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Total Revenue: $94.3 million, a 29% increase year over year.
Subscription Revenue: $81.2 million, representing 86% of total revenue, a 22% increase year over year.
Professional Services Revenue: $13.2 million, accounting for 14% of total revenue.
Non-GAAP Gross Profit: $66.3 million, with a gross margin of 70%.
Non-GAAP Operating Loss: $17.2 million, better than the guidance range of $26.7 million to $34.7 million.
Non-GAAP Net Loss Per Share: $0.06.
Cash and Cash Equivalents: Over $730 million.
Non-Baker Hughes Revenue Growth: 41% year over year.
Revenue Guidance for Q3 FY25: $95.5 to $100.5 million.
Updated Revenue Guidance for FY25: $378 to $398 million.
Free Cash Flow: Negative $39.5 million for the quarter.
Release Date: December 09, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
C3.ai Inc (NYSE:AI) reported a 29% year-over-year revenue growth for the second quarter of fiscal year 2025, marking the seventh consecutive quarter of accelerating revenue growth.
The company exceeded its revenue guidance with a total revenue of $94.3 million, driven by a 22% increase in subscription revenue.
C3.ai Inc (NYSE:AI) has formed a significant strategic alliance with Microsoft Azure, which is expected to dramatically shorten sales cycles and expand market reach.
The company closed 58 agreements in the second quarter, including new and expanded agreements with major corporations like ExxonMobil, Shell, and the US Department of Defense.
C3.ai Inc (NYSE:AI) holds a strong cash position with over $730 million in cash, cash equivalents, and investments, providing a solid foundation for future growth and investment in strategic partnerships.
C3.ai Inc (NYSE:AI) reported a non-GAAP operating loss of $17.2 million for the quarter, although this was better than the guidance range.
The company is no longer targeting to be cash flow positive for the full fiscal year 2025 due to increased investments in the Microsoft partnership.
There is uncertainty regarding the renewal of the exclusive marketing agreement with Baker Hughes, which has been a significant revenue contributor in the past.
The company expects some moderation in gross margins due to a higher mix of pilots, which carry greater costs during the pilot phase.
C3.ai Inc (NYSE:AI) anticipates continued free cash flow negativity in the near term as it invests aggressively in sales, customer support, and marketing.
Q: Can you share the history of the relationship with Microsoft and how it developed to this point? Also, what are your thoughts on federal spending under the new administration? A: Our relationship with Microsoft has been primarily driven by Judson Althoff and myself. We have coordinated closely on this agreement. Regarding federal spending, there is a significant focus on AI applications across defense and intelligence sectors, and we expect a dramatic acceleration in AI adoption within the federal government.
