“We had a great quarter. Total revenue of $78.4 million grew 18% year-over-year, exceeding our guidance range. Customer engagement grew 80% year-over-year,” said C3.ai’s CEO and Chairman Thomas M. Siebel.
“Our significant first mover advantage in Enterprise AI is generating tailwinds as market interest in adopting AI accelerates.”
Looking ahead, C3.ai anticipates fourth-quarter 2024 revenue to be between $82 million and $86 million, compared to analysts' expectations of $83.91 million.
For the full fiscal year 2024, revenue is anticipated to land between $306 million and $310 million, slightly above the $305.5 million projected by Wall Street.