Everything you need to know before earning

Artificial intelligence (AI) software company C3.ai (NYSE:AI) will report earnings tomorrow after the market closes. Here’s what you should pay attention to.

C3.ai met analysts’ revenue expectations in its most recent quarter, reporting revenue of $87.21 million, up 20.5% year-over-year. It was a strong quarter for the company, impressively beating analysts’ EBITDA estimates and significantly beating analysts’ billings estimates.

Is C3.ai a buy or sell in terms of profits? Read our full analysis here, it’s free.

This quarter, analysts expect C3.ai’s revenue to rise 24.3% year-over-year to $91.02 million, an improvement from the 17.3% increase in the year-ago quarter. Adjusted loss is expected to be -$0.16 per share.

Analysts covering the company have generally reaffirmed their estimates over the past 30 days and expect the company to remain on track toward earnings. C3.ai has missed Wall Street’s revenue estimates only once in the past two years, beating revenue expectations by 1.7% on average.

If we look at C3.ai’s competitors in the data infrastructure segment, some have already reported their third quarter results, which gives us an indication of what we can expect. Elastic delivered 17.6% year-over-year revenue growth, beating analysts’ expectations by 3.1%, and Confluent reported a 25% increase in revenue, beating estimates by 2.1%. Elastic rose 14.7% following the results, while Confluent also rose 13.3%.

Read our full analysis of Elastic’s results here and Confluent’s results here.

There was positive sentiment among investors in the data infrastructure segment, with share prices rising an average of 8.1% over the last month. C3.ai is up 46.9% over the same period and is heading towards profitability with an average analyst price target of $25.55 (compared to the current share price of $41.40).

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