C3.ai (AI) stock closed up more than 23% after the artificial intelligence company raised its forecast stating that interest in applying predictive analytics “has never been greater.”
“The overall business environment for enterprise AI is more agile than we’ve seen since the company’s inception and appears to be accelerating.” Read the company’s preliminary revenue statement.
C3.ai says total revenue for the fourth fiscal quarter was $72.1 million — $72.4 million, topping the company’s own guidance. C3.ai expects an adjusted operating loss of $23.7m-$23.9m, narrower than the previous forecast of $24m-$28m. Exact results will be announced at the end of May.
“The number of institutional opportunities eligible to close within 12 months in our sales pipeline has increased by more than 100% in the past year,” said the AI software company, whose clients include Bank of America, Shell and 3M.
In March, C3.ai founder and CEO Tom Siebel Yahoo Finance Artificial intelligence “will soon become a $600 billion addressable software market. Everyone will use enterprise AI applications, just like they use computers, just like they use relational databases.”
On Monday, C3.ai also released the findings of an investigation into allegations made separately by short sellers Spruce Point Capital and Kerrisdale Capital.
“The investigations found that none of the allegations or insinuations of wrongdoing by Spruce Point or Kerrisdale were supported by fact, and no irregularities, misrepresentations, or omissions were identified in the Company’s prior disclosures,” C3.ai press release said.
In February, Spruce Point alleged “Evidence of a challenging partnership with Baker Hughes, a related party and largest customer of C3.ai.”
In early April, the stock fell 38% in the two days after that Short seller Kerrisdale Capital has posted a message The AI-related company was allegedly engaged in “rigorous accounting to inflate its income statement”.
C3.ai responded to the allegations that followed Kerrisdale’s letterhighlighting it “It appears to be a very creative and transparent attempt by a self-acclaimed short seller to sell a stock, post an enticing message to move the share price down, then cover the short sale and pocket the profits.”
Investors piled into C3.ai and other AI-related stocks Amidst the craze over ChatGPT from OpenAi earlier this year. In early February, the stock rose 100% over a month.
Year-to-date AI is up nearly 114%.
Ennis is a Senior Business Correspondent at Yahoo Finance. Follow her on Twitter at @employee
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