C3.ai Stock Rallies After Q2 Results, 'Seventh Consecutive Quarter Of Accelerating Revenue Growth'

C3.ai, Inc. AI reported its second-quarter results after Monday's closing bell. Here's a look at the key figures from the quarter. 

The Details: C3.ai reported quarterly losses of six cents per share, which beat the analyst consensus estimate for losses of 16 cents. Quarterly revenue clocked in at $94.34 million, which beat the consensus estimate of $91.02 million and is an increase over sales of $73.23 million from the same period last year.

• Subscription revenue for the quarter was $81.2 million, constituting 86% of total revenue, an increase of 22% compared to $66.4 million one year ago.
• Subscription and prioritized engineering services revenue combined was $90.8 million, constituting 96% of total revenue, an increase of 27% compared to $71.3 million one year ago.
• Non-GAAP gross profit for the quarter was $66.3 million, representing a 70% non-GAAP gross margin.
• C3.ai had $730.4 million in cash, cash equivalents, and marketable securities at the end of the quarter.

“We had an outstanding quarter with strong top- and bottom-line performance to mark our seventh consecutive quarter of accelerating revenue growth,” said Thomas M. Siebel, CEO of C3 AI.

“It is difficult to overstate the potential of the Microsoft–C3 AI strategic alliance,” said Siebel. “By establishing C3 AI as a preferred AI application provider on Azure and creating a Microsoft-scale go-to-market engine, we’re making it easy for businesses to adopt and deploy C3 AI applications. This is an inflection point for Enterprise AI, driving growth.”

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Outlook: C3.ai sees third-quarter revenue in a range of $95.5 million to $100.5 million, versus the $97.57 million estimate, and fiscal 2025 revenue in a range of $378 million to $398 million, versus the $382.57 million estimate.

AI Price Action: According to Benzinga Pro, C3.ai shares are up 12.6% after-hours at $46.77 at the time of publication Monday. 

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