C3.ai: The Forgotten AI Stock That's Better Left Forgotten

"C3.ai ( ) was once hailed as a pioneer in enterprise AI software, but today grapples with a cascade of challenges that have eroded investor confidence. Over the past year, its stock has plunged 59%, wiping out nearly all gains from the early AI hype and leaving the company with a modest $2 billion market cap - down 92% from its peak. An uneven shift from subscription to consumption-based billing disrupted revenue predictability, followed by a major restructuring of sales and operations last year, and the stepping down as CEO by Thomas Siebel in September due to health issues. Leadership under Stephen Ehikian has brought more uncertainty: the company withdrew its full-year guidance, and it was reportedly thinking of selling off the company."

"C3.ai's latest quarterly report offered investors a rare bright spot, but one that underscores just how far the company has fallen rather than signaling a recovery. Total revenue hit $75.1 million, edging past analyst forecasts and providing some breathing room after months of pressure. Subscription revenue, the core of its business, came in at $70.2 million, while bookings surged 49% from the prior quarter - a healthy uptick driven by an 89% year-over-year jump in federal deals, which now account for 45% of total bookings. Non-GAAP gross margins held steady at 54%, and the company ended with a robust $675 million in cash reserves, enough to weather near-term storms."

C3.ai experienced a dramatic stock decline of 59% over the past year, reducing market capitalization to about $2 billion, down 92% from its peak. The company shifted from subscription to consumption-based billing, undermining revenue predictability, and underwent major sales and operations restructuring. Founder Thomas Siebel stepped down for health reasons, and leadership under Stephen Ehikian raised uncertainty after withdrawing full-year guidance and reportedly considering a sale. C3.ai burned nearly $150 million over four quarters, with revenue barely covering expenses. The latest quarter showed revenue of $75.1 million, subscription revenue of $70.2 million, bookings growth, and $675 million in cash, but revenue declined 20% year-over-year.

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