C3.ai (AI) will report first-quarter results tomorrow

Artificial intelligence (AI) software company C3.ai (NYSE:AI) will report earnings tomorrow after market hours. Here’s what you need to know.

C3.ai exceeded analyst revenue expectations by 3% last quarter, reporting revenue of $78.4 million, up 17.6% year-over-year. It was a mixed quarter for the company, which saw significant improvement in gross margin but failed to meet analyst estimates for billing.

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Analysts expect C3.ai’s revenue this quarter to grow 16.6% year-over-year to $84.4 million, an improvement over flat revenue in the same quarter last year. Adjusted loss is expected to be -$0.30 per share.

Most analysts covering the company have reaffirmed their estimates over the last 30 days, suggesting they expect the company to remain on track towards earnings. C3.ai has missed Wall Street revenue estimates twice over the past two years.

Looking at C3.ai’s competitors in the data and analytics software segment, some of them have already reported first-quarter results, which gives us a hint of what to expect. Confluent delivered year-over-year revenue growth of 24.6%, beating analyst expectations by 2.5%, and Teradata saw revenue decline 2.3%, in line with the consensus. After the results, Confluent’s shares increased by 12.7%, while Teradata fell by 13.8%.

Read our full analysis of Confluent’s results here and Teradata’s results here.

Investors in the data processing and analytics software segment have been steadily investing in earnings, and share prices have remained flat over the past month. C3.ai is up 4.5% over the same period and is heading toward earnings, with an average analyst price target of $28.9 (versus the current share price of $24.14).

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