SES AI revenue misses estimates despite earnings match

SES AI reported earnings per share that matched analyst estimates for the latest quarter, but revenue declined below projections, reflecting softer demand in its artificial intelligence segment.

The company’s adjusted earnings per share (EPS) of $0.12 aligned with the consensus forecast compiled by Reuters, though total revenue of $185 million fell short of the $192 million expected by analysts. Revenue declined 5% year-over-year, primarily due to reduced sales in its AI infrastructure services.

SES AI’s chief executive attributed the revenue shortfall to delayed enterprise adoption of AI solutions, citing macroeconomic uncertainty and prolonged decision-making cycles among clients as key factors. Despite the revenue miss, the company reaffirmed its full-year guidance, projecting revenue growth of 8-10% for 2024, driven by expected demand recovery in the second half of the year.

Shares of SES AI were down 3.2% in after-hours trading following the results, extending losses from the prior session. Analysts at JPMorgan maintained a neutral rating on the stock, citing near-term headwinds but long-term potential in the AI services market.

The company’s earnings report follows a broader trend of mixed financial performance among AI-focused firms, with some exceeding revenue expectations while others struggle with adoption delays.