C3 AI reported better-than-expected second quarter results with revenue growth of 29%. CEO Tom Siebel said the company is seeing traction with its Microsoft Azure partnership.
The company reported a second quarter loss of 52 cents a share on revenue of $94.3 million. Non-GAAP loss was 6 cents a share.
Wall Street was expecting C3 AI to report a non-GAAP loss of 16 cents a share on revenue of $91.02 million.
In a statement, Siebel said:
“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.”
The Microsoft deal was signed Sept. 30 in a partnership that puts C3 AI Enterprise and C3 Generative AI on Azure Price List and Azure Marketplace. Azure can also sell C3 AI applications with bonuses and design wins attached.
C3 AI said it also closed more than 20 agreements with Google Cloud. C3 AI added that it closed 58 agreements including 36 pilots in the quarter.
As for the outlook, C3 AI projected third quarter revenue of $95.5 million to $100.5 million with a non-GAAP loss between $38.6 million and $46.6 million. For fiscal 2025, C3 projected revenue of $378 million to $398 million wit a non-GAAP operating loss of $105 million to $135 million.
- C3 AI Q1 solid, outlook slightly light
- C3 AI highlights C3 AI Vision, roadmap ahead
- Enterprise generative AI use cases, applications about to surge
- Constellation ShortList™ Artificial Intelligence and Machine Learning Best-of-Breed Platforms
Holger Mueller, an analyst at Constellation Research, said:
"C3 had a good quarter growing revenue by almost 20% on the product side. But growth came at a cost as it spend almost $10 million more in sales and marketing, so the revenue came with a cost. Coupled with its high cost of subscription, it is hard for C3 to move forward to generate a profit. C3 remains an enigma that does the right things in product, lands blue chip customers, has systems integrator partnerships yet struggles to grow profit and toward the significant $1 billion revenue mark with the speed."
