AI Stock Price Increases Over 7% Pre-Market: Why It Happened

By Amit Chowdhry ● March 2, 2021
  • The stock price of C3.ai, Inc. (NYSE:AI) has increased by over 7% pre-market. This is why it happened.

The stock price of C3.ai, Inc. (NYSE:AI) has increased by over 7% pre-market. One of the biggest triggers for the stock price increase has to do with Wedbush analyst Dan Ives issuing a bullish research report.

Ives assigned C3.ai a “Buy” rating with a $175 price target. This price target imputes a 55.72% upside to the previous close of the stock price.

The research reports cited C3.ai’s Q3 results. These are the highlights from the Q3 results:

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.

Financial Outlook

This is the guidance for the fourth quarter of fiscal 2021 and full-year fiscal 2021:

Total revenue: $50 million to $51 million for Q4 / $180.9 – $181.9 million for FY 2021 

Non-GAAP loss from operations: ($28 million) – ($27 million) for Q4 / ($50.1 million) – (49.1 million) for FY 2021

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.