C3.ai, Inc. has recently released its 10-K report, providing a comprehensive overview of its financial performance and operations for the fiscal year ended April 30, 2025. The company operates as an enterprise artificial intelligence (AI) software company, offering a range of solutions including the C3 AI platform, C3 AI CRM Suite, C3 Generative AI, and various industry-specific applications for sectors such as oil and gas, financial services, healthcare, and telecommunications.
In the fiscal year ended April 30, 2025, C3.ai generated total revenue of $389.1 million, marking a significant 25.3% increase compared to the prior fiscal year. Subscription revenue accounted for a substantial portion of the total revenue, representing 84% of the company's revenue in the same period. Professional services revenue, including engineering services and service fees, constituted 16% of the total revenue.
The company's go-to-market strategy has historically focused on large organizations recognized as leaders in their respective industries, serving as proof points for potential customers. C3.ai introduced a change to its go-to-market strategy in the first quarter of fiscal year 2023, allowing new customers to subscribe to its products at smaller initial contract sizes and pay for services based on their monthly consumption of vCPU and vGPU hours.
One of the key business metrics for C3.ai is the "Initial Production Deployment," which reflects trends in market penetration and customer acquisition. The company executed 174 initial production deployment agreements in the fiscal year ended April 30, 2025, indicating a significant increase from the previous fiscal years.
Remaining Performance Obligations (RPO) provide insight into committed revenue, with RPO totaling $235.1 million as of April 30, 2025, including non-cancellable commitments. This metric is essential for understanding future revenue growth, particularly for consumption-based pricing agreements.
C3.ai's financial performance and future success depend on factors such as customer acquisition, retention, and expansion. The company is focused on growing its customer base, retaining existing customers, and expanding customers' usage of its AI software by addressing new use cases and developing additional applications.
Following these announcements, the company's shares moved -0.59%, and are now trading at a price of $23.46. If you want to know more, read the company's complete 10-K report here.
