C3.ai, Inc. reported its financial results for the third quarter of fiscal 2025, revealing a total revenue of $98.8 million, a 26% increase from $78.4 million in the same period last year. Subscription revenue, which constitutes the majority of the company's income, rose by 22% to $85.7 million, while professional services revenue surged 64% to $13.1 million. Despite this growth, the company continues to face challenges, posting a net loss of $80.2 million for the quarter, compared to a loss of $72.6 million in the prior year.
The company's operating expenses increased to $145.9 million, up from $127.8 million a year earlier, driven primarily by higher sales and marketing costs, which rose by 7% to $61.2 million, and research and development expenses, which increased by 20% to $59.4 million. The gross profit for the quarter was $58.3 million, yielding a gross margin of 59%, slightly up from 58% in the previous year. The increase in gross margin was attributed to a higher mix of revenue from demonstration licenses, although the professional services margin decreased due to rising personnel-related costs.
C3.ai's customer base continues to expand, with the company executing 50 pilot and trial agreements in the latest quarter, compared to 29 in the same period last year. The company is transitioning to a consumption-based pricing model, which is expected to facilitate customer acquisition but may temporarily impact revenue growth. As of January 31, 2025, the company reported remaining performance obligations (RPO) of $208.2 million, down from $244.3 million at the end of the previous fiscal year, reflecting the shift in pricing strategy.
Looking ahead, C3.ai plans to continue investing in research and development to enhance its product offerings, particularly in generative AI, which the company believes will drive future growth. The company also aims to expand its international presence and strengthen its partnerships with major cloud providers and consulting firms. Despite the ongoing operating losses, C3.ai maintains a strong cash position, with $125.1 million in cash and cash equivalents and $599.2 million in marketable securities as of the end of January 2025, which it believes will support its operations for at least the next 12 months.
About C3.ai, Inc.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.