Where Will C3.ai Stock Be in 3 Years?
The past three years have been terrible for C3.ai (NYSE: AI) investors as shares of the company lost nearly half their value during this period. But the good news is the stock has started showing signs of life once again.
A big reason why C3.ai stock had been punished during that time is because of a transition in its business model that began in fiscal 2023. As a provider of artificial intelligence (AI) software for enterprises, the company switched from a subscription-based pricing model to a consumption-based pricing model in the fiscal first quarter (ended July 2022).
The move was meant to lower the entry barrier for customers looking to deploy the company's AI software solutions and help increase sales. However, it hurt its revenue for some quarters as a consumption model meant the company wasn't receiving the monthly subscriptions from customers anymore, and it wasn't locking them into long-term contracts. This is evident from the chart below.
Source Fool.com
