Q3 2025 C3.ai Inc Earnings Call Transcript
Key Points
- C3.ai Inc (AI) reported a 26% year-over-year increase in total revenue for Q3, reaching $98.8 million.
- The company achieved a 69% gross margin, with non-GAAP gross profit at $68.2 million.
- C3.ai Inc (AI) expanded its strategic alliances, notably with Microsoft, AWS, and McKinsey QuantumBlack, enhancing its market reach and execution speed.
- The partnership with Microsoft led to a 450% increase in agreements quarter-over-quarter, with 28 agreements closed across nine industries.
- C3.ai Inc (AI) secured new and expanded agreements with major clients such as the US Department of Defense, ExxonMobil, and Shell, demonstrating strong customer traction.
- C3.ai Inc (AI) reported a non-GAAP operating loss of $23.1 million, although this was better than the guidance range.
- 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 being free cash flow negative for fiscal year 2025, despite improvements in free cash flow compared to the previous year.
- The company is making additional investments in sales force, partner ecosystem, and R&D, which may impact operating margins in the near term.
- C3.ai Inc (AI) noted that remaining performance obligations (RPO) are expected to decline in the near term, indicating potential challenges in future revenue visibility.
Good day and thank you for standing by. Welcome to the C3 AI third quarter fiscal year 2025. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Amit Berry. Please go ahead.
Good afternoon. and welcome to C3 AI's earnings call for the third quarter of fiscal year 2025, which ended on January 31, 2025. My name is Amit Berry, and I lead Investor Relations at C3. With me on the call today are Tom Siebel, Chairman and Chief Executive Officer; and Hitesh Lath, Chief Financial Officer. After the market closed today, we issued a press release with details regarding our third quarter results as well as our 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 call. During today's call, we will make statements related to our business that may
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