What To Expect From C3.ai’s (AI) Q2 Earnings

Artificial intelligence (AI) software company C3.ai (NYSE:AI) will be reporting results tomorrow afternoon. Here’s what to look for.

C3.ai beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $86.59 million, up 19.6% year on year. It was a mixed quarter for the company, with management forecasting accelerating growth but a miss of analysts’ billings estimates.

Is C3.ai a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting C3.ai’s revenue to grow 20.1% year on year to $86.94 million, improving from the 10.8% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.13 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. C3.ai has missed Wall Street’s revenue estimates twice over the last two years.

Looking at C3.ai’s peers in the data infrastructure segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Confluent delivered year-on-year revenue growth of 24.1%, beating analysts’ expectations by 2.1%, and Elastic reported revenues up 18.3%, in line with consensus estimates. Confluent traded down 17.6% following the results while Elastic was also down 26.5%.

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

There has been positive sentiment among investors in the data infrastructure segment, with share prices up 10.2% on average over the last month. C3.ai is down 2.3% during the same time and is heading into earnings with an average analyst price target of $28.9 (compared to the current share price of $23.35).

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