C3.ai (AI.US) rose more than 13% after hours! Q3 performance exceeded expectations, raising full-year revenue guidance.

After the US stock market on Wednesday, AI software service provider C3.ai (AI.US) announced its performance for the third quarter of the 2024 fiscal year. The financial report shows that C3.ai's Q3 revenue increased by 18% year-on-year to $78.4 million, better than the analysts' average expectation of $76.1 million. Of this, subscription revenue increased by 23% year-on-year to $70.4 million, surpassing analysts' average expectation of $66.6 million; professional services revenue decreased by 17% year-on-year to $8 million, lower than analysts' average expectation of $9.25 million. Q3 adjusted earnings per share were -$0.13, better than the analysts' average expectation of -$0.28 per share. C3.ai CEO Thomas Siebel stated: "As interest in adopting artificial intelligence rises in the market, our significant first-mover advantage in enterprise AI is having a positive impact." C3.ai reported an 80% year-on-year increase in customer engagement in Q3; the company signed 50 customer agreements in Q3 (an 85% year-on-year increase), including 29 pilot agreements (up 71% year-on-year). The company reached new agreements with medical device company Boston Scientific (BSX.US), pharmaceutical company AbbVie (ABBV.US), and telecom company T-Mobile US (TMUS.US). It is worth mentioning that C3.ai's federal business continued to show strong growth momentum, with revenue and bookings increasing by 100% and 85% year-on-year respectively; the company signed and expanded agreements with institutions such as the US Department of Defense and the US Air Force. Looking ahead, C3.ai expects revenue for the fourth quarter of the 2024 fiscal year to be between $82 million and $86 million, with analysts' average expectation at $83.9 million; the projected annual revenue is $306 million to $310 million, compared to the previous expectation of $295 million to $320 million, and analysts' average expectation of $306 million. As of the time of writing, C3.ai's stock rose more than 13% after the US stock market on Wednesday.