Despite a double beat, C3.ai stock crashed 19% after reporting earnings.In this video, I will cover C3.ai's (AI -1.88%) latest earnings report and explain why the stock is tanking. Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of Sept. 4, 2024. The video was published on Sept. 5, 2024. ...

C3.ai Inc AI posted upbeat earnings and sales results for its first quarter on Wednesday.C3.ai reported first-quarter revenue of $87.2 million, up 21% year-over-year. The revenue figure beat a Street consensus estimate of $86.9 million, according to data from Benzinga Pro.Subscription revenue was $73.5 million in the first quarter, up 20%. Subscription revenue made up 84% of the company’s total revenue in the first quarter.The company reported a loss of 5 cents per share in the first quarter, beating a Stre ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-39744 C3.ai, Inc. (Exact name of registrant as specified in its charter) Delaware 26-399 ...

Financial Data and Key Metrics - Total revenue for Q1 FY25 was $87.2 million, a 21% YoY increase, exceeding analyst expectations [7][8] - Subscription revenue grew 20% YoY to $73.5 million, representing 84% of total revenue [8][27] - Non-GAAP gross profit was $60.9 million with a 70% gross margin [8] - Non-GAAP operating loss was $16.6 million, better than the guidance of $22 million to $30 million [8] - Net cash provided by operating activities was $8 million, and free cash flow was $7.1 million [8] - The company ended the quarter with $762.5 million in cash, cash equivalents, and marketable securities [28] Business Line Data and Key Metrics - The company closed 71 agreements in Q1, including 72 new pilots, marking a 117% YoY increase in pilot count [9] - State and local government business grew over 500% YoY, with 25 agreements signed in Q1 [9][12] - C3 AI Federal business represented over 30% of bookings for the quarter, with new agreements signed with the U.S. Air Force, Navy, Marine Corps, and Intelligence Community [13] - Partner-supported bookings grew 94% YoY, with 72% of total agreements closed through the partner ecosystem [15][16] Market Data and Key Metrics - The company expanded its footprint in state and local governments across multiple U.S. states, including Texas, California, and Florida [9] - The public sector market in Europe is expected to more than double the addressable market [12] - The company signed 40 agreements with Google Cloud in Q1, a 300% YoY increase, driven by joint campaigns focused on the public sector [16] Company Strategy and Industry Competition - The company is focused on expanding sales capacity in North America, Europe, and the public sector [15] - C3 AI's platform is designed to deliver pre-built AI applications quickly, differentiating it from legacy software companies and modern data integration platforms [18][19][20] - The company leverages partnerships with hyperscalers like AWS, Google Cloud, and Microsoft to drive workload in their compute and storage clouds [16] Management Commentary on Operating Environment and Future Outlook - Management highlighted the complexity of the AI market, particularly with the advent of generative AI, and the difficulty in modeling the business [42][43] - The company expects to be free cash flow positive in Q4 FY25 and for the full fiscal year, despite short-term pressure on gross and operating margins due to higher pilot mix and investments in sales, R&D, and marketing [30][32] - Revenue guidance for Q2 FY25 is $88.6 million to $93.6 million, with full-year guidance maintained at $370 million to $395 million, implying a YoY growth rate of 19% to 27% [31] Other Important Information - The company launched C3 Generative AI for government programs in Q1, with a pilot signed with a state on the U.S. East Coast [24] - C3 AI's customer base continues to expand, with significant success in improving manufacturing outcomes for Nucor Corporation and enhancing grid resiliency for Eletrobras [14][15] Q&A Session Summary Question: Tone of business in Q1 and deal size - The tone of business was described as "wild," with generative AI driving complexity and unexpected opportunities in sectors like public sector, law firms, and medical diagnostics [41][42][43] Question: Why guidance didn't increase despite strong bookings - The company maintained its full-year revenue guidance of $370 million to $395 million, representing 19% to 27% YoY growth, as it remains one of the fastest-growing companies in the software sector [44] Question: Trends in subscription revenue and expenses - Subscription revenue is expected to remain lumpy, with professional services revenue bouncing around 10% to 20% of total revenue, averaging 15% [46][47] - The company plans to continue investing in salesforce, R&D, and marketing efforts [50] Question: Competitive dynamics - The primary competition comes from IT organizations and CIOs attempting to build AI applications themselves, often leading to failures and eventual return to C3 AI [51][52][53] Question: Pilot growth and Q2 revenue guidance - The value of pilots remains consistent, with enterprise AI pilots averaging $0.5 million and generative AI pilots averaging $0.25 million [56] - Confidence in Q2 revenue growth is based on the company's track record of meeting or exceeding guidance for the past 15 quarters [58] Question: Partner efforts outside of Google Cloud - The company has strong partnerships with AWS and Microsoft Azure, with all hyperscalers benefiting from C3 AI's ability to quickly deploy applications and drive cloud resource consumption [62] Question: State and local government agreements - Most state and local government agreements begin as pilots, with the majority converting to production contracts [63][66]

Investor Supplemental FY25-Q1 September 4, 2024 Disclaimer 2 This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "will" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, sta ...

Wednesday, September 4th, 2024Today’s regular stock market trading session was flat overall, following the worst single day for tech stocks in two years. Employment numbers inch closer, but until they do, the market looks reluctant to push or pull too severely in either direction. The Dow was +0.09% today, the S&P 500 -0.16%, the Nasdaq -0.30% and the small-cap Russell 2000 -0.19%.One thing we saw today is the apparent end of the bond-yield inversion after two-plus years: the 10-year rate is currently at +3 ...

C3.ai, Inc. (AI) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 61.54%. A quarter ago, it was expected that this company would post a loss of $0.31 per share when it actually produced a loss of $0.11, delivering a surprise of 64.52%.Over the last four quarters, the company has surpassed cons ...

Enterprise artificial intelligence company C3.ai Inc AI’s stock is plunging after-hours Wednesday following its first-quarter earnings report. Here are the key highlights.What Happened: C3.ai reported first-quarter revenue of $87.2 million, up 21% year-over-year. The revenue figure beat a Street consensus estimate of $86.9 million, according to data from Benzinga Pro.Subscription revenue was $73.5 million in the first quarter, up 20%. Subscription revenue made up 84% of the company's total revenue in the fi ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

C3 AI Announces Fiscal First Quarter 2025 Financial Results Continued Accelerating Revenue Growth REDWOOD CITY, Calif. — September 4, 2024 — C3.ai, Inc. ("C3 AI," "C3," or the "Company") (NYSE: AI), the Enterprise AI application software company, today announced financial results for its fiscal first quarter ended July 31, 2024. "We had a solid start to the fiscal year, with rising demand for Enterprise AI driving our sixth consecutive quarter of accelerating revenue growth," said Thomas M. Siebel, Chairman ...