Shares of C3.ai plunged nearly 20% after the company reported weaker-than-expected subscription revenue of $73.5 million, missing analyst estimates of $79.1 million due to slow customer conversions and cautious enterprise spending amid high interest rates and economic uncertainty. Despite a smaller-than-expected adjusted loss of $0.05 per share versus the $0.13 anticipated, and total revenue of $87.2 million surpassing estimates, the market reacted negatively to the company's guidance for the next quarter and full year, which fell short of expectations. The company also expects continued pressure on gross and operating margins due to higher costs associated with pilot projects and increased investments in sales, R&D, and marketing. C3.ai's stock has underperformed the market this year, losing about 18.3% year-to-date compared to the S&P 500's gain of 15.9%. Overall, C3.ai's quarterly revenue showed a solid year-on-year increase of 20.5%, but the growth rate decelerated compared to the previous quarter.