C3.ai(US:AI) ZACKSยท2025-06-23 14:15Core Insights - C3.ai, Inc. is focusing on a go-to-market strategy that leverages its expanding partner ecosystem, achieving 73% of agreements through strategic partners in Q4 of fiscal 2025 [1][9] - The company signed 193 deals through its partner ecosystem in fiscal 2025, marking a 68% increase from the previous year [1][9] - In Q4, C3.ai experienced a 419% increase in partner-supported bookings, closing 59 agreements through strategic alliances [1][2][9] Partner Ecosystem - C3.ai closed 59 partner-led deals in the fiscal fourth quarter, with a significant focus on its alliance with Microsoft, which included 28 joint deals emphasizing manufacturing and chemicals [2][9] - The company is targeting over 600 accounts in collaboration with Microsoft and is also expanding partnerships with AWS, Google Cloud, and consulting firms like PwC and McKinsey QuantumBlack [4][9] Revenue and Investment - To support its channel-centric strategy, C3.ai has invested in demo licenses and enablement tools, which accounted for nearly 30% of its Q4 revenues [3] - The management is optimistic about the potential of consulting partners to enhance scalability and market penetration in future periods [4] Competitive Landscape - Compared to C3.ai, Palantir Technologies Inc. follows a more vertically integrated model, focusing on direct client engagement rather than a partner-led sales approach [5] - Snowflake Inc. is adopting a hybrid model that combines direct go-to-market strategies with strong platform partnerships, enhancing its offerings in the public sector [6][7] Financial Performance - C3.ai's shares have increased by 0.5% over the past three months, slightly outperforming the industry growth of 0.3% [8] - The company trades at a forward price-to-sales ratio of 6.50X, significantly lower than the industry average of 18.47X [11] - The Zacks Consensus Estimate for C3.ai's fiscal 2026 and 2027 earnings per share (EPS) indicates a year-over-year increase of 9.8% and 56.9%, respectively [12]