NYSE$AI

C3.ai Inc. · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

C3.ai experienced rising demand for Enterprise AI, driving its sixth consecutive quarter of accelerating revenue growth.

C3.ai reported a solid start to the fiscal year with accelerating revenue growth driven by rising demand for Enterprise AI. Total revenue increased by 21% compared to the previous year, with subscription revenue constituting a significant portion. The company closed 71 agreements, including 52 pilots, demonstrating strong momentum in Manufacturing and State and Local Government.

  • Total revenue for the quarter was $87.2 million, an increase of 21% compared to $72.4 million one year ago.
  • Subscription revenue for the quarter was $73.5 million, an increase of 20% compared to $61.4 million one year ago.
  • GAAP gross profit for the quarter was $52.2 million, representing a 60% gross margin.
  • The Company closed 71 agreements (an increase of 122% year-over-year) including 52 pilots (an increase of 117% year-over-year).

Headline financials

Total Revenue

$87.2M

Previous: $72.4M+20.5%
EPS

-$0.50

Previous: -$0.09-455.6%
Capital Expenditures

-$924K

Previous: -$11.3M+91.9%
Free Cash Flow

-$63.8M

Previous: -$75.7M+15.8%
Net Income

-$62.8M

Previous: -$64.4M+2.4%
Operating Income

-$72.6M

Previous: -$74.1M+2.0%
Gross Profit

$52.2M

Previous: $40.5M+28.6%
R&D Expense

$52.9M

No prior period
Stock-Based Comp

$54.7M

Previous: $50.9M+7.5%

Revenue & EPS history

C3.ai · Revenue · Quarterly

$87.2M

Q1 2025+20.5%vs Q1 2024
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

C3.ai · $109M total across 2 segments · Q4 2025

  • Subscription
    $87.3M
  • Professional services
    $21.4M

Forward guidance

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

Tailwinds

  • Total revenue for Q2 Fiscal 2025 is expected to be $88.6 - $93.6 million
  • Total revenue for Full Year Fiscal 2025 is expected to be $370.0 - $395.0 million
  • Non-GAAP loss from operations for Q2 Fiscal 2025 is expected to be $(26.7) - $(34.7) million
  • Non-GAAP loss from operations Full Year Fiscal 2025 is expected to be $(95.0) - $(125.0) million
  • The company is experiencing rising demand for Enterprise AI

Headwinds

  • Uncertainty regarding expenses that may be incurred in the future
  • Variability of expenses that may be incurred in the future
  • Stock-based compensation expense-related charges are impacted by the timing of employee stock transactions
  • Stock-based compensation expense-related charges are impacted by the future fair market value of our common stock
  • Stock-based compensation expense-related charges are impacted by our future hiring and retention needs

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

-1.0%

Avg return

Earnings day

-3.2%

Avg return

5 days after

-5.2%

Avg return

30 days after

41%

9 / 22 earnings

Positive

+37.4%

Q3 2023

Best reaction

-21.1%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-1.3%-0.5%+24.7%
Q3 2026+0.5%-11.7%-24.7%
Q2 2026+4.1%+6.8%-8.4%
Q1 2026-9.1%-5.6%+14.9%
Q4 2025+20.7%+11.5%+5.3%
Q3 2025-9.7%-16.4%-17.5%
Q2 2025+3.0%-2.6%-17.8%
Q1 2025-9.9%-8.8%+2.7%
Q4 2024+18.5%+22.2%+20.2%
Q3 2024+22.8%+13.2%-10.1%
Q2 2024-13.4%-6.3%-9.3%
Q1 2024-12.2%-10.2%-21.3%
Q4 2023-15.6%-19.6%-17.1%
Q3 2023+37.4%+26.1%+61.9%
Q2 2023+7.6%+10.1%-8.7%
Q1 2023-21.1%-21.2%-32.1%
Q4 2022-6.9%+1.4%+1.2%
Q3 2022+6.3%-7.6%+4.4%
Q2 2022-18.7%-18.2%-15.4%
Q1 2022-7.5%-1.8%-11.0%
Q4 2021-4.9%-15.1%-15.6%
Q3 2021-12.4%-15.4%-41.4%
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Q1 2020

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