C3.ai announced its financial results for the fiscal first quarter ended July 31, 2025, reporting revenue of $70.3 million with a focus on subscription and engineering services revenue.
The company revealed a 38% GAAP gross margin and $711.9 million in cash balance.
Founder and Chairman, Thomas M. Siebel, expressed confidence in the company's future performance despite challenges in Q1.
Financial Results
Total revenue for the quarter was $70.3 million, with subscription revenue accounting for 86% of total revenue.
Gross Profit Margin
The GAAP gross margin was 38%, while the non-GAAP gross margin reached 52%.
CEO Appointment
C3.ai appointed a new Chief Executive Officer to lead the company forward.
Business Restructuring
The company underwent a significant restructuring of its sales and services organization, aiming to drive growth and enhance customer success.
Market Expansion
C3.ai closed agreements with various prominent entities and expanded its footprint across State and Local Government sectors.
- The reorganization of the sales and services organization, coupled with new leadership appointments, is expected to drive accelerated growth.
- C3.ai's focus on subscription revenue and engineering services highlights a strategic shift towards recurring revenue streams.
- The introduction of the C3 AI Strategic Integrator Program offers potential for a substantial network of partners to develop and commercialize Enterprise AI applications.
Despite facing challenges in Q1, C3.ai remains optimistic about its future trajectory with new leadership, a restructured organization, and a strong market position.