AI - Earnings call transcript Q1 2025

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Operator

Good day, and thank you for standing by. Welcome to the C3.ai First Quarter Fiscal Year 2025 Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker for today, Amit Berry, you may begin.

Amit Berry

Good afternoon, and welcome to C3.ai's earnings call for the first quarter of fiscal year 2025, which ended on July 31, 2024. Berry, lead Amit CX.ai. Relations is name and Investor I at My and and me are Ed Executive President today the Abbo, Technology Siebel, Vice With call Chief Tom on Financial Lath, Hitesh Chief Chairman and Executive Chief Officer. Officer; Officer;

closed results, market a issued ir.cX.ai. can the a the accessed both our of we details as the Investor press as through of at quarter which website This results available today, being well with our following Relations supplemental regarding webcast, the of will After replay conclusion release first on is to website section call. IR our our call the be and be

statements of of of as or our any During to to actual not results of statements update statements laws. business from to representative date. These our be today expectations. forward-looking be variety our could considered federal today's a cause make that risks only any views and statements securities call, reflect we to should disclaim any differ as subsequent related considered materially subject that will uncertainties and views may forward-looking These obligation outlook. We are under

noted. discussion our filings All important and material the that could be discussed to factors will figures basis affect further risks otherwise with non-GAAP a actual For unless refer of please SEC. results, other our the a on

of GAAP measures we today's call, non-GAAP will refer A to to during reconciliation financial included Also press non-GAAP in certain is release. our measures.

presentation greater into continue our our the advised to that not your may additional Please in we our quarterly times that of may may may in to give business may discuss future. at provide metrics insight usual incremental our results. or prepared not are -- this questions, dynamics or provide or be remarks, detail we response in we the to Finally, to

let me call over turn And with that, the to Tom.

Thomas Siebel

our for afternoon, today. and thank call Good Amit. you, you everyone, joining Thank

for start expectations solid to flow we off fiscal We are QX, exceeded all cash year revenue, profitability. for In a 'XX. and

consecutive levels and of . revenue enterprise sixth quarter high AI quarter accelerating customer reflecting satisfaction our our growth, This marked increasing demand applications. for of

Our XX% in in XX% year-over-year in analyst revenue XX% in from 'XX. QX, QX, QX to $XX.X QX fiscal in in was million increased has and from XX% the year exceeding ago. QX for XX% Subscription revenue million, year-over-year revenue QX a and Total of growth accelerated year 'XX was $XX.X expectations. quarter XX% growth revenue

was representing margin. XX% profit gross non-GAAP million a $XX.X gross Our

Our GAAP operating loss was $XX.X million.

million to guidance substantially Our of for $XX our loss loss and non-GAAP better $XX.X than was a million operating $XX million.

net non-GAAP share loss Our per $X.XX. was

I'll free exceed substantially XXth and have provided million quarter exceeded met Our $X note flow cash million, market investments. in activities million we $X.X quarter generated in net a cash $XXX company public in ended consecutive the was by or with this expectations. cash our guidance. and quarter, We cash, the operating of is over the as equivalents that which we revenue both

count. new including Department the We Sanofi, Swift, XXX% in & Gabbana, Eletrobras, Defense, Valero, entered Intelligence marking a Rand increase quarter, the of In pilot Dolce and Ingersoll closed new U.S. first year-over-year the GSK, agreements, our U.S. XX company with Community, into others. agreements XX the pilots SmithRx,

in with Virginia, our Georgia, Connecticut, and Jersey, state expanded with agreements significantly we and signed and Florida. agencies and the state Additionally, and In Island, Texas, Maine, XX municipal, footprint company New New county California, state local governments government. across Mexico QX, Rhode local Washington

market rapidly underserved that and large a we're is government penetrating. local and State

less, and experience. in enabling ultimately the public CX.ai do combined more agencies benefits increase improved government drive Our highest savings In services efficiency customer improved to the is public. maintaining and solutions standards for substantial cost accuracy, with They while transparency security. result benefiting and the short,

Assessor valuations. Riverside deliver the technology accuracy bar with the our and quote, of XX% very over is properties. high fruits property are and AI and model from they in customer see set into employees This County, do of I our tasks for incredible quote "We are the concentrate letting CX the To staff effort seeing with better this the CX.ai." complicated easier they results Overall, to starting on can And mundane faster translating the so we service. our

CX growth suite, The these AI in efforts, proven strategy including state benefits accelerated AI of with and concentrated state sales government with property high campaign we sector. supported and by sales cycle Google quarter. highly, the our and the marketing for local CX collaborative a CX CX resulted public closing and joint CX.ai The combined Cloud local was XX government fueled within and and AI sales partner government adoption agreements saw local promote appraisal suite, Generative in to the Through benefits. with AI

Northwestern CX to these United got the negotiations. Let XX decision-makers county States. of County agreement conference. you contract we speed me an introduced give cycles. we an AI industry feel And sales within with a a for hours, In the in closed in at were QX,

contract property later, Just appraisal. were AI we in for XX CX hours

U.S. signed after Another briefing contract X-year Annual X -- subscription leadership. discussion, Group our later, an held XXXX. country CX And Users appraisal. AI of the a customer example with we now is has X-figure, X Conference, a county Transform for deal weeks for property X-year in months of executive Then in This CX the Southeast the March attended county

grown more excited state we for potential year-over-year, and XXX% customer the about are and the advocacy has than for CX AI. and expansion business local traction, the Our

doubles. market in Europe, take we addressable more to now As these solutions public sector than market the

continues collaboration AI successful our Navy, with to Intelligence the U.S. others. the help Turning the of U.S. entered digitally innovative Marine and secure CX among new transform AI modernize. legacy sector provide and them the agencies for experience systems. in These to that CX XX% Community and bookings over and applications branch's the business. expansion the representing quarter. trust This to sustained the continued Air States Corps The Corps agreements We U.S. software momentum, Force, AI Marine to United CX federal U.S.

of improve and customer is CX management critical the IT levels Manpower aligns Marine by Corps satisfaction customer is CX systems personnel program measurable, AI enterprise focus to both AI's industries, by and AI base using with backed continues of exceptional with efficiency value. Systems suite Defense goals. multiyear support. and within The continued the work accelerating and our roadmap time-to-decision Modernization significant Intelligence maintaining expand, CX This the processes Corps Marine on delivering and across while by to

complex diverse to expansive generation Eletrobras and largest Brazil's AI world's servicing With availability. real-time low-latency AI, CX and service resiliency challenging grid profile, to generation the transmission to in regulatory enhance process analyze power grid Eletrobras, due territory Latin its effectively their and insights variability, efficiently we among and the partnered data mitigate network most America, At company disturbances. can environment. is

CX This Production Corporation success and Inventory manufacturing together Chain support outcomes Nucor distinct the Optimization, Schedule includes to with AI facilities. seeing decision-making CX Suite. CX multiple Supply daily improving and in AI CX CX Forecasting, X AI applications, deployment Optimization working AI significant is across AI Demand optimize

North capacity, As Europe focused in expanding public sector. America, sales in on the in we QX, are expanding enter expanding we and expanding

new closely through our our an total open XX% with XXX% was active quarter-over-quarter. in network opportunities new first partner our ecosystem. and were and working had increase agreements. and partners Our agreements closed quarter with to of flow. partner close a deal alliances, generate continues XX% This We of to very Net-net, year-over-year

the just storage AI CX our bookings quarter, in attractive of focused continues increase the rapidly increase Microsoft Google and CX substantial is joint we partner to to activity be while between and partner-supported include Allen, with customers. the applications as continues our growth XX joint value Cloud discussed by on This enterprise Google an first sector. AI year-over-year year-over-year. Our and that AWS, public drive In campaign substantially. largely and XX% grew levels to adding XX workload partners Booz with closed for This hyperscalers agreements was their immediate clouds driven XXX% earlier, our that compute AI Google the Cloud our Cloud. I an

deck, supplemental continue be As bookings our increasingly to you diverse. from can see our

wide Our with business candidly, cases is board unanticipated the many generative of in use range AI surprisingly a diverse across industries.

XX% Hughes grew our In revenue total addition, non-Baker year-over-year.

to on generative products it our AI. and I'll Ed update over for an Now Ed? hand

Edward Abbo

you, Thank Tom.

stack. applications the models. And offerings foundation recap distinct fits AI applications. AI the can CX where are first in infrastructure, bottom, categories. this This in deployed the seeing harnessing the the quickly. tech fall market prebuilt AI you're at value X the today cloud where top, me Starting contrast, AI at all is Let include deliver software silicon, be In AI plays layers with business into very to X CX AI that innovation

companies these to stacks advantage a on with depth AI are stack scrambling century that First, is The To stay legacy XXth to rewrite software box. take rebranding try AI. scalable with up relevant, insurmountable. to software tech modern, their keep simply to software their AI the technical of companies are

AI them, a legacy bolt-on by enterprise to is a For fraction of their software. small constrained just data managed the

operate few claiming integration, engineering AI AI that modern and not or companies primarily a platforms more see data build applications. software management designed we Second, data were to for enterprise to data be

in on minimal is platform enterprise reflected a sheet these to that AI CX providing capabilities. users the scalable of and platform an operating protracted operate solutions. development design, and satisfaction clean to provides governance value This where software This is AI stacks workflow-enabled design, and real-world undertake an vendors. The applications scores sufficient requires is and application was significant, clearly it application provision plan incomplete data enterprise unique realized. rich necessary services AI develop, fusion Basing AI in the AI/ML all on operations tech advanced customer customers with customer these projects with

robust the purpose-built of applications. years foundation The to cloud hardened leverage We platform CX layers and services stack, and AI models. rapidly AI customer was all tech deliver silicon over AI infrastructure XX

AI. applications Now unpack key a we mean a as by this prebuilt differentiator what let CX is me moment for take to

the all user done prebuilt in design tried, if sources. logic, a We've don't customer can CX what As application so configured model that. proven customer, the to data ], are pipelines the and or does, AI application, market, application interface. be business [ to ontology tested or and buy the the you applications need the GenAI the AI develop define a you the prebuilt rapidly

allows This for customer. and the onboard out value. customers AI/ML models and users, deploy, tuned to customers' configure, rapidly to train realize tuned and their quickly enterprise interface user enterprise the scale data

scaled example. X,XXX its give manufacturer you an after our over Holcim, predictive to maintenance mills which does application of systems mills from successful pilot. critical so reliability, large in global predict building application several in hundred assets most those machine months a plants sensors Let potential failure. using continuously is and just X solutions out other The of CX and XXX plant problems a monitors models. and to AI It accurately me such AI-based data analyzes vertical well ball ingesting by as roller learning advance data prebuilt

built avoid The last, and application operational the in chains than CXI in don't address new and the interface industry across allows Each have to CX Today, work reuse faster to entire to silos. with ] designed reliability AI These applications running we significant application ontologies platform. high-cost user turnkey verticals. all integrations, pipelines, value on [ Holcim workflows AI They're prebuilt that disruptions ability operate thanks remediations. ontologies, applications the AI/ML and to concert, datea can components. deploy

their are as AI benefits of applications AI deployed, business accrue And enterprises pace CX and faster transformation accelerates. more the

suite a be Generative deployed and applications of or AI used that We offer extensible other applications. also stand-alone can CX solutions alongside as prebuilt AI CX

plant we asset and application which these This reports work manufacturer. data structured a data quarter, deployed reports, across unifies orders, inspection asset cetera, on et corrosion This makes performance, accessible at and to quickly CX industrial for AI such risk inspections as large easily data generative unstructured analysis, operators.

reports effectiveness Generative CX federal, immense or has centers these this launched of has for accelerate of potential eliminating diagrams time. delays, improving mistakes risk are text scans contact XX operational turnaround an been the immense and programs, potential engineering wait work times, for which reduce In efforts we reducing experience. and service years and include has handwritten and -- agencies inspectors, the over Some application, Using government the able which old. of inspection streamline government their the AI QX, and costly company day-to-day enhancing of citizen that by to local state

forward images, is interact are the unique market. look a sector We've unstructured data the on in embedded applications available generative data, omni with in market. already signed to and important U.S. that documents, board. state the modal a databases, to provide that the ability pilot understand It's tables, leverage Coast the agencies public the supporting CX structured East LLM We to sensor across AI with any

to few, X.X, in for enterprise the traceability and LAMA, For controls. multiple offering both source and name full Mistral, Claude, and Gemini, granular same unstructured LLMs example, GPT data specialized access a application, structured

enable We to protections with agents production also of in tune tasks, accuracy chain mathematical and scientists and together or workflows initiate and perform state-of-the-art provide and to tools system high-value chain high AI summaries. thought, offer reasoning, example, data to for orchestrate author to guardrails minimal for responses execute LLM perform hallucination, right functions,

secure fine-tuning configure and customers, results services and out-of-the-box provide for custom tools for capture in its provide support gap surfacing own This defense environments. synthesize intelligence across for pipelines detect to We financials. to highly customers. consistencies in and data, pipelines traceability, is it engine unique to their a agents, I'll Hitesh models underlying in Generative scientists cover and offer AI services enterprise-grade to for turn the logs our CX now embedding operating prerequisite AI generative financial for auditability AI is automatically data over air also and and LLMs. developers

Hitesh Lath

provide of non-GAAP are financial our recap additional unless otherwise our noted. All a results Thank color I will figures Ed. on you, and business. now

XX% As of $XX.X revenue. to increased million. revenue quarter representing mentioned, year-over-year million, revenue total XX% increased Tom for the total to year-over-year $XX.X XX% Subscription

which As or recognized consumption-based a ECOE Service revenue of revenue primarily licenses, reminder, ] offerings, time. and standard pricing our our AI is CX is and support pilots applications of for . comprised AI Software services, over software a trials generative as subscription [

maintenance is to accordance Our from license And to ongoing also support in software is and the subscription not services $XX.X made fiscal quarter XXX, was includes revenue in for which million. revenue is licenses of ASC required. when revenue first Professional compared with of XX% revenue total the customer. quarter available XX% 'XX the the recognized as 'XX. fiscal of of in This represents the revenue first revenue total

$XX.X to revenue within XX% services XX% for high remained to was Gross professional the and margin over 'XX. of gross Gross million for for services profit expect We revenue total generally at XX%. margin quarter stay XX%. fiscal was Professional the

the loss Operating quarter million. $XX.X was for

guidance to continued Our on better operating due was loss than focus expense management.

generate during on focus provided by of for was free positive $X.X cash quarter able cash activities $X because flow net Free Our operating million. positive quarter million. flow the was cash We the were management. continued to cash

very in of cash, be closed the million to marketable and an million equivalents continue $XXX.X capitalized We quarter and cash securities, QX. well $XX.X with increase compared to

end including our collections. $XX.X the of bad million, accounts our QX, allowance de strong. accounts $XXX,XXX, Total do was At remains health remains balance not than of concerns of we The less at receivables and million. $XXX.X have regarding minimis unbilled for receivable receivable debt general

last XX XX% During the pilots, from year from quarter. first signed XXX% and last we increase quarter, up

extended still for X- contracts. term active. some or being for had we their are pilots, a subscription X-month or XXX At conversion they in or are converted contract or either to are subscription quarter currently original consumption end, cumulatively signed negotiated This to or consumption which to of XXX means duration

We on continue higher mix revenue cost to during which pressure of the of pilots, margins gross pilot to phase the a carry short-term of our expect customer due cycle. life greater

development and expect force, in in short-term also margin investments including we our sales due to spend. business, and research on operating making We our our are additional pressure marketing

we also full to positive flow expect QX QX negative we to in fiscal be cash QX be but remain make for As to significant year free track for and the for cash continue the investments on and 'XX. business, free flow

quarter. our to for on the move I'll next guidance Now

QX $XX.X million. $XX.X going is Our to million to revenue for be guidance

$XXX of rate year-over-year This $XXX a are maintaining universe. our company growth 'XX. XX% AI to million fiscal software implies for million in making guidance CX companies the XX%, fastest-growing of to one We the public previous of

Our million. for operations to non-GAAP $XX.X $XX.X from guidance QX million for loss is

We are guidance to million maintaining previous our 'XX. million fiscal for $XX of $XXX

to over call turn the to Now I'd like back Tom.

Thomas Siebel

Thanks, Hitesh.

me Let to profitability. path address

of structurally generating cost CX as goods our AI of cost profitable a than revenue. substantially such, And is business. less Our is sold

revenue in and XX% QX year-over-year growth accelerating. was Our

In growth is than years, scale. expect coming rate XX%. the our expense rate was It to that a rate. non-GAAP we now a simply grow our Our expense revenue profitability greater of function at growth generally follows year-over-year

to generally positive expense invest revenue share, over While lines market 'XX fiscal of year our At year in fiscal to believe non-GAAP we 'XX. we growth continue rates. in entire QX growth our be flow year expense we crossing exceed and time, revenue rates converge, and would The consistent for the expect to this will cash profitability.

the and I really speed kind to with to customer CX make about working of customers, there make of about are get on about customers AI, as general it details week. to success, every running to them talk our let's every the want with to out general engaging to are and market, talk their want of to enterprise we the In often We a them dial, day, enterprise -- times sure successful from into their and area partners is not talk the shoulder, day sit multiple on AI the okay? self-sufficient. We're I Now shoulder relates our smoothly everything site applications. home, we that we business

in AI. approach track that benefit over partnership they alone development drives they our demonstrated levels. $X in hands to They hold Promoter from to highest whole This Shell on this boots-on-the-ground optimization. Shell CX our integrity equipment AI working AI has the shell progress have Net back commitment at deployment weekly reviews now executive in estimate Shell. proactive, large written with pieces over is is and XXX of as call satisfaction This generated annual program monitor for We billion. And applications is that the XXXX. CX initially Scores. CX AI production they unpredicted with generate, to started collaboration asset program maintenance close what reflected Shell everything this in We with to of XX,XXX customer

And we're not done.

on new XXXX, collaborate a across metering continues public evident applications, with Edison. We This into These cases, and we customer continue all This enhances infrastructure use Con monitoring. of in be scaled is grid that expect project including out our and operational efficiency, the with it We to some the multiple condition focusing and reservoir smart expanding approach safety in partnership to satisfaction work our oil scale. project. is initially also began infrastructure, ConEd their advanced management service to assets.

$XX reduction is expectations with cost Annual uncovered billion years, more a is over than $X.X project XX projected. The million. million than benefit exceeding projected more over originally of $XXX

asset cost Now ConED addresses customer and and why and of Customer reduces deploying management this meter at satisfaction. the is generative on discrepancies core billing grid missed electric mappings success is and mapping, AI we company. for which the reduces built increases

today of during Now And of cloud for about develop what think software who've we and of nascent. organizations into -- future. and stop to be Things, stop, the before AWS the decade, in [indiscernible] we you the And world. okay, today, on CX people. platform back that, analytics. Azure America, of was was did let's would with the allow address of well enterprise here a the AI take Internet okay? energy, XX enterprise AI original depth existed, the the value in with South okay? in manufacturing, around, the AI at hard governments GPU, enterprise vision AI the Asia, first, winter. moment the before a predictive We that exploit, for the existed and agribusiness, the applications CX that is AI around and platform North okay? big and and included to over over computing now platform, data And when reference advent Europe, a this few and thousands of elastic that This computing, CX those GCP platform a first applications invested believe, the over applications building We they've others. enterprise chains pharma got XXXX, services, company, [indiscernible] with AI been January For AI these of America, decades, government, architecture We okay, began before think touch defense, going of the hard and okay, financial CX deploy in what's

Cloud, market XX history CX broadly and AI Internet years markets fastest-growing as the is the Things, leader of the of recognized power and largest and and for have predictive AI, mandate harness Elastic Now enterprise the of today data It is in one of among extraordinarily one corporate well market AI of large importantly, serve customer CX become to for the Enterprise big software a analytics the software most enterprise late, in this software. government every ubiquitous. in hype, realized to the universe. cacophony AI enterprise satisfaction levels public is And the growing today is demand. current of in world. rapidly this positioned fastest-growing and companies CX is AI highest the value of achieving AI

software you a is our AI's showcasing, to Scores, refer the deep industry, AI driving be, of which supplemental Achieving understanding I expertise AI our solutions. enterprise bottom just other this CX consistently is are satisfaction The to okay, by the satisfied be, relentless called is value deck report unwavering over years the thorough okay, and which honed companies, customer where superior customer [indiscernible]. Okay. software software software of excellence. today, of in of doesn't published leading about deep, companies. CX prefer happen, purport technology all okay, we're in this to Net many third-party from commitment, enterprise it And line benchmarking unmatched okay, against enterprise most our earnings our of a AI, dedication, many companies of needs, result level Promoter

the determine only and AI enterprise leader is exactly in AI that CX be the track. on In realized the criteria customer analysis, value final will will

begin you QA to Now operator all Thank over our session. the I'd like to turn to this

Operator

with comes first Citizens [Operator Patrick line of Instructions] question Walravens Our the JMP. from

Patrick Walravens

[ guys XX band you what looking of characterizing deals specifically, Congratulations. for sort TCV and deal at is where Tom, can in you your chart tone I'm just was the had you start the average like And of $XXX by QX? ]. business out

million, up a So if multiply you like is $XX lot. get together, almost those you which

if just that on So of tone business, you comment could be great. would the just

Thomas Siebel

just range we just to anticipate finding pat, AI, AI for okay? mean, complexity think couldn't I the these from many we advent mean high-value firms, this -- fell and not I Law just anticipated. applications people are of I I like a into would it's it's broad didn't a AI, it's there, AI, assessing is And flavors have understand generative in companies . And of next there. as particularly high complex. say, who AI widgets. of have use the this public we this to generative with cases widgets really of I going We're gold many low-priced market, out we growth simple go in of many very in did is these very that mine the the we're okay, amazed sector, we the that continue by I -- we what's can't multiply, small, widgets to to of enterprise new of kind it's we're enterprise And is for really difficult margin. fascinating. different This that, would model say simply generative priced pretty mean quarter. wild very would rates we say use I -- mean have this on gross -- we diagnostics cases. I and therefore, and And is honestly, I AI, of the mean, is to medical just kind world which this that in business. AI. the applications be this the quarter, difficult the these we that. going where what of enter

Patrick Walravens

Awesome. to you why if think Did bookings up. And people wondering guidance think you strong didn't about for the are follow-up you. the go given be how Hitesh, could did How a ask that? seem probably I -- I

Hitesh Lath

about the QX, You're talking guidance the revenue for guidance.

Patrick Walravens

the the kept No, you for year, same. it

Hitesh Lath

makes growth. us the in of XX% software still companies XX% to one still revenue public fastest-growing That represents company Yes. this it

Operator

[Operator Instructions] comes with line of question Horan Our from Timothy next the Oppenheimer.

Timothy Horan

And said model revenue you been quarter a subscription is some expenses, to the or expenses the can out. next just the lumpy But I modeling trends? Like basically X? color here. rest almost we should difficult professional Tom, good be for know, in this on maybe us year? On has where then the increased services, give The little on point on very of a jump-off it's the just you the and

Thomas Siebel

Let me comply with is. XXX, little subscription revenue we that things we've in quarter. new given would Certain address to under revenue and any guidance, versus it's the and ASC used XX% services be being services that software under our called called XX% services complex. are be now the a guidance That what said, of to guided

revenue services in XX% Our was quarter. this

we're so And well there. within our guidance

what AI. services little higher expected to remember we CX at margins be, Before kind were are than of bemoan the services let's a they the fact

okay, high certification quite XX%. in is margin, our of recall, While everybody, our software margins are you'll XX%, services excess

a for licensing pretending continue be X XX%. but to services I around not to our be we services Company. probably company, these the margins pretty continue focused. year about They're services XX% average our expect services bad [ continue one of will we remember, it focused, But is ], the you are XX%. business. It out X, will XX%. than to bounce a darn okay? -- or in can software greater next But be or not while X of to mean, to a them there, So And good companies okay? we're We're We're

I number is that the think I XX% got.

good work get you it's it. if So can

Timothy Horan

XX% of was a any good forward? the So run there reclassification midpoint this is of quarter items onetime kind rate should or or going

Hitesh Lath

reclassification. No, no

Timothy Horan

focus to expense if where X -- see anything on And we items, or Great. next got. should line Okay. the . they've quarter

Hitesh Lath

Yes.

in as of to well make terms we plan investments our marketing continue as our sales expenses, efforts. force, to R&D So in

Timothy Horan

lastly, And days? Okay. just Great. both who against across there? the up change any these in dynamics competitive pretty out much the mean the run board. you I do

Thomas Siebel

to environment? back the is is to I. Well, Ed, than what You're This competitive it closer Tom.

Edward Abbo

Yes.

is our prospects scale competition science have large And the I up difficult data and organization, across ones the the information that think these to facto applications those enterprise, then themselves. the build [ are that and platform. is default technology, that trying is a or CIO to without do data best AI right ] how out IT figure the de typically tried

the competition de facto the that market So in us. for is

Thomas Siebel

this a because invariably crashing trying from Bangalore, him. just And comes years of hyperscalers in we come CIO and thing down are road build with those all down XX,XXX have because couple the prospects crashing piece/parts this -- to the down out they people around of

just they so the just years the we X come -- And or X them in they're back. put and road down pipeline

Operator

Instructions] the Markets. next Northland comes Capital Latimore Our with line of [Operator question Mike from

Mike Latimore

year-over-year. the value The and kind pilots standard generative pilot growth size expected? was Are the of of of very AI as for the strong sequentially the pilots,

Thomas Siebel

given go about complete, AI takes AI million. the okay? go convert pilot X of The the size the pilots before could to I the our pilot they XX% road kind contract enterprise is And of The pilots, value X contracts. we pilot the complete, into of We've the -- -- generative middle in be negotiated application But the for value of about and will expect off that enterprise $X.X generative take months here of the $X.XX application production then and months a AI or live. by of AI pilot road, to XX%. of usually million, to and the middle middle road the we is XX% for guidance

that's think right. about I

he's to because enormously -- successful successful, the hyperscaler. try not CIO out genius it's honestly, because wasn't they many convert-- this will convert parts the of of that not It's they'll decides some a are convert going itself piece be because some projects. to they not to don't going build XX% back. of can't And convert pilot be these And

Mike Latimore

it. Got it. Got

Okay.

no pilots in this the XX% last you growth from pricing So in value, X like just guidance, getting is or up gives change believe. Is what I improvement? quarter deployed? in landed? in pilots. growth acceleration? -- I is the sounds professional confidence services and big pretty then terms you which is I big is these confidence Or second deals midpoint of the the step-up it think -- what had And revenue quarters, the quarter. that on step the you gives that or a growth, in it it guess Just about biggest you But

Thomas Siebel

the we confidence going best have, judgment is happen. we of the we gave think kind to is what Using okay, professional

I most there Now you we've we -- lot we've public, been of are best quarters, business of model parts think, of and -- we're this trying model I for XX I can that is it, guide quarters. XX indicator do I of the think you And right a here. you I you're to And many what better is what going if the can know than because XX moving been to to. out

quarters. pretty could you XX mean, the We've of pretty been spot last to I much on each take bank that. for the with

or now, that. exceed diligently we'll professional sure going right that's So be be we you're meet working think And That's judgment. going to what do. to best our we're to

Operator

our Crane last with take will Kingsley Ladies Canaccord. and question we of from the gentlemen, line

William Kingsley Crane

that's agreements with spectacular. network with partner agreements the overall. XX GCP, XX

So is could What working efforts bookings to dominant partnership in like to And improve? perspective of deal frequency? it GCP speak would well? as as GCP? partner then contribution is the What's a you outside the from you

Thomas Siebel

bookings I'm think here. I not don't Kings, sure contribution data have I the

I when great. Azure. great. answer mean with guys. that a I GCP AWS The So the I would AWS, And they they people with -- when running work partner gets are I is application money applications mean, money these they when have companies make money with relationship get with can't we're platforms, customer are mean the we building I is fast, We're their don't make of good correctly great for applications. say using their do that we lot doing they up with one. value, what Microsoft, partners us, relationship the

we're a with, CPU storage. or GPU They're resources able them. they're wonderful be or to work for it's And great So all partners, with great consuming companies. consuming privilege resources they're to to consuming us partner and

William Kingsley Crane

right. All

then last just to clarify. And helpful. one, very That's Okay.

[indiscernible] and the For of pilots? state most those agreements, were local

Thomas Siebel

which to. this? to many we that number we kind quarter, many Did in and pilots. the said all you're I'm of not refer They started Yes, how as sure converted how were referring pilots

Hitesh Lath

talk conversions. We don't the No. about

closed quarter, number the We pilots in many how for XX... the have

Thomas Siebel

majority from, say, as to all almost began let's X them They as they pilots. great convert months okay? X production. They all Kingsley, of go pilots, begin the then to and

William Kingsley Crane

congrats understood Yes, sense. context.-- in quarter. Makes the this on

Thomas Siebel

you. Thank everybody. you, Thank

I We think This adventure. is an our quite attention. call. of end this your is the appreciate really

a us I think just we're those breaking breaking it's chance just palpable. who ground of could in have or and ground we're in tell those so for who you enterprise AI. And visit, I of you to it's know exciting have enterprise AI. you, visited I

all your And you for to wish we so we're for continue We and get going your good you it, time. and attention, after to thank you thank a day.

Operator

this gentlemen, for Thank and concludes participating. today's conference you Ladies call.

disconnect. now may You

C3.ai (AI) 4 Sep 242025 Q1 Earnings call transcript