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shares of C3 AI Shares fell 17% on Thursday to trade at record lows after the company reported disappointing third-quarter results and announced layoffs of more than a quarter of its workforce.
The enterprise artificial intelligence company behind the ticker AI reported third-quarter revenue of $53 million, far below LSEG’s estimate of $76 million.
The company reported a loss of 40 cents per share, while analysts had expected a loss of 29 cents per share.
“What I consistently hear is that every CEO has made AI a top strategic priority and wants to realize tangible economic value from it, and that’s exactly what our product provides,” CEO Steven Ehikian said on the earnings call. “That being said, it became clear that our cost structure was simply too high and that we were not properly organized for this opportunity.”
The company said in a regulatory filing that it will cut 26% of its global workforce in a restructuring plan led by Ehikian.
The plan is “aimed at significantly improving operational efficiency” and includes a 30% reduction in non-employee costs.
Ehikian took over C3 AI in September after former CEO Thomas Siebel resigned due to vision problems caused by an autoimmune disease.
C3 AI said it expects fourth-quarter revenue to fall between $48 million and $52 million, far below LSEG’s forecast of $78 million.
Operating loss for the fourth quarter is expected to be in the range of $56 million to $64 million, wider than LSEG’s expected loss of $48 million.
people It downgraded the company from market outperform to market perform on Thursday. Patrick Walravens said in a note that the company is “standing on the sidelines” due to new near-term business challenges and increased competition.
C3 AI went public in December 2020, with an initial price of $100 per share. Shortly after, the stock traded around $180. The company currently trades at about $10 per share.
5-year chart of C3.ai stock.
