$AI (+1.23%) C3 .ai reported earnings

Q2 FY2025 results ended on October 31st 2024

- Revenue: $94.3M, +29% YoY

- Net Loss: $66.0M vs $69.8M loss in Q2 2023

- Non-GAAP Loss per Share: $0.06 vs $0.13 in Q2 2023

- Gross Margin: 61% vs 56% YoY

CEO Thomas M. Siebel: "It is difficult to overstate the potential of the Microsoft–C3 AI strategic alliance. By establishing C3 AI as a preferred AI application provider on Azure and creating a Microsoft-scale go-to-market engine, we're making it easy for businesses to adopt and deploy C3 AI applications."

🌱Revenue & Growth

- Subscription Revenue: $81.2M, +22% YoY

- Professional Services Revenue: $13.2M, +94% YoY

- Subscription Revenue: 86% of total revenue

- Prioritized Engineering Services: $9.7M, +99% YoY

- Service Fees: $3.5M, +82% YoY

💰Profits & Financials

- GAAP Gross Profit: $57.8M, 61% margin

- Non-GAAP Gross Profit: $66.3M, 70% margin

- Operating Loss: $75.3M vs $79.4M YoY

- Cash Balance: $730.4M

- Free Cash Flow: -$39.5M vs -$55.1M YoY

📌Business Highlights

- Signed strategic alliance with Microsoft through March 2030

- Closed 58 agreements including 36 pilots

- 62% of agreements closed through partner network

- Closed 15 C3 Generative AI pilots

- Awarded foundational US patent for generative AI agents

- Major customer wins include ExxonMobil, Koch, Dow, Shell

🔮Future Outlook

- Q3 Revenue guidance: $95.5M-$100.5M

- Full Year Revenue guidance: $378.0M-$398.0M

- Non-GAAP Operating Loss guidance: $105.0M-$135.0M for FY2025

- Expanding Microsoft partnership for enterprise AI adoption

- Growing generative AI solutions portfolio