2024-05-20 16:37:36 ET
Summary
- C3.ai, Inc. has seen a massive ramp-up in new AI customers on pilot programs, suggesting potential revenue growth.
- The AI software company has transitioned to a consumption pricing model, with the goal of increasing customer engagement and turning pilot programs into production deals.
- C3.ai's upcoming FQ4 results will indicate whether the transition to the consumption model has been successful and if there is accelerated growth potential for FY25.
- The stock already trades towards the higher end of a logical valuation range at 7x EV/S targets for FY25.
The AI software space is waiting to launch, and C3.ai, Inc. ( AI ) remains a prime example of the frustration. The company reports FQ4 results next week ( post-market on May 29th) and should provide a great indication of whether FY25 provides any accelerated growth, especially considering the shift to consumption billings was supposed to kick in with additional growth by now. My investment thesis remains Neutral on the stock heading into earnings....
Read the full article on Seeking Alpha
For further details see:
C3.ai: Upcoming Earnings Unlikely Inflection Point