C3.ai(AI)2025-03-06 23:06Revenue Performance - Total revenue for the three months ended January 31, 2025, was 85.7 million for the three months ended January 31, 2025, reflecting a 22% increase compared to the same period last year[145]. - Total revenue for the quarter ended April 30, 2023, was 280,333,000, up 25.1% from 5.1 million, or 64%, totaling 8.0 million in the same period last year[206]. Revenue Composition - C3 AI's cloud-native software offerings accounted for 87% of total revenue in the three months ended January 31, 2025[141]. - Subscription revenue accounted for 87% of total revenue for the three months ended January 31, 2025, down from 90% in the same period last year[204]. - Professional services revenue represented 13% of total revenue for the three months ended January 31, 2025[143]. Financial Metrics - Gross profit for the three months ended January 31, 2025, was 45,287,000 for the same period in 2024, reflecting a gross margin increase[202]. - Operating expenses for the three months ended January 31, 2025, totaled 127,833,000 in the same period of 2024[202]. - The net loss for the three months ended January 31, 2025, was 72,631,000 in the same period of 2024[202]. - Net loss for the three months ended January 31, 2025, was 81% of total revenue, compared to a net loss of 93% in the same period last year[204]. Customer Acquisition and Market Strategy - The company aims to attract new customers in under-served verticals such as telecommunications, pharmaceuticals, and healthcare[164]. - The transition to a consumption-based pricing model is expected to increase customer acquisition and accelerate growth[158]. - The company executed 50 pilots and trials during the quarter ended January 31, 2025, compared to 29 in the same quarter of the previous year[160]. Research and Development - Research and development spending is anticipated to remain high as the company continues to innovate and introduce new applications[176]. - Research and development expenses for the three months ended January 31, 2025, increased by 20% to 49.5 million in the same period last year[213]. - The company expects research and development expenses to increase in absolute dollars as it continues to invest in existing and future product offerings[196]. Cash Flow and Financial Position - As of January 31, 2025, the company had 599.2 million in marketable securities[225]. - Free cash flow for the nine months ended January 31, 2025 was (109,173,000) in the same period last year[224]. - Net cash used in operating activities for the nine months ended January 31, 2025 was (83,705,000) in the same period last year[228]. - Net cash provided by financing activities for the nine months ended January 31, 2025 was 6,037,000 in the prior year[232]. Foreign Currency and Risk Management - Approximately 4% of sales for the nine months ended January 31, 2025 were denominated in euros, exposing the company to foreign currency exchange risk[241]. - A hypothetical 10% change in foreign currency exchange rates may have a material impact on the company's financial statements[241]. - The company has entered into foreign currency forward contracts to hedge a portion of its forecasted foreign currency-denominated expenses[241]. Internal Controls and Compliance - The company has not identified any changes in internal control over financial reporting that materially affected its financial reporting during the period covered by the report[245]. - The management concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level as of the end of the reporting period[244]. - The company intends to continue monitoring and upgrading its internal controls as necessary, although it cannot assure that improvements will be sufficient[246]. Strategic Partnerships - A new global alliance with Microsoft was announced to accelerate the adoption of Enterprise AI, establishing the company as a preferred AI application software provider on Microsoft Azure[181].