Q1 2027 C3.ai Inc Earnings Call Transcript
Key Points
- Bookings grew 73% year-over-year, indicating strong demand and early turnaround success.
- Federal business bookings surged 138% year-over-year, with notable wins including the US Department of Defense and USDA.
- Non-GAAP gross margin improved sequentially from 37% to 50% due to cost reduction actions.
- Generated positive free cash flow of $2.1 million, a significant improvement from negative $34.3 million in the prior year.
- Achieved annualized cost savings of approximately $135 million through restructuring, including a 40% headcount reduction.
- Total revenue of $52.4 million declined year-over-year, reflecting ongoing business challenges.
- Non-GAAP operating loss remains substantial at $36.2 million, though better than guidance.
- Guidance for Q2 fiscal 2027 revenue ($51-55 million) implies potential sequential decline, indicating uncertain near-term growth.
- Full-year fiscal 2027 revenue guidance ($210-240 million) suggests a wide range and potential for continued revenue contraction.
- Management expects non-GAAP gross margin to moderate to mid-40s next quarter due to selective investments in engineering.
Good day and thank you for standing by. Welcome to the C3.ai fiscal first quarter 2027 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded. And now I'd like to hand the call over to today's host, Amit Berry. Please go ahead.
Good afternoon and welcome to C3.ai's earnings call for the first quarter of fiscal year 2027, which ended on July 31, 2026. My name is Amit Berry and I lead Investor Relations at C3.ai.
With me on the call today are Thomas Siebel, Chief Executive Officer, and Hitesh Lath, Chief Financial Officer. After the market closed today, we issued a press release with details regarding our first quarter results, which can be accessed through the investor relations section on 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 call.
During today's call, we will make statements related to our business that may be considered
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