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Apr 30, 2024
C3.ai Q4 2024 Earnings Report
C3.ai reported strong Q4 2024 financial results with accelerating revenue growth and exceeding guidance.
Key Takeaways
C3.ai's Q4 revenue grew by 20% year-over-year to $86.6 million, exceeding the top end of guidance. Subscription revenue increased by 41% year-over-year, representing 92% of total revenue. The company closed 47 agreements, including 34 new pilots, and saw significant growth in its Federal business and C3 Generative AI pilots.
Total revenue for the quarter was $86.6 million, a 20% increase year-over-year.
Subscription revenue for the quarter was $79.9 million, a 41% increase year-over-year, representing 92% of total revenue.
GAAP gross profit for the quarter was $51.6 million, with a 60% gross margin.
The company closed 47 agreements, including 34 new pilots, diversifying across industries.
C3.ai
C3.ai
C3.ai Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
C3 AI expects revenue growth to accelerate to approximately 23% in FY25 and plans to continue investing in growth.
Positive Outlook
- Expecting additional acceleration of C3 AI revenue growth to approximately 23% in FY25.
- Planning to continue to invest in growth to build a long-term cash generating profitable market leader in Enterprise AI.
- First Quarter Fiscal 2025 Total revenue guidance: $84.0 - $89.0 million
- Full Year Fiscal 2025 Total revenue guidance: $370.0 - $395.0 million
- First Quarter Fiscal 2025 Non-GAAP loss from operations guidance: $(22.0) - $(30.0) million
Challenges Ahead
- Full Year Fiscal 2025 Non-GAAP loss from operations guidance: $(95.0) - $(125.0) million
- A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding expenses that may be incurred in the future.
- Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change.
- Our history of losses and ability to achieve and maintain profitability in the future
- Our historic dependence on a limited number of existing customers that account for a substantial portion of our revenue
Revenue & Expenses
Visualization of income flow from segment revenue to net income