C3 AI Restructures Amid Steep Losses, Stock Hits Record Low

C3 AI’s stock fell 17% Thursday, reaching its lowest price ever, following a bleak quarterly report and a major restructuring plan that will eliminate 26% of its employees. The enterprise AI firm reported third-quarter revenue of $53 million, well below the $76 million analysts had forecast. Its loss per share was also greater than expected.

CEO Stephen Ehikian, who took leadership in September, stated on an earnings call that while customer demand for measurable AI value is strong, the company’s cost structure was misaligned. 'Our cost structure was simply too high, and we were not organized correctly for the opportunity,' Ehikian said. The restructuring, detailed in a regulatory filing, aims to improve operating efficiency and will also slash non-employee expenses by 30%.

The outlook for the current quarter offered little reassurance. C3 AI projected revenue between $48 million and $52 million, again far short of the $78 million analysts anticipated. Operating losses are also expected to be wider than predicted.

In response, Citizens bank downgraded the company’s stock, with analyst Patrick Walravens citing near-term challenges and heightened competition. Since its public debut in late 2020 at $100 per share, and a subsequent peak near $180, C3 AI’s value has eroded dramatically. Shares now trade around $10.

Source: CNBC