Q2 2025 C3.ai Inc Earnings Call Transcript
Key Points
- C3.ai Inc (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 (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 (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 (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 (AI) anticipates continued free cash flow negativity in the near term as it invests aggressively in sales, customer support, and marketing.
Thank you for standing by and welcome to C three A is second quarter fiscal year 2025 earnings conference call. At this time. All participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session to, to ask a question during the session. You will need to press star 11 on your telephone to remove yourself from the queue. Please press star 11 again. Please be advised. Today's conference is being recorded. I would now like to hand the call over to Amit Barry. Please go ahead.
Good afternoon and welcome to C three ai's earnings call for the second quarter of fiscal year 2025 which ended on October 31st 2024. My name is Ahmed Berry and I lead investor relations at C THREE A I. With me on the call today are Tom Sel, Chairman and Chief Executive Officer and Hhla, Chief Financial Officer.
After the market closed. Today, we issued a press release with details regarding our second quarter results as well as a supplemental to our results, both of which can be accessed
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