Blaize Holdings, Inc. Q2 FY2025 earnings call

• Hybrid AI strategy shifted from pilot validation to early-stage deployment, with $176 million in contracts secured, including a $120 million contract with Starshine and a $56 million purchase order in South Asia.
• Launched the Blaize AI platform, a plug-and-play software and hardware stack for faster deployment.
• Pipeline exceeds $725 million, with $300 million in advanced discussions.
• Revenue in Q2 was $2 million, net of commissions, nearly double the prior quarter's revenue and above guidance range.
• Starshine shipments planned to start in Q3, with up to 25% of the $120 million order expected to be fulfilled in 2025.

Revenue for the second quarter was $2 million, net of around $200,000 in related party sales commissions. This is almost double the revenue from the prior quarter and above the high end of the guidance range. However, no detailed breakdown by product segments is provided in the transcript.

• Revenue outlook for fiscal years 2025 and 2026 derisked by recent bookings.
• Pipeline over $725 million, with $300 million in advanced discussions, expecting conversion to accelerate in 2026.
• Gross margins expected to dip for the next two or three quarters due to third-party hardware in contracts.
• Starshine shipments to begin in Q3, with up to 25% of the $120 million order fulfilled in 2025.

• Uncertainties in converting pipeline opportunities to revenue.
• Dependence on third-party hardware affecting gross margin projections.
• Customer deployment schedules, such as the defense MOU targeting 2026, impacting revenue recognition.

Q: Gil Luria asked about the $176 million contracts and hybrid architecture in data centers.

A: $176 million will be delivered by 2026, and the hybrid architecture complements GPUs in data centers for ROI.

Q: Richard Shannon inquired about gross margin dip and MOU status.

A: Gross margins dip due to third-party hardware; the defense MOU project targets 2026.

Q: Richard Shannon followed up on pipeline and contract closures.

A: Pipeline has 20-40 applications, $300 million in late-stage, expect closures in 2026.

Q: Kevin Cassidy asked about guidance and supply chain.

A: Guidance adjusted due to customer deployment needs, supply chain not an issue with 14nm chip.

Q: Scott Searle asked about hybridization in edge and data center.

A: Hybridization drives ROI, pipeline has blend of edge and data center applications, inference driving market opportunity.