C3.ai – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Sat, 06 Sep 2025 18:46:04 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.7 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 C3.ai – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Why C3.ai Plunged in August https://earlybirdsinvest.com/why-c3-ai-plunged-in-august/ https://earlybirdsinvest.com/why-c3-ai-plunged-in-august/#respond Sat, 06 Sep 2025 18:46:03 +0000 https://earlybirdsinvest.com/why-c3-ai-plunged-in-august/ The AI software company sank on the back of reduced guidance and the replacement of its CEO.

Shares of AI software company C3.ai (AI 1.03%) sank in August, falling 28.2% during the month, according to data from S&P Global Market Intelligence.

C3.ai pre-announced its fiscal first-quarter results, disclosing that it would miss its initial guidance by a whopping 30%. Needless to say, the market didn’t take too kindly to the news.

C3.ai misses badly and faces uncertainty going forward with a new CEO

On Aug. 8, C3.ai pre-announced that its fiscal first-quarter revenue would only be about $70.3 million, with adjusted (non-GAAP) operating losses of roughly negative $57.8 million. That’s a massive miss, considering initial guidance for the quarter was about $104.5 million in revenue and negative $28.5 million in adjusted operating losses at the midpoint.

C3.ai Chairman and now former CEO Thomas Siebel noted he had been having some health issues that prevented him from being present at sales meetings, and that he had underestimated the impact of his absence in closing deals.

As a result, C3.ai revamped its sales organization, announcing four new hires and one promotion in its sales organization. Subsequently in September, when C3.ai eventually did report earnings, the company also announced Stephen Ehikian as its new CEO, while Siebel will remain as executive chairman.

Young man cringes at computer monitor.

Image source: Getty Images.

Down 55% this year, is a turnaround possible?

With a miss that big and now a new CEO, it’s no wonder C3.ai is down a whopping 55% on the year.

The good news is that the company still has a rock-solid balance sheet, with $711 million in cash and no debt. Furthermore, the company’s new CEO is a software entrepreneur who has previously sold two AI-focused software companies to Salesforce (CRM 2.62%).

So, C3.ai investors aren’t without hope. Yet with a big miss on the quarter and continued operating losses, it’s hard for investors to get their heads around C3.ai’s prospects, which have been disappointing to say the least, despite the rise of generative AI. With so much in flux, this remains a situation to watch from the sidelines for now.

Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Salesforce. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.

]]> https://earlybirdsinvest.com/why-c3-ai-plunged-in-august/feed/ 0 57098 Why C3.ai Fell 29% in the First Half of 2025 https://earlybirdsinvest.com/why-c3-ai-fell-29-in-the-first-half-of-2025/ https://earlybirdsinvest.com/why-c3-ai-fell-29-in-the-first-half-of-2025/#respond Sat, 12 Jul 2025 02:00:14 +0000 https://earlybirdsinvest.com/why-c3-ai-fell-29-in-the-first-half-of-2025/

Shares of C3.ai (AI -1.94%) pulled back through the first half of the year The software-as-a-service (SaaS) company bills itself as offering “AI for the Enterprise” as well as AI-based application software. It continued to post wide losses in its earnings report and fell sharply in February as business and consumer sentiment began to weaken on fears of a trade war.

While the stock recovered a bit in the second quarter of the year, it wasn’t enough to make up for its struggles earlier in the year. According to data from S&P Global Market Intelligence, the stock was down 29% through the first half of the year.

The chart below shows how the stock’s losses came during a brief period in February.

AI Chart

AI data by YCharts.

C3.ai’s troubles continue

The stock started to slide in February on signs of weakening business and consumer sentiment and as the broad market fell from its peak. C3.ai stock then fell 10% on Feb. 27 as the company posted another wide loss in its Q3 earnings report.

Revenue rose 26% to $98.8 million. On the bottom line, the company continued to be unprofitable as it reported an adjusted loss per share of $0.12. However, its generally accepted accounting principles (GAAP) net loss of $80.2 million shows it’s still losing nearly as much money as it’s making in revenue, and its unit economics are barely improving as that loss rose from $72.6 million in the quarter a year ago.

C3.ai has spent heavily on share-based compensation historically, and that pattern continued with $174.4 million in share-based compensation through the first three quarters of the year, or nearly 75% of revenue for that period.

In its Q4 report in May, C3.ai posted similar numbers with revenue up 26% to $108.7 million and an adjusted loss of $0.16 per share. Its GAAP net loss came in at $79.7 million, up from $72.9 million.

While the company made progress with its partnerships and added new customers, the business doesn’t seem to be growing fast enough to offset the losses, and its gross margins remain low for a software company at 62% in Q4.

A face disappearing into digital imagery

Image source: Getty Images.

What’s next for C3.ai

The company’s revenue growth has improved, but C3.ai still seems to have a long way to go to build the scale necessary to generate a profit and prove its viability.

Given its exposure to AI and its growth, the stock has potential over the long term, but the downside risks and the share dilution seem to outweigh those for now.

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