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C3.AI 3Q24: Addressing Our Previous Report

FUNDA·2024年12月10日

Baker Hughes Overshadow Microsoft Collaboration Benefits

C3.AI plunges 10% in pre-market trading after mentioning Baker Hughes contract renewal concerns for the first time during the earnings call.

Although management believes renewal is likely and non-exclusive partnership benefits , it seems like an excuse for Baker Hughes and Shell to abandon their collaborations.

In our short-selling report on released on Nov 26, we explicitly highlighted the primary risk: Baker Hughes contract renewal.

1. Performance Overview

3Q and FY25 Full Year Revenue Guidance are beyond expectations​：This is largely due to the strong demand for AI implementation from large enterprises.

  • FY25 Revenue Growth Significantly Accelerates (from 6% growth in FY23 to 16% in FY24, and then to over 25% in FY25).

  • Revenue for FY2Q exceeded the market consensus by 3%, and was 0.7% above the upper end of guidance; EPS also exceeded expectations.

  • Revenue for FY3Q is expected to be between 95.5M and 100.5M, with a midpoint of 98M, while the market consensus is 97.57M; the full-year revenue target has been raised by 1%

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