Q1 2025 C3.ai Inc Earnings Call Transcript
Key Points
- C3.ai Inc (AI) exceeded expectations for revenue, cash flow, and profitability in Q1 FY2025.
- The company achieved its sixth consecutive quarter of accelerating revenue growth, with total revenue reaching $87.2 million.
- Subscription revenue increased by 20% year-over-year, contributing significantly to the total revenue.
- C3.ai Inc (AI) closed 71 agreements in Q1, including 72 new pilots, marking a 117% year-over-year increase in pilot count.
- The company has a strong cash position, ending the quarter with over $760 million in cash, cash equivalents, and investments.
- C3.ai Inc (AI) reported a GAAP operating loss of $72.6 million for the quarter.
- The company expects short-term pressure on gross margins due to a higher mix of pilots, which carry greater costs during the pilot phase.
- Operating margins are also expected to face short-term pressure due to additional investments in salesforce, R&D, and marketing.
- Despite strong bookings, the company maintained its previous annual revenue guidance, which may raise concerns about future growth expectations.
- The competitive landscape remains challenging, with internal IT organizations often attempting to build similar AI applications in-house.
Good day, and thank you for standing by. Welcome to the C3.ai's first quarter fiscal year 2025 conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker for today, Amit Berry, you may begin.
Good afternoon, and welcome to C3.ai's earnings call for the first quarter of fiscal year 2025, which ended on July 31, 2024. My name is Amit Berry, and I lead Investor Relations at C3.ai. With me on the call today are Tom Siebel, Chairman and Chief Executive Officer; Ed Abbo, Executive Vice President and Chief Technology Officer; and Hitesh Lath, Chief Financial Officer.
After the market closed today, we issued a press release with details regarding our first quarter results, as well as a supplemental to our results, both of which can be accessed through the Investor Relations section of our website at ir.c3.ai. This call is being webcast, and a replay will be available on our IR website following the conclusion of the
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