The chart below shows how AI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AI sees a -1.88% change in stock price 10 days leading up to the earnings, and a +1.73% change 10 days following the report. On the earnings day itself, the stock moves by -1.14%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Quarterly Revenue Increase: Total revenue for the quarter increased 29% year-over-year to $94.3 million.
Subscription Revenue Surge: Subscription revenue increased 22% year-over-year to $81.2 million, representing 86% of total revenue.
Professional Services Revenue: Professional Services revenue was $13.2 million, representing 14% of total revenue in the second quarter of fiscal '25.
Gross Profit and Margin: Gross profit for the quarter was $66.3 million, and gross margin was 70%.
Cash and Investments Overview: We ended the quarter with over $730 million in cash, cash equivalents, and investments.
Negative
Operating Loss Overview: Our non-GAAP operating loss was $17.2 million, and our net loss for the quarter was $7.8 million.
Operating Cash Flow Usage: Our net cash used in operating activities was $38.7 million.
Free Cash Flow Comparison: Free cash flow for the quarter was negative $39.5 million, as compared to negative $55.1 million in the second quarter of last year.
Gross Margin Moderation Expected: We expect some moderation in our gross margins due to higher mix of pilots in the near term, which carry a greater cost of revenue during the pilot phase of the customer life cycle.
Free Cash Flow Outlook: We expect to be free cash flow negative for the third quarter, but remain on track to be free cash flow positive for Q4.
C3.ai, Inc. (AI) Q2 2025 Earnings Call Transcript
AI.N
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