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].

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]