Posted 4/3/2024, 11:15:00 AM
C3.ai Struggles to Find Profitable Niche Despite Revenue Growth
- C3.ai has pivoted multiple times - from oil & gas software to IoT to AI - trying to find a profitable niche
- Revenue grew 18% last quarter to $78.4M, but operating losses doubled revenue at $82.5M
- Not growing rapidly enough to justify losses - only 16% growth expected next quarter
- Valuation not cheap at 10.6x revenue, compared to profitable, faster growing software peers
- Other AI stocks likely better investments given C3.ai's lack of focus and profitability struggles