AI Hype Slows, Can C3.ai(AI.US) Maintain Its Q1 Earnings Beat?

Market VisionMonday, Sep 2, 2024 2:00 am ET

1min read

C3.ai (AI.US) will report its first-quarter 2025 financial results after the market closes on Wednesday, September 4. Wall Street expects the company to generate revenue of $8.712 million in Q2, up 42% YoY; and expects a loss of $0.13 per share, compared to a loss of $0.09 per share in the same period last year.

The consensus estimate for the company's EPS in this quarter has remained unchanged over the past 30 days.

Earlier, Nvidia's (NVDA.US) outlook fell short of analysts' highest expectations, cooling investors' confidence in AI trading. These changes may exacerbate concerns about overheating in AI, leading to recent selling and prompting investors to shift to less popular areas of the stock market.

According to analysts' collective expectations, professional services revenue should reach $7.52 million, down 31.7% YoY. "Subscription revenue" is expected to be $79.61 million, up 29.8% YoY.

The market expects the gross margin of the subscription revenue business to be 56.1%. This is compared to 50% in the same period last year.

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