C3 AI (NYSE: AI) reported strong fiscal Q3 2025 results with total revenue reaching $98.8 million, up 26% year-over-year. Subscription revenue was $85.7 million, representing 87% of total revenue.
The company significantly expanded partnerships with Microsoft, AWS, and McKinsey QuantumBlack. Through Microsoft Azure alliance alone, C3 AI closed 28 agreements across 9 industries, showing a 460% increase quarter-over-quarter. The joint pipeline with Microsoft increased by 244% year-over-year.
Business highlights include closing 66 agreements including 50 pilots (72% YoY increase), expanding presence in State and Local Government with 21 new agreements, and strong federal business execution. The company maintains a strong cash position of $724.3 million.
C3 AI (NYSE: AI) ha riportato risultati solidi per il terzo trimestre fiscale 2025, con un fatturato totale che ha raggiunto 98,8 milioni di dollari, in aumento del 26% rispetto all'anno precedente. I ricavi da abbonamento sono stati di 85,7 milioni di dollari, rappresentando l'87% del fatturato totale.
L'azienda ha significativamente ampliato le partnership con Microsoft, AWS e McKinsey QuantumBlack. Solo attraverso l'alleanza con Microsoft Azure, C3 AI ha chiuso 28 accordi in 9 settori, mostrando un aumento del 460% rispetto al trimestre precedente. Il pipeline congiunto con Microsoft è aumentato del 244% rispetto all'anno precedente.
I punti salienti dell'attività includono la chiusura di 66 accordi, di cui 50 piloti (aumento del 72% su base annua), l'espansione della presenza nel governo statale e locale con 21 nuovi accordi e un'eccellente esecuzione nel settore federale. L'azienda mantiene una solida posizione di liquidità di 724,3 milioni di dollari.
C3 AI (NYSE: AI) reportó resultados sólidos para el tercer trimestre fiscal de 2025, con ingresos totales que alcanzaron 98.8 millones de dólares, un aumento del 26% en comparación con el año anterior. Los ingresos por suscripción fueron de 85.7 millones de dólares, representando el 87% de los ingresos totales.
La empresa amplió significativamente sus asociaciones con Microsoft, AWS y McKinsey QuantumBlack. A través de la alianza con Microsoft Azure, C3 AI cerró 28 acuerdos en 9 industrias, mostrando un aumento del 460% en comparación con el trimestre anterior. La cartera conjunta con Microsoft creció un 244% en comparación con el año anterior.
Los aspectos destacados del negocio incluyen el cierre de 66 acuerdos, incluidos 50 pilotos (aumento del 72% interanual), expansión de la presencia en el gobierno estatal y local con 21 nuevos acuerdos, y una sólida ejecución en el negocio federal. La empresa mantiene una sólida posición de efectivo de 724.3 millones de dólares.
C3 AI (NYSE: AI)는 2025 회계연도 3분기에 강력한 실적을 보고했으며, 총 수익은 9,880만 달러에 달해 전년 대비 26% 증가했습니다. 구독 수익은 8,570만 달러로, 총 수익의 87%를 차지합니다.
회사는 Microsoft, AWS, McKinsey QuantumBlack와의 파트너십을 크게 확장했습니다. Microsoft Azure 제휴를 통해 C3 AI는 9개 산업에서 28개의 계약을 체결하며, 분기 대비 460% 증가를 기록했습니다. Microsoft와의 공동 파이프라인은 전년 대비 244% 증가했습니다.
주요 비즈니스 하이라이트로는 66개의 계약 체결, 그 중 50개가 파일럿 (전년 대비 72% 증가), 21개의 새로운 계약으로 주 및 지방 정부에서의 입지 확장, 그리고 강력한 연방 비즈니스 실행이 포함됩니다. 회사는 7억 2,430만 달러의 강력한 현금 보유고를 유지하고 있습니다.
C3 AI (NYSE: AI) a rapporté de solides résultats pour le troisième trimestre fiscal 2025, avec un chiffre d'affaires total atteignant 98,8 millions de dollars, en hausse de 26 % par rapport à l'année précédente. Les revenus d'abonnement s'élevaient à 85,7 millions de dollars, représentant 87 % du chiffre d'affaires total.
L'entreprise a considérablement élargi ses partenariats avec Microsoft, AWS et McKinsey QuantumBlack. Grâce à l'alliance avec Microsoft Azure, C3 AI a conclu 28 accords dans 9 secteurs, affichant une augmentation de 460 % par rapport au trimestre précédent. Le pipeline conjoint avec Microsoft a augmenté de 244 % par rapport à l'année précédente.
Les points forts de l'activité incluent la conclusion de 66 accords, dont 50 pilotes (augmentation de 72 % en glissement annuel), l'expansion de la présence dans les gouvernements d'État et locaux avec 21 nouveaux accords, et une forte exécution des affaires fédérales. L'entreprise maintient une solide position de trésorerie de 724,3 millions de dollars.
C3 AI (NYSE: AI) hat für das dritte Quartal des Geschäftsjahres 2025 starke Ergebnisse gemeldet, mit einem Gesamtumsatz von 98,8 Millionen Dollar, was einem Anstieg von 26% im Vergleich zum Vorjahr entspricht. Die Abonnement-Einnahmen betrugen 85,7 Millionen Dollar und machten 87% des Gesamtumsatzes aus.
Das Unternehmen hat seine Partnerschaften mit Microsoft, AWS und McKinsey QuantumBlack erheblich ausgebaut. Allein durch die Allianz mit Microsoft Azure schloss C3 AI 28 Vereinbarungen in 9 Branchen, was einem Anstieg von 460% im Quartalsvergleich entspricht. Die gemeinsame Pipeline mit Microsoft wuchs um 244% im Jahresvergleich.
Zu den Geschäftshighlights gehört der Abschluss von 66 Vereinbarungen, darunter 50 Pilotprojekte (72% Anstieg im Jahresvergleich), die Erweiterung der Präsenz in der staatlichen und lokalen Regierung mit 21 neuen Vereinbarungen sowie eine starke Ausführung im Bundesgeschäft. Das Unternehmen hält eine starke Liquiditätsposition von 724,3 Millionen Dollar.
Positive
- Revenue growth of 26% YoY to $98.8M
- Strong subscription revenue at 87% of total revenue
- 460% QoQ growth in Microsoft partnership agreements
- 72% YoY increase in total agreements/pilots
- Robust cash position of $724.3M
- 244% YoY increase in Microsoft joint pipeline
- 20% reduction in Microsoft sales cycles QoQ
Negative
- GAAP net loss per share of $(0.62)
- Non-GAAP net loss per share of $(0.12)
- GAAP gross margin declined to 59%
Insights
C3 AI delivered strong Q3 FY2025 results with $98.8 million in revenue, representing
The subscription revenue of $85.7 million (
The most significant development is C3 AI's dramatically expanded partnership ecosystem. Their Microsoft relationship shows extraordinary acceleration with
The new McKinsey QuantumBlack alliance adds significant enterprise credibility and should accelerate adoption among Fortune 500 companies by combining McKinsey's consulting expertise with C3 AI's technology platform.
Customer momentum is evidenced by 66 closed agreements (including 50 pilots), up
While still operating at a loss ($0.62 GAAP and $0.12 non-GAAP loss per share), the $724.3 million cash position provides substantial runway. The
The Q4 revenue guidance of $101-105 million implies
C3 AI's patent position in agentic AI represents a potential competitive moat, while their generative AI offerings are gaining commercial traction with 20 new pilots closed in Q3. The upcoming C3 Transform conference with participation from the entire board and executive team signals confidence in their market position and product roadmap.
C3 AI's Q3 results demonstrate significant technical advancement in enterprise AI, particularly in agentic generative AI - a important evolution beyond standard generative AI. While conventional generative AI systems primarily respond to prompts, agentic AI can autonomously plan, reason, and execute multi-step tasks across enterprise systems - a capability C3 AI claims to have pioneered with their December 2022 patent filing.
Their breakthrough foundation time series embedding model represents a significant technical innovation. Unlike traditional language models that struggle with numerical time-series data, this specialized architecture can directly encode, retrieve, and reason about sensor data patterns - essential for industrial applications where anomaly detection and pattern recognition drive operational efficiency. This enables their applications to automatically identify equipment failures and recommend appropriate maintenance actions based on historical patterns.
The company's implementation of the world's first agentic AI earnings call demonstrates practical application of this technology, showcasing how AI agents can navigate complex financial data and regulatory requirements while maintaining accuracy.
C3 AI's technical strategy centers on a model-driven platform approach rather than point solutions. This architecture allows customers to build custom AI applications on a common data foundation, significantly reducing integration complexity and accelerating deployment compared to competitors' approaches that often require extensive custom development.
Their expanded Microsoft partnership is technically significant because it integrates C3 AI's enterprise applications with Azure's cloud infrastructure and Microsoft's Copilot ecosystem, creating a comprehensive solution stack. The
Customer implementations show measurable technical value: SmithRx's deployment demonstrates how C3 AI's semantic layer can unify disparate data sources (member history, drug eligibility, alternatives) into a coherent interface for call center operators. Similarly, GSK's scaling of demand forecasting across regions indicates the platform's ability to handle complex global supply chains with varying data quality and constraints.
The strategic McKinsey QuantumBlack partnership adds implementation expertise to bridge the gap between C3 AI's technical capabilities and business transformation requirements - addressing a key adoption barrier for enterprise AI.
Dramatically Expanded Strategic Partnerships with Microsoft, AWS, and McKinsey QuantumBlack
C3 Generative AI Makes History with First Ever Agentic AI Earnings Call
“In the third quarter, C3 AI achieved significant milestones — expanding our global distribution network, advancing our leadership in agentic and generative AI, and delivering total revenue reaching
Fiscal Third Quarter 2025 Financial Highlights
-
Revenue: Total revenue for the quarter was
$98.8 million 26% compared to$78.4 million -
Subscription Revenue: Subscription revenue for the quarter was
$85.7 million 87% of total revenue, an increase of22% compared to$70.4 million -
Subscription and Prioritized Engineering Services Revenue Combined: Subscription and prioritized engineering services revenue combined was
$91.4 million 93% of total revenue, an increase of18% compared to$77.5 million -
Gross Profit: GAAP gross profit for the quarter was
$58.3 million 59% gross margin. Non-GAAP gross profit for the quarter was$68.2 million 69% non-GAAP gross margin. -
Net Loss per Share: GAAP net loss per share was
$(0.62) $(0.12) -
Cash Balance:
$724.3 million
Business Highlights
C3 AI gained momentum with Microsoft to drive increased pilot activity and broadened its global distribution network through a new strategic partnership with McKinsey & Company QuantumBlack.
-
The Company closed 66 agreements including 50 pilots, an increase of
72% year-over-year. - The Company entered into new and expanded agreements with the New York Power Authority, Worley, Flex, Sanofi, Nucor Corporation, Holcim, Shell, ExxonMobil, Liberty Coca-Cola Beverages, GSK, Quest Diagnostics, SmithRx, and Swift, among others.
-
The Company significantly expanded its footprint across State and Local Government, closing 21 agreements across
Texas ,California ,Florida ,New Jersey ,Indiana ,Colorado ,Montana ,Oregon ,Georgia ,New Mexico , andArizona . -
C3 AI’s Federal business had strong execution across the board. The Company entered into new and expanded agreements with the
U.S. Department of Defense, theU.S. Air Force, theU.S. Navy, CAEUSA , and the Missile Defense Agency. -
C3 AI achieved “Awardable” status on the
U.S. Department of Defense’s Chief Digital and Artificial Intelligence Office’s Tradewinds Solutions Marketplace, with the addition of C3 AI Decision Advantage and C3 AI Contested Logistics to Marketplace. The Tradewinds Solutions Marketplace accelerates the technology acquisition process for government agencies, showcasing the best-fit solutions and accelerating procurement.
Partner Network
C3 AI dramatically expanded its strategic partnerships, substantially strengthening its strategic partnership with Microsoft, expanding its relationship with AWS, and establishing a new important alliance with McKinsey & Company QuantumBlack.
-
In Q3, the Company closed 47 agreements through its partner network, an increase of
74% year-over-year. -
Microsoft Azure Strategic Alliance
-
C3 AI and Microsoft have, in short order, closed 28 agreements across 9 different industries, a
460% increase quarter-over-quarter. In addition, as of today, the companies are engaged in joint sales campaigns to 621 accounts inEurope ,Asia , andNorth and South America . -
The joint qualified opportunity pipeline with Microsoft has increased by over
244% year-over-year. -
Sales cycles with Microsoft have shortened by nearly
20% quarter-over-quarter. - In the current quarter, C3 AI and Microsoft are refining a highly tuned closely coordinated joint market sales and service motion. This includes alignment of strategic objectives and target accounts, a regular executive meeting cadence, and expansion of event and enablement activities including jointly hosting executive roundtables, virtual fireside chats, and three-day workshops, where we jointly engage hands-on with customers to bring working Enterprise AI applications live in three days.
-
C3 AI and Microsoft have, in short order, closed 28 agreements across 9 different industries, a
- C3 AI and AWS dramatically expanded their strategic alliance. Under the expanded agreement, C3 AI and AWS will continue to jointly offer advanced Enterprise AI solutions, focusing on executing a robust go-to-market strategy.
-
C3 AI and McKinsey & Company announced a major new strategic alliance, initially showcased at World Economic Forum in
Davos . This collaboration combines McKinsey QuantumBlack’s expertise in AI business transformation with C3 AI’s Enterprise AI application leadership to deliver high assurance AI-powered digital transformation at global scale.
Customer Success
With C3 AI, customers across sectors continued to realize significant operational improvements and cost efficiencies — achieving increased reliability, optimized production schedules, optimized supply chain management, and enhanced forecasting.
- GSK, a leading global biopharma company, is significantly scaling out the C3 AI Demand Forecasting application across regions and products to enhance its supply chain, ensuring more accurate and efficient delivery of critical medicines and vaccines to patients worldwide. With this AI application, GSK can better predict and respond to market fluctuations, optimize its manufacturing operations, and improve its supply chain visibility to deliver significant cost savings.
- Worley, an engineering and professional services company, has partnered with C3 AI and Microsoft to accelerate supply chain and value chain solutions for the technology solutions business. The initial scale solution focuses on small modular reactors (SMRs), which can be applied to the broader, complex nuclear industry. Worley is using the C3 AI Supply Chain Suite and C3 AI Asset Performance Suite to deliver increased efficiency and refined predictive capabilities for streamlined business practices for itself and to scale up across its lighthouse customers.
C3 Generative AI
C3 AI’s continuous innovation in generative AI to build its growing suite of secure, enterprise-grade solutions drives adoption across industries.
-
In Q3, the Company closed 20 C3 Generative AI pilots with Mars, Liberty Coca-Cola Beverages, the
U.S. Department of Defense, and others, including various government agencies inNew Jersey ,Montana , andCalifornia . - C3 AI advances its technology stack with a breakthrough foundation time series embedding model. This innovation enables direct retrieval and reasoning on time series, streamlining the configuration of applications that require sensor data. Key benefits include the automatic identification of anomalies, and the cataloging and retrieval of relevant actions (e.g., relevant past work orders) or expert recommendations.
- SmithRx, a next-generation pharmacy benefits manager, is using C3 Generative AI to streamline member support and enhance customer service. Using C3 Generative AI, call center operators are able to get access to key information, such as member history, drug eligibility, and lower-cost alternatives for customers from across multiple systems. The AI application has significantly reduced call handle times. This efficiency allows SmithRx focus to improve member outcomes, increase member satisfaction, and reduce costs.
C3 Transform 2025
C3 AI will be holding its sixth annual international user’s group conference, C3 Transform, in
Financial Outlook:
The Company’s guidance includes GAAP and non-GAAP financial measures.
The following table summarizes C3 AI’s guidance for the fourth quarter of fiscal 2025 and full-year fiscal 2025:
(in millions) |
Fourth Quarter Fiscal 2025 Guidance |
Full Year Fiscal 2025 Guidance |
|
Total revenue |
|
|
|
Non-GAAP loss from operations |
|
|
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, and the potential variability of, 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. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP results included in this press release. Our fiscal year ends April 30, and numbers are rounded for presentation purposes.
Conference Call Details
Investor Presentation Details
An investor presentation providing additional information and analysis can be found at our investor relations page at ir.c3.ai.
Statement Regarding Use of Non-GAAP Financial Measures
The Company reports the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in
- Non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, and non-GAAP net loss per share. Our non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, and non-GAAP net loss per share exclude the effect of stock-based compensation expense-related charges and employer payroll tax expense related to employee stock-based compensation. We believe the presentation of operating results that exclude these non-cash items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.
- Free cash flow. We believe free cash flow, a non-GAAP financial measure, is useful in evaluating liquidity and provides information to management and investors about our ability to fund future operating needs and strategic initiatives. We calculate free cash flow as net cash used in operating activities less purchases of property and equipment and capitalized software development costs. This non-GAAP financial measure may be different than similarly titled measures used by other companies. Additionally, the utility of free cash flow is further limited as it does not represent the total increase or decrease in our cash balances for a given period.
We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP financial measures.
Other Information
Professional Services Revenue
Our professional services revenue includes service fees and prioritized engineering services. Service fees include revenue from services such as consulting, training, and paid implementation services.
Prioritized engineering services are undertaken when a customer requests that we accelerate the design, development, and delivery of software features and functions that are planned in our future product roadmap. When we agree to this, we negotiate an agreed upon fee to accelerate the development of the software. When the software feature is delivered, it becomes integrated to our core product offering, is available to all subscribers of the underlying software product, and enhances the operation of that product going forward. Such prioritized engineering services result in production-level computer software – compiled code that enhances the functionality of our production products – which is available for our customers to use over the life of their software licenses. Per Accounting Standards Codification (ASC) 606, Prioritized engineering services revenue is recognized as professional services over the period in which the software development is completed.
Total professional services revenue consists of:
Three Months Ended January 31, |
Nine Months Ended January 31, |
||||||||||
2025 |
2024 |
2025 |
2024 |
||||||||
(in thousands) |
(in thousands) |
||||||||||
Prioritized engineering services |
$ |
5,698 |
$ |
7,125 |
$ |
26,008 |
$ |
20,225 |
|||
Service fees |
7,405 |
876 |
14,028 |
5,566 |
|||||||
Total professional services revenue |
$ |
13,103 |
$ |
8,001 |
$ |
40,036 |
$ |
25,791 |
|||
Use of Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements regarding our market leadership position, anticipated benefits from our partnerships, financial outlook, our sales and customer opportunity pipeline including our industry diversification, the expected benefits of our offerings (including the potential benefits of our C3 Generative AI offerings), and our business strategies, plans, and objectives for future operations. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including 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, our ability to attract new customers and retain existing customers, market awareness and acceptance of enterprise AI solutions in general and our products in particular, the length and unpredictability of our sales cycles and the time and expense required for our sales efforts. Some of these risks are described in greater detail in our filings with the Securities and Exchange Commission, including our Quarterly Reports on Form 10-Q for the fiscal quarters ended July 31, 2024, October 31, 2024, and, when available, January 31, 2025, although new and unanticipated risks may arise. The future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Except to the extent required by law, we do not undertake to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations.
About C3.ai, Inc.
C3.ai, Inc. (NYSE:AI) is the Enterprise AI application software company. C3 AI delivers a family of fully integrated products including the C3 AI Platform, an end-to-end platform for developing, deploying, and operating enterprise AI applications, C3 AI applications, a portfolio of industry-specific SaaS enterprise AI applications that enable the digital transformation of organizations globally, and C3 Generative AI, a suite of domain-specific generative AI offerings for the enterprise.
Source: C3.ai, Inc.
C3.AI, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) |
|||||||||||||||
Three Months Ended January 31, |
Nine Months Ended January 31, |
||||||||||||||
2025 |
2024 |
2025 |
2024 |
||||||||||||
Revenue |
|||||||||||||||
Subscription(1) |
$ |
85,679 |
$ |
70,400 |
$ |
240,297 |
$ |
198,201 |
|||||||
Professional services(2) |
13,103 |
8,001 |
40,036 |
25,791 |
|||||||||||
Total revenue |
98,782 |
78,401 |
280,333 |
223,992 |
|||||||||||
Cost of revenue |
|||||||||||||||
Subscription |
37,799 |
32,273 |
106,129 |
93,644 |
|||||||||||
Professional services |
2,636 |
841 |
5,851 |
3,399 |
|||||||||||
Total cost of revenue |
40,435 |
33,114 |
111,980 |
97,043 |
|||||||||||
Gross profit |
58,347 |
45,287 |
168,353 |
126,949 |
|||||||||||
Operating expenses |
|||||||||||||||
Sales and marketing(3) |
61,201 |
57,140 |
168,969 |
150,920 |
|||||||||||
Research and development |
59,356 |
49,480 |
167,998 |
150,747 |
|||||||||||
General and administrative |
25,375 |
21,213 |
66,845 |
61,317 |
|||||||||||
Total operating expenses |
145,932 |
127,833 |
403,812 |
362,984 |
|||||||||||
Loss from operations |
(87,585 |
) |
(82,546 |
) |
(235,459 |
) |
(236,035 |
) |
|||||||
Interest income |
8,677 |
9,995 |
28,240 |
30,597 |
|||||||||||
Other (expense) income, net |
(957 |
) |
409 |
(916 |
) |
(468 |
) |
||||||||
Loss before provision for income taxes |
(79,865 |
) |
(72,142 |
) |
(208,135 |
) |
(205,906 |
) |
|||||||
Provision for income taxes |
336 |
489 |
865 |
863 |
|||||||||||
Net loss |
$ |
(80,201 |
) |
$ |
(72,631 |
) |
$ |
(209,000 |
) |
$ |
(206,769 |
) |
|||
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted |
$ |
(0.62 |
) |
$ |
(0.60 |
) |
$ |
(1.64 |
) |
$ |
(1.75 |
) |
|||
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted |
130,382 |
120,486 |
127,752 |
118,259 |
|||||||||||
(1) |
Including related party revenue of |
|
(2) |
Including related party revenue of |
|
(3) |
Including related party sales and marketing expense of |
C3.AI, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except for share and per share data) (Unaudited) |
|||||||
January 31, 2025 |
April 30, 2024 |
||||||
Assets |
|||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
125,094 |
$ |
167,146 |
|||
Marketable securities |
599,233 |
583,221 |
|||||
Accounts receivable, net of allowance of |
180,357 |
130,064 |
|||||
Prepaid expenses and other current assets |
26,219 |
23,963 |
|||||
Total current assets |
930,903 |
904,394 |
|||||
Property and equipment, net |
81,910 |
88,631 |
|||||
Goodwill |
625 |
625 |
|||||
Other assets, non-current |
41,703 |
44,575 |
|||||
Total assets |
$ |
1,055,141 |
$ |
1,038,225 |
|||
Liabilities and stockholders’ equity |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
28,737 |
$ |
11,316 |
|||
Accrued compensation and employee benefits |
48,727 |
44,263 |
|||||
Deferred revenue, current |
32,955 |
37,230 |
|||||
Accrued and other current liabilities |
27,628 |
9,526 |
|||||
Total current liabilities |
138,047 |
102,335 |
|||||
Deferred revenue, non-current |
— |
1,732 |
|||||
Other long-term liabilities |
56,917 |
60,805 |
|||||
Total liabilities |
194,964 |
164,872 |
|||||
Commitments and contingencies |
|||||||
Stockholders’ equity |
|||||||
Class A common stock |
129 |
120 |
|||||
Class B common stock |
3 |
3 |
|||||
Additional paid-in capital |
2,158,686 |
1,963,726 |
|||||
Accumulated other comprehensive income (loss) |
292 |
(563 |
) |
||||
Accumulated deficit |
(1,298,933 |
) |
(1,089,933 |
) |
|||
Total stockholders’ equity |
860,177 |
873,353 |
|||||
Total liabilities and stockholders’ equity |
$ |
1,055,141 |
$ |
1,038,225 |
|||
C3.AI, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
|||||||
Nine Months Ended January 31, |
|||||||
2025 |
2024 |
||||||
Cash flows from operating activities: |
|||||||
Net loss |
$ |
(209,000 |
) |
$ |
(206,769 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities |
|||||||
Depreciation and amortization |
9,215 |
9,469 |
|||||
Non-cash operating lease cost |
270 |
656 |
|||||
Stock-based compensation expense |
174,373 |
159,032 |
|||||
Accretion of discounts on marketable securities |
(10,715 |
) |
(13,238 |
) |
|||
Other |
2,158 |
110 |
|||||
Changes in operating assets and liabilities |
|||||||
Accounts receivable(1) |
(52,017 |
) |
(38,892 |
) |
|||
Prepaid expenses, other current assets and other assets(2) |
587 |
(3,379 |
) |
||||
Accounts payable(3) |
16,916 |
(4,945 |
) |
||||
Accrued compensation and employee benefits |
7,648 |
171 |
|||||
Operating lease liabilities |
1,439 |
14,330 |
|||||
Other liabilities(4) |
12,462 |
6,296 |
|||||
Deferred revenue(5) |
(6,007 |
) |
(6,546 |
) |
|||
Net cash used in operating activities |
(52,671 |
) |
(83,705 |
) |
|||
Cash flows from investing activities: |
|||||||
Purchases of property and equipment |
(2,101 |
) |
(22,718 |
) |
|||
Capitalized software development costs |
— |
(2,750 |
) |
||||
Purchases of marketable securities |
(518,806 |
) |
(657,431 |
) |
|||
Maturities and sales of marketable securities |
514,365 |
590,299 |
|||||
Net cash used in investing activities |
(6,542 |
) |
(92,600 |
) |
|||
Cash flows from financing activities: |
|||||||
Proceeds from issuance of Class A common stock under employee stock purchase plan |
5,009 |
5,055 |
|||||
Proceeds from exercise of Class A common stock options |
19,648 |
11,379 |
|||||
Taxes paid related to net share settlement of equity awards |
(7,496 |
) |
(10,397 |
) |
|||
Net cash provided by financing activities |
17,161 |
6,037 |
|||||
Net decrease in cash, cash equivalents and restricted cash |
(42,052 |
) |
(170,268 |
) |
|||
Cash, cash equivalents and restricted cash at beginning of period |
179,712 |
297,395 |
|||||
Cash, cash equivalents and restricted cash at end of period |
$ |
137,660 |
$ |
127,127 |
|||
Cash and cash equivalents |
$ |
125,094 |
$ |
114,561 |
|||
Restricted cash included in other assets, non-current |
12,566 |
12,566 |
|||||
Total cash, cash equivalents and restricted cash |
$ |
137,660 |
$ |
127,127 |
|||
Supplemental disclosure of cash flow information—cash paid for income taxes |
$ |
743 |
$ |
760 |
|||
Supplemental disclosures of non-cash investing and financing activities: |
|||||||
Purchases of property and equipment included in accounts payable and accrued liabilities |
$ |
527 |
$ |
2,475 |
|||
Right-of-use assets obtained in exchange for lease obligations (including remeasurement of right-of-use assets and lease liabilities due to changes in the timing of receipt of lease incentives) |
$ |
1,016 |
$ |
1,858 |
|||
Vesting of early exercised stock options |
$ |
251 |
$ |
406 |
|||
(1) |
Including changes in related party balances of |
|
(2) |
Including changes in related party balances of |
|
(3) |
Including changes in related party balances of |
|
(4) |
Including changes in related party balances of |
|
(5) |
Including changes in related party balances of |
C3.AI, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except percentages) (Unaudited) |
|||||||||||||||
Three Months Ended January 31, |
Nine Months Ended January 31, |
||||||||||||||
2025 |
2024 |
2025 |
2024 |
||||||||||||
Reconciliation of GAAP gross profit to non-GAAP gross profit: |
|||||||||||||||
Gross profit on a GAAP basis |
$ |
58,347 |
$ |
45,287 |
$ |
168,353 |
$ |
126,949 |
|||||||
Stock-based compensation expense (1) |
9,504 |
8,983 |
26,223 |
26,492 |
|||||||||||
Employer payroll tax expense related to employee stock-based compensation (2) |
356 |
405 |
883 |
1,243 |
|||||||||||
Gross profit on a non-GAAP basis |
$ |
68,207 |
$ |
54,675 |
$ |
195,459 |
$ |
154,684 |
|||||||
Gross margin on a GAAP basis |
59 |
% |
58 |
% |
60 |
% |
57 |
% |
|||||||
Gross margin on a non-GAAP basis |
69 |
% |
70 |
% |
70 |
% |
69 |
% |
|||||||
Reconciliation of GAAP loss from operations to non-GAAP loss from operations: |
|||||||||||||||
Loss from operations on a GAAP basis |
$ |
(87,585 |
) |
$ |
(82,546 |
) |
$ |
(235,459 |
) |
$ |
(236,035 |
) |
|||
Stock-based compensation expense (1) |
62,652 |
54,983 |
174,373 |
159,032 |
|||||||||||
Employer payroll tax expense related to employee stock-based compensation (2) |
1,789 |
1,773 |
4,151 |
5,547 |
|||||||||||
Loss from operations on a non-GAAP basis |
$ |
(23,144 |
) |
$ |
(25,790 |
) |
$ |
(56,935 |
) |
$ |
(71,456 |
) |
|||
Reconciliation of GAAP net loss per share to non-GAAP net loss per share: |
|||||||||||||||
Net loss on a GAAP basis |
$ |
(80,201 |
) |
$ |
(72,631 |
) |
$ |
(209,000 |
) |
$ |
(206,769 |
) |
|||
Stock-based compensation expense (1) |
62,652 |
54,983 |
174,373 |
159,032 |
|||||||||||
Employer payroll tax expense related to employee stock-based compensation (2) |
1,789 |
1,773 |
4,151 |
5,547 |
|||||||||||
Net loss on a non-GAAP basis |
$ |
(15,760 |
) |
$ |
(15,875 |
) |
$ |
(30,476 |
) |
$ |
(42,190 |
) |
|||
GAAP net loss per share attributable to Class A and Class B common shareholders, basic and diluted |
$ |
(0.62 |
) |
$ |
(0.60 |
) |
$ |
(1.64 |
) |
$ |
(1.75 |
) |
|||
Non-GAAP net loss per share attributable to Class A and Class B common shareholders, basic and diluted |
$ |
(0.12 |
) |
$ |
(0.13 |
) |
$ |
(0.24 |
) |
$ |
(0.36 |
) |
|||
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted |
130,382 |
120,486 |
127,752 |
118,259 |
|||||||||||
(1) |
Stock-based compensation expense for gross profits and gross margin includes costs of subscription and cost of professional services as follows. Stock-based compensation expense for loss from operations includes total stock-based compensation expense as follows: |
Three Months Ended January 31, |
Nine Months Ended January 31, |
||||||||||
2025 |
2024 |
2025 |
2024 |
||||||||
Cost of subscription |
$ |
8,563 |
$ |
8,674 |
$ |
24,084 |
$ |
25,244 |
|||
Cost of professional services |
941 |
309 |
2,139 |
1,248 |
|||||||
Sales and marketing |
21,860 |
17,528 |
61,495 |
52,533 |
|||||||
Research and development |
19,896 |
18,757 |
56,326 |
52,475 |
|||||||
General and administrative |
11,392 |
9,715 |
30,329 |
27,532 |
|||||||
Total stock-based compensation expense |
$ |
62,652 |
$ |
54,983 |
$ |
174,373 |
$ |
159,032 |
|||
(2) |
Employer payroll tax expense related to employee stock-based compensation for gross profits and gross margin includes costs of subscription and cost of professional services as follows. Employer payroll tax expense related to employee stock-based compensation for loss from operations includes total employer payroll tax expense related to employee stock-based compensation as follows: |
Three Months Ended January 31, |
Nine Months Ended January 31, |
||||||||||
2025 |
2024 |
2025 |
2024 |
||||||||
Cost of subscription |
$ |
329 |
$ |
392 |
$ |
818 |
$ |
1,183 |
|||
Cost of professional services |
27 |
13 |
65 |
60 |
|||||||
Sales and marketing |
614 |
496 |
1,536 |
1,964 |
|||||||
Research and development |
578 |
738 |
1,173 |
1,970 |
|||||||
General and administrative |
241 |
134 |
559 |
370 |
|||||||
Total employer payroll tax expense |
$ |
1,789 |
$ |
1,773 |
$ |
4,151 |
$ |
5,547 |
|||
Reconciliation of free cash flow to the GAAP measure of net cash used in operating activities:
The following table below provides a reconciliation of free cash flow to the GAAP measure of net cash used in operating activities for the periods presented:
Three Months Ended January 31, |
Nine Months Ended January 31, |
||||||||||||||
2025 |
2024 |
2025 |
2024 |
||||||||||||
Net cash used in operating activities |
$ |
(22,020 |
) |
$ |
(39,051 |
) |
$ |
(52,671 |
) |
$ |
(83,705 |
) |
|||
Less: |
|||||||||||||||
Purchases of property and equipment |
(362 |
) |
(6,087 |
) |
(2,101 |
) |
(22,718 |
) |
|||||||
Capitalized software development costs |
— |
— |
— |
(2,750 |
) |
||||||||||
Free cash flow |
$ |
(22,382 |
) |
$ |
(45,138 |
) |
$ |
(54,772 |
) |
$ |
(109,173 |
) |
|||
Net cash provided by (used in) investing activities |
$ |
12,373 |
$ |
4,098 |
$ |
(6,542 |
) |
$ |
(92,600 |
) |
|||||
Net cash provided by financing activities |
$ |
13,467 |
$ |
505 |
$ |
17,161 |
$ |
6,037 |
|||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250226146634/en/
Source: C3.ai
FAQ
What was C3 AI's (NYSE: AI) revenue growth in Q3 2025?
C3 AI reported $98.8 million in total revenue, representing a 26% year-over-year growth from $78.4 million.
How many new agreements did C3 AI close through its Microsoft partnership in Q3 2025?
C3 AI and Microsoft closed 28 agreements across 9 different industries, showing a 460% increase quarter-over-quarter.
What was C3 AI's subscription revenue percentage in Q3 2025?
Subscription revenue was $85.7 million, constituting 87% of total revenue, up 22% year-over-year.
How many pilot programs did C3 AI secure in Q3 2025?
C3 AI closed 66 agreements including 50 pilots, representing a 72% increase year-over-year.
What is C3 AI's cash position as of Q3 2025?
C3 AI reported $724.3 million in cash, cash equivalents, and marketable securities.