C3.ai, Inc. (AI) shares tumbled 8.89% in the after-hours session on Wednesday, despite the artificial intelligence software company reporting a 26% year-over-year increase in revenue for its fiscal fourth quarter of 2024, beating Wall Street expectations.

The plunge came as the company posted a larger non-GAAP loss per share than analysts had anticipated. C3.ai reported a non-GAAP loss of $0.12 per share, missing estimates of a $0.25 per share loss. The company's adjusted operating income of -$23.14 million also fell short of expectations, despite marking a significant improvement over the prior year's quarter.

While revenue hit $98.78 million, exceeding estimates of $98.27 million, several other key metrics disappointed investors. Billings growth of 21.2% year-over-year lagged behind the revenue growth rate, indicating a potential slowdown in future sales. Additionally, C3.ai's customer acquisition costs remained elevated, with a payback period of over 13 years, suggesting the company is struggling to efficiently acquire new customers in a highly competitive market.