Earnings To Watch: C3.ai (AI) Reports Q1 Results Tomorrow

Artificial intelligence (AI) software company C3.ai (NYSE:AI) will be announcing earnings results tomorrow after market hours. Here's what you need to know.

C3.ai beat analysts' revenue expectations by 3% last quarter, reporting revenues of $78.4 million, up 17.6% year on year. It was a mixed quarter for the company, with a meaningful improvement in its gross margin but a miss of analysts' billings estimates.

Is C3.ai a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting C3.ai's revenue to grow 16.6% year on year to $84.4 million, improving from its flat revenue in the same quarter last year. Adjusted loss is expected to come in at -$0.30 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. C3.ai has missed Wall Street's revenue estimates twice over the last two years.

Looking at C3.ai's peers in the data and analytics software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Confluent delivered year-on-year revenue growth of 24.6%, beating analysts' expectations by 2.5%, and Teradata reported a revenue decline of 2.3%, in line with consensus estimates. Confluent traded up 12.7% following the results while Teradata was down 13.8%.

Read our full analysis of Confluent's results here and Teradata's results here.

Investors in the data and analytics software segment have had steady hands going into earnings, with share prices flat over the last month. C3.ai is up 4.5% during the same time and is heading into earnings with an average analyst price target of $28.9 (compared to the current share price of $24.14).

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