Latest news with #TomSiebel
Globe and Mail
16-07-2025
- Business
- Globe and Mail
Where Will C3.ai Stock Be in 1 Year?
Key Points endured some tough growing pains over the past few years. But its revenues are still rising and its gross margins are stabilizing. It could climb higher over the next 12 months, but it should remain below its IPO price. 10 stocks we like better than › (NYSE: AI) was once a hot artificial intelligence (AI) stock. Back in December 2020, it more than quadrupled from its initial public offering (IPO) price of $42 to a record high of $177.47 in just two weeks. At the time, investors were impressed by its rapid growth rates, catchy ticker symbol, and the fact that it was led by Tom Siebel, who sold his previous company -- Siebel Systems -- to Oracle for $5.8 billion in 2006. The buying frenzy in meme and growth stocks amplified those monstrous gains. But today, stock trades at about $26. It fizzled out as its growth cooled off, it racked up steep losses, and rising interest rates popped its bubbly valuations. It hasn't traded above its IPO price since last December, and it's declined roughly 12% over the past 12 months. Let's see where it might be headed over the next year. How does make money? AI modules can be plugged into an organization's existing software infrastructure to ingest and analyze a wide range of data. Those modules can also be run as stand-alone services. Its modules are often used to detect safety issues, fraudulent transactions, and operating inefficiencies. It mainly serves government clients and large enterprise customers across the energy, industrial, and financial sectors, and its top customer is the energy technology giant Baker Hughes. initially only offered subscriptions, but it rolled out consumption-based fees in late 2022 to attract more customers as rising interest rates stirred up some fierce macro headwinds. That move reduced its recurring revenues and the stickiness of its ecosystem, but it broadened its market by reaching smaller and more budget-conscious customers. Why were its last few years challenging? In fiscal 2023 (which ended in April 2023), revenue only rose 6% as the competitive headwinds, a challenging macro environment, and the cannibalization of its subscriptions with its consumption-based fees throttled its growth. Its adjusted gross margin also dipped 2 percentage points to 77% as its pricing power waned. However, revenue rose 16% in fiscal 2024 and 25% in fiscal 2025. That acceleration was driven by its new federal contracts; fresh partnerships with Microsoft, Amazon Web Services (AWS), and McKinsey; and its rollout of more modules for generative AI applications. Its adjusted gross margin dropped another 8 percentage points to 69% in fiscal 2024 as it relied on more low-margin pilot trials to attract more customers. But in fiscal 2025, that figure expanded to 70% as it converted more of those pilot programs into full-priced deployments. It also expanded its higher-margin subscriptions again. What happened to over the past year? Over the past year, year-over-year revenue growth stabilized above 20% as its adjusted gross margins improved. That recovery was driven by declining interest rates, the growth of the AI market, and its broadening customer base. Metric Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Revenue growth (YOY) 20% 21% 29% 26% 26% Adjusted gross margin 69% 68% 70% 70% 71% Data source: YOY = year over year. More importantly, renewed its joint venture with Baker Hughes, which accounted for more than 30% of its revenue, for an additional three years. That renewal allayed some bearish concerns about abruptly losing its top client before it could diversify its customer base. What will happen over the next year? expects its revenue to rise 15%-25% in both the first quarter of fiscal 2026 and the full year. Analysts expect its revenue to increase 20% to $465 million for the full year. With a market cap of $3.5 billion, stock doesn't seem that expensive at 8 times this year's sales. But it isn't expected to break even anytime soon. At the beginning of fiscal 2024, it abandoned its near-term goal of turning profitable on an adjusted basis by the end of the year in favor of ramping up its investments in its AI-oriented modules. For fiscal 2026, expects to post an adjusted operating loss of $65 million-$100 million. That wouldn't be much of an improvement from its adjusted operating loss of $88 million in fiscal 2025. It will also likely continue to spend a lot of cash on its stock-based compensation expenses, which rose 7% to $231 million in fiscal 2025 and consumed 59% of its revenue. On a generally accepted accounting principles (GAAP) basis, analysts expect its net loss to widen from $288 million in fiscal 2025 to $302 million in fiscal 2026. For fiscal 2027, analysts expect its revenue to rise 19%. Assuming it meets those expectations and still trades at 8 times its forward sales, its stock price could rise about 26% to $33 over the next 12 months. That would be a decent gain, but it would remain far below its IPO price and likely underperform some of the market's higher-growth AI plays. Should you invest $1,000 in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Microsoft, and Oracle. The Motley Fool recommends and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
16-07-2025
- Business
- Yahoo
Where Will C3.ai Stock Be in 1 Year?
Key Points endured some tough growing pains over the past few years. But its revenues are still rising and its gross margins are stabilizing. It could climb higher over the next 12 months, but it should remain below its IPO price. 10 stocks we like better than › (NYSE: AI) was once a hot artificial intelligence (AI) stock. Back in December 2020, it more than quadrupled from its initial public offering (IPO) price of $42 to a record high of $177.47 in just two weeks. At the time, investors were impressed by its rapid growth rates, catchy ticker symbol, and the fact that it was led by Tom Siebel, who sold his previous company -- Siebel Systems -- to Oracle for $5.8 billion in 2006. The buying frenzy in meme and growth stocks amplified those monstrous gains. But today, stock trades at about $26. It fizzled out as its growth cooled off, it racked up steep losses, and rising interest rates popped its bubbly valuations. It hasn't traded above its IPO price since last December, and it's declined roughly 12% over the past 12 months. Let's see where it might be headed over the next year. How does make money? AI modules can be plugged into an organization's existing software infrastructure to ingest and analyze a wide range of data. Those modules can also be run as stand-alone services. Its modules are often used to detect safety issues, fraudulent transactions, and operating inefficiencies. It mainly serves government clients and large enterprise customers across the energy, industrial, and financial sectors, and its top customer is the energy technology giant Baker Hughes. initially only offered subscriptions, but it rolled out consumption-based fees in late 2022 to attract more customers as rising interest rates stirred up some fierce macro headwinds. That move reduced its recurring revenues and the stickiness of its ecosystem, but it broadened its market by reaching smaller and more budget-conscious customers. Why were its last few years challenging? In fiscal 2023 (which ended in April 2023), revenue only rose 6% as the competitive headwinds, a challenging macro environment, and the cannibalization of its subscriptions with its consumption-based fees throttled its growth. Its adjusted gross margin also dipped 2 percentage points to 77% as its pricing power waned. However, revenue rose 16% in fiscal 2024 and 25% in fiscal 2025. That acceleration was driven by its new federal contracts; fresh partnerships with Microsoft, Amazon Web Services (AWS), and McKinsey; and its rollout of more modules for generative AI applications. Its adjusted gross margin dropped another 8 percentage points to 69% in fiscal 2024 as it relied on more low-margin pilot trials to attract more customers. But in fiscal 2025, that figure expanded to 70% as it converted more of those pilot programs into full-priced deployments. It also expanded its higher-margin subscriptions again. What happened to over the past year? Over the past year, year-over-year revenue growth stabilized above 20% as its adjusted gross margins improved. That recovery was driven by declining interest rates, the growth of the AI market, and its broadening customer base. Metric Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Revenue growth (YOY) 20% 21% 29% 26% 26% Adjusted gross margin 69% 68% 70% 70% 71% Data source: YOY = year over year. More importantly, renewed its joint venture with Baker Hughes, which accounted for more than 30% of its revenue, for an additional three years. That renewal allayed some bearish concerns about abruptly losing its top client before it could diversify its customer base. What will happen over the next year? expects its revenue to rise 15%-25% in both the first quarter of fiscal 2026 and the full year. Analysts expect its revenue to increase 20% to $465 million for the full year. With a market cap of $3.5 billion, stock doesn't seem that expensive at 8 times this year's sales. But it isn't expected to break even anytime soon. At the beginning of fiscal 2024, it abandoned its near-term goal of turning profitable on an adjusted basis by the end of the year in favor of ramping up its investments in its AI-oriented modules. For fiscal 2026, expects to post an adjusted operating loss of $65 million-$100 million. That wouldn't be much of an improvement from its adjusted operating loss of $88 million in fiscal 2025. It will also likely continue to spend a lot of cash on its stock-based compensation expenses, which rose 7% to $231 million in fiscal 2025 and consumed 59% of its revenue. On a generally accepted accounting principles (GAAP) basis, analysts expect its net loss to widen from $288 million in fiscal 2025 to $302 million in fiscal 2026. For fiscal 2027, analysts expect its revenue to rise 19%. Assuming it meets those expectations and still trades at 8 times its forward sales, its stock price could rise about 26% to $33 over the next 12 months. That would be a decent gain, but it would remain far below its IPO price and likely underperform some of the market's higher-growth AI plays. Do the experts think is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,060% vs. just 179% for the S&P — that is beating the market by 881.02%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Microsoft, and Oracle. The Motley Fool recommends and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Where Will Stock Be in 1 Year? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-07-2025
- Business
- Yahoo
Can C3.ai's New HII Deal Boost Its Defense AI Momentum?
AI newly announced partnership with defense contractor HII HII could prove pivotal for its growth trajectory, mainly in the government sector. The collaboration aims to integrate Enterprise AI technology into the planning, operations, and supply chains of HII's shipbuilding divisions, potentially accelerating the U.S. Navy's fleet isn't just another defense tech partnership. For this alliance expands its federal footprint at a time when the Department of Defense is rapidly digitizing operations. By deploying its AI capabilities at Newport News Shipbuilding and Ingalls Shipbuilding, will not only support national defense but also showcase its enterprise-grade software in one of the most complex industrial environments. This collaboration builds on a successful six-month pilot program at HII's Ingalls Shipbuilding, where algorithms were used to optimize scheduling and labor allocation. Now, the companies are scaling that success across HII's operations. The deployment will focus initially on enhancing planning and throughput in building amphibious ships, destroyers, aircraft carriers, and real-time optimization is exactly where strength lies. By combining its C3 Agentic AI Platform with HII's production systems, the company is delivering a solution that addresses a critical bottleneck in national defense: shipbuilding delays. The scale-up from the pilot project sends a strong signal that technology has real-world viability—and now, broader validation within defense infrastructure. The HII deal follows a string of wins for in the defense and intelligence sectors. In the fourth quarter of fiscal 2025, expanded its work with the U.S. Air Force, securing a $450 million contract ceiling for its PANDA predictive maintenance platform. It also deepened engagement with the Department of Defense, Navy, Marine Corps, and intelligence partnerships are not just symbolic. They help build recurring revenue while positioning as a go-to vendor for AI-driven operational intelligence in mission-critical applications. CEO Tom Siebel described defense as a "large and rapidly growing business" during the recent fiscal fourth-quarter earnings call, reinforcing its significance to long-term growth strategy. Beyond federal contracts, broader performance has been strengthening. In the fiscal fourth quarter, the company reported revenues of $108.7 million, marking 26% year-over-year growth. In fiscal 2025, total revenues of $389.1 million increased 25% year over year, marking the third consecutive year of accelerating top-line growth. Subscription and prioritized engineering services accounted for 96% of total revenues—a sign of increasing product stickiness and lower dependence on one-off the renewal of a key alliance with Baker Hughes BKR — a relationship that has already generated more than $500 million in revenue — further bolsters credibility and reach in industrial markets. This kind of customer longevity matters as the company scales its applications across energy, manufacturing, and now, bookings have also exploded, growing 419% year over year in the fiscal fourth quarter. now collaborates with giants like Microsoft MSFT, AWS, Google Cloud, and McKinsey QuantumBlack. These alliances not only boost distribution but also enhance credibility with enterprise buyers, especially in regulated and high-risk sectors like defense. The partnership with HII also underscores the relevance of Agentic AI platform—an innovation the company has patented and now deployed in over 100 use cases across multiple industries. Unlike other AI vendors that focus on tools or infrastructure, delivers ready-to-use applications for specific problems such as predictive maintenance and supply chain verticalized, application-first model sets apart, especially as enterprise buyers increasingly seek AI tools that solve business problems out of the box. The HII deployment, like PANDA for the Air Force or Pluto for the Defense Logistics Agency, is another example of how technology is becoming essential infrastructure. shares have witnessed an 11.8% jump in the past three months, outperforming the Zacks Computers - IT Services industry's increase of 5.8%. At the same time frame, the Zacks Computer and Technology sector and the S&P 500 Composite have gained 19% and 9.1%, respectively. Share Price Performance Image Source: Zacks Investment Research The Zacks Consensus Estimate for fiscal 2026 and 2027 loss per share has narrowed to 37 cents and 16 cents from a loss of 48 cents and 25 cents in the past 30 days, respectively. The estimated figure for fiscal 2026 reflects an improvement from the year-ago reported loss of 41 cents per Zacks Consensus Estimate for fiscal 2026 and 2027 sales implies growth of 20.1% and 21.8%, respectively. Image Source: Zacks Investment Research Despite the recent gain, AI is priced at a discount relative to its industry. It has a forward 12-month price-to-sales ratio of 6.81, which is well below the industry average. Valuation Image Source: Zacks Investment Research The HII partnership arrives at a time when a Zacks Rank #2 (Buy) company, is building momentum across multiple fronts: strong revenue growth, expanding partner ecosystems, renewed customer relationships, and an unmatched position in AI-powered enterprise applications. Importantly, it adds yet another proof point in the defense sector, which has become one of the company's fastest-growing verticals. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report Inc. (AI) : Free Stock Analysis Report Baker Hughes Company (BKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
C3 AI stock jumps: CEO talks Baker Hughes, China strategy, & more
C3 AI (AI) stock is surging after the company reported earnings that beat estimates and announced an extension of its joint venture with Baker Hughes (BKR) to continue development of artificial intelligence (AI) solutions for the oil, gas, and chemical industries. C3 AI founder and CEO Tom Siebel joins Morning Brief with Madison Mills and Brad Smith to discuss the Baker Hughes joint venture, government contract opportunities, export controls, and the company's China strategy. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. C3 AI shares surging after topping fourth quarter expectations with revenue up 26% from a year prior. The AI software company also renewing and expanding its joint venture with energy technology company Baker Hughes to continue to develop AI solutions for the oil, gas, and chemical industries. Joining us now, Tom Siebel, C3 AI's founder and CEO. Tom, great to speak with you. Thank you so much for joining us. I want to start on that partnership because this is something that I have been asking you about for years because investors wanted to know if that partnership was going to continue. What went into those conversations and how did you get that deal done? We've had an important strategic alliance in place with Baker Hughes since 2018. We've extended it, I think four times until now. So, I mean it's been extended, extended, extended, extended. And now we've extended it for another three years, both in term and scope. So, I mean, it was a natural thing to do. I mean it's a great partnership. We've closed, I think over half a billion dollars in revenue together. Uh we've expanded into, you know, Shell, Exon Mobile, LyondellBasell, Flint Hills Resources, Eni, Petronas, Qatar Gas. So it's hugely successful. And I think that the speculation that somehow this wasn't going to be extended was candidly kind of silly. Tom, good to hear that you're doing better and glad to hear that you're back out there traveling, and sounds like you've got an action packed schedule both speaking with some of the leaders in Washington DC as well as just trying to get a sense of the the the pulse of the businesses that you work with closely. Outside of Baker Hughes, what are you hearing from some of the decision makers for big deals in the perhaps scrutiny for spends that they're facing right now within their corporations? Uh federal government businesses is huge. Uh as they embrace uh commercial off the shelf solutions for uh enterprise AI and what be it FDA, be it health and human services, defense Intel, I mean, we just announced this morning another expansion of our Air Force relationship. I think it's almost now approaching a half a billion dollars in business just for that contract. State and local government businesses is huge. Um manufacturing, supply chain, banking, life sciences, enterprise AI is a very rapidly growing market. And this is being reflected in the increasing growth rates for C3 AI. Two years ago, it grew 6%, last year it grew 16%. This year, uh top line growth was 25%. That would make it, I think, one of the five fastest growing companies in the in the in the public software universe. Well, Tom, the stock is still down about 15% year to date, but I I wonder if we can talk a little bit about some of the headwinds that are facing broader AI giants right now, especially when it comes to export curbs, which obviously came up on Nvidia's earnings call. What are you seeing in terms of how any export controls might be impacting demand in the sector? Well, first of all, you know, our situation is a little bit different than Nvidia because we have done business in China ever. And we've made it a strict rule not to do business in China. We don't do business in Russia. So we just kind of don't do business in bad places. So export controls have had, you know, to date, you know, no impact on our business. I understand that, Tom, but I'm I'm curious about, I mean, Jensen Wong said it himself, it's leaving $50 billion dollars on the table. Do you see a world where we start to see the AI market in China heating up and then companies like yours can't take advantage of that potential revenue stream because of export controls? Um, no, we have we made a decision independent of the United States government to not do business in China. We made that business we made that decision in 2014. Um, we knew this story would not end well. And so we feel very comfortable not providing our technology to the People's Republic of China. And so, making the decision not to do business in China, but we know that the administration has also talked about tariffing cloud computing and even IT services, which is something that it sounds like would impact some of the applications that you are able to power through other partners around the world. What are you hearing from the elected officials in your talks with them and and how are you also going to bat for C3 AI that investors should know about so that you're not seeing any type of tariff on your own applications or services? Well, I'm in Washington DC today as you know, uh talking with the United States government in many aspects. But there's been no discussion uh that we've encountered that it will affect our ability uh to provide our technology to our customers, be it in the Middle East, uh be it in Europe, or uh South America. So we've seen no discussion that affects our ability to sell. I think it does affect chip manufacturers. It does affect Nvidia. It does affect others, but I've heard nothing that will have any effect on us. Would love to be a fly on the wall in some of those meetings, Tom. Thanks for taking the time here today. Thank you. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
AI Q1 Earnings Call: Partner Ecosystem Expansion and Diversification Offset Guidance Caution
Artificial intelligence (AI) software company (NYSE:AI) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 25.6% year on year to $108.7 million. Its non-GAAP loss of $0.60 per share was significantly below analysts' consensus estimates. Is now the time to buy AI? Find out in our full research report (it's free). Revenue: $108.7 million (25.6% year-on-year growth) Adjusted EPS: -$0.60 vs analyst estimates of -$0.20 (significant miss) Adjusted Operating Income: -$31.17 million vs analyst estimates of -$35.18 million (-28.7% margin, 11.4% beat) Revenue Guidance for Q2 CY2025 is $104.5 million at the midpoint, roughly in line with what analysts were expecting Operating Margin: -81.8%, up from -95.1% in the same quarter last year Billings: $112.3 million at quarter end, up 33.3% year on year Market Capitalization: $3.06 billion first quarter results were shaped by rapid expansion of its partner ecosystem, diversification beyond oil and gas, and increased sales of demonstration licenses. Management attributed revenue growth to deepened alliances with Microsoft Azure, AWS, and Baker Hughes, while highlighting 48% year-over-year growth in non-oil and gas verticals. CEO Tom Siebel noted the company's focus on providing turnkey enterprise AI applications, emphasizing the value delivered through predictive maintenance, supply chain optimization, and other production-grade solutions. He stated, 'Our approach has been unique and is highly differentiated from everyone in the market. We are an enterprise AI application pure play.' The company also pointed to a growing number of customer deployments across manufacturing, government, and life sciences as key contributors to its performance. Looking forward, outlook is grounded in broadening its partner-driven sales motion and accelerating adoption of its generative and agentic AI products. Management identified a robust pipeline in federal, state, and local government and highlighted the expanded Baker Hughes partnership as a foundation for sustained energy sector growth. CFO Hitesh Lath explained that investments in sales and R&D would moderate gross and operating margins in the near term, but anticipated that 'revenue growth rate will continue to exceed our expense growth rate, so profitability remains simply a matter of scale.' Management also warned that geopolitical and budgetary risks could introduce volatility, stating that its guidance range was widened to account for 'real market risk that's out there.' Management credited the quarter's growth to stronger industry diversification, a larger partner network, and initial traction in generative and agentic AI deployments. Renewed alliances and expanded government contracts were noted as particularly impactful. Partner-driven sales acceleration: Over 70% of new agreements in the past year involved partners, with collaborations such as Microsoft Azure and AWS materially increasing distribution. Q1 saw a 419% increase in partner-supported bookings, indicating growing leverage from these alliances. Diversification beyond oil and gas: Non-oil and gas revenue rose 48% year-on-year, with significant gains across manufacturing, state and local government, and life sciences. Notable customer wins included US Steel, Rolls Royce, and multiple state agencies. Baker Hughes renewal fuels stability: The renewed and expanded Baker Hughes partnership—now extended through 2028—remains a cornerstone for energy vertical and secures an established pipeline for joint solutions in oil, gas, and chemicals. Government sector momentum: contract ceiling increase with the US Air Force Rapid Sustainment Office and expanded deployments in defense logistics and intelligence highlight growing federal traction. The Panda predictive maintenance platform, adopted for military aircraft, was cited as a key driver. Generative and agentic AI application growth: The company closed 66 new generative AI deployments across 16 industries in the past year, and agentic AI solutions grew into a $60 million annualized run-rate business, demonstrating tangible customer adoption beyond proof-of-concept. expects future growth to be driven by continued expansion of its partner ecosystem, new AI product launches, and deeper penetration in government and commercial sectors. Partner engagement scale-up: Management aims to activate thousands of cloud provider sales representatives to jointly target hundreds of enterprise accounts, focusing on enabling more effective demos and accelerating sales cycles through simplified contracting processes. Federal and regulated market expansion: The company anticipates further growth in the government sector, citing expanded contracts with the US Air Force, Department of Defense, and new alliances with system integrators. Management expects these relationships to drive increased demand for AI solutions in mission-critical applications. Investment in innovation and margin impact: Continued investment in R&D, sales capacity, and partner enablement is expected to weigh on near-term margins. However, management believes the scale of opportunity in generative and agentic AI will support long-term operating leverage and eventual profitability. Looking ahead, the StockStory team will monitor (1) progress in scaling the partner-led sales model, especially activation of major cloud provider sales forces; (2) the pace of new enterprise and government AI deployments across diversified industries; and (3) margin trends as the company balances near-term investments with its stated goal of reaching profitability. Expansion in Europe and development of OEM licensing arrangements will also be key signposts for execution. currently trades at a forward price-to-sales ratio of 6.7×. Should you double down or take your chips? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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