C3.ai Shares Surge 7 percent on Better Than Expected Q2 Results

C3.ai (NYSE:AI) shares gained more than 7% on Thursday following the company’s reported Q2 results, with EPS of ($0.11) coming in better than the Street estimate of ($0.22). Revenue was $62.4 million, beating the Street estimate of $60.82 million.
Unsurprisingly, management continues to cite macro uncertainty impacting its business, which only compounds the lack of visibility to its subscription transition. There is no doubt C3 offers valuable predictive analytics applications to its customers, but the market for its model-driven architecture is difficult to ascertain amidst the tenuous macro backdrop and business model transition.
The company expects Q3/23 revenue to be in the range of $63-65 million, compared to the Street estimate of $66.79 million. For the full year, the company expects revenue in the range of $255-270 million, compared to the Street estimate of $260.83 million.