C3 AI reports declining revenue, announces new CEO to replace Siebel

C3 AI, a prominent player in the enterprise artificial intelligence sector, experienced a significant drop in shares, plummeting 14% in after-hours trading on Wednesday. This decline followed the company's announcement of its fiscal first-quarter financial results and the introduction of Stephen Ehikian as the new CEO. The company reported revenues of $70.3 million for the quarter, a decrease from $87.2 million in the same timeframe last year. Additionally, C3 AI's GAAP net loss expanded to $0.86 per share, compared to a loss of $0.50 a year earlier. Ehikian, who has a rich background in technology and previously led two companies acquired by Salesforce, officially stepped into his role on September 1. The search for a new CEO commenced in July after Thomas Siebel, the former chief executive, disclosed his diagnosis of an autoimmune disease, which has led to significant visual impairment. In his statement, Ehikian expressed confidence in C3 AI's potential: "C3 AI is one of the most important companies in the AI landscape and enterprise software, with a platform and applications that are unmatched. I am optimistic about capturing a larger share of the vast market opportunity in Enterprise AI." C3 AI has faced a turbulent few months, particularly following Siebel's health announcement. In August, shares took a hit when the company revealed disappointing preliminary financial outcomes and announced a restructuring of its global sales and services teams. Siebel described the sales performance for the quarter as "completely unacceptable," attributing the downturn to the disruptive impact of the reorganization and his ongoing health challenges.