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Shares of C3.ai (AI) experienced a 6% decline on Thursday following the enterprise artificial intelligence (AI) technology firm’s report of slowing revenue growth.
The company’s fiscal 2025 third-quarter revenue increased 26% year-over-year, reaching $98.8 million. Though this figure surpassed the forecasts of analysts surveyed by Visible Alpha, it represented a deceleration compared to the 29% growth achieved in the second quarter.
Subscription revenue also saw an increase, rising 22% to $85.7 million, which was slightly better than anticipated.
C3.ai’s adjusted loss came in at $0.12, significantly less than the estimated figures.
According to the transcript of the earnings call provided by AlphaSense, the company anticipates a degree of moderation in its gross margins. This is attributed to an increase in the proportion of more expensive pilot programs.
Furthermore, C3.ai expects a near-term moderation in its operating margin due to increased investments in the business.
Despite a surge at the close of 2024, C3.ai shares have been on a downward trend since. Over the past year, they have lost approximately 17% of their value.
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