C3.ai Stock Plunges 29% as Q1 Preliminary Revenue, Loss Far Worse Than Expected
C3.ai late Friday disclosed preliminary results for the July-ended fiscal first quarter that were far worse than expected. The stock dived 29% in premarket trading on Monday.
The artificial intelligence software maker sees preliminary revenue of $70.2 million-$70.4 million, roughly 33% below the midpoint of its prior Q1 guidance for $100 million-$109 million. It's also down 19% vs. a year earlier.
The adjusted operating loss will be $57.7 million-$59.9 million, roughly twice as bad as the $23.5 million-$33.5 million loss that C3.ai had expected.
Founder and CEO Tom Siebel said Q1 sales were "completely unacceptable," blaming disruptions from a major sales reorganization and his own health and vision issues limiting his involvement.
C3.ai said Friday that the global sales and service reorg is complete, with new leadership.
Siebel also said his health has improved somewhat, and expects better sales in Q2.
On July 25, C3.ai announced that Tom Siebel would step down for health reasons. Siebel, in a company release, said he was diagnosed with an autoimmune disease that has caused "significant visual impairment."
C3.ai said the search for a new CEO is underway.
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