TLDR:
– BigBear.ai disappointed with minimal revenue growth in latest quarterly results
– Stock tumbled nearly 22% after hours
BigBear.ai, an artificial intelligence company, saw explosive gains in its stock price recently, but its revenue for the latest quarter only increased by less than 1%. Despite a year-to-date rally of 88%, the company’s revenue and loss figures fell short of expectations, causing shares to drop by nearly 22% after hours. BigBear.ai’s revenue in the fourth quarter was $40.6 million, up 0.5% from the previous year, while analysts expected $42.8 million. The company’s net loss narrowed from the year-prior quarter but missed analyst expectations.
The company’s adjusted EBITDA improved, and it provided a revenue outlook for the year ahead that surpassed analyst estimates, taking into account the acquisition of Pangiam. CEO Mandy Long expressed optimism about the future growth potential of the company. However, BigBear.ai is not alone in facing disappointing stock movements after earnings, with other AI companies like SoundHound AI Inc. and chip companies like Marvell Technology Inc. and Broadcom Inc. experiencing pressure on their share prices.