The earnings call presented a strong outlook with significant revenue growth and strategic partnerships, particularly with Microsoft, which is expected to drive future growth. However, challenges like operating losses and cash flow concerns were noted, although they were counterbalanced by strategic investments and partnerships.

Company Guidance

During the C3 AI Q2 2025 earnings call, the company provided a strong financial outlook with several key metrics. They reported a total revenue of $94.3 million, marking a 29% year-over-year increase, and exceeding their revenue guidance. Subscription revenue was $81.2 million, a 22% rise from the previous year, while subscription and prioritized engineering services revenue combined reached $90.8 million, accounting for 96% of total revenue. The company's non-GAAP gross profit was stated at $66.3 million, representing a 70% gross margin. Additionally, C3 AI ended the quarter with over $730 million in cash, cash equivalents, and investments. The company raised its fiscal 2025 revenue guidance to a range of $378 million to $398 million, indicating continued confidence in its growth trajectory, which was notably boosted by a new strategic alliance with Microsoft Azure.

Strong Revenue Growth

C3 AI reported a year-over-year revenue growth of 29% for the quarter, with total revenue reaching $94.3 million, exceeding the high end of their guidance. Subscription revenue increased by 22% year-over-year.

Microsoft Strategic Alliance

C3 AI entered into a significant 5.5-year strategic alliance with Microsoft Azure, allowing C3 AI products to be available on Microsoft's Azure price list and marketplace. This partnership is expected to dramatically shorten sales cycles and expand market reach.

Expansion of Partner Ecosystem

The partner ecosystem now includes major players like Google, AWS, Microsoft, and others. 62% of agreements were closed with or through Google Cloud, AWS, and Azure.

Generative AI Deployment

C3 AI closed 15 new generative AI agreements with major organizations including Boston Scientific and Rolls-Royce, demonstrating significant progress in deploying AI solutions.

Patent Awarded for Agentic AI

C3 AI received a U.S. patent for Agentic AI, which strengthens its market position by protecting key AI technology.

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C3ai (AI) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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AI Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 26, 2025	2025 (Q3)	-0.25 / -	-0.13	―	―	―
Dec 09, 2024	2025 (Q2)	-0.16 / -0.06	-0.13	53.85% (+0.07)
Sep 04, 2024	2025 (Q1)	-0.13 / -0.05	-0.09	44.44% (+0.04)
May 29, 2024	2024 (Q4)	-0.30 / -0.11	-0.13	15.38% (+0.02)
Feb 28, 2024	2024 (Q3)	-0.25 / -0.13	-0.06	-116.67% (-0.07)
Dec 06, 2023	2024 (Q2)	-0.18 / -0.13	-0.11	-18.18% (-0.02)
Sep 06, 2023	2024 (Q1)	-0.17 / -0.09	-0.12	25.00% (+0.03)
May 31, 2023	2023 (Q4)	-0.17 / -0.13	-0.21	38.10% (+0.08)
Mar 02, 2023	2023 (Q3)	-0.22 / -0.06	-0.07	14.29% (+0.01)
Dec 07, 2022	2023 (Q2)	-0.16 / -0.11	-0.23	52.17% (+0.12)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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AI Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Dec 09, 2024	$41.68	$41.73	+0.12%
Sep 04, 2024	$23.01	$21.12	-8.21%
May 29, 2024	$23.92	$28.57	+19.44%
Feb 28, 2024	$29.69	$36.97	+24.52%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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