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- **Revenue Growth**: Q2 revenue up 7% QoQ to $75.1M, with subscription at 93%. Bookings surged 49% QoQ to $86M, driven by 17+ million-dollar deals.
- **Federal Dominance**: Federal bookings rose 89% YoY, accounting for 45% of total, despite a 43-day government shutdown.
- **Product Innovation**: Launch of C3 AI Agentic Automation targets RPA market, recognized as top industrial AI platform.
- **Partnership Momentum**: Microsoft and AWS contributed $130M in bookings, with joint pipeline up 146% YoY.
- **Financial Focus**: Operating loss $42.2M, with $10.7M QoQ expense reduction. FY26 revenue guidance $289.5-309.5M, reflecting sales and marketing investment.

**【Management Opening Remarks】**
- Amit Berry welcomed participants and outlined the call structure, emphasizing non-GAAP financial measures and forward-looking statements. The press release and supplemental materials were available online.

**【CEO Commentary】**
- **Q2 Results**: Revenue grew 7% sequentially to $75.1 million, with subscription revenue at 93% of total. Bookings surged 49% QoQ to $86 million, driven by 17+ million-dollar deals and 6 over $5 million.
- **Federal Growth**: Despite a 43-day government shutdown, federal bookings rose 89% YoY, accounting for 45% of total. Wins included U.S. Department of Health and Human Services, Department of War, and intelligence community contracts.
- **Private Sector Expansion**: New clients like AMD, GSK, and Signature Aviation highlighted AI adoption across finance, production, and supply chain. GSK expanded enterprise-wide after seeing 20% demand forecasting accuracy improvement.
- **Partnerships**: Microsoft and AWS contributed $130 million in bookings, with joint pipeline growing 146% YoY. 89% of Q2 bookings came through the partner ecosystem.
- **Product Innovation**: Launch of C3 AI Agentic Automation enables autonomous AI agents for RPA, expanding addressable market. Recognized as top industrial AI platform by Verdantix.
- **Execution Plan**: Focused on disciplined sales execution, IPD conversions, and product leadership in AI-native applications. 394 IPDs signed, 269 active, with many converting to subscriptions.

**【CFO Financial Commentary】**
- **Revenue Breakdown**: Subscription ($70.2M, 16.5% QoQ), PES ($3.8M), and demo licenses ($21.9M). Gross margin 54%, down due to IPD costs. Operating loss $42.2M, net loss $34.8M.
- **Expense Management**: $10.7M QoQ expense reduction through cost control. Free cash flow negative $46.9M, with $675M cash on hand.
- **Guidance**: Q3 revenue $72-80M, FY26 $289.5-309.5M. Non-GAAP loss $180.5-210.5M, reflecting increased sales and marketing spend.

**【Q&A Highlights】**
- **Business Decline**: Stephen attributed prior quarter's poor performance to sales execution issues, but highlighted strong demand and a renewed focus on IPD rigor and customer value delivery.
- **Federal Outlook**: Federal market growth driven by COTS adoption, AI Action Plan, and industrial base revitalization. 89% YoY federal bookings growth expected to continue.
- **Accountability**: Metrics like bookings growth, IPD conversions, and subscription expansion will track progress. Q3 bookings and FY26 revenue targets reflect this focus.

C3.ai, Inc.(AI)-20251204-2026 Q2 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

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