C3.ai Stock Volatile as CEO Puts Some Shares for Sale, Offsetting Strong Results | Global News Avenue

C3.ai(AI) Shares have been volatile on Tuesday, a filing showed. Chief Executive Officer (CEO) Thomas Siebel plans to sell millions of shares to offset better-than-expected quarterly results.

In a regulatory filing, Artificial Intelligence (AI) Siebel is preparing to sell 12.78 million shares in the second quarter of fiscal 2025, the software company said.

The company noted that as of Oct. 31, Siebel and its related entities had beneficial ownership of approximately 87.8% of its Class B common stock and approximately 21.6% of its outstanding Class A common stock.

This results in “beneficial equity ownership of approximately 53.9% of the voting rights of the Company’s shares.” The expiry date of the shares for sale is December 17, 2026.

Siebel stock sale offsets strong results from Microsoft deal

The Siebel news offset a strong second quarter. C3.ai reported a loss of $0.06 per share, below the $0.14 per share loss expected by analysts polled by Visible Alpha. Revenue rose 29% to $94.3 million, also beating expectations.

The company benefits from a new global alliance agreement with Microsoft (Microsoft Corporation) was signed in September, making C3.ai the preferred provider of artificial intelligence applications on Microsoft’s Azure cloud computing platform. It will also create a Microsoft-scale go-to-market engine.

Siebel said, “The potential of Microsoft’s strategic alliance with C3.AI cannot be overstated.” He called it “an inflection point for enterprise artificial intelligence to drive growth.”

C3.ai also raised its full-year revenue forecast to $378 million to $398 million from the previous range of $370 million to $395 million. However, non-GAAP operating loss is expected to be $105 to $135, compared with the previous forecast of $95 to $125.

C3.ai’s stock price has risen nearly 45% this year.