Group 1 - JP Morgan analyst Pinjalim Bora maintained an Underweight rating on C3.ai, Inc with a price target of $27, down from $28 [1] - C3.ai reported a third-quarter revenue of $98.8 million, up 26%, beating the Street consensus estimate of $98.1 million [1] - The company had an adjusted net loss of 12 cents per share, which was better than the street consensus estimate of 25 cents per share [1] Group 2 - C3.ai expects fourth-quarter revenue of $103.6 million to $113.6 million, compared to the consensus estimate of $108.6 million [2] - The price target is based on approximately 7 times EV/calendar 2026E revenue, unchanged relative to infrastructure software companies growing FTM revenue over 20% [2] - The lower price target reflects subpar core growth, adjusted for demo licenses [2] Group 3 - C3.ai is expected to trade at a significant discount to its peers due to its smaller scale and higher unprofitability [3] - While C3.ai is projected to grow FTM revenue at 23%, comparable to the comps' median of 24%, it is 80% smaller than the median scale of the comp group [3] - C3.ai is expected to have a (14%) FTM free cash flow margin, resulting in a growth plus margin profile of 9%, compared to comps at +22% UFCF margin and a growth plus margin of +46% [4] Group 4 - The calendar 2025 adjusted operating margin for C3.ai is projected to be (24%), while comps are expected to have a +15% margin [4] - C3.ai stock is down 6.24% at $25.05 as of the last check [4]

Core Viewpoint - C3.ai has experienced a significant decline in stock value, losing 26.8% year-to-date, while the broader technology sector has only declined by 0.9% [1]. Despite this, the company reported strong third-quarter fiscal 2025 results, with earnings and revenues surpassing expectations [1]. Financial Performance - C3.ai reported an adjusted loss of 12 cents per share for the third quarter of fiscal 2025, which is better than the Zacks Consensus Estimate of a loss of 25 cents [2]. The company had a non-GAAP loss of 13 cents in the same quarter last year [2]. - Revenues for the third quarter reached $98.78 million, reflecting a 26% year-over-year increase and exceeding the Zacks Consensus Estimate by 0.83% [3]. Subscription revenues rose by 22% year-over-year to $85.7 million, indicating strong demand for AI-driven enterprise solutions [3]. Client Engagement and Partnerships - In the third quarter of fiscal 2025, C3.ai secured 66 agreements, including 50 pilot projects, marking a 72% year-over-year increase [6]. The company also finalized 47 agreements through its partner network, a 74% year-over-year increase [7]. - Partnerships with major companies like Microsoft, Amazon Web Services, and McKinsey QuantumBlack have accelerated sales cycles and expanded the company's global reach [8]. C3.ai and Microsoft closed 28 agreements across nine industries, representing a 460% quarter-over-quarter increase [8]. Growth Prospects - C3.ai expects revenues for the fourth quarter of fiscal 2025 to be between $103.6 million and $113.6 million, and for the full fiscal year, revenues are projected to be between $383.9 million and $393.9 million [13]. - The Zacks Consensus Estimate for fourth-quarter fiscal 2025 revenues is $108.64 million, indicating a growth of 25.46% year-over-year [14]. For fiscal 2025, the consensus estimate for revenues is $388.16 million, reflecting a 29.57% year-over-year growth [15]. Market Position and Valuation - C3.ai's stock is currently trading at a forward Price/Sales ratio of 7.36X, which is higher than the sector average of 6.32X, indicating a stretched valuation [16]. - Despite strong demand for its solutions, C3.ai faces stiff competition in the enterprise AI sector, which may hinder its market share growth [19]. The company plans to invest aggressively in its offerings to secure market share, although this may pressure margins in the near term [19].

Financial Data and Key Metrics Changes - Total revenue for Q3 increased 26% year-over-year to $98.8 million, with subscription revenue growing 22% to $85.7 million, representing 87% of total revenue [16][34] - Non-GAAP gross profit was $68.2 million, resulting in a gross margin of 69% [16][37] - Non-GAAP operating loss improved to $23.1 million, better than the guidance of $38.6 million to $46.6 million [17][38] - Free cash flow for Q3 was negative $22.4 million, an improvement from negative $45.1 million in the same quarter last year [40] Business Line Data and Key Metrics Changes - Revenue from software licenses was $28.6 million, while professional services revenue was $13.1 million, accounting for 13% of total revenue [34][36] - Subscription and professional engineering services revenue combined was $91.4 million, representing 93% of total revenue, an increase of 18% compared to the previous year [37] Market Data and Key Metrics Changes - The partnership with Microsoft resulted in closing 28 agreements across nine different industries, marking a 460% increase quarter-over-quarter [18][22] - The joint qualified sales pipeline with Microsoft surged 244% year-over-year, targeting 621 eligible customer opportunities [19] Company Strategy and Development Direction - The company is focusing on expanding its strategic alliances with Microsoft, AWS, and McKinsey QuantumBlack to enhance global reach and execution speed [20][29] - The emphasis on Generative AI and Agentic AI is expected to drive innovation and customer traction, with plans to ensure proper organization for expanding direct sales and services [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to capitalize on the growing enterprise AI market, with fiscal years 2026 and 2027 expected to focus on expanded growth and market share [31][32] - The company anticipates continued moderation in gross margins due to a higher mix of pilots in the near term, but expects to be free cash flow positive for Q4 [43][44] Other Important Information - The company closed 50 pilots during Q3, with 245 still active, indicating strong customer engagement [42] - The company ended the quarter with $724.3 million in cash, cash equivalents, and marketable securities, indicating strong capitalization [40] Q&A Session Summary Question: Can you provide more color on the total number of pitches and pipeline? - Management indicated involvement in over 600 engagements with Microsoft, with 28 agreements closed in the last quarter [49][56] Question: Can you discuss remaining performance obligations trends? - Management noted that the total remaining performance obligations (RPO) at the end of the quarter was around $208 million, with expectations of some decline in RPO in the near term [62] Question: What drove the outperformance in professional services this quarter? - The outperformance was attributed to an uptick in revenue from consulting services, paid implementation services, and training services [78] Question: Why are demonstration licenses outperforming? - The increase in demonstration licenses was driven by the need to equip sales teams with effective tools to engage customers independently, resulting in higher revenue recognition [84][85]

Financial Highlights - C3 AI's Q3 FY25 total revenue reached $98.8 million[27], with subscription revenue accounting for $85.7 million[27] - Subscription revenue growth was 22% year-over-year[6, 8] - Total revenue growth was 26% year-over-year[6, 8] - C3 AI's cash balance stands at $724.3 million[6] - The company anticipates Q4 FY25 total revenue between $103.6 million and $113.6 million, projecting year-over-year growth of 20% to 31%[22] - For the full fiscal year 2025, C3 AI expects total revenue between $383.9 million and $393.9 million, representing year-over-year growth of 24% to 27%[22] Partner Ecosystem - C3 AI closed 47 agreements with and through its partner network in Q3, a 74% increase year-over-year[11] - Microsoft and C3 AI closed 28 agreements across 9 industries, a 460% increase quarter-over-quarter[11] Bookings Diversity - In FY25-Q3, State and Local Government accounted for 28.8% of total bookings, while Federal, Defense and Aerospace contributed 24.6%[32]

Financial Data and Key Metrics Changes - Total revenue for Q3 increased 26% year-over-year to $98.8 million, with subscription revenue growing by 22% to $85.7 million, representing 87% of total revenue [15][33] - Non-GAAP gross profit was $68.2 million, resulting in a gross margin of 69% [15][36] - Non-GAAP operating loss improved to $23.1 million, better than the guidance of $38.6 million to $46.6 million [16][37] - Free cash flow for Q3 was negative $22.4 million, an improvement from negative $45.1 million in the same quarter last year [39] Business Line Data and Key Metrics Changes - Revenue from software licenses was $28.6 million, while professional services revenue was $13.1 million, accounting for 13% of total revenue [33][35] - Subscription and professional engineering services revenue combined was $91.4 million, representing an 18% increase compared to the previous year [36] Market Data and Key Metrics Changes - The partnership with Microsoft resulted in 28 closed agreements across nine different industries, marking a 460% increase quarter-over-quarter [17][21] - The joint qualified sales pipeline with Microsoft surged by 244% year-over-year, targeting 621 accounts recognized as eligible customer opportunities [18] Company Strategy and Development Direction - The company is focusing on expanding its strategic alliances with Microsoft, AWS, and McKinsey QuantumBlack to enhance global reach and execution speed [19][20] - The emphasis on Generative AI and Agentic AI is expected to drive innovation and customer traction, with a goal of increasing market share in fiscal years 2026 and 2027 [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to capitalize on the growing enterprise AI market, highlighting the importance of their partner ecosystem [30][31] - The company anticipates continued investments in sales, partner ecosystem, and research and development, expecting to be free cash flow positive in Q4 [42][43] Other Important Information - The company closed 50 pilots during Q3, with 310 pilots cumulatively signed, of which 245 are still active [41] - The total accounts receivable balance at the end of Q3 was $180.4 million, with a strong health of accounts receivables [40] Q&A Session Summary Question: Can you give more color on the total number of pitches and pipeline? - The company is currently involved in over 600 engagements with Microsoft, with 28 agreements closed in the last quarter [48][55] Question: Can you discuss the trends in remaining performance obligations? - The total remaining performance obligations (RPO) at the end of the quarter was around $208 million, with expectations of some decline in RPO in the near term [61] Question: What drove the outperformance in professional services this quarter? - The uptick in professional services revenue was driven by increased revenue from consulting services, paid implementation services, and training services [78] Question: Why are demonstration licenses outperforming this year? - The increase in demonstration licenses is attributed to the need for sales teams to have effective tools to engage customers, leading to a significant rise in interest from large organizations [82][84]

Core Insights - C3.ai reported strong earnings in Q3 FY2025, with revenue of $98.8 million, a 26% increase year-over-year, surpassing analyst expectations of $98 million [2][5] - The company achieved a non-GAAP EPS of $(0.12), better than the expected $(0.25), indicating progress despite ongoing losses [2][3] - Strategic partnerships, particularly with Microsoft, have significantly contributed to C3.ai's growth and market reach [4][6] Financial Performance - Revenue for Q3 FY2025 was $98.8 million, up from $78.4 million in Q3 FY2024, reflecting a 26% year-over-year growth [3][5] - Subscription revenue increased by 22% to $85.7 million, contributing to overall revenue growth [3][5] - Non-GAAP gross profit reached $68.2 million, a 24.7% increase from the previous year [3] Strategic Developments - C3.ai expanded its strategic partnerships, achieving a 460% increase in collaborative agreements, particularly with Microsoft [6] - The company launched 20 new pilot programs for generative AI solutions, indicating increased adoption and interest in its capabilities [7] - Collaborations with notable organizations, including the U.S. Department of Defense, highlight the scalability of C3.ai's offerings [7] Future Outlook - C3.ai projects fourth-quarter revenue guidance between $103.6 million and $113.6 million, reflecting confidence in ongoing strategic initiatives [9] - Full-year fiscal 2025 revenue guidance is set between $383.9 million and $393.9 million, indicating robust expectations for growth [9]

Core Insights - C3.ai, Inc. reported a quarterly loss of $0.12 per share, outperforming the Zacks Consensus Estimate of a loss of $0.25, marking a 52% earnings surprise [1] - The company achieved revenues of $98.78 million for the quarter ended January 2025, exceeding the Zacks Consensus Estimate by 0.83% and showing a year-over-year increase from $78.4 million [2] - C3.ai has consistently surpassed consensus EPS estimates over the last four quarters [2] Financial Performance - The company has shown a significant improvement in earnings surprises, with a previous quarter's loss of $0.06 against an expected loss of $0.16, resulting in a 62.50% surprise [1] - C3.ai shares have declined approximately 23.5% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.26 on revenues of $108.64 million, and for the current fiscal year, it is -$0.63 on revenues of $388.16 million [7] - The Zacks Rank for C3.ai is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Computers - IT Services industry, to which C3.ai belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact C3.ai's stock performance [5]

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].