C3.ai was plunging as it said quarterly revenue would fall way below expectations. There are further problems ahead.

C3.ai reported expected revenue of $70.2 million to $70.4 million, down 19% year-over-year from $87.2 million in the year-ago quarter. This was well below the company's own guidance midpoint of $104.5 million.

Key Takeaways Shares of C3.ai lost a quarter of their value after the AI software provider posted preliminary sales figures that were significantly weaker than expected.CEO Tom Siebel called the sales results “completely unacceptable” and blamed a reorganization of leadership and his health as contributing factors.