Oscar Cantu

Oscar Cantu inquired about the recurring nature of C3.ai's business given the decline in top-line revenue, seeking clarity on the proportion of recurring versus one-time revenue and visibility for growth in fiscal year 2027. He also asked for more details regarding the specific reasons for the weakness observed in North America and Europe during the quarter.

Answer

Hitesh Lath, Chief Financial Officer, confirmed that 90% of the quarter's revenue came from subscription, with no non-recurring subscription revenue. Stephen Ehikian, Chief Executive Officer, attributed the weakness in North America and Europe simply to sales execution, stating he would apply the successful federal playbook, which involves flattening the organization and direct reporting, to these regions.

Oscar Cantu from Morgan Stanley asked for clarification on the recurring nature of the business given the top-line decline, inquiring about the proportion of recurring versus one-time revenue and the visibility for fiscal year 2027 growth. He also sought more detail on the specific reasons for the weakness observed in North America and Europe during the quarter.

Answer

CFO Hitesh Lath stated that 90% of the quarter's revenue was subscription-based, with no non-recurring subscription revenue. CEO Stephen Ehikian attributed the weakness in North America and Europe simply to sales execution, taking full responsibility and outlining plans to apply the successful federal sales playbook to these regions by flattening the organization.