Enterprise AI software giant C3.ai (NYSE:AI) is part of The Americas’ Fastest Growing Companies 2022 list by the Financial Times. It’s the second-straight year that it’s made the prestigious list, a testament to the quality of the business.
The ranking looks at the most resilient enterprises during the height of the pandemic in 2020. Moreover, it also looks that the companies which generated the strongest revenue growth from 2017 to 2020.
Since the initial onslaught, business leaders are looking to build their businesses with increased digitalization. The tech sector grew at an incredible pace during the pandemic with people having to buy, work, and communicate through digital channels. As lockdown restrictions were in place, some companies have seen a slowdown in their growth rates.
However, C3.ai is quite the opposite as it made it to the illustrious list again. Its business has been growing at a compound annual rate of 43.6% and an absolute growth rate of 196.1%. AI stock has shed plenty of value in the past year due to a broader sell-off in the tech sector.
However, its fundamentals haven’t deteriorated as the company continues to grow its top and bottom lines. The company had a small customer base of just 50 clients at the time of its IPO to over 200 at this time.
Furthermore, AI stock trades at roughly 8.3 times forward sales, an attractive multiple in comparison to its peers. C3.ai has established its position as a market leader in enterprise AI transformation, an industry poised for massive growth ahead.
The Financial Times recognition is a testament to how well the company is performing and its resilience. As we advance the company is in for another strong year, marked by a healthy progression towards profitability.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines