StockStory Cites Billings and Cash Burn Risks at C3.ai
The publisher points to weaker billings, declining gross margins and cash use despite C3.ai’s share gains over six months.
Key takeaways
- C3.ai billings averaged 24.5% year-on-year declines over the last four quarters, according to StockStory.
- C3.ai’s gross margin averaged 29.1% over the last year, StockStory said.
StockStory said C3.ai’s recent share gains do not outweigh concerns about its billings, gross margins and cash use. The publisher noted the stock had risen 25.4% over six months, outperforming the S&P 500 by 9.4%.
C3.ai reported $69.63 million in billings in Q2, while billings averaged 24.5% year-on-year declines over the past four quarters, according to StockStory. The publisher also said gross margin averaged 29.1% over the last year and fell 29.3 percentage points over two years.
C3.ai had positive free cash flow in the latest quarter, but StockStory said its free cash flow margin averaged negative 67% over the past year. The publisher argued that the company’s valuation already reflected optimism.
As of 20:00 UTC on Oct. 5, C3.ai shares traded at $11.09, up 0.73% since the previous close.
This article was produced with the help of AI technology. Source: Yahoo Finance
