C3.ai, Inc. reported its second-quarter results after Monday’s closing bell, beating analyst expectations. The company’s quarterly losses narrowed to six cents per share, compared to an estimated loss of 16 cents. Revenue reached $94.34 million, surpassing the consensus estimate of $91.02 million and increasing by 4% from last year’s $73.23 million.
Subscription revenue accounted for 86% of total revenue, up 22% from $66.4 million a year ago, marking a significant growth. The combined revenue from subscription and prioritized engineering services rose 27% to $90.8 million, representing 96% of total revenue.
Non-GAAP gross profit was $66.3 million, with a non-GAAP gross margin of 70%. The company’s cash reserves stood at $730.4 million as of the end of the quarter.
“We had an outstanding quarter with strong top- and bottom-line performance, marking our seventh consecutive quarter of accelerating revenue growth,” said Thomas M. Siebel, CEO of C3 AI. He attributed the success to the strategic alliance with Microsoft, which has made it easier for businesses to adopt and deploy C3 AI applications.
Siebel emphasized that this alliance is an inflection point for Enterprise AI, driving growth. The company’s outlook includes a third-quarter revenue range of $95.5 million to $100.5 million and fiscal 2025 revenue in the range of $378 million to $398 million.
C3.ai shares surged 12.6% after-hours at $46.77 at the time of publication Monday, according to Benzinga Pro.
Source: https://www.benzinga.com/news/earnings/24/12/42400744/c3ai-stock-rallies-after-q2-results-seventh-consecutive-quarter-of-accelerating-revenue-growth