•
Oct 31, 2024

C3.ai Q2 2025 Earnings Report

C3.ai reported strong Q2 2025 financial results with accelerated revenue growth and raised guidance for FY 2025.

Key Takeaways

C3.ai announced an outstanding quarter with strong top- and bottom-line performance, marking the seventh consecutive quarter of accelerating revenue growth. The strategic alliance with Microsoft is expected to drive significant growth in Enterprise AI adoption.

Total revenue for the quarter was $94.3 million, an increase of 29% compared to the previous year.

Subscription revenue was $81.2 million, representing 86% of total revenue, a 22% increase year-over-year.

GAAP gross profit for the quarter was $57.8 million, with a 61% gross margin.

The company closed 62% of total agreements with and through its partner network.

Total Revenue
$94.3M
Previous year: $73.2M
+28.8%
EPS
-$0.06
Previous year: -$0.13
-53.8%
Gross Margin
61%
Previous year: 56%
+8.9%
Gross Profit
$57.8M
Previous year: $41.1M
+40.6%
Cash and Equivalents
$121M
Previous year: $149M
-18.6%
Free Cash Flow
-$38.3M
Previous year: -$61.7M
-37.9%
Total Assets
$1.05B
Previous year: $1.07B
-2.3%

C3.ai

C3.ai

C3.ai Revenue by Segment

Forward Guidance

The Company’s guidance includes GAAP and non-GAAP financial measures. The following table summarizes C3 AI’s guidance for the third quarter of fiscal 2025 and full-year fiscal 2025

Positive Outlook

  • Total revenue for Q3 Fiscal 2025 is expected to be between $95.5 million and $100.5 million.
  • Total revenue for Full Year Fiscal 2025 is expected to be between $378.0 million and $398.0 million.

Challenges Ahead

  • Non-GAAP loss from operations for Q3 Fiscal 2025 is expected to be between $(38.6) million and $(46.6) million.
  • Non-GAAP loss from operations for Full Year Fiscal 2025 is expected to be between $(105.0) million and $(135.0) million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income