C3.ai beats earnings estimates in Q2 with strong revenue growth and raised guidance

From Nasdaq: 2024-12-10 11:17:00

C3.ai reported a narrower adjusted loss of 6 cents per share in the second quarter of fiscal 2025, beating estimates. Revenues of $94.34 million increased 29% year over year, driven by strong demand for enterprise AI applications. The company closed 58 agreements in the quarter, indicating increased demand for its AI offerings.

Following a strong performance in the second quarter, C3.ai raised its fiscal third quarter and fiscal 2025 guidance. Subscription revenues increased 22.1% to $81.2 million, while professional service revenues surged 94.3% to $13.2 million. The company’s partnership with major cloud providers like Amazon, Google, and Microsoft has been driving revenue growth.

C3.ai’s expanding partnership network, including collaborations with Google Cloud and Microsoft, drove 62% of the company’s agreements in the second quarter. Major clients like Exxon Mobil, Shell, and Coca-Cola are adopting AI solutions at scale. The company’s strong performance and expanding clientele are driving revenue growth and enhancing growth prospects.

C3.ai reported a non-GAAP loss from operations of $17.2 million in the second quarter, compared to $25 million in the year-ago quarter. The company’s total cash, cash equivalents, and marketable securities stood at $730.4 million as of October 31, 2024. Cash outflow from operations was $30.6 million in the quarter.

For third-quarter fiscal 2025, C3.ai expects revenues between $95.5 million and $100.5 million, with a non-GAAP loss from operations in the range of $38.6 million-$46.6 million. For fiscal 2025, the company expects revenues between $378 million and $398 million, with a non-GAAP loss from operations in the range of $105 million-$135 million. Investors should consider the company’s growth prospects and strong demand for AI solutions when evaluating AI stock.



Read more at Nasdaq: How Should Investors Approach C3.ai Shares Post Q2 Earnings?