C3.ai stock tumbles 12% amid weak subscription revenue

Four firms lowered their price target on the stock following the report. JPMorgan analysts noted professional services revenue of $13.5 million came in well ahead of expectations for the quarter, but subscription revenue of $73.5 million came in 7% below consensus.

"Net/net, while the top line y/y growth continues to stabilize, the subscription revenue performance this quarter highlights the volatility in the model," wrote JPMorgan analysts after the print. The firm lowered its price target on the stock from $24 to $19.

The company's CEO pushed back against Wall Street's reaction to the quarter.

"By any standards it was a great quarter. At 21% top line year-over-year growth, we're one of the fastest growing public software companies in the software universe," Tom Siebel, C3.ai CEO, told Yahoo Finance on Thursday morning.

"There was nothing that wasn't good about the quarter," added Siebel.

C3.ai was one of the early high flying stocks this year during the initial AI craze in February. The stock has since lost all of its year-to-date gains.