On September 4, 2024, C3.ai Inc (AI, Financial) released its 8-K filing for the fiscal first quarter ended July 31, 2024. C3.ai Inc is an enterprise artificial intelligence company that provides software-as-a-service applications enabling customers to develop, deploy, and operate large-scale Enterprise AI applications across any infrastructure.
Performance Overview
C3.ai Inc reported total revenue of $87.2 million for the quarter, surpassing analyst estimates of $86.94 million and marking a 21% increase from $72.4 million in the same period last year. Subscription revenue, which constitutes 84% of total revenue, rose by 20% to $73.5 million from $61.4 million a year ago.
Despite the revenue growth, the company reported a GAAP net loss per share of $(0.50), which is narrower than the estimated $(0.56). On a non-GAAP basis, the net loss per share was $(0.05), significantly better than the previous year's $(0.09).
Financial Achievements and Challenges
Gross profit for the quarter was $52.2 million, representing a 60% gross margin. On a non-GAAP basis, gross profit was $60.9 million, with a 70% gross margin. The company also reported positive free cash flow of $7.1 million and cash reserves of $762.5 million.
We had a solid start to the fiscal year, with rising demand for Enterprise AI driving our sixth consecutive quarter of accelerating revenue growth," said Thomas M. Siebel, Chairman and CEO of C3 AI.
Key Financial Metrics
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Total Revenue | $87.2 million | $72.4 million |
| Subscription Revenue | $73.5 million | $61.4 million |
| GAAP Gross Profit | $52.2 million | $40.5 million |
| Non-GAAP Gross Profit | $60.9 million | $49.6 million |
| GAAP Net Loss per Share | $(0.50) | $(0.56) |
| Non-GAAP Net Loss per Share | $(0.05) | $(0.09) |
Business Highlights
C3.ai Inc made significant strides in expanding its market presence, particularly in Manufacturing and State and Local Government sectors. The company closed 71 agreements in Q1, a 122% increase year-over-year, including 52 pilot projects. Notable new agreements were signed with GSK, Eletrobras, Valero, Swift, SmithRx, Sanofi, and various U.S. government agencies.
The company's Federal business continues to show strong momentum, accounting for over 30% of Q1 bookings. C3.ai Inc also reported high adoption rates for its C3 Generative AI applications, closing 17 pilots in Q1.
Financial Statements Summary
From the balance sheet, C3.ai Inc reported total assets of $1.06 billion, with cash and cash equivalents of $133.8 million. Total liabilities stood at $182.7 million, and stockholders' equity was $874.9 million.
Analysis
C3.ai Inc's performance in Q1 2025 indicates strong demand for its Enterprise AI solutions, reflected in its accelerating revenue growth and high customer satisfaction levels. The company's ability to narrow its net loss and generate positive free cash flow is a positive sign for investors. However, the ongoing net losses highlight the need for continued focus on cost management and operational efficiency.
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Explore the complete 8-K earnings release (here) from C3.ai Inc for further details.
