- C3.ai stock soared 26% on Thursday following strong earnings.
- The software firm beat expectations and is riding the hype sparked by Nvidia earnings last week.
Wall Street's artificial intelligence hype has yet to show signs of slowing, with C3.ai as the latest beneficiary of investors' frenzy around the technology.
The software firm posted earnings on Wednesday that beat expectations, sending its stock as much as 26% higher to $37.36 at midday on Thursday. The jump comes a week after $4 following its massive earnings beat.
"Our significant first mover advantage in Enterprise AI is generating tailwinds as market interest in adopting AI accelerates," chief executive and chairman Thomas M. Siebel said in a statement. C3.ai pointed to a spike in deals with firms across sectors, including agreements with Google Cloud and Microsoft.
In the quarter ending January 31, C3.ai reported $78.4 million in revenue, beating the company's guidance for $74 million to $78 million and up 18% from the same quarter last year. Subscription revenue, which made up 90% of total revenue, climbed 23% year-over-year to hit $70.4 million.
The company reported an adjusted loss of $0.13 per share, better than the expected loss of $0.28, per FactSet. For the year ahead, C3.ai gave an upbeat outlook, with full-year revenue estimated to range between $306 million to $310 million, above Wall Street's estimate of $305.6 million.
"We view this quarter as a step in the right direction for C3 as the company's entire product portfolio continues generating unprecedented demand for its AI platform to improve operations, optimize processes, and transform businesses," Wedbush's Dan Ives wrote in a note Thursday.
Wedbush raised its price target for C3.ai from $35 to $40 per share.