C3 AI reports spectacular growth in its fourth quarter fiscal year 2025, marking a significant return to rapid growth with new pricing models, product mixes, and a robust partner ecosystem. The enterprise AI market is acknowledged as large and rapidly growing, with expectations of trillions in annual economic benefit. The company highlights its pioneering role in the enterprise AI market since 2014 and discusses the challenges and successes in assembling AI components to deliver value to enterprises.

C3 AI has developed a unique enterprise AI application platform after investing billions, enabling rapid design and operation of turnkey AI solutions for issues like predictive maintenance, supply chain optimization, and fraud detection. Testimonials from major clients highlight the significant economic benefits realized from using C3 AI's applications.

The company has experienced significant market growth, focusing on building an ecosystem to address the high demand for enterprise AI applications. Key strategies include forming strategic partnerships with major tech companies like Azure, AWS, and GCP, enabling these partners to effectively sell AI applications worldwide. Notably, Azure recognized the company's AI solutions as preferred choices, listing them for their sales reps and offering commissions for sales. This approach has led to successful, rapid deployments of predictive analytics applications, delivering substantial economic benefits within six months.

The partnership with Baker Hughes, initially formed in 2019, has been significantly expanded and extended until 2028, aiming to address the oil and gas market's needs. This collaboration has generated substantial revenue, notably from major industry players, and involves joint development and delivery of solutions. Additionally, efforts are focused on simplifying sales processes for partners by developing demo applications showcasing the benefits of supply chain optimization, demand forecasting, and predictive maintenance.

The focus has significantly shifted towards arming a large and powerful partner ecosystem with demonstration licenses, which constitute a substantial portion of the current quarter's revenue. These licenses are not only sold to partners but also to customers like Dow Chemical, Shell, and the United States Air Force, aiming to accelerate the adoption of technologies within their organizations and across platforms. This strategy is viewed as an investment in future growth, especially in the unique position as the only pure-play enterprise AI application in a rapidly expanding market. Collaborations with tech giants like Microsoft, AWS, and GCP further accelerate sales by leveraging existing enterprise application master agreements, positioning the company well for growth across diverse sectors including manufacturing, life sciences, and government.

C3 AI holds the patent for generative AI since December 2022, deploying over 100 solutions across various sectors, contributing to a $60 million ARR business. Significant growth is anticipated from additional applications, partner ecosystems, and federal space, particularly in defense and intelligence. The company also excels in state, local government, manufacturing, and supply chain sectors.

C3 AI experienced a 26% compound growth rate last quarter, with robust financial controls and a clear path to profitability. Despite analyst concerns about cash flow, the company maintains a consistent $750 million in cash, attributing this stability to efficient expense management. Revenue growth continues to outpace expense growth, projecting cash positivity and non-GAAP profitability by 2027. The company highlights its leadership in the enterprise AI applications sector, with no significant competitors identified. C3 AI's CTO further discussed the quarter's highlights, emphasizing the use of C3 generative AI in analyzing financial results and KPIs, showcasing the practical application of AI technology.

Total revenue for Q4 reached $108.7 million, marking a 20% increase YoY, with subscription revenue at $87.3 million. Full fiscal year 2025 revenue was $389.1 million, up 25% from the previous year, driven by subscription revenue totaling $326 million.

In fiscal 2025, C3 AI achieved significant milestones, meeting revenue guidance and expanding partnerships, notably renewing and expanding its strategic alliance with Baker Hughes. This partnership has generated over half a billion dollars in revenue from the oil and gas sector and chemical markets. Beyond oil and gas, the company saw a 48% year-over-year increase in non-oil and gas revenue, driven by growth in manufacturing, state and local government, and life sciences. Key achievements include substantial progress in state and local government services, with revenue growing over 100% and agreements closed across 24 states. Partnerships, particularly with Microsoft, have been crucial, with 73% of agreements delivered collaboratively and a notable increase in partner-supported bookings.

The company's alliances with AWS, Google Cloud, McKinsey Quantum Black, and PwC significantly enhance global delivery of advanced enterprise AI solutions. Notably, the partnership with McKinsey Quantum Black has seen successful joint agreements and training sessions. Additionally, the federal business has seen substantial growth, highlighted by a $450 million contract ceiling increase from the US Air Force for scaling sensor-based algorithms on the Panda Predictive Maintenance Platform, and the extension of the Pluto platform for real-time fuel operation visibility with the Defense Logistics Agency. New collaborations, such as with Arc Field, further expand the company's footprint in defense and intelligence communities.

In Q4 of fiscal year 2025, C3 AI experienced significant growth through new and expanded agreements with various US defense and intelligence agencies, alongside major advancements in generative and AIC AI technologies. These innovations led to notable deployments across multiple industries, including healthcare, aviation, and government sectors, demonstrating substantial efficiency gains and societal impact, as exemplified by the University of Southern California Shoah Foundation project which saved years of manual effort and significant costs through AI-driven transcription and indexing of multilingual survivor testimonies.

Ci AI is poised for growth in the burgeoning AI applications market, leveraging a robust suite of enterprise solutions, expanding partner ecosystem, and deep traction across diverse verticals. With a unique focus on delivering turnkey AI applications, the company aims to capitalize on market demand, accelerate growth through strategic alliances, penetrate new accounts, develop new applications, and expand into underserved markets, particularly in Europe. Additionally, Ci AI anticipates growth from licensing its platform to third parties for differentiated AI solutions and harnessing the potential of generative AI and AIC AI markets.

Total revenue surged to $8.7 million, with subscription revenue climbing 9% to $87.3 million. Software license sales reached $33.8 million, facilitating AI adoption. Bookings notably escalated to $135.4 million, marking a significant increase from the previous year.

The company reports significant year-over-year growth in non-baker used revenue and professional services revenue, attributing much of this success to prioritized engineering services (Pes). Plans for fiscal 2026 include expecting professional services revenue, including Pes, to maintain a certain percentage of total revenue while anticipating subscription and Pes revenue to account for 90% or more. The company is also excited about expanding its distribution network and go-to-market initiatives with partners such as Microsoft, AWS, and McKenzie. A key strategy involves activating tens of thousands of Azure sales reps to deliver C3 AI solutions, focusing on partnerships at the ground level to leverage sales force synergies.

The partnership between a technology company and an energy company has been expanded for the fifth time, solidifying their collaboration in developing solutions and serving customers worldwide.

The speaker discusses the broader revenue guidance range for the fiscal year, attributing it to acknowledged risks including geopolitical tensions, European economic instability, and potential government shutdowns, emphasizing the need to accommodate unanticipated events impacting the business environment.

The company is on track with its planned execution, growing at a steady pace, and anticipates a bright future. The management thanks the attendees for their continued support and interest, promising to keep stakeholders updated on advancements in the coming fiscal years.