Core Insights - C3.ai reported third-quarter revenue of $98.8 million, a 26% increase year-over-year, surpassing the consensus estimate of $98.1 million [1][2] - The company achieved a non-GAAP net loss of 12 cents per share, better than the expected loss of 25 cents per share [2] - C3.ai closed 66 agreements during the quarter, including 50 pilots, marking a 72% increase year-over-year [3] Financial Performance - Subscription revenue for the quarter was $85.7 million, up 22% year-over-year, accounting for 87% of total revenue [1] - The company ended the quarter with $724.3 million in cash and cash equivalents [4] - C3.ai is guiding for fourth-quarter revenue between $103.6 million and $113.6 million, with full fiscal year revenue expected to be between $383.9 million and $393.9 million [6] Strategic Developments - C3.ai expanded its global distribution network and strategic partnerships with Microsoft, AWS, and McKinsey Quantumblack [2][4] - The joint qualified opportunity pipeline with Microsoft increased by 244% year-over-year [4] - The company entered into new agreements with the U.S. Air Force, U.S. Navy, and U.S. Department of Defense [3] Future Outlook - C3.ai will host the C3 Transform 2025 conference from March 18-20, 2025, aimed at showcasing the value of Enterprise AI [5][6] - The CEO emphasized the company's readiness to transform the Enterprise AI landscape through its technology and partnerships [7]

[C3 AI Fiscal Third Quarter 2025 Financial Results](index=1&type=section&id=C3%20AI%20Announces%20Fiscal%20Third%20Quarter%202025%20Financial%20Results) [Q3 FY2025 Financial Highlights](index=1&type=section&id=Fiscal%20Third%20Quarter%202025%20Financial%20Highlights) C3 AI reported strong Q3 FY2025 financial results, with total revenue reaching **$98.8 million** (up 26%) and subscription revenue growing 22% to **$85.7 million** - CEO Thomas M. Siebel highlighted expanded partnerships and the invention of the model-driven agentic Enterprise AI platform, for which a U.S. Patent was awarded[4](index=4&type=chunk) Q3 FY2025 Key Financial Metrics | Metric | Q3 FY2025 | YoY Change | | :--- | :--- | :--- | | Total Revenue | $98.8 million | +26% | | Subscription Revenue | $85.7 million | +22% | | GAAP Gross Margin | 59% | N/A | | Non-GAAP Gross Margin | 69% | N/A | | GAAP Net Loss per Share | $(0.62) | N/A | | Non-GAAP Net Loss per Share | $(0.12) | N/A | | Cash, Cash Equivalents, and Marketable Securities | $724.3 million | N/A | [Business Highlights](index=1&type=section&id=Business%20Highlights) [Agreements and Customer Growth](index=1&type=section&id=Agreements%20and%20Customer%20Growth) C3 AI achieved significant commercial momentum in Q3, closing **66 agreements** (up 72% YoY) including 50 pilots, and expanding contracts with major enterprises and the U.S. public sector - Closed **66 agreements** in Q3, including **50 pilots**, marking a **72% increase year-over-year**[7](index=7&type=chunk) - Secured new and expanded agreements with key enterprise customers including New York Power Authority, Worley, Flex, Sanofi, Nucor Corporation, Holcim, Shell, ExxonMobil, Liberty Coca-Cola Beverages, GSK, Quest Diagnostics, SmithRx, and Swift[7](index=7&type=chunk) - Expanded presence in State and Local Government with **21 agreements** across **11 states**, and secured new deals with the U.S. Department of Defense, Air Force, Navy, and the Missile Defense Agency[7](index=7&type=chunk) - Achieved "Awardable" status on the DoD's Tradewinds Solutions Marketplace for C3 AI Decision Advantage and C3 AI Contested Logistics, accelerating government procurement[7](index=7&type=chunk) [Partner Network Expansion](index=2&type=section&id=Partner%20Network) C3 AI significantly expanded its partner ecosystem, driving **47 agreements** (up 74% YoY) and strengthening alliances with Microsoft, AWS, and McKinsey & Company QuantumBlack - The partner network closed **47 agreements** in Q3, an increase of **74% year-over-year**[11](index=11&type=chunk) - The Microsoft Azure alliance accelerated, closing **28 agreements** (a **460% QoQ increase**) and growing the joint qualified opportunity pipeline by over **244% YoY**, with sales cycles shortening by nearly **20% QoQ**[11](index=11&type=chunk) - A new major strategic alliance was announced with McKinsey & Company QuantumBlack to deliver AI transformation at a global scale[11](index=11&type=chunk) - The strategic alliance with AWS was dramatically expanded to jointly offer advanced Enterprise AI solutions with a robust go-to-market strategy[11](index=11&type=chunk) [Customer Success Stories](index=2&type=section&id=Customer%20Success) Customers are realizing significant value from C3 AI's platform, with GSK, Worley, and SmithRx demonstrating improved supply chain efficiency and streamlined operations - GSK is scaling the C3 AI Demand Forecasting application to enhance supply chain accuracy and efficiency for delivering medicines and vaccines[11](index=11&type=chunk) - Worley is using the C3 AI Supply Chain and Asset Performance Suites to build solutions for the complex nuclear industry, focusing initially on small modular reactors (SMRs)[11](index=11&type=chunk) - SmithRx is using C3 Generative AI to streamline call center operations, significantly reducing call handle times and improving customer service[12](index=12&type=chunk) [C3 Generative AI Developments](index=2&type=section&id=C3%20Generative%20AI) C3 AI closed **20 C3 Generative AI pilots** in Q3 and achieved a technological breakthrough with a new foundation time series embedding model for sensor data - Closed **20 C3 Generative AI pilots** with customers including Mars, Liberty Coca-Cola Beverages, and various government agencies[11](index=11&type=chunk) - Advanced its technology stack with a breakthrough foundation time series embedding model, simplifying applications using sensor data by enabling direct retrieval and reasoning on time series information[11](index=11&type=chunk) [Financial Outlook](index=4&type=section&id=Financial%20Outlook) [Q4 and Full-Year FY2025 Guidance](index=4&type=section&id=Q4%20and%20Full-Year%20FY2025%20Guidance) C3 AI provided its financial outlook for Q4 and full-year FY2025, projecting Q4 total revenue between **$103.6 million** and **$113.6 million**, and full-year total revenue between **$383.9 million** and **$393.9 million** FY2025 Financial Guidance (in millions) | Period | Metric | Guidance Range | | :--- | :--- | :--- | | **Q4 Fiscal 2025** | Total Revenue | $103.6 - $113.6 | | | Non-GAAP loss from operations | $(30.0) - $(40.0) | | **Full Year Fiscal 2025** | Total Revenue | $383.9 - $393.9 | | | Non-GAAP loss from operations | $(87.0) - $(97.0) | [Financial Statements and Non-GAAP Measures](index=5&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Measures) [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) C3 AI reported Q3 FY2025 total revenue of **$98.8 million**, gross profit of **$58.3 million**, and a GAAP net loss of **$(80.2) million**, or **$(0.62) per share** Statement of Operations Highlights (In thousands, except per share data) | Metric | Three Months Ended Jan 31, 2025 | Three Months Ended Jan 31, 2024 | | :--- | :--- | :--- | | Total revenue | $98,782 | $78,401 | | Gross profit | $58,347 | $45,287 | | Loss from operations | $(87,585) | $(82,546) | | Net loss | $(80,201) | $(72,631) | | Net loss per share | $(0.62) | $(0.60) | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of January 31, 2025, C3 AI's balance sheet showed total assets of **$1.055 billion**, with **$724.3 million** in cash and marketable securities, and total stockholders' equity of **$860.2 million** Balance Sheet Highlights (In thousands) | Metric | Jan 31, 2025 | April 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $125,094 | $167,146 | | Marketable securities | $599,233 | $583,221 | | Total current assets | $930,903 | $904,394 | | Total assets | $1,055,141 | $1,038,225 | | Total liabilities | $194,964 | $164,872 | | Total stockholders' equity | $860,177 | $873,353 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended January 31, 2025, C3 AI reported net cash used in operating activities of **$(52.7) million** and free cash flow of **$(54.8) million**, showing an improvement year-over-year Cash Flow Highlights (In thousands) | Metric | Nine Months Ended Jan 31, 2025 | Nine Months Ended Jan 31, 2124 | | :--- | :--- | :--- | | Net cash used in operating activities | $(52,671) | $(83,705) | | Net cash used in investing activities | $(6,542) | $(92,600) | | Net cash provided by financing activities | $17,161 | $6,037 | | Net decrease in cash | $(42,052) | $(170,268) | Free Cash Flow Reconciliation (In thousands) | Metric | Nine Months Ended Jan 31, 2025 | Nine Months Ended Jan 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(52,671) | $(83,705) | | Less: Purchases of property and equipment | $(2,101) | $(22,718) | | Less: Capitalized software development costs | — | $(2,750) | | **Free cash flow** | **$(54,772)** | **$(109,173)** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) C3 AI provided reconciliations for non-GAAP financial measures, reporting Q3 FY2025 non-GAAP gross profit of **$68.2 million** (69% margin) and a non-GAAP net loss of **$(15.8) million**, or **$(0.12) per share** Q3 FY2025 GAAP to Non-GAAP Reconciliation (In thousands, except per share data) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Gross Profit | $58,347 | $9,860 | $68,207 | | Loss from Operations | $(87,585) | $64,441 | $(23,144) | | Net Loss | $(80,201) | $64,441 | $(15,760) | | Net Loss Per Share | $(0.62) | | $(0.12) |

Core Viewpoint - C3.ai is expected to report its third-quarter fiscal 2025 results on February 26, with anticipated revenue growth driven by strong demand for its generative AI solutions and enterprise AI software [1][2][4]. Revenue Expectations - C3.ai forecasts revenues between $95.5 million and $100.5 million for the third quarter, with a Zacks Consensus Estimate of $97.97 million, reflecting a year-over-year increase of 27.96% [2]. - The consensus estimate for loss per share remains stable at 25 cents, indicating a significant year-over-year decline of 92.31% [2]. Performance Drivers - The company's performance is likely bolstered by its C3 Generative AI solutions and increased demand for enterprise AI software [4]. - C3.ai has seen growing interest in generative AI applications across various industries, including manufacturing, pharmaceuticals, and energy [5]. - The Generative AI Accelerator program is expected to facilitate new agreements and transitions from pilot projects to full-scale implementations [5]. Customer Base and Agreements - C3.ai's efforts to diversify its customer base across multiple sectors, including manufacturing and defense, are anticipated to significantly contribute to revenue growth [6]. - In the fiscal second quarter, C3.ai closed 58 agreements, including new and expanded deals with major corporations such as Exxon Mobil and Rolls-Royce, which are expected to positively impact the upcoming quarter [6]. Stock Performance and Valuation - C3.ai shares have declined by 8.3% year-to-date, underperforming the Zacks Computer & Technology sector, which has returned 0.8% [7]. - The stock is trading at a premium, with a forward 12-month Price/Sales ratio of 7.95X compared to the sector's 6.45X, indicating a stretched valuation [10]. Partnerships and Collaborations - C3.ai has established a strong partner base, including major cloud providers like Amazon, Alphabet, and Microsoft, which is expected to drive growth [12]. - Partnerships with hyperscalers contributed to 62% of the company's agreements in the second quarter, highlighting the importance of its partner network in revenue generation [13]. - Collaborations with Google Cloud resulted in a 180% year-over-year increase in agreements, showcasing the effectiveness of these partnerships [14]. Government Sector Engagement - C3.ai's expanding presence in the government and defense sectors, including new contracts with U.S. federal agencies, is expected to provide a steady revenue stream [16]. - The company secured a task order from the U.S. Army to modernize information collection management processes, indicating strong growth in its federal business [17][18].

Core Viewpoint - C3.ai is experiencing impressive revenue growth but remains unprofitable, making it a speculative investment with potential risks ahead of its earnings report on February 26 [2][7][11]. Group 1: Company Performance - C3.ai has shown accelerating sales growth over the past three years, indicated by a steepening revenue trend [3]. - Over 60% of C3.ai's business is generated through its partner ecosystem, which includes major cloud providers and consulting firms [4][5]. - Despite the growth, C3.ai has not achieved profitability, with consistent net losses and negative free cash flow [7]. Group 2: Market Position and Comparisons - C3.ai is significantly smaller than its peers, such as Palantir, which raises questions about its valuation and investment appeal [8]. - The stock typically rises before earnings reports but tends to fall immediately afterward, indicating a pattern of investor disappointment [10]. Group 3: Investment Sentiment - The company is viewed as more of a trading stock rather than a long-term investment due to its speculative nature and lack of consistent profitability [10][11]. - Analysts suggest looking for more established AI software companies that demonstrate robust revenue growth and profitability instead of investing in C3.ai [11].

Core Insights - C3.ai, Inc. is expected to report a quarterly loss of $0.25 per share, a decline of 92.3% year-over-year, with revenues forecasted at $97.97 million, reflecting a 25% increase compared to the same period last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts have reassessed their initial estimates [1] Revenue Projections - Analysts project 'Revenue- Professional services' to reach $12.68 million, marking a 58.4% increase from the year-ago quarter [4] - The 'Revenue- Subscription' is estimated to be $85.27 million, representing a 21.1% increase from the previous year [4] Gross Margin Estimates - The 'Gross margin- Professional services' is expected to be 83.0%, down from 89% in the same quarter last year [5] - The 'Gross margin- Subscription' is projected to reach 55.1%, slightly up from 54% year-over-year [5] Stock Performance - Over the past month, C3.ai shares have declined by 12.2%, while the Zacks S&P 500 composite has increased by 2.2% [6] - C3.ai currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6]

Core Viewpoint - C3.ai Inc (NYSE:AI) stock is experiencing a decline ahead of its fiscal third-quarter earnings report, but it is trading near a historically bullish trendline that may support a rebound in the near future [1][2]. Stock Performance - The stock is currently down 6.3% to $28.87 and has lost 17.5% over the past three months, with a year-to-date decline of 16.1% [1]. - C3.ai is testing its 126-day moving average, which has historically led to bullish returns [2]. - In the past three years, the stock has approached this moving average after spending 80% of the last two months above it, with four previous instances [2]. Historical Trends - Following previous signals of approaching the moving average, the stock has averaged an 8.6% gain one month later, which would place it above $31 if a similar move occurs [3]. - The stock has shown mixed post-earnings performances, with notable gains of 24.5% and 19.4% after earnings in February and May, respectively [4]. - Over the past two years, the average post-earnings move has been 15.3%, with current options pricing indicating an expected swing of 18.1% [4]. Market Sentiment - The sentiment in the options market indicates elevated pessimism, with a 10-day put/call volume ratio in the 86th percentile of annual readings [5]. - If traders unwind their bearish positions, it could provide positive momentum for the stock [5]. Analyst Ratings - Analyst coverage remains cautious, with 10 out of 14 brokerages rating the stock as a "hold" or worse [6]. - A strong earnings reaction could lead analysts to reassess their ratings, potentially driving additional upside [6].

Group 1 - C3.ai aims to maintain its trend of accelerating revenue growth in the upcoming quarterly results report [1] - The stock price of C3.ai was noted at a decline of 3.18% as of February 17, 2025 [1] - The video discussing these developments was published on February 19, 2025 [1]

Group 1 - YieldMax AI Option Income Strategy ETF (NYSEARCA: AIYY) is designed to track the price movements of C3.ai, Inc (AI) and was launched in November 2023 [1] - The ETF aims to provide investors with a strategy that combines growth and income, potentially enhancing investment income while achieving total returns comparable to traditional index funds like the S&P [1] Group 2 - The article emphasizes the importance of a diversified investment approach, including high-quality dividend stocks, Business Development Companies, REITs, and Closed End Funds to boost income [1]

Over the past year, stocks with interest in the artificial intelligence (AI) space have seen significant returns as investors continue to bet on the technology. For instance, chipmaker Nvidia (NASDAQ: NVDA) and American software giant Palantir (NASDAQ: PLTR)  are key leaders in this sector, helping investors register massive profits.Although the outlook on AI is widely positive, not all equities in the space are poised for success, as several headwinds hamper them.  To this end, Finbold has identified the f ...

Buying solid companies at attractive valuations and holding them for a long time is a tried and tested way of making money in the stock market. The strategy allows investors to benefit from secular growth trends and also take advantage of the power of compounding.Artificial intelligence (AI) has been one of the hottest trends that investors have hopped on in the past two years. The adoption of this technology has been growing rapidly thanks to the productivity and gross domestic product (GDP) gains that it ...