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

Shares of C3.ai plunged after the AI software provider posted weak preliminary financial results that fell well short of even the company’s own expectations.

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.