Shares in artificial intelligence software maker C3.ai jumped after the software maker reported a smaller-than-expected fiscal second-quarter loss while revenue topped estimates. Guidance for C3.ai stock came in slightly above expectations.
The software maker of artificial intelligence software reported October-quarter earnings after the market close on Monday.
In fiscal Q2, C3.ai said it lost 6 cents per share on an adjusted basis. That compared with a 13-cent loss a year earlier.
Revenue rose 29% to $94.3 million. Wall Street analysts polled by FactSet had predicted a loss of 16 cents a share on revenue of $91 million.
For the current quarter ending in January, the company predicted revenue of $98.5 million at the midpoint of guidance. Further, analysts projected revenue of $97.4 million.
The software maker helps companies build artificial intelligence applications, and targets the energy, financial services and defense markets. But it hasn't disclosed pricing for new generative AI products.
On the stock market today, C3.ai stock jumped 10.4% to near 46 in early trading. AI stock had advanced 44% in 2024 ahead of the C3.ai earnings report.
C3.ai has told analysts it expects revenue growth to reaccelerate as more AI pilot projects ramp up into commercial production. It recently announced an expanded partnership with Microsoft.
Meanwhile, C3.ai stock is one of many AI names to watch. Also, C3.ai is transitioning to consumption priced services.
Also, C3.ai stock had a Relative Strength Rating of 93 out of a best-possible 99 heading into the earnings report, according to IBD Stock Checkup.
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