C3 AI Stock Plunges 30% On Q1 Sales Miss, CEO Calls Sales Results ‘Completely Unacceptable’

C3 AI Inc.’s stock (AI) plunged nearly 30% in Monday morning’s trading session after the company’s sales in the first quarter (Q1) fell on a year-on-year basis, with CEO Thomas Siebel calling the preliminary results “completely unacceptable.”

C3 AI projected its sales to come in the range of $70.2 million and $70.4 million, based on preliminary Q1 results, down from $87.2 million during the same period a year ago.

C3 AI’s shares were down 30% at the time of writing. Stocktwits data showed the retail sentiment around the company was in the ‘extremely bullish’ territory.

C3 AI expects to report a loss of nearly $125 million in Q1, rising from $72.6 million during the same period a year ago.

Siebel ascribed the decline in sales to two reasons: the leadership reorganization and his health issues, including multiple hospitalizations and vision impairment. He says his health issues prevented him from participating in the sales process as actively as he did in the past, but expressed optimism that C3 AI is now positioned to accelerate going forward.

“We are actively engaged in an executive search for a successor CEO at C3 AI and are moving expeditiously to identify some excellent candidates in short order,” Siebel said, while noting that his health has improved “dramatically.”

In July, Siebel announced that he was diagnosed with an autoimmune disorder and that the company had initiated a search for his successor. Although his health has now improved, Siebel noted that his vision remains impaired.

C3 AI stock has fallen over 50% year-to-date and more than 30% in the past 12 months.

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