C3.ai Q3 Earnings Highlights: Revenue Beat, EPS Beat, 'Significant Milestones' Achieved

Enterprise artificial intelligence company C3.ai Inc AI reported third-quarter financial results after market close Wednesday.

Here are the key highlights.

What Happened: C3.ai reported third-quarter revenue of $98.8 million, up 26% year-over-year. The revenue total beat a Street consensus estimate of $98.1 million, according to data from Benzinga Pro.

Subscription revenue totaled $85.7 million in the quarter, up 22% year-over-year. Subscription revenue represented 87% of the company's quarterly total.

The company had a non-GAAP net loss of 12 cents per share, which beat a street consensus estimate of a loss of 25 cents per share.

"In the third quarter, C3.ai achieved significant milestones — expanding our global distribution network, advancing our leadership in agentic and generative AI, and delivering total revenue reaching $98.8 million, up 26% year-over-year," C3.ai CEO Thomas Siebel said.

The company expanded strategic partnerships with Microsoft, AWS and McKinsey Quantumblack in the third quarter.

During the third quarter, C3.ai closed 66 agreements including 50 pilots, an increase of 72% year-over-year. The company closed 21 state and local government agreements. During the third quarter, the company also entered into new and expanded agreements with the U.S. Air Force, U.S. Navy and U.S. Department of Defense.

C3.ai and Microsoft have closed 28 agreements across nine industries as part of its strategic alliance. The joint qualified opportunity pipeline between the two companies was up 244% year-over-year in the quarter.

C3.ai finished the third quarter with $724.3 million in cash and cash equivalents.

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What's Next: C3.ai will hold its C3 Transform 2025 conference from March 18-20, 2025. The event will include the participation of C3's executive team, customers, partners and sales prospects.

"By bringing together C3.ai experts and early adopters who can speak to the value of Enterprise AI, C3 Transform gives customers, partners and prospects the chance to discover exactly how they can use Enterprise AI and generative AI securely and effectively," the company said.

C3.ai is guiding for fourth-quarter revenue to be in a range of $103.6 million to $113.6 million. Full fiscal year revenue is guided to a range of $383.9 million to $393.9 million.

"We have the technology, the management team, and the global partner ecosystem — through our dramatically expanded strategic partnerships with Microsoft, AWS, and McKinsey QuantumBlack — we believe we have all the elements in place to indelibly change the face of Enterprise AI," Siebel said.

AI Price Action: C3.ai stock is down 1.74% to $25.98 in after-hours trading versus a 52-week trading range of $18.85 to $45.08.

Read Next:

• C3.ai Teams Up With McKinsey For AI-Driven Business Transformations: Details

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