C3.ai shares volatile after CEO sells some shares, despite strong results

The Key Takeaways

• A regulatory filing showed C3.ai founder and CEO Thomas Siebel was selling 12.78 million of the artificial intelligence software company's shares.
• Even though the company posted better than expected quarterly results, and raised its revenue guidance, Tuesday’s news caused trading to be volatile.
• Siebel said that the new strategic global alliance between Microsoft and Siebel is a benefit to both companies.

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.

Siebel, a software company specializing in artificial intelligence, said it had placed 12,78 million shares for sale during the second quarter of its fiscal year 2025.

According to the report, as of October 31, Siebel owned around 87.8% Class A Common Stock and about 21.6% Class B Common Stock.

That resulted "in beneficial ownership of capital stock representing approximately 53.9%" of the voting power on the company's stock. Shares for sale expire on December 17, 2026.

Siebel Stock Sale Offsets Strong Results, Microsoft Deal

Siebel’s announcement in the second quarter was a blow to a good performance. C3.ai reported a $0.06 loss per share. This was less than what Visible Alpha’s analysts had predicted, which was $0.14. Sales rose by 29 percent to $94.3million, exceeding expectations.

C3.ai has benefited from an agreement signed with Microsoft in September that makes it the leading AI provider on Microsoft Azure’s cloud computing platforms. The company will create a Microsoft scale go-to market engine.

Siebel stated that it was “difficult to overstate the potential of the Microsoft-C3.AI strategic alliance.” It was called by him “an inflection point for Enterprise AI, driving growth.”

C3.ai increased its estimate of revenue for the entire year from $370 million up to $395 millions to between $378 and $398. The company expects an operating loss that is not based on GAAP to be between $105-$135 instead of the $95-$125 it had predicted earlier.

Shares of C3.ai have grown by nearly 45% so far this year.

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