C3.ai Shares Jump 33% on Q3 Beat & Strong Outlook

C3.ai (NYSE:AI) shares surged more than 33% on Friday after the company reported a Q3 beat and a better-than-expected outlook.

Q3 EPS came in at ($0.06), better than the Street estimate of ($0.22). Revenue was $66.7 million, beating the Street estimate of $64.22 million, with the help of increased Services revenue contribution from related party Baker Hughes, and on operating margin as the company took steps to prudently manage OpEx spending (down 8% year-over-year).

The company provided its fiscal 2023 outlook, expecting revenue to be in the range of $264-266 million, compared to the Street estimate of $261 million.

Looking forward, the company didn’t provide formal revenue guidance for 2024 but reiterated that it is tracking in line to slightly better than the initial plan laid out two quarters ago that called for revenue growth of 30% year-over-year in 2024.