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Vir Biotechnology Provides Corporate Update and Reports Fourth Quarter and Full Year 2024 Financial Results

– Phase 3 ECLIPSE registrational clinical program in chronic hepatitis delta on track to begin in the first half of 2025

– Tobevibart and elebsiran in chronic hepatitis delta received U.S. FDA Breakthrough and Fast Track designations and EMA PRIME and Orphan Drug designations

– Compelling early clinical response signals and promising safety profiles for dual-masked T-cell engagers VIR-5818 and VIR-5500 in heavily pretreated patients with solid tumors, with potential for expanded therapeutic index

– Company plans to initiate a Phase 1 study of VIR-5525, its dual-masked EGFR-targeting T-cell engager, in the first half of 2025

– Focused prioritization and disciplined capital deployment of $1.10 billion in cash, cash equivalents and investments enable cash runway into mid-2027

– Conference call scheduled for February 26, 2025 at 1:30 p.m. PT / 4:30 p.m. ET

SAN FRANCISCO–(BUSINESS WIRE)–
Vir Biotechnology, Inc. (Nasdaq: VIR), today provided a corporate update and reported financial results for the fourth quarter and full year ended December 31, 2024.

“2024 was a year of transformation for Vir Biotechnology as we successfully defined and executed on our renewed strategic direction, focusing our resources on our most promising programs in infectious diseases and oncology,” said Marianne De Backer, M.Sc., Ph.D., MBA, Chief Executive Officer, Vir Biotechnology. “As we enter 2025, we are poised for significant advancement with the initiation of our Phase 3 registrational program in chronic hepatitis delta and further clinical progression of our dual-masked T-cell engagers in solid tumors. Our disciplined capital deployment and strategic approach to partnerships enable us to maximize value creation from our pipeline and deliver transformative therapies to patients.”

Pipeline Programs

Chronic Hepatitis Delta (CHD)

• ECLIPSE Phase 3 registrational clinical program in chronic hepatitis delta is advancing with the first patient in (FPI) expected during the first half of 2025.

• Positive data from the SOLSTICE Phase 2 clinical trial were presented at the American Association for the Study of Liver Diseases (AASLD) The Liver Meeting^® in November 2024. This data demonstrated the potential of the first-of-its-kind investigational combination to address a critical unmet need in CHD, showing rapid and sustained virologic suppression, using the most stringent measure of zero detectable hepatitis delta RNA in the blood or target not detected, (TND defined as HDV RNA < 0 IU/mL), and no treatment-related serious adverse events (SAEs).

• Tobevibart and elebsiran combination therapy has received multiple regulatory designations potentially supporting an expedited development and review process and recognizing the significant unmet need in CHD: U.S. FDA Breakthrough Therapy designation, U.S. FDA Fast Track designation, European Priority Medicines (PRIME) designation and European Orphan Drug designation.

Solid Tumors

• In January 2025, the Company presented encouraging preliminary safety and efficacy data in ongoing Phase 1 dose escalation trials for its dual-masked T-cell engager (TCE) programs.
  • VIR-5818, the only dual-masked HER2-targeting TCE in clinical trials, showed tumor shrinkage across various tumor types in 50% (10/20) of participants receiving doses ≥400 µg/kg, with confirmed partial responses in 33% (2/6) of participants with HER2-positive colorectal cancer (CRC).

  • VIR-5500, the only dual-masked PSMA-targeting TCE in clinical trials, showed PSA reductions in 100% (12/12) of metastatic castration resistant prostate cancer (mCRPC) patients after an initial dose ≥120 µg/kg. PSA₅₀ response was confirmed in 58% (7/12) of participants.

  • Both clinical candidates have shown promising safety profiles, with maximum tolerated dose (MTD) not yet reached, no dose-limiting cytokine release syndrome (CRS) observed and no CRS greater than grade 2.

• Initial clinical data demonstrate the PRO-XTEN™ masking technology’s potential to minimize systemic toxicity while enabling selective killing of cancer cells in the tumor microenvironment, minimizing CRS and expanding the therapeutic index compared to traditional therapeutic approaches.

• The Company is advancing VIR-5818 and VIR-5500 through ongoing Phase 1 dose escalation studies, aiming to further optimize dosing and efficacy. Additionally, the Company plans to initiate a Phase 1 study of VIR-5525, its dual-masked EGFR-targeting TCE, in the first half of 2025, evaluating its potential across a number of solid tumor indications.

Chronic Hepatitis B (CHB)

• The Company anticipates functional cure data from the 24-week follow-up of the MARCH Part B Phase 2 trial in the second quarter of 2025.

• Positive end-of-treatment results of the MARCH Part B Phase 2 trial evaluating tobevibart and elebsiran in combination with PEG-IFNα or tobevibart and elebsiran alone were presented at AASLD The Liver Meeting® in November 2024. The data demonstrated compelling hepatitis B surface antigen (HBsAg) loss and anti–hepatitis B surface antibody (anti-HBs) development at the end of treatment.

• Future advancement in CHB by the Company will be contingent on securing a worldwide development and commercialization partner outside of China Territory (People’s Republic of China, Hong Kong, Taiwan and Macau) to best enable further development in this area of high unmet need.

Preclinical Pipeline Candidates

• The Company is advancing multiple undisclosed dual-masked TCEs against clinically validated targets with potential applications across a variety of solid tumors. These preclinical candidates leverage the PRO-XTEN™ masking technology with novel TCEs discovered and engineered using Vir Biotechnology’s antibody discovery platform and the Company’s proprietary dAIsY™ (data AI structure and antibody) AI engine.

• The Company continues to advance its HIV broadly neutralizing antibody program for HIV cure in collaboration with the Gates Foundation.

Corporate Update

• In November 2024, the Company hosted an investor event highlighting positive data from its SOLSTICE Phase 2 trial in hepatitis delta and its MARCH Part B Phase 2 trial in hepatitis B presented at AASLD.

• In January 2025, the Company announced positive initial Phase 1 dose escalation data for two of its PRO-XTEN™ masked TCEs through an investor event.

• The Company announced Maninder Hora, Ph.D. will assume the role of Executive Vice President, Chief Technical Operations Officer in February 2025, following the departure of the current Chief Technology Officer, Aine Hanley, Ph.D.

Fourth Quarter and Full Year 2024 Financial Results

“Our focus on operational efficiency and program prioritization achieved a 28% year-over-year reduction in operating expense, excluding the upfront expense related to the Sanofi licensing agreement,” said Jason O’Byrne, MBA, Executive Vice President and Chief Financial Officer, Vir Biotechnology. “We enter 2025 with a robust financial position to support our key strategic priorities, including $1.10 billion in cash, cash equivalents and investments and a cash runway into mid-2027.”

Cash, Cash Equivalents and Investments: As of December 31, 2024, the Company had approximately $1.10 billion in cash, cash equivalents and investments, representing a decline of approximately $90.6 million during the fourth quarter of 2024. For the full year of 2024, cash, cash equivalents and investments declined approximately $532.3 million. The 2024 full year decrease includes a $103.7 million upfront payment made to Sanofi upon the closing of the Sanofi license agreement and $75.0 million that was reclassified to restricted cash in the third quarter of 2024 and subject to VIR-5525 achieving “first in human dosing” by 2026.

Revenue: Revenue for the quarter ended December 31, 2024 was $12.4 million compared to $16.8 million for the same period in 2023. Revenue for the full year of 2024 was $74.2 million compared to $86.2 million in 2023. The decreases in the fourth quarter and full year were primarily driven by grant revenue, where lower revenue was recognized in accordance with our agreement with BARDA and the Gates Foundation. In addition, the decrease in the full year 2024 was attributable to lower revenues from the release of profit-sharing amount previously constrained under the 2020 GSK Agreement, partially offset by the recognition of deferred revenue related to the expiry of GSK’s rights to select up to two additional non-influenza target pathogens during the first quarter of 2024.

Cost of Revenue: Cost of revenue for the fourth quarter of 2024 was $0.7 million compared to $0.8 million for the same period in 2023. Cost of revenue for the full year of 2024 was $0.8 million compared to $2.8 million in 2023. The decreases were due to lower third-party royalties owed based on the lower collaboration revenue under the 2020 GSK Agreement.

Research and Development Expenses (R&D): R&D expenses for the fourth quarter of 2024 were $106.1 million, which included $8.3 million of non-cash stock-based compensation expense, compared to $109.1 million for the same period in 2023, which included $16.5 million of non-cash stock-based compensation expense. R&D expenses for the full year of 2024 were $506.5 million, which included $43.9 million of non-cash stock-based compensation expense, compared to $579.7 million in 2023, which included $62.7 million of non-cash stock-based compensation expense. The decrease of the fourth quarter R&D expense was primarily due to lower expenses for personnel and de-prioritized programs, partially offset by non-cash in-process R&D assets impairment charges and contingent consideration liability revaluation. The decrease of the full year R&D expense was primarily due to lower clinical costs and contract manufacturing costs associated with the Company’s discontinued flu asset, VIR-2482, lower contract manufacturing costs associated with elebsiran used in the Company’s CHD and CHB clinical trials and lower personnel costs, partially offset by the $102.8 million of the Sanofi upfront payment being recognized as in-process R&D expense.

Selling, General and Administrative Expenses (SG&A): SG&A expenses for the fourth quarter of 2024 were $26.7 million, which included $7.5 million of non-cash stock-based compensation expense, compared to $41.2 million for the same period in 2023, which included $11.8 million of non-cash stock-based compensation expense. SG&A expenses for the full year of 2024 were $119.0 million, which included $34.5 million of non-cash stock-based compensation expense, compared to $174.4 million in 2023, which included $48.6 million of non-cash stock-based compensation expense. The decrease in both the fourth quarter and the full year was primarily related to lower personnel and other expenses associated with previously announced cost-saving initiatives.

Restructuring, Long-Lived Assets Impairment and Related Charges: Restructuring, long-lived assets impairment and related charges for the fourth quarter of 2024 were $(3.9) million compared to $4.7 million for the same period in 2023. The $(3.9) million in the fourth quarter of 2024 was primarily related to a gain from terminating our lease in St. Louis, Missouri. The $4.7 million in the fourth quarter of 2023 was primarily related to the severance expenses.

Other Income: Other income for the fourth quarter of 2024 was $12.5 million compared to $18.3 million for the same period in 2023. The decrease was primarily due to lower interest income. Other income for the full year of 2024 was $64.1 million compared to $56.1 million in 2023. The increase was primarily due to lower unrealized loss from the Company’s equity investment and lower foreign exchange loss, partially offset by lower interest income.

Benefit from Income Taxes: Benefit from income taxes for the fourth quarter and the full year of 2024 was nominal. Benefit from income taxes for the fourth quarter and the full year of 2023 was $4.8 million and $13.1 million, respectively, primarily due to a pre-tax loss and the Company’s ability to carry back the research and development credit to 2022.

Net Loss: Net loss attributable to Vir Biotechnology for the fourth quarter of 2024 was $(104.6) million, or $(0.76) per share, basic and diluted, compared to a net loss of $(116.0) million, or $(0.86) per share, basic and diluted, for the same period in 2023. Net loss attributable to Vir Biotechnology for the year of 2024 was $(522.0) million, or $(3.83) per share, basic and diluted, compared to a net loss of $(615.1) million, or $(4.59) per share, basic and diluted, in 2023.

2025 Financial Guidance

Based on current operating plans, the Company expects its cash, cash equivalents and investments to fund its operations into mid-2027.

Conference Call

Vir Biotechnology will host a conference call to discuss the fourth quarter and full year 2024 results at 1:30 p.m. PT / 4:30 p.m. ET today. A live webcast will be available on https://investors.vir.bio and will be archived for 30 days.

About VIR-5818, VIR-5500, VIR-5525

VIR-5818, VIR-5500, VIR-5525 are investigational, clinical candidates currently being evaluated for the treatment of solid tumors. These assets leverage the PRO-XTEN™ masking technology with three different T-cell engagers (TCEs) targeting HER2, PSMA, and EGFR, respectively.

TCEs are powerful anti-tumor agents that can direct the immune system, specifically T-cells, to destroy cancer cells. The PRO-XTEN™ masking technology is designed to keep the TCEs inactive (or masked) until they reach the tumor microenvironment, where tumor-specific proteases cleave off the mask and activate the TCEs, leading to killing of cancer cells. By driving the activity exclusively to the tumor microenvironment, we aim to circumvent the traditionally high toxicity associated with TCEs and increase their efficacy and tolerability. Additionally, the mask is designed to help drug candidates stay in the bloodstream longer in their inactive form, allowing them to better reach the site of action and potentially allowing less frequent dosing regimens for patients and clinicians.

About Tobevibart and Elebsiran

Tobevibart is an investigational broadly neutralizing monoclonal antibody targeting the hepatitis B surface antigen (HBsAg). It is designed to inhibit the entry of hepatitis B and hepatitis delta viruses into hepatocytes and to reduce the level of circulating viral and subviral particles in the blood. Tobevibart was identified using Vir Biotechnology’s proprietary monoclonal antibody discovery platform. The Fc domain has been engineered to increase immune engagement and clearance of HBsAg immune complexes and incorporates Xencor’s Xtend™ technology to extend half-life. Tobevibart is administered subcutaneously, and it is currently in clinical development for the treatment of patients with chronic hepatitis delta and patients with chronic hepatitis B.

Elebsiran is an investigational hepatitis B virus-targeting small interfering ribonucleic acid (siRNA) designed to degrade hepatitis B virus RNA transcripts and limit the production of hepatitis B surface antigen. Current data indicates that it has the potential to have direct antiviral activity against hepatitis B virus and hepatitis delta virus. Elebsiran is administered subcutaneously, and it is currently in clinical development for the treatment of patients with chronic hepatitis delta and patients with chronic hepatitis B.

About Vir Biotechnology, Inc.

Vir Biotechnology, Inc. is a clinical-stage biopharmaceutical company focused on powering the immune system to transform lives by discovering and developing medicines for serious infectious diseases and cancer. Its clinical-stage portfolio includes infectious disease programs for chronic hepatitis delta and chronic hepatitis B infections and multiple dual-masked T-cell engagers across validated targets in solid tumor indications. Vir Biotechnology also has a preclinical portfolio of programs across a range of infectious diseases and oncologic malignancies. Vir Biotechnology routinely posts information that may be important to investors on its website.

Vir Biotechnology has exclusive rights to the PRO-XTEN™ masking platform for oncology and infectious disease. PRO-XTEN™ is a trademark of Amunix Pharmaceuticals, Inc., a Sanofi company.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “should,” “could,” “may,” “might,” “will,” “plan,” “potential,” “aim,” “expect,” “anticipate,” “promising” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to, statements regarding: Vir Biotechnology’s cash balance and anticipated runway; Vir Biotechnology’s future financial and operating results and its expectations related thereto, including Vir Biotechnology’s financial guidance; the therapeutic potential of Vir Biotechnology’s CHD and CHB programs, as well as Vir Biotechnology’s strategy, plans and expectations related thereto; the therapeutic potential of Vir Biotechnology’s oncology solid tumor portfolio, preclinical pipeline and PRO-XTEN™ masked TCE platform, as well as Vir Biotechnology’s strategy, plans and expectations related thereto; the potential of and Vir Biotechnology’s expectations for its other pipeline programs; Vir Biotechnology’s clinical development plans and expectations for its oncology and hepatitis programs, including protocols for and enrollment into ongoing and planned clinical studies, potential partnering opportunities, and data readouts and presentations, as well as anticipated timelines; the potential benefits, safety and efficacy of Vir Biotechnology’s investigational therapies; Vir Biotechnology’s strategy and plans; and any assumptions underlying any of the foregoing. Many factors may cause differences between current expectations and actual results, including, without limitation: unexpected safety or efficacy data or results observed during clinical studies or in data readouts, including the occurrence of adverse safety events; risks of unexpected costs, delays or other unexpected hurdles; the timing and amount of Vir Biotechnology’s actual operating expenses, as determined in accordance with U.S. Generally Accepted Accounting Principles; difficulties in collaborating with other companies, some of whom may be competitors of Vir Biotechnology or otherwise have divergent interests, and uncertainty as to whether the benefits of Vir Biotechnology’s various collaborations can ultimately be achieved; challenges in accessing manufacturing capacity; clinical site activation rates or clinical enrollment rates that are lower than expected; the timing and outcome of Vir Biotechnology’s planned interactions with regulatory authorities, as well as general difficulties in obtaining any necessary regulatory approvals; successful development and/or commercialization of alternative product candidates by Vir Biotechnology’s competitors, as well as changes in expected or existing competition; Vir Biotechnology’s use of artificial intelligence and machine learning in its efforts to engineer next-generation proteins and in other research and development efforts; geopolitical changes or other external factors; and unexpected litigation or other disputes. In light of these risks and uncertainties, the events or circumstances referred to in the forward-looking statements may not occur. Drug development and commercialization involve a high degree of risk, and only a small number of research and development programs result in commercialization of a product. Results in early-stage clinical studies may not be indicative of full results or results from later stage or larger scale clinical studies and do not ensure regulatory approval. The actual results may vary from the anticipated results, and the variations may be material. You are cautioned not to place undue reliance on any scientific data presented or these forward-looking statements, which are based on Vir Biotechnology’s available information, expectations and assumptions as of the date of this press release. Other factors that may cause Vir Biotechnology’s actual results to differ from those expressed or implied in the forward-looking statements in this press release are discussed in Vir Biotechnology’s filings with the U.S. Securities and Exchange Commission, including the section titled “Risk Factors” contained therein. Except as required by law, Vir Biotechnology assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

VIR BIOTECHNOLOGY, INC.
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
	December 31,
		2024				2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	222,947			$	241,576
Short-term investments		678,051				1,270,980
Restricted cash and cash equivalents, current		89,385				13,268
Equity investments		4,350				9,853
Prepaid expenses and other current assets		47,725				52,549
Total current assets		1,042,458				1,588,226
Intangible assets, net		8,120				22,565
Goodwill		16,937				16,937
Property and equipment, net		63,183				96,018
Operating right-of-use assets		59,680				71,182
Restricted cash and cash equivalents, noncurrent		6,363				6,448
Long-term investments		190,015				105,275
Other assets		12,057				12,409
TOTAL ASSETS	$	1,398,813			$	1,919,060
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	5,081			$	6,334
Accrued and other liabilities		85,873				104,220
Deferred revenue, current		12,648				64,853
Contingent consideration obligation, current		16,060				—
Total current liabilities		119,662				175,407
Operating lease liabilities, noncurrent		90,139				111,673
Contingent consideration obligation, noncurrent		24,050				25,960
Other long-term liabilities		14,577				15,784
TOTAL LIABILITIES		248,428				328,824
Commitments and contingencies
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized as of December 31, 2024 and 2023, respectively; no shares issued and outstanding as of December 31, 2024 and 2023		—				—
Common stock, $0.0001 par value; 300,000,000 shares authorized as of December 31, 2024 and 2023, respectively; 136,959,446 and 134,781,286 shares issued and outstanding as of December 31, 2024 and 2023, respectively		14				13
Additional paid-in capital		1,911,872				1,828,862
Accumulated other comprehensive loss		(1,717	)			(815	)
Accumulated deficit		(759,784	)			(237,824	)
TOTAL STOCKHOLDERS’ EQUITY		1,150,385				1,590,236
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,398,813			$	1,919,060

VIR BIOTECHNOLOGY, INC.
Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)
	Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Revenues:
Collaboration revenue	$	10,413			$	8,858			$	8,379			$	37,266
Contract revenue		865				744				55,333				2,228
Grant revenue		1,096				7,185				10,493				46,686
Total revenues		12,374				16,787				74,205				86,180
Operating expenses:
Cost of revenue		684				798				845				2,765
Research and development		106,083				109,089				506,499				579,720
Selling, general and administrative		26,701				41,217				119,031				174,441
Restructuring, long-lived assets impairment and related charges		(3,944	)			4,699				34,995				13,559
Total operating expenses		129,524				155,803				661,370				770,485
Loss from operations		(117,150	)			(139,016	)			(587,165	)			(684,305	)
Other income:
Change in fair value of equity investments		(1,172	)			(992	)			(5,528	)			(21,888	)
Interest income		14,153				20,736				71,809				86,990
Other expense, net		(506	)			(1,485	)			(2,221	)			(8,991	)
Total other income		12,475				18,259				64,060				56,111
Loss before benefit from income taxes		(104,675	)			(120,757	)			(523,105	)			(628,194	)
Benefit from income taxes		86				4,784				1,145				13,077
Net loss	$	(104,589	)		$	(115,973	)		$	(521,960	)		$	(615,117	)
Net loss attributable to noncontrolling interest	$	—			$	—			$	—			$	(56	)
Net loss attributable to VirBio	$	(104,589	)		$	(115,973	)		$	(521,960	)		$	(615,061	)
Net loss per share attributable to VirBio, basic	$	(0.76	)		$	(0.86	)		$	(3.83	)		$	(4.59	)
Net loss per share attributable to VirBio, diluted	$	(0.76	)		$	(0.86	)		$	(3.83	)		$	(4.59	)
Weighted-average shares outstanding, basic		136,808,690				134,608,811				136,246,865				134,130,924
Weighted-average shares outstanding, diluted		136,808,690				134,608,811				136,246,865				134,130,924

 

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Media

Arran Attridge

Senior Vice President, Corporate Communications

[email protected]

Investors

Richard Lepke

Senior Director, Investor Relations

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Research General Health Professional Services Pharmaceutical Oncology Infectious Diseases Clinical Trials Science Biotechnology FDA Finance Health Other Science

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EVERTEC Reports Fourth Quarter and Full Year 2024 Results

Announces 2025 outlook

Announces acquisition of Nubity

SAN JUAN, Puerto Rico–(BUSINESS WIRE)–
EVERTEC, Inc. (NYSE: EVTC) (“Evertec” or the “Company”) today announced results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Highlights and Recent Highlights

• Revenue increased 11% to $216.4 million, approximately 14.5% on a constant currency basis

• GAAP Net Income attributable to common shareholders increased 249.0% to $40.1 million, and increased 264.7% to $0.62 per diluted share

• Adjusted EBITDA increased 24% to $88.6 million and Adjusted earnings per common share increased 40.3% to $0.87

• Closed on acquisition of 100% of Nubity, Inc. (“Nubity”) on November 19th

Full Year 2024 Highlights

• Revenue grew 22% to $845.5 million, approximately 23.5% on a constant currency basis

• GAAP Net Income attributable to common shareholders was $112.6 million an increase of 41%, or $1.73 per diluted share

• Adjusted EBITDA was $340.2 million an increase of 17% and Adjusted earnings per common share increased by 16.3% to $3.28

• $95.2 million returned to shareholders through share repurchases and dividends

• Closed on the acquisition of Grandata and Nubity

• Completed a $70 million accelerated share repurchase program

Mac Schuessler, President and Chief Executive Officer stated, “In 2024, we achieved record revenues by delivering strong results in our core markets while successfully integrating our largest acquisition, Sinqia. We continued to execute on our capital deployment plan, completing the acquisition of Nubity and Grandata as well as repurchasing our stock through the accelerated share repurchase program completed in 2024. Our focus for 2025 will be on optimizing margin, continuing to allocate capital thoughtfully and driving organic revenue growth.”

Fourth Quarter 2024 Results

Revenue. Total revenue for the quarter ended December 31, 2024 was $216.4 million, an increase of 11.2%, compared with $194.6 million in the prior year quarter as a result of organic growth across all of the Company’s segments, the contribution from an additional month of Sinqia and the contribution from the Grandata and Nubity acquisitions. Merchant acquiring revenue benefited from an improvement in spread and sales volume growth and Payments Puerto Rico revenue continues to benefit from growth in transactions and ATH Movil. Revenue in Latin America reflected the contribution from acquisitions, continued organic growth across the region and incremental volumes from our GetNet Chile relationship which led to the recognition of a one-time incremental revenue in the quarter of $0.6 million. Business Solutions revenue increased as a result of projects completed throughout the year.

Net Income attributable to common shareholders. For the quarter ended December 31, 2024, GAAP Net Income attributable to common shareholders was $40.1 million or $0.62 per diluted share, an increase of $28.6 million, compared with $11.5 million or $0.17 per diluted share in the prior year. The increase was driven by the increase in revenues, the impact from a $8.9 million net gain in the quarter related to the sale of tax credits, lower selling, general and administrative expenses, lower depreciation and amortization and the benefit from a lower effective tax rate. These variances are partially offset by an increase in cost of revenues resulting from the incremental expenses related to the acquisitions completed throughout the year, an increase in costs of sales mainly related to the projects completed in Business Solutions and higher interest expense as a result of the incremental debt raised to finance the Sinqia acquisition.

Adjusted EBITDA and Adjusted EBITDA Margin. For the quarter ended December 31, 2024, Adjusted EBITDA was $88.6 million, an increase of $16.9 million when compared to the prior year quarter, driven by the increase in revenues and the contribution from the acquisitions. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total revenue) increased approximately 410 basis points to 40.9% compared with 36.8% in the prior year, as we drive incremental revenue and continue to focus on managing expenses.

Adjusted Net Income and Adjusted earnings per common share. For the quarter ended December 31, 2024, Adjusted Net Income was $56.0 million, an increase of 37% compared with $40.8 million in the prior year, almost entirely related to the increase in Adjusted EBITDA and a lower adjusted effective tax rate. Adjusted earnings per common share was $0.87, an increase of 40% compared with $0.62 in the prior year driven by the factors explained for Adjusted Net Income and a lower share count as a result of repurchases completed in 2024.

Full Year 2024 Results

Revenue. Total revenue for the year ended December 31, 2024 was $845.5 million, an increase of 22% compared with $694.7 million in the prior year. This reflects contributions from acquisitions and organic growth across all segments. The Latin America segment experienced a full-year contribution from the Sinqia acquisition completed in Q4 2023, with additional contributions from the Grandata and Nubity acquisitions completed in Q4 2024, along with organic growth in the region. Merchant acquiring revenue saw improvements due to better spread and sales volume growth. Payments Puerto Rico revenue increased due to ongoing transaction volume growth and contributions from ATH Movil Business. Business Solutions revenue benefited from completed projects, mainly for Popular.

Net Income attributable to common shareholders. For the year ended December 31, 2024, GAAP Net Income attributable to common shareholders was $112.6 million, or $1.73 per diluted share, an increase compared with $79.7 million or $1.21 per diluted share in the prior year, primarily driven by the higher revenues and the benefit from a lower effective tax rate. These were partially offset by higher depreciation and amortization and interest expense. The prior year also included the negative impact from the loss on foreign currency swap related to the Sinqia acquisition. Cost of revenues and selling, general and administrative expenses both increased primarily due to an increase in personnel costs driven by the added headcount from acquisitions. Interest expense increased from the prior year due to the same reason explained above for the quarter.

Adjusted EBITDA and Adjusted EBITDA Margin. For the year ended December 31, 2024, Adjusted EBITDA was $340.2 million, an increase of 17% compared to the prior year. The increase in Adjusted EBITDA primarily reflects the contribution from the Sinqia acquisition and the increase in revenues discussed above, partially offset by an increase in operating expenses. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total revenues) decreased 180 basis points to 40.2% compared with 42.0% in the prior year. The decrease in Adjusted EBITDA margin primarily reflects the addition of Sinqia, which contributes at a lower margin, as well as the impact of the $6.3 million adjustment for GetNet Chile in the prior year, compared with $2.4 million in the current year, which is 100% accretive to margin.

Adjusted Net Income and Adjusted earnings per common share. For the year ended December 31, 2023, Adjusted Net Income was $213.2 million, an increase of 15% compared with $185.5 million in the prior year. The increase was driven by the higher adjusted EBITDA and a decrease in Non-GAAP tax expense, partially offset by higher operating depreciation and amortization and higher cash interest expense, due to the incremental debt raised for the Sinqia acquisition. Adjusted earnings per common share were $3.28, an increase of 16.3% compared with $2.82 in the prior year. The increase was driven by the increase in Adjusted Net Income and a lower share count that reflects the impact from the share repurchases completed throughout the year.

Business Acquisition

On November 19, 2024, the Company acquired 100% of the share capital of Nubity. Nubity is a cloud services provider based in Mexico, specializing in AWS cloud infrastructure management, DevOps, and cloud-native application solutions for clients across Latin America. This transaction enhances our existing product offering and helps enable the Company to address our customer’s needs more fully. The Company plans on leveraging its existing client base in Puerto Rico and Latin America to accelerate the growth of this acquisition.

Stock Repurchase

For the full year 2024, the Company repurchased 2.4 million shares of its common stock at an average price of $34.90 for a total of $82.3 million. At December 31, 2024, the Company’s share repurchase program had approximately $138 million remaining and authorized for future use through December 31, 2025. The Company may repurchase shares in the open market, through accelerated share repurchase programs, 10b5-1 plans, or in privately negotiated transactions, subject to business opportunities and other factors.

2025 Outlook

The Company’s financial outlook for 2025 is as follows:

• Total consolidated revenue between $889 million and $899 million representing approximately 5.1% to 6.3% growth compared with $845 million in 2024 on a GAAP basis, or approximately 5.5% to 6.7% on a constant currency basis

• Adjusted earnings per common share between $3.34 to $3.45 representing approximately 1.8% to 5.2% growth as compared to $3.28 in 2024, or approximately 2.6% to 6.0% on a constant currency basis

• Capital expenditures are anticipated to be approximately $85 million

• Effective tax rate of approximately 6% to 7%

Earnings Conference Call and Audio Webcast

The Company will host a conference call to discuss its fourth quarter and full year 2024 financial results today at 4:30 p.m. ET. Hosting the call will be Mac Schuessler, President and Chief Executive Officer, and Joaquin Castrillo, Chief Financial Officer. The conference call can be accessed live over the phone by dialing (888) 338-7153 or for international callers by dialing (412) 317-5117. A replay will be available one hour after the end of the conference call and can be accessed by dialing (877) 344-7529 or (412) 317-0088 for international callers; the pin number is 1193493. The replay will be available through Wednesday, March 5, 2025. The call will be webcast live from the Company’s website at www.evertecinc.com under the Investor Relations section or directly at http://ir.evertecinc.com. A supplemental slide presentation that accompanies this call and webcast can be found on the investor relations website at ir.evertecinc.com and will remain available after the call.

About Evertec

EVERTEC, Inc. (NYSE: EVTC) is a leading full-service transaction processor and financial technology provider in Latin America, Puerto Rico and the Caribbean, providing a broad range of merchant acquiring, payment services and business process management services. Evertec owns and operates the ATH® network, one of the leading personal identification number (“PIN”) debit networks in Latin America. In addition, the Company manages a system of electronic payment networks and offers a comprehensive suite of services for core banking, cash processing and fulfillment in Puerto Rico, that process approximately six billion transactions annually. The Company also offers financial technology outsourcing in all the regions it serves. Based in Puerto Rico, the Company operates in 26 Latin American countries and serves a diversified customer base of leading financial institutions, merchants, corporations and government agencies with “mission-critical” technology solutions. For more information, visit www.evertecinc.com.

Use of Non-GAAP Financial Information

The non-GAAP measures referenced in this earnings release are supplemental measures of the Company’s performance and are not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (“GAAP”). They are not measurements of the Company’s financial performance under GAAP and should not be considered as alternatives to total revenue, net income or any other performance measures derived in accordance with GAAP or as alternatives to cash flows from operating activities, as indicators of operating performance or as measures of the Company’s liquidity. In addition to GAAP measures, management uses these non-GAAP measures to focus on the factors the Company believes are pertinent to the daily management of the Company’s operations and believes that they are also frequently used by analysts, investors and other stakeholders to evaluate companies in our industry. These measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations that are necessary to run our business. Other companies, including other companies in our industry, may not use these measures or may calculate these measures differently than as presented herein, limiting their usefulness as comparative measures.

Reconciliations of the non-GAAP measures to the most directly comparable GAAP measure are included at the end of this earnings release. These non-GAAP measures include EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per common share, each as defined below.

EBITDA is defined as earnings before interest, taxes, depreciation and amortization.

Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain non-cash items and unusual expenses such as: share-based compensation, restructuring related expenses, fees and expenses from corporate transactions such as M&A activity and financing, equity investment income net of dividends received, and the impact from unrealized gains and losses on foreign currency remeasurement for assets and liabilities in non-functional currency. This measure is reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. For this reason, Adjusted EBITDA, as it relates to the Company’s segments, is presented in conformity with Accounting Standards Codification 280, Segment Reporting, and is excluded from the definition of non-GAAP financial measures under the Securities and Exchange Commission’s Regulation G and Item 10(e) of Regulation S-K. The Company’s presentation of Adjusted EBITDA is substantially consistent with the equivalent measurements that are contained in the secured credit facilities in testing EVERTEC Group’s compliance with covenants therein such as the secured leverage ratio.

Adjusted Net Income is defined as Adjusted EBITDA less: operating depreciation and amortization expense, defined as GAAP Depreciation and amortization less amortization of intangibles related to acquisitions such as customer relationships, trademarks, non-compete agreements, among others; cash interest expense defined as GAAP interest expense, less GAAP interest income adjusted to exclude non-cash amortization of debt issue costs, premium and accretion of discount; income tax expense which is calculated on adjusted pre-tax income using the applicable GAAP tax rate, adjusted for uncertain tax position releases, tax true-ups, windfall from share-based compensation, unrealized gains and losses from foreign currency remeasurement, among others; and non-controlling interests, net of amortization for intangibles created as part of the purchase.

Adjusted Earnings per common share is defined as Adjusted Net Income divided by diluted shares outstanding.

The Company uses Adjusted Net Income to measure the Company’s overall profitability because the Company believes it better reflects the comparable operating performance by excluding the impact of the non-cash amortization and depreciation that was created as a result of merger and acquisition activity. In addition, in evaluating EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per common share, you should be aware that in the future the Company may incur expenses such as those excluded in calculating them.

Forward-Looking Statements

Certain statements in this earnings release constitute “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical facts, including, without limitation, statements regarding our future results of operations and financial position, including our guidance for fiscal year 2025; our business strategies; objectives of management for future operations, including, among others, statements regarding our expected growth, international expansion and future capital expenditures; and expectations for and anticipated benefits of acquisitions, are forward looking statements. Words such as “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” and “plans” and similar expressions of future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts.

Various factors that could cause actual future results and other future events to differ materially from those estimated by management include, but are not limited to: our reliance on our relationship with Popular, Inc. (“Popular”) for a significant portion of our revenues pursuant to our second Amended and Restated Master Services Agreement (“A&R MSA”) with them, and as it may impact our ability to grow our business; our ability to renew our client contracts on terms favorable to us, including but not limited to the current term and any extension of the A&R MSA with Popular; our dependence on our processing systems, technology infrastructure, security systems and fraudulent payment detection systems, as well as on our personnel and certain third parties with whom we do business, and the risks to our business if our systems are hacked or otherwise compromised; our ability to develop, install and adopt new software, technology and computing systems; a decreased client base due to consolidations and/or failures in the financial services industry; the credit risk of our merchant clients, for which we may also be liable; the continuing market position of the ATH network; a reduction in consumer confidence, whether as a result of a global economic downturn or otherwise, which leads to a decrease in consumer spending; our dependence on credit card associations, including any adverse changes in credit card association or network rules or fees; changes in the regulatory environment and changes in macroeconomic, market, international, legal, tax, political, or administrative conditions, including inflation or the risk of recession; the geographical concentration of our business in Puerto Rico, including our business with the government of Puerto Rico and its instrumentalities, which are facing severe political and fiscal challenges; additional adverse changes in the general economic conditions in Puerto Rico, whether as a result of the government’s debt crisis or otherwise, including the continued migration of Puerto Ricans to the U.S. mainland, which could negatively affect our customer base, general consumer spending, our cost of operations and our ability to hire and retain qualified employees; operating an international business in Latin America, Puerto Rico and the Caribbean, in jurisdictions with potential political and economic instability; the impact of foreign exchange rates on operations; our ability to protect our intellectual property rights against infringement and to defend ourselves against claims of infringement brought by third parties; our ability to comply with U.S. federal, state, local and foreign regulatory requirements; evolving industry standards and adverse changes in global economic, political and other conditions; our level of indebtedness and the impact of rising interest rates, restrictions contained in our debt agreements, including the secured credit facilities, as well as debt that could be incurred in the future; our ability to protect our IT systems and prevent a cybersecurity attack or breach to our information security; the possibility that we could lose our preferential tax rate in Puerto Rico; our ability to integrate Sinqia S.A. (“Sinqia”) successfully into the Company or to achieve expected accretion to our earnings per common share; any loss of personnel or customers in connection with the acquisition of Sinqia; any possibility of future catastrophic hurricanes, earthquakes and other potential natural disasters affecting our main markets in Latin America, Puerto Rico and the Caribbean; and the other factors set forth under “Part 1, Item 1A. Risk Factors,” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on February 29, 2024, as any such factors may be updated from time to time in the Company’s filings with the SEC, including in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, to be filed with the SEC. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless it is required to do so by law.

EVERTEC, Inc. Schedule 1: Unaudited Consolidated Statements of Income and Comprehensive (Loss) Income
		Quarter ended December 31,								Year ended December 31,
(Dollar amounts in thousands, except share data)			2024				2023				2024				2023
Revenues		$	216,395			$	194,621			$	845,486			$	694,709
Operating costs and expenses
Cost of revenues, exclusive of depreciation and amortization shown below			103,990				98,607				406,416				336,756
Selling, general and administrative expenses			37,648				44,338				145,558				128,172
Depreciation and amortization			26,795				29,941				127,846				93,621
Total operating costs and expenses			168,433				172,886				679,820				558,549
Income from operations			47,962				21,735				165,666				136,160
Non-operating income (expenses)
Interest income			3,058				3,350				13,332				8,512
Interest expense			(17,381	)			(15,329	)			(74,733	)			(32,321	)
Loss on foreign currency remeasurement			(2,034	)			(939	)			(5,198	)			(8,276	)
Gain (loss) on foreign currency swap			—				5,160				—				(24,065	)
Earnings of equity method investment			1,032				1,148				4,298				4,976
Other income (loss), net			9,777				(2,387	)			16,261				367
Total non-operating expenses			(5,548	)			(8,997	)			(46,040	)			(50,807	)
Income before income taxes			42,414				12,738				119,626				85,353
Income tax expense			1,747				931				4,847				5,477
Net income			40,667				11,807				114,779				79,876
Less: Net income attributable to non-controlling interests			605				328				2,159				154
Net income attributable to EVERTEC, Inc.’s common stockholders			40,062				11,479				112,620				79,722
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments			(77,378	)			28,902				(152,851	)			38,328
Gain (loss) on cash flow hedges			8,481				(7,357	)			(74	)			(3,618	)
Unrealized (loss) income on change in fair value of debt securities available-for-sale			(3	)			16				(7	)			(15	)
Other comprehensive (loss) income, net of tax		$	(68,900	)		$	21,561			$	(152,932	)		$	34,695
Total comprehensive (loss) income attributable to EVERTEC, Inc.’s common stockholders		$	(28,838	)		$	33,040			$	(40,312	)		$	114,417
Net income per common share:
Basic		$	0.63			$	0.18			$	1.75			$	1.23
Diluted		$	0.62			$	0.17			$	1.73			$	1.21
Shares used in computing net income per common share:
Basic			63,613,215				65,067,316				64,286,725				64,932,114
Diluted			64,650,434				66,273,215				65,077,535				65,814,317

EVERTEC, Inc. Schedule 2: Unaudited Consolidated Balance Sheets
(Dollar amounts in thousands, except share data)		December 31, 2024				December 31, 2023
Assets
Current Assets:
Cash and cash equivalents		$	273,645			$	295,600
Restricted cash			24,594				23,073
Accounts receivable, net			137,501				126,510
Settlement assets			31,942				51,467
Prepaid expenses and other assets			61,383				64,704
Total current assets			529,065				561,354
Debt securities available-for-sale, at fair value			913				2,095
Equity securities, at fair value			4,976				9,413
Investment in equity investees			29,472				21,145
Property and equipment, net			62,059				62,453
Operating lease right-of-use asset			10,131				14,796
Goodwill			726,901				791,700
Other intangible assets, net			430,885				518,070
Deferred tax asset			33,877				47,847
Derivative asset			4,338				4,385
Other long-term assets			24,994				27,005
Total assets		$	1,857,611			$	2,060,263
Liabilities and stockholders’ equity
Current Liabilities:
Accrued liabilities		$	124,553			$	129,160
Accounts payable			58,729				66,516
Contract liability			25,274				21,055
Income tax payable			8,981				3,402
Current portion of long-term debt			23,867				23,867
Current portion of operating lease liability			6,229				6,693
Settlement liabilities			32,027				47,620
Total current liabilities			279,660				298,313
Long-term debt			925,062				946,816
Deferred tax liability			44,810				87,916
Contract liability – long term			55,003				41,825
Operating lease liability – long-term			4,924				9,033
Derivative liability			1,351				900
Other long-term liabilities			27,540				40,084
Total liabilities			1,338,350				1,424,887
Redeemable non-controlling interests			43,460				36,968
Stockholders’ equity
Preferred stock, par value $0.01; 2,000,000 shares authorized; none issued			—				—
Common stock, par value $0.01; 206,000,000 shares authorized; 63,614,077 shares issued and outstanding at December 31, 2024 (December 31, 2023 – 65,450,799)			636				654
Additional paid-in capital			7,003				36,527
Accumulated earnings			599,608				538,903
Accumulated other comprehensive (loss) income, net of tax			(134,723	)			18,209
Total EVERTEC, Inc. stockholders’ equity			472,524				594,293
Non-controlling interest			3,277				4,115
Total equity			475,801				598,408
Total liabilities and equity		$	1,857,611			$	2,023,295

EVERTEC, Inc. Schedule 3: Unaudited Consolidated Statements of Cash Flows
		Years ended December 31,
(In thousands)			2024				2023
Cash flows from operating activities
Net income		$	114,779			$	79,876
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			127,846				93,621
Amortization of debt issue costs and accretion of discount			4,739				2,307
Operating lease amortization			7,063				6,252
Loss on extinguishment of debt			—				1,433
Deferred tax benefit			(26,726	)			(16,144	)
Share-based compensation			30,275				25,732
Gain from sale of assets			(2,571	)			—
Loss on disposition of property and equipment and impairment of software			2,603				969
Earnings of equity method investments			(4,298	)			(4,976	)
Dividends received from equity method investment			3,364				3,497
Loss on foreign currency remeasurement			5,198				8,276
Other, net			(529	)			1,809
(Increase) decrease in assets:
Accounts receivable, net			(11,225	)			(6,850	)
Prepaid expenses and other assets			(865	)			(16,862	)
Other long-term assets			1,288				(5,383	)
(Decrease) increase in liabilities:
Accrued liabilities and accounts payable			(6,602	)			46,523
Income tax payable			6,199				(6,631	)
Contract liability			14,199				8,074
Operating lease liabilities			(7,359	)			(5,723	)
Other long-term liabilities			2,681				(4,606	)
Total adjustments			145,280				131,318
Net cash provided by operating activities			260,059				211,194
Cash flows from investing activities
Additions to software			(63,044	)			(63,524	)
Acquisition of customer relationship			—				—
Acquisitions, net of cash acquired			(34,030	)			(417,566	)
Property and equipment acquired			(25,384	)			(21,452	)
Proceeds from sales of property and equipment			5				24
Purchase of certificates of deposit			—				—
Proceeds from maturities of available-for-sale debt securities			1,102				1,048
Acquisition of available-for-sale debt securities			(793	)			(962	)
Purchase of equity securities			(132	)			—
Investment in equity method investee			(2,000	)			(5,500	)
Sale of investments			5,994				—
Net cash used in investing activities			(118,282	)			(507,932	)
Cash flows from financing activities
Debt issuance and repricing costs			(1,215	)			(10,481	)
Proceeds from issuance of long-term debt			—				651,000
Net (decrease) increase in short-term borrowings			—				(20,000	)
Repayments of short-terms borrowings for purchase of equipment and software			(2,479	)			(7,175	)
Dividends paid			(12,873	)			(13,025	)
Withholding taxes paid on share-based compensation			(9,970	)			(5,956	)
Repurchase of common stock			(82,293	)			(36,096	)
Repayment of long-term debt			(23,867	)			(154,280	)
Repayment of other financing agreement			(8,134	)			(717	)
Settlement activity, net			(8,641	)			13,096
Other financing activities, net			(3,088	)			—
Net cash (used in) provided by financing activities			(152,560	)			416,366
Effect of foreign exchange rate on cash, cash equivalents and restricted cash			(18,292	)			8,439
Net (decrease) increase in cash, cash equivalents and restricted cash			(29,075	)			128,067
Cash, cash equivalents, restricted cash, and cash included in settlement assets at beginning of the period			343,724				215,657
Cash, cash equivalents, restricted cash, and cash included in settlement assets at end of the period		$	314,649			$	343,724
Reconciliation of cash, cash equivalents, restricted cash, and cash included in settlement assets
Cash and cash equivalents		$	273,645			$	295,600
Restricted cash			24,594				23,073
Cash and cash equivalents included in settlement assets			16,410				25,051
Cash, cash equivalents, restricted cash, and cash included in settlement assets		$	314,649			$	343,724

EVERTEC, Inc. Schedule 4: Unaudited Segment Information
	Quarter Ended December 31, 2024
(In thousands)	Payment Services – Puerto Rico & Caribbean			Latin America Payments and Solutions			Merchant Acquiring, net			Business Solutions			Total Reportable Segments			Corporate and Other(1)				Total
Revenues	$	54,764		$	77,870		$	46,645		$	62,408		$	241,687		$	(25,292	)		$	216,395
Adjusted EBITDA		31,328			25,144			19,937			24,357			100,766			(12,156	)			88,610

__________________

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $14.4 million processing fee from Payments Services – Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction processing of $6.4 million from Latin America Payments and Solutions to both Payment Services – Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $4.4 million from Payment Services – Puerto Rico & Caribbean to Latin America Payments and Solutions.

	Quarter Ended December 31, 2023
(In thousands)	Payment Services – Puerto Rico & Caribbean			Latin America Payments and Solutions			Merchant Acquiring, net			Business Solutions			Total Reportable Segments			Corporate and Other(1)				Total
Revenues	$	52,408		$	65,955		$	40,214		$	57,772		$	216,349		$	(21,728	)		$	194,621
Adjusted EBITDA		30,851			18,251			14,423			20,016			83,541			(11,843	)			71,698

____________________

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $13.0 million processing fee from Payments Services – Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction processing of $4.3 million from Latin America Payments and Solutions to both Payment Services- Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $4.4 million from Payment Services – Puerto Rico & Caribbean to Latin America Payments and Solutions.

	Year Ended December 31, 2024
(In thousands)	Payment Services – Puerto Rico & Caribbean			Latin America Payments and Solutions			Merchant Acquiring, net			Business Solutions			Total Reportable Segments			Corporate and Other(1)				Total
Revenues	$	214,749		$	302,784		$	180,500		$	243,975		$	942,008		$	(96,522	)		$	845,486
Adjusted EBITDA		121,390			79,681			72,632			102,669			376,372			(36,144	)			340,228

____________________

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $57.6 million processing fee from Payments Services – Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction processing of $21.1 million from Latin America Payments and Solutions to both Payment Services – Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $17.8 million from Payment Services – Puerto Rico & Caribbean to Latin America Payments and Solutions.

	Year Ended December 31, 2023
(In thousands)	Payment Services – Puerto Rico & Caribbean			Latin America Payments and Solutions			Merchant Acquiring, net			Business Solutions			Total Reportable Segments			Corporate and Other(1)				Total
Revenues	$	203,232		$	186,503		$	162,366		$	226,960		$	779,061		$	(84,352	)		$	694,709
Adjusted EBITDA		118,266			60,158			60,992			86,880		$	326,296			(34,325	)			291,971

____________________

(1)

Corporate and Other consists of corporate overhead, certain leveraged activities, other non-operating expenses and intersegment eliminations. Intersegment revenue eliminations predominantly reflect the $52.9 million processing fee from Payments Services – Puerto Rico & Caribbean to Merchant Acquiring, intercompany software developments and transaction processing of $17.1 million from Latin America Payments and Solutions to both Payment Services- Puerto Rico & Caribbean and Business Solutions, and transaction processing and monitoring fees of $14.3 million from Payment Services – Puerto Rico & Caribbean to Latin America Payments and Solutions.

EVERTEC, Inc. Schedule 5: Reconciliation of GAAP to Non-GAAP Operating Results
		Quarter ended December 31,								Year ended December 31,
(Dollar amounts in thousands, except share data)			2024				2023				2024				2023
Net income		$	40,667			$	11,807			$	114,779			$	79,876
Income tax expense			1,747				931				4,847				5,477
Interest expense, net			14,323				11,979				61,401				23,809
Depreciation and amortization			26,795				29,941				127,846				93,621
EBITDA			83,532				54,658				308,873				202,783
Equity income(1)			(1,032	)			(1,148	)			(1,270	)			(1,945	)
Compensation and benefits (2)			8,458				7,796				31,644				29,312
Transaction, refinancing and other fees (3)			(4,382	)			9,453				(4,217	)			53,545
Loss on foreign currency remeasurement (4)			2,034				939				5,198				8,276
Adjusted EBITDA			88,610				71,698				340,228				291,971
Operating depreciation and amortization (5)			(15,735	)			(14,648	)			(61,467	)			(52,913	)
Cash interest expense, net (6)			(13,182	)			(12,711	)			(56,931	)			(24,286	)
Income tax expense (7)			(3,073	)			(3,183	)			(6,371	)			(29,038	)
Non-controlling interest (8)			(616	)			(353	)			(2,217	)			(257	)
Adjusted Net Income		$	56,004			$	40,803			$	213,242			$	185,477
Net income per common share (GAAP):
Diluted		$	0.62			$	0.17			$	1.73			$	1.21
Adjusted earnings per common share (Non-GAAP):
Diluted		$	0.87			$	0.62			$	3.28			$	2.82
Shares used in computing adjusted earnings per common share:
Diluted			64,650,434				66,273,215				65,077,535				65,814,317

____________________
(1)	Represents the elimination of non-cash equity earnings from our equity investments, net of dividends received.
(2)	Primarily represents share-based compensation and severance payments.
(3)	Represents fees and expenses associated with corporate transactions as defined in the Credit Agreement, recorded as part of selling, general and administrative expenses, the elimination of multi-year non recurring gains recognized in connection with the sale of tax credits, realized gains from the change in fair market value of equity securities and the foreign currency swap loss.
(4)	Represents non-cash unrealized gains (losses) on foreign currency remeasurement for assets and liabilities denominated in non-functional currencies.
(5)	Represents operating depreciation and amortization expense, which excludes amounts generated as a result of merger and acquisition activity.
(6)	Represents interest expense, less interest income, as they appear on the consolidated statements of income and comprehensive income (loss), adjusted to exclude non-cash amortization of the debt issue costs, premium and accretion of discount.
(7)	Represents income tax expense calculated on adjusted pre-tax income using the applicable GAAP tax rate, adjusted for certain discrete items.
(8)	Represents the non-controlling equity interests, net of amortization for intangibles created as part of the purchase.

EVERTEC, Inc. Schedule 6: Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share
		Outlook 2024											2024
(Dollar amounts in millions, except per share data)		Low						High
Revenues		$	889			to		$	899			$	845
Earnings per Share (EPS) (GAAP)		$	1.93			to		$	2.05			$	1.73
Per share adjustment to reconcile GAAP EPS to Non-GAAP Adjusted EPS:
Share-based comp, non-cash equity earnings and other (1)			0.88						0.88				0.48
Merger and acquisition related depreciation and amortization (2)			0.58						0.58				1.02
Non-cash interest expense (3)			0.04						0.04				0.07
Tax effect of non-gaap adjustments (4)			(0.09	)					(0.10	)			(0.02	)
Total adjustments			1.41						1.40				1.55
Adjusted EPS (Non-GAAP)		$	3.34			to		$	3.45			$	3.28
Shares used in computing adjusted earnings per common share									65.0				65.1

____________________
(1)	Represents share-based compensation, the elimination of non-cash equity earnings from equity investments, severance and other adjustments to reconcile GAAP EPS to Non-GAAP EPS.
(2)	Represents depreciation and amortization expenses amounts generated as a result of M&A activity.
(3)	Represents non-cash amortization of the debt issue costs, premium and accretion of discount.
(4)	Represents income tax expense on non-GAAP adjustments using the applicable GAAP tax rate (anticipated at approximately 6% to 7%).

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250226268717/en/

Investor Contact

Beatriz Brown-Sáenz

(787) 773-5442

[email protected]

KEYWORDS: Latin America North America United States Puerto Rico Caribbean

INDUSTRY KEYWORDS: Payments Professional Services Technology Fintech Software

MEDIA:

Posted on February 26, 2025 4:18 pm

Genie Energy to Report Fourth Quarter and Full Year 2024 Results 

NEWARK, NJ, Feb. 26, 2025 (GLOBE NEWSWIRE) — Genie Energy Ltd., (NYSE: GNE), a leading retail energy and renewable energy solutions provider, will announce financial and operational results for the fourth quarter and full year 2024 on Monday, March 10, 2025.

Genie Energy will issue an earnings release over a wire service and post it in the “Investors” section of the Genie Energy website (https://genie.com/investors/quarterly-earnings/) at 7:30 AM Eastern. The release also will be filed in a current report (Form 8-K) with the SEC.

At 8:30 AM Eastern, Genie Energy’s management will host a conference call to discuss financial and operational results, business outlook, and strategy. The call will begin with management’s remarks followed by Q&A with investors.

To participate in the conference call, dial 1-888-506-0062 (toll-free from the US) or 1-973-528-0011 (international) and provide the following participant access code: 481357.

Approximately three hours after the call, a call replay will be accessible by dialing 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and providing the replay passcode: 52066. The replay will remain available through Monday, March 24, 2025. In addition, a recording of the call will be available for playback on the “Investors” section of the Genie Energy website. 

In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate, “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise. 

About Genie Energy Ltd.: 

Genie Energy Ltd., (NYSE: GNE) is a leading retail energy and renewable energy solutions provider. The Genie Retail Energy division (GRE) supplies electricity, including electricity from renewable resources, and natural gas to residential and small business customers in the United States. The Genie Renewables division (GREW) is a vertically-integrated provider of community and utility-scale solar energy solutions. For more information, visit Genie.com.

Contact: 

Genie Energy Investor Relations
Bill Ulrey
E-mail: [email protected] 

# # # 

Posted on February 26, 2025 4:17 pm

C3 AI Announces Fiscal Third Quarter 2025 Financial Results

C3 AI Announces Fiscal Third Quarter 2025 Financial Results

26% Year-Over-Year Revenue Growth

Dramatically Expanded Strategic Partnerships with Microsoft, AWS, and McKinsey QuantumBlack

C3 Generative AI Makes History with First Ever Agentic AI Earnings Call

REDWOOD CITY, Calif.–(BUSINESS WIRE)–C3.ai, Inc. (“C3 AI,” “C3,” or the “Company”) (NYSE: AI), the Enterprise AI application software company, today announced financial results for its fiscal third quarter ended January 31, 2025.

“In the third quarter, C3 AI achieved significant milestones — expanding our global distribution network, advancing our leadership in agentic and generative AI, and delivering total revenue reaching $98.8 million, up 26% year-over-year,” said Thomas M. Siebel, Chairman and CEO, C3 AI. “We believe C3 AI is broadly credited with inventing Enterprise AI. We invented the model-driven agentic Enterprise AI platform. The operative law as it relates to patent law is first to file, and we filed our initial patent on December 16, 2022, and yes, the U.S. Patent for agentic generative AI was awarded to C3 AI. We have the technology, the management team, and the global partner ecosystem — through our dramatically expanded strategic partnerships with Microsoft, AWS, and McKinsey QuantumBlack — we believe we have all the elements in place to indelibly change the face of Enterprise AI.”

Fiscal Third Quarter 2025 Financial Highlights

• Revenue: Total revenue for the quarter was $98.8 million, an increase of 26% compared to $78.4 million one year ago.
• Subscription Revenue: Subscription revenue for the quarter was $85.7 million, constituting 87% of total revenue, an increase of 22% compared to $70.4 million one year ago.
• Subscription and Prioritized Engineering Services Revenue Combined: Subscription and prioritized engineering services revenue combinedwas $91.4 million, constituting 93% of total revenue, an increase of 18% compared to $77.5 million one year ago.
• Gross Profit: GAAP gross profit for the quarter was $58.3 million, representing a 59% gross margin. Non-GAAP gross profit for the quarter was $68.2 million, representing a 69% non-GAAP gross margin.
• Net Loss per Share: GAAP net loss per share was $(0.62). Non-GAAP net loss per share was $(0.12).
• Cash Balance: $724.3 million in cash, cash equivalents, and marketable securities.

Business Highlights

C3 AI gained momentum with Microsoft to drive increased pilot activity and broadened its global distribution network through a new strategic partnership with McKinsey & Company QuantumBlack.

• The Company closed 66 agreements including 50 pilots, an increase of 72% year-over-year.

• The Company entered into new and expanded agreements with the New York Power Authority, Worley, Flex, Sanofi, Nucor Corporation, Holcim, Shell, ExxonMobil, Liberty Coca-Cola Beverages, GSK, Quest Diagnostics, SmithRx, and Swift, among others.

• The Company significantly expanded its footprint across State and Local Government, closing 21 agreements across Texas, California, Florida, New Jersey, Indiana, Colorado, Montana, Oregon, Georgia, New Mexico, and Arizona.

• C3 AI’s Federal business had strong execution across the board. The Company entered into new and expanded agreements with the U.S. Department of Defense, the U.S. Air Force, the U.S. Navy, CAE USA, and the Missile Defense Agency.

• C3 AI achieved “Awardable” status on the U.S. Department of Defense’s Chief Digital and Artificial Intelligence Office’s Tradewinds Solutions Marketplace, with the addition of C3 AI Decision Advantage and C3 AI Contested Logistics to Marketplace. The Tradewinds Solutions Marketplace accelerates the technology acquisition process for government agencies, showcasing the best-fit solutions and accelerating procurement.

Partner Network

C3 AI dramatically expanded its strategic partnerships, substantially strengthening its strategic partnership with Microsoft, expanding its relationship with AWS, and establishing a new important alliance with McKinsey & Company QuantumBlack.

• In Q3, the Company closed 47 agreements through its partner network, an increase of 74% year-over-year.

• Microsoft Azure Strategic Alliance
  • C3 AI and Microsoft have, in short order, closed 28 agreements across 9 different industries, a 460% increase quarter-over-quarter. In addition, as of today, the companies are engaged in joint sales campaigns to 621 accounts in Europe, Asia, and North and South America.

  • The joint qualified opportunity pipeline with Microsoft has increased by over 244% year-over-year.

  • Sales cycles with Microsoft have shortened by nearly 20% quarter-over-quarter.

  • In the current quarter, C3 AI and Microsoft are refining a highly tuned closely coordinated joint market sales and service motion. This includes alignment of strategic objectives and target accounts, a regular executive meeting cadence, and expansion of event and enablement activities including jointly hosting executive roundtables, virtual fireside chats, and three-day workshops, where we jointly engage hands-on with customers to bring working Enterprise AI applications live in three days.

• C3 AI and AWS dramatically expanded their strategic alliance. Under the expanded agreement, C3 AI and AWS will continue to jointly offer advanced Enterprise AI solutions, focusing on executing a robust go-to-market strategy.

• C3 AI and McKinsey & Company announced a major new strategic alliance, initially showcased at World Economic Forum in Davos. This collaboration combines McKinsey QuantumBlack’s expertise in AI business transformation with C3 AI’s Enterprise AI application leadership to deliver high assurance AI-powered digital transformation at global scale.

Customer Success

With C3 AI, customers across sectors continued to realize significant operational improvements and cost efficiencies — achieving increased reliability, optimized production schedules, optimized supply chain management, and enhanced forecasting.

• GSK, a leading global biopharma company, is significantly scaling out the C3 AI Demand Forecasting application across regions and products to enhance its supply chain, ensuring more accurate and efficient delivery of critical medicines and vaccines to patients worldwide. With this AI application, GSK can better predict and respond to market fluctuations, optimize its manufacturing operations, and improve its supply chain visibility to deliver significant cost savings.
• Worley, an engineering and professional services company, has partnered with C3 AI and Microsoft to accelerate supply chain and value chain solutions for the technology solutions business. The initial scale solution focuses on small modular reactors (SMRs), which can be applied to the broader, complex nuclear industry. Worley is using the C3 AI Supply Chain Suite and C3 AI Asset Performance Suite to deliver increased efficiency and refined predictive capabilities for streamlined business practices for itself and to scale up across its lighthouse customers.

C3 Generative AI

C3 AI’s continuous innovation in generative AI to build its growing suite of secure, enterprise-grade solutions drives adoption across industries.

• In Q3, the Company closed 20 C3 Generative AI pilots with Mars, Liberty Coca-Cola Beverages, the U.S. Department of Defense, and others, including various government agencies in New Jersey, Montana, and California.

• C3 AI advances its technology stack with a breakthrough foundation time series embedding model. This innovation enables direct retrieval and reasoning on time series, streamlining the configuration of applications that require sensor data. Key benefits include the automatic identification of anomalies, and the cataloging and retrieval of relevant actions (e.g., relevant past work orders) or expert recommendations.

• SmithRx, a next-generation pharmacy benefits manager, is using C3 Generative AI to streamline member support and enhance customer service. Using C3 Generative AI, call center operators are able to get access to key information, such as member history, drug eligibility, and lower-cost alternatives for customers from across multiple systems. The AI application has significantly reduced call handle times. This efficiency allows SmithRx focus to improve member outcomes, increase member satisfaction, and reduce costs.

C3 Transform 2025

C3 AI will be holding its sixth annual international user’s group conference, C3 Transform, in Boca Raton from March 18–20, 2025. The entire C3 AI board of directors will be actively participating, as will the entire executive team. Customers, partners, and prospects from multiple geographies and a multiplicity of industries will be actively engaged, including leaders across almost every sector. By bringing together C3 AI experts and early adopters who can speak to the value of Enterprise AI, C3 Transform gives customers, partners and prospects the chance to discover exactly how they can use Enterprise AI and generative AI securely and effectively. The C3 Transform agenda is available as part of our FY25-Q3 Investor Supplemental.

Financial Outlook:

The Company’s guidance includes GAAP and non-GAAP financial measures.

The following table summarizes C3 AI’s guidance for the fourth quarter of fiscal 2025 and full-year fiscal 2025:

(in millions)	Fourth Quarter Fiscal 2025 Guidance		Full Year Fiscal 2025 Guidance
Total revenue	$103.6 – $113.6		$383.9 – $393.9
Non-GAAP loss from operations	$(30.0) – $(40.0)		$(87.0) – $(97.0)

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP results included in this press release. Our fiscal year ends April 30, and numbers are rounded for presentation purposes.

Conference Call Details

What:	C3 AI Third Quarter Fiscal 2025 Financial Results Conference Call
When:	Wednesday, February 26, 2025
Time:	2:00 p.m. PT / 5:00 p.m. ET
Participant Registration:	https://register.vevent.com/register/BId3a29d38315445ceac8b1dc16f2068e9 (live)
Webcast:	https://edge.media-server.com/mmc/p/h8imsh6j (live and replay)

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at our investor relations page at ir.c3.ai.

Statement Regarding Use of Non-GAAP Financial Measures

The Company reports the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

• Non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, and non-GAAP net loss per share. Our non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, and non-GAAP net loss per share exclude the effect of stock-based compensation expense-related charges and employer payroll tax expense related to employee stock-based compensation. We believe the presentation of operating results that exclude these non-cash items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.
• Free cash flow. We believe free cash flow, a non-GAAP financial measure, is useful in evaluating liquidity and provides information to management and investors about our ability to fund future operating needs and strategic initiatives. We calculate free cash flow as net cash used in operating activities less purchases of property and equipment and capitalized software development costs. This non-GAAP financial measure may be different than similarly titled measures used by other companies. Additionally, the utility of free cash flow is further limited as it does not represent the total increase or decrease in our cash balances for a given period.

We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP financial measures.

Other Information

Professional Services Revenue

Our professional services revenue includes service fees and prioritized engineering services. Service fees include revenue from services such as consulting, training, and paid implementation services.

Prioritized engineering services are undertaken when a customer requests that we accelerate the design, development, and delivery of software features and functions that are planned in our future product roadmap. When we agree to this, we negotiate an agreed upon fee to accelerate the development of the software. When the software feature is delivered, it becomes integrated to our core product offering, is available to all subscribers of the underlying software product, and enhances the operation of that product going forward. Such prioritized engineering services result in production-level computer software – compiled code that enhances the functionality of our production products – which is available for our customers to use over the life of their software licenses. Per Accounting Standards Codification (ASC) 606, Prioritized engineering services revenue is recognized as professional services over the period in which the software development is completed.

Total professional services revenue consists of:

	Three Months Ended January 31,						Nine Months Ended January 31,
		2025			2024			2025			2024
	(in thousands)						(in thousands)
Prioritized engineering services	$	5,698		$	7,125		$	26,008		$	20,225
Service fees		7,405			876			14,028			5,566
Total professional services revenue	$	13,103		$	8,001		$	40,036		$	25,791

Use of Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements regarding our market leadership position, anticipated benefits from our partnerships, financial outlook, our sales and customer opportunity pipeline including our industry diversification, the expected benefits of our offerings (including the potential benefits of our C3 Generative AI offerings), and our business strategies, plans, and objectives for future operations. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including our history of losses and ability to achieve and maintain profitability in the future, our historic dependence on a limited number of existing customers that account for a substantial portion of our revenue, our ability to attract new customers and retain existing customers, market awareness and acceptance of enterprise AI solutions in general and our products in particular, the length and unpredictability of our sales cycles and the time and expense required for our sales efforts. Some of these risks are described in greater detail in our filings with the Securities and Exchange Commission, including our Quarterly Reports on Form 10-Q for the fiscal quarters ended July 31, 2024, October 31, 2024, and, when available, January 31, 2025, although new and unanticipated risks may arise. The future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Except to the extent required by law, we do not undertake to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations.

About C3.ai, Inc.

C3.ai, Inc. (NYSE:AI) is the Enterprise AI application software company. C3 AI delivers a family of fully integrated products including the C3 AI Platform, an end-to-end platform for developing, deploying, and operating enterprise AI applications, C3 AI applications, a portfolio of industry-specific SaaS enterprise AI applications that enable the digital transformation of organizations globally, and C3 Generative AI, a suite of domain-specific generative AI offerings for the enterprise.

Source: C3.ai, Inc.

C3.AI, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
	Three Months Ended January 31,								Nine Months Ended January 31,
	2025				2024				2025				2024
Revenue
Subscription(1)	$	85,679			$	70,400			$	240,297			$	198,201
Professional services(2)		13,103				8,001				40,036				25,791
Total revenue		98,782				78,401				280,333				223,992
Cost of revenue
Subscription		37,799				32,273				106,129				93,644
Professional services		2,636				841				5,851				3,399
Total cost of revenue		40,435				33,114				111,980				97,043
Gross profit		58,347				45,287				168,353				126,949
Operating expenses
Sales and marketing(3)		61,201				57,140				168,969				150,920
Research and development		59,356				49,480				167,998				150,747
General and administrative		25,375				21,213				66,845				61,317
Total operating expenses		145,932				127,833				403,812				362,984
Loss from operations		(87,585	)			(82,546	)			(235,459	)			(236,035	)
Interest income		8,677				9,995				28,240				30,597
Other (expense) income, net		(957	)			409				(916	)			(468	)
Loss before provision for income taxes		(79,865	)			(72,142	)			(208,135	)			(205,906	)
Provision for income taxes		336				489				865				863
Net loss	$	(80,201	)		$	(72,631	)		$	(209,000	)		$	(206,769	)
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted	$	(0.62	)		$	(0.60	)		$	(1.64	)		$	(1.75	)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted		130,382				120,486				127,752				118,259

(1)		Including related party revenue of $10,581 for the nine months ended January 31, 2024.
(2)		Including related party revenue of $5,804 for the nine months ended January 31, 2024.
(3)		Including related party sales and marketing expense of $810 for the nine months ended January 31, 2024.

C3.AI, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except for share and per share data) (Unaudited)
	January 31, 2025				April 30, 2024
Assets
Current assets
Cash and cash equivalents	$	125,094			$	167,146
Marketable securities		599,233				583,221
Accounts receivable, net of allowance of $642 and $359 as of January 31, 2025 and April 30, 2024, respectively		180,357				130,064
Prepaid expenses and other current assets		26,219				23,963
Total current assets		930,903				904,394
Property and equipment, net		81,910				88,631
Goodwill		625				625
Other assets, non-current		41,703				44,575
Total assets	$	1,055,141			$	1,038,225
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	28,737			$	11,316
Accrued compensation and employee benefits		48,727				44,263
Deferred revenue, current		32,955				37,230
Accrued and other current liabilities		27,628				9,526
Total current liabilities		138,047				102,335
Deferred revenue, non-current		—				1,732
Other long-term liabilities		56,917				60,805
Total liabilities		194,964				164,872
Commitments and contingencies
Stockholders’ equity
Class A common stock		129				120
Class B common stock		3				3
Additional paid-in capital		2,158,686				1,963,726
Accumulated other comprehensive income (loss)		292				(563	)
Accumulated deficit		(1,298,933	)			(1,089,933	)
Total stockholders’ equity		860,177				873,353
Total liabilities and stockholders’ equity	$	1,055,141			$	1,038,225

C3.AI, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
	Nine Months Ended January 31,
	2025				2024
Cash flows from operating activities:
Net loss	$	(209,000	)		$	(206,769	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		9,215				9,469
Non-cash operating lease cost		270				656
Stock-based compensation expense		174,373				159,032
Accretion of discounts on marketable securities		(10,715	)			(13,238	)
Other		2,158				110
Changes in operating assets and liabilities
Accounts receivable(1)		(52,017	)			(38,892	)
Prepaid expenses, other current assets and other assets(2)		587				(3,379	)
Accounts payable(3)		16,916				(4,945	)
Accrued compensation and employee benefits		7,648				171
Operating lease liabilities		1,439				14,330
Other liabilities(4)		12,462				6,296
Deferred revenue(5)		(6,007	)			(6,546	)
Net cash used in operating activities		(52,671	)			(83,705	)
Cash flows from investing activities:
Purchases of property and equipment		(2,101	)			(22,718	)
Capitalized software development costs		—				(2,750	)
Purchases of marketable securities		(518,806	)			(657,431	)
Maturities and sales of marketable securities		514,365				590,299
Net cash used in investing activities		(6,542	)			(92,600	)
Cash flows from financing activities:
Proceeds from issuance of Class A common stock under employee stock purchase plan		5,009				5,055
Proceeds from exercise of Class A common stock options		19,648				11,379
Taxes paid related to net share settlement of equity awards		(7,496	)			(10,397	)
Net cash provided by financing activities		17,161				6,037
Net decrease in cash, cash equivalents and restricted cash		(42,052	)			(170,268	)
Cash, cash equivalents and restricted cash at beginning of period		179,712				297,395
Cash, cash equivalents and restricted cash at end of period	$	137,660			$	127,127
Cash and cash equivalents	$	125,094			$	114,561
Restricted cash included in other assets, non-current		12,566				12,566
Total cash, cash equivalents and restricted cash	$	137,660			$	127,127
Supplemental disclosure of cash flow information—cash paid for income taxes	$	743			$	760
Supplemental disclosures of non-cash investing and financing activities:
Purchases of property and equipment included in accounts payable and accrued liabilities	$	527			$	2,475
Right-of-use assets obtained in exchange for lease obligations (including remeasurement of right-of-use assets and lease liabilities due to changes in the timing of receipt of lease incentives)	$	1,016			$	1,858
Vesting of early exercised stock options	$	251			$	406

(1)		Including changes in related party balances of $12,444 for the nine months ended January 31, 2024.
(2)		Including changes in related party balances of $(810) for the nine months ended January 31, 2024.
(3)		Including changes in related party balances of $248 for the nine months ended January 31, 2024.
(4)		Including changes in related party balances of $(2,448) for the nine months ended January 31, 2024.
(5)		Including changes in related party balances of $(46) for the nine months ended January 31, 2024.

C3.AI, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except percentages) (Unaudited)
	Three Months Ended January 31,								Nine Months Ended January 31,
	2025				2024				2025				2024
Reconciliation of GAAP gross profit to non-GAAP gross profit:
Gross profit on a GAAP basis	$	58,347			$	45,287			$	168,353			$	126,949
Stock-based compensation expense (1)		9,504				8,983				26,223				26,492
Employer payroll tax expense related to employee stock-based compensation (2)		356				405				883				1,243
Gross profit on a non-GAAP basis	$	68,207			$	54,675			$	195,459			$	154,684
Gross margin on a GAAP basis		59	%			58	%			60	%			57	%
Gross margin on a non-GAAP basis		69	%			70	%			70	%			69	%
Reconciliation of GAAP loss from operations to non-GAAP loss from operations:
Loss from operations on a GAAP basis	$	(87,585	)		$	(82,546	)		$	(235,459	)		$	(236,035	)
Stock-based compensation expense (1)		62,652				54,983				174,373				159,032
Employer payroll tax expense related to employee stock-based compensation (2)		1,789				1,773				4,151				5,547
Loss from operations on a non-GAAP basis	$	(23,144	)		$	(25,790	)		$	(56,935	)		$	(71,456	)
Reconciliation of GAAP net loss per share to non-GAAP net loss per share:
Net loss on a GAAP basis	$	(80,201	)		$	(72,631	)		$	(209,000	)		$	(206,769	)
Stock-based compensation expense (1)		62,652				54,983				174,373				159,032
Employer payroll tax expense related to employee stock-based compensation (2)		1,789				1,773				4,151				5,547
Net loss on a non-GAAP basis	$	(15,760	)		$	(15,875	)		$	(30,476	)		$	(42,190	)
GAAP net loss per share attributable to Class A and Class B common shareholders, basic and diluted	$	(0.62	)		$	(0.60	)		$	(1.64	)		$	(1.75	)
Non-GAAP net loss per share attributable to Class A and Class B common shareholders, basic and diluted	$	(0.12	)		$	(0.13	)		$	(0.24	)		$	(0.36	)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted		130,382				120,486				127,752				118,259

(1)

Stock-based compensation expense for gross profits and gross margin includes costs of subscription and cost of professional services as follows. Stock-based compensation expense for loss from operations includes total stock-based compensation expense as follows:

	Three Months Ended January 31,						Nine Months Ended January 31,
	2025			2024			2025			2024
Cost of subscription	$	8,563		$	8,674		$	24,084		$	25,244
Cost of professional services		941			309			2,139			1,248
Sales and marketing		21,860			17,528			61,495			52,533
Research and development		19,896			18,757			56,326			52,475
General and administrative		11,392			9,715			30,329			27,532
Total stock-based compensation expense	$	62,652		$	54,983		$	174,373		$	159,032

(2)

Employer payroll tax expense related to employee stock-based compensation for gross profits and gross margin includes costs of subscription and cost of professional services as follows. Employer payroll tax expense related to employee stock-based compensation for loss from operations includes total employer payroll tax expense related to employee stock-based compensation as follows:

	Three Months Ended January 31,						Nine Months Ended January 31,
	2025			2024			2025			2024
Cost of subscription	$	329		$	392		$	818		$	1,183
Cost of professional services		27			13			65			60
Sales and marketing		614			496			1,536			1,964
Research and development		578			738			1,173			1,970
General and administrative		241			134			559			370
Total employer payroll tax expense	$	1,789		$	1,773		$	4,151		$	5,547

Reconciliation of free cash flow to the GAAP measure of net cash used in operating activities:

The following table below provides a reconciliation of free cash flow to the GAAP measure of net cash used in operating activities for the periods presented:

	Three Months Ended January 31,								Nine Months Ended January 31,
	2025				2024				2025				2024
Net cash used in operating activities	$	(22,020	)		$	(39,051	)		$	(52,671	)		$	(83,705	)
Less:
Purchases of property and equipment		(362	)			(6,087	)			(2,101	)			(22,718	)
Capitalized software development costs		—				—				—				(2,750	)
Free cash flow	$	(22,382	)		$	(45,138	)		$	(54,772	)		$	(109,173	)
Net cash provided by (used in) investing activities	$	12,373			$	4,098			$	(6,542	)		$	(92,600	)
Net cash provided by financing activities	$	13,467			$	505			$	17,161			$	6,037

 

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