May 18th, 2023 | 09:40 CEST
C3.ai, Star Navigation Systems, Palantir - Megatrend Artificial Intelligence
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"[...] In Canada, there is $1.75 of debt for every dollar of disposable income - and that was true even before the pandemic. [...]" Karim Nanji, CEO, Marble Financial
C3.ai - Price jump after the figures
The share price of C3.ai, founded by Thomas Siebel, the former boss of the CRM software company Siebel Systems, has halved since April and fell to a low of USD 16.79. However, the signs continue to point to a sharp rebound. After the publication of preliminary figures, the group, which specializes in providing AI systems for companies, gained more than 16%.
The reason for the euphoria was a better-than-expected result in turnover and loss. Revenues in the fourth quarter ranged from USD 72.1 million to USD 72.4 million. Analysts, on the other hand, were expecting only USD 71.1 million. The preliminary estimates for the adjusted loss from operating activities ranged between minus USD 23.7 million and USD 23.9 million and were also better than the forecast of minus USD 24 million to USD 28 million. In addition, positive free cash flow was achieved in the range of USD 18 million and USD 19.4 million.
CEO Tom Siebel added: "At the start of the new financial year on May 1, the Company has never been so well positioned," said Thomas M. Siebel, CEO of C3.ai. I believe we now have a broad consensus that the addressable market for enterprise AI is extraordinarily large." C3.ai remains committed to its long-term guidance, with a goal of achieving a profitable non-GAAP business by the end of fiscal 2024. The data analytics company ended the current financial year with cash and investments of over USD 800 million. You can read a detailed report on the business model here.
Star Navigation Systems - The digital twin is coming
With a market capitalization of around EUR 20 million, Canada's Star Navigation Systems is still a long way from the stock market value of data analytics company C3.ai. However, the potential, as well as the innovation of the technology, is no less.
The Company, which has already been active for two decades, is a renowned player in the field of aviation technology, has successfully specialized in in-flight analysis, satellite communication and data processing for the aviation industry and has filed a patent with the United States Patent Office and the Canadian Intellectual Property Office for its innovative product "The Star Digital Twin". The Company offers both hardware and software solutions tailored to the specific needs of the industry. The Canadians' competitive advantage is in the ability to perform in-flight edge computing and analyze the computed data using artificial intelligence and advanced algorithms. This method enables real-time analysis of important parameters such as engine efficiency, aircraft structure and position data. The analyzed data is then transmitted directly to the ground operators via satellite links.
A key benefit of this innovative approach is the accurate detection of incidents and the immediate transmission of warning messages. With the help of the Company's own Inflight Safety Monitoring System (ISMS), management is able to determine the position of aircraft at any time, even if they deviate from their planned course.
Inventor and interim CEO Anoop Brar commented: "The inspiration for the Digital Twin technology for aircraft came from common use cases such as operational models in the oil and gas industry, simulation in engine design and IoT ("Internet of Things") technology. The Digital Twin is a state-of-the-art, data-driven solution that creates a virtual representation of an object that is live and connected by leveraging inflight data across Star's connected aircraft ecosystem and using cloud-based artificial intelligence analytics."
Palantir - A step back after the rally
While C3.ai is still benefiting from the buying mood due to the better-than-expected figures, the enthusiasm has already waned for US data specialist Palantir. After reaching the high for the year of USD 10.30, the share price fell back to the upward trend formed at USD 9.07 since December.
Palantir released its quarterly results last Monday and reported earnings per share of USD 0.04, beating analysts' estimates of USD 0.03. Net margin was negative 12.88%, and return on equity was negative 12.92%. The Company reported revenue of USD 508.62 million for the quarter, compared to the consensus estimate of USD 504.84 million, an increase of 17.5% compared to the same quarter last year.
In total, 17 analysts at Reuters Refinitiv analyze the Company. The average price target of the financial experts is USD 8.75, which is below the current share price level.
According to experts, artificial intelligence is heralding a new technological revolution. Companies operating in the sector are experiencing high growth but equally high losses. Palantir and C3.ai beat forecasts in the last fiscal quarter. Star Navigation Systems filed its highly innovative product, "The Star Digital Twin", with patent offices in the US and Canada.
Conflict of interest
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