C3.ai Reports 29% Revenue Growth to $94.3 Million in Latest Quarter

C3.ai, Inc. reported significant financial performance in its latest quarterly filing, with total revenue reaching $94.3 million for the three months ended October 31, 2024, a 29% increase from $73.2 million in the same period last year. Subscription revenue, which constitutes the majority of the company's income, grew by 22% to $81.2 million, while professional services revenue surged by 94% to $13.2 million. For the six-month period, total revenue was $181.6 million, up 25% from $145.6 million, driven by a 21% increase in subscription revenue and a 51% rise in professional services revenue.

The company experienced a net loss of $66.0 million for the quarter, slightly less than the $69.8 million loss reported in the prior year. For the six months, the net loss was $128.8 million, compared to $134.1 million in the same period last year. The improved financial results were attributed to higher gross profit margins, which increased to 61% from 56% year-over-year, driven by lower personnel-related costs and a rise in prioritized engineering services, which typically yield higher margins.

C3.ai has also made strategic advancements, including the launch of its C3 Generative AI platform, which features 28 domain-specific offerings aimed at enhancing operational efficiency across various industries. The company is actively expanding its customer base and market reach, particularly in sectors such as telecommunications, pharmaceuticals, and healthcare. The transition to a consumption-based pricing model is expected to facilitate customer acquisition by lowering initial costs and allowing for scalable growth as usage increases.

Operationally, C3.ai reported a total of 36 pilot and trial agreements executed during the quarter, consistent with the previous year. The company continues to focus on customer retention and expansion, with 76% of subscription revenue in the latest quarter coming from existing customers. As of October 31, 2024, C3.ai's remaining performance obligations stood at approximately $260.5 million, indicating a solid pipeline of future revenue.

Looking ahead, C3.ai anticipates continued investment in research and development to enhance its product offerings and maintain competitive advantage. The company expects to incur operating losses in the near term as it scales its operations and invests in growth initiatives. However, it believes that its existing cash and marketable securities, totaling $730.4 million, will be sufficient to support its operational needs for at least the next 12 months.