C3.ai (NYSE: AI) shares plunged 20% in after-hours trading after the enterprise software company posted mixed fourth-quarter results and said sales for fiscal 2023 would come in well below expectations.
For the period ending April 30, C3.ai (AI) lost 55 cents per share or 21 cents on an adjusted basis, while generating $72.3M in sales, up 38% year-over-year. Analysts were expecting the company to generate $71.3M in revenue.
Of the $72.3M, $56.3M came from subscriptions, up 31% year-over-year.
However, C3.ai (AI) said fiscal 2023 revenue would be between $308M and $316M, compared to estimates of $339.6M. For the first quarter, C3.AI (AI) expects sales to be between $65M and $67M.
C3.AI (AI) shares fell more than 20% to $14.75 in extended trading on Wednesday. Year-to-date, shares have fail more than 42% and its market cap has shrunk to under $2B.
The Thomas Seibel-led C3.AI (AI) will hold a conference call at 5 pm EST to discuss the results.
In March, investment firm Morgan Stanley lowered its price target on the artificial intelligence software company to $20 from $31, while maintaining its underweight rating on the stock.