Key Takeaways

C3.ai ( AI ) shares have been volatile Tuesday, after a filing showing that Chief Executive Officer (CEO) Thomas Siebel plans to sell millions of stock offset better-than-estimated quarterly results.

In a regulatory filing, the artificial intelligence (AI) software firm said that during its fiscal 2025 second quarter, Siebel put up 12.78 million shares to be sold.

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

That resulted "in beneficial ownership of capital stock representing approximately 53.9%" of the voting power on the company's stock. The shares for sale have an expiration date of December 17, 2026.

Siebel Stock Sale Offsets Strong Results, Microsoft Deal

The Siebel news offset a strong second quarter performance. C3.ai posted a loss of $0.06 per share, narrower than the $0.14 per share loss analysts surveyed by Visible Alpha were anticipating. Revenue rose 29% to $94.3 million, also exceeding forecasts.

The company got a lift from a new global alliance agreement with Microsoft ( MSFT ) signed in September, making C3.ai the preferred AI application provider on Microsoft’s Azure cloud computing platform. It will also create a Microsoft-scale go-to-market engine.

Siebel said it was “difficult to overstate the potential of the Microsoft-C3.AI strategic alliance.” He called it “an inflection point for Enterprise AI, driving growth.”

C3.ai also boosted its full-year revenue estimate to $378 million to $398 million from the previous outlook of $370 million to $395 million. However, it expects a non-GAAP loss from operations of $105 to $135 versus the earlier prediction of $95 to $125.

C3.ai shares have gained almost 45% this year.

Read the original article on Investopedia