Key Takeaways AI reported more than 100% y/y revenue growth in Generative AI with 66 deployments across 16 industries. AI holds a patent on agentic AI with 100+ solutions deployed, targeting defense, government and manufacturing. AI stock up 41.2% in 3 months and trades at a discount, with narrowing projected losses through fiscal 2027.C3.ai, Inc. (AI) is doubling down on Generative and agentic AI, and the market is watching closely.In fiscal 2025, C3.ai showcased major momentum in its Generative and agen ...

Financial Data and Key Metrics Changes - Q1 2025 revenue reached $58.3 million, a year-over-year increase of 120% [6][36] - Adjusted EBITDA for the quarter was $12.7 million, or 22% of revenue, reflecting a 236% year-over-year increase [6][36] - Net income for Q1 was $7.8 million, up from $1 million in the same period last year [37] - Cash at the end of Q1 was $56.6 million, an increase of $9.7 million from the previous quarter [6] Business Line Data and Key Metrics Changes - The company is focusing on generative AI training data, expanding capabilities in diverse expert domains and languages [7][8] - Significant traction with both existing and potential new customers, including major tech companies and a global healthcare leader [9][10][11] - Expansion opportunities identified with existing customers, with potential bookings exceeding $25 million from one major tech customer [12][16] Market Data and Key Metrics Changes - The company is experiencing strong demand from large tech companies, with significant investments in AI infrastructure from competitors like Microsoft and Meta [30][31] - The competitive landscape is characterized by a focus on generative AI, with major players committing substantial resources to AI development [29][30] Company Strategy and Development Direction - The company aims to embrace growth from both a broadening customer base and its largest customer, focusing on long-term relationships and strategic investments [32][34] - Plans to reinvest a significant portion of operating cash flow into product innovation and market expansion while maintaining adjusted EBITDA above 2024 results [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current momentum and growth potential, highlighting a robust pipeline and expanding customer relationships [70][72] - The company reaffirmed its full-year revenue growth guidance of 40% or greater, despite potential quarter-to-quarter volatility [31][34] Other Important Information - The company has not drawn on its $30 million credit facility, indicating strong cash management [38] - Investments are planned to support new initiatives and customer needs, with a focus on technology and strategic hiring [39] Q&A Session Summary Question: Can you elaborate on the statement of work with your largest customer? - The new statement of work will allow the company to support a different division of the customer's generative AI spend, with expectations of a significantly higher budget [42][43] Question: How should we interpret the sequential revenue changes from this customer? - The company indicated that while Q1 revenue was up, Q2 may see a 5% decrease, but the new statement of work represents additional revenue potential [44][45] Question: What is the win rate for new opportunities? - The company noted that while win rates are hard to track, they have a high success rate in converting pilot projects into larger engagements [46][47] Question: Why maintain a 40% growth guidance despite new opportunities? - The company aims to be conservative in its guidance, acknowledging the dynamic nature of customer demand and the time it may take to convert new relationships into revenue [65][66]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 reached $58.3 million, representing a year-over-year increase of 120% [5][36] - Adjusted EBITDA for the quarter was $12.7 million, or 22% of revenue, a 236% year-over-year increase [5][36] - Net income was $7.8 million in Q1 2025, up from $1 million in the same period last year [37] - Adjusted gross margin was 43% for the quarter, up from 41% in Q1 of last year [36] Business Line Data and Key Metrics Changes - The company is focused on generative AI training data, expanding capabilities in expert domains and languages [6][7] - Significant progress in onboarding new customers and expanding existing accounts, particularly in the tech sector [11][16] - Major expansion opportunities identified with existing customers, including potential bookings exceeding $25 million from one customer [12][16] Market Data and Key Metrics Changes - The company is gaining traction with large tech customers, with several budgeting hundreds of millions for generative AI data and model evaluation [16][30] - The competitive landscape includes significant investments from major tech companies, indicating a robust market for AI solutions [30][31] Company Strategy and Development Direction - The company aims to embrace growth from both broadening customer relationships and its largest customer [32][34] - Investments are being made in product innovation, market expansion, and talent acquisition to capture long-term value [35][39] - The focus is on building agentic AI solutions and enhancing trust and safety evaluations for generative AI applications [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong customer engagement and expanding opportunities [31][72] - The company reaffirmed its full-year revenue growth guidance of 40% or greater, despite potential quarter-to-quarter volatility [31][34] - Management emphasized the importance of building trust with customers to facilitate long-term relationships and revenue growth [46][58] Other Important Information - The company has not drawn on its $30 million credit facility, indicating strong cash management [36][38] - A new statement of work with the largest customer is expected to significantly increase revenue potential [42][43] Q&A Session Summary Question: Can you walk through the statement of work with your largest customer? - The new statement of work will enable the company to support a different area of the customer's generative AI spend, which is expected to have a significantly higher budget [42][43] Question: What is the expected impact of the largest customer being down 5%? - The anticipated decrease is separate from the new statement of work, which represents additional revenue potential [44][45] Question: What is the win rate for new customer opportunities? - The company focuses on building trust and executing well, leading to a high win rate for projects that move forward [46][48] Question: How does the company view its growth guidance? - The company maintains a conservative growth estimate to avoid overpromising, especially with new customer relationships [63][66]