C3.ai (AI) Misses Q3 EPS by 7c, Revenues Beat; Offers 4Q & FY21 Revenues Guidance Above Consensus
C3.ai (NYSE: AI) reported Q3 EPS of ($0.23), $0.07 worse than the analyst estimate of ($0.16). Revenue for the quarter came in at $49.11 million versus the consensus estimate of $47.28 million.
Third Quarter Financial Highlights
- Revenue: Total revenue for the quarter was $49.1 million, up from $41.3 million one year ago, an increase of 19% year over year.
- Subscription revenue: Subscription revenue for the quarter was $42.7 million, up from $34.6 million one year ago, an increase of 23% year over year. Subscription revenue increased to 87% of total revenue, up from 84% of total revenue one year ago.
- Professional Services revenue: Professional Services revenue for the quarter was $6.4 million compared to $6.7 million one year ago, a 4% decrease. Year over year, professional services revenue decreased from 16% to 13% of total revenue.
- Gross Margin and non-GAAP Gross Margin: Gross margin for the quarter was $36.9 million, or 75%, compared to $30.4 million, or 74% one year ago, an increase of 22% year over year. Non-GAAP gross margin was $37.3 million, or 76%, an increase from $30.5 million, or 74% one year ago, an increase of 22% year over year.
- Loss from Operations and Non-GAAP Loss from Operations: Loss from operations for the quarter was $18.5 million, compared to $10.4 million one year ago. Non-GAAP operating loss for the third quarter was $11.9 million, compared to $8.4 million one year ago.
“We continue to establish our leadership as the only enterprise AI software pure play," said CEO Thomas M. Siebel. “This is a large and rapidly growing market; we continue to innovate; we continue to expand our market-partner ecosystem and associated distribution capacity; and we continue to demonstrate technology leadership. I believe that we are increasingly well-positioned to establish a global market leadership position in enterprise AI software.”
C3.ai sees Q4 2020 revenue of $50-51 million, versus the consensus of $48.36 million.
C3.ai sees FY2020 revenue of $180.9-181.9 million, versus the consensus of $177.12 million.
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