Blaize Holdings, Inc. Q1 FY2025 earnings call

• Moved from pilots to real deployments, with large pipeline including active late-stage programs and new partnerships like CBIST in South Korea and Turbo Federal in the US.
• Began shipping production AI chips and systems into real-world deployments across smart city and other sectors.
• Developing a new turnkey vertical AI solution stack combining chips, software, and validated applications.
• Operating with financial discipline, supported by a balance sheet to fund operations and scale customer programs.
• Showcased AI-powered smart city solutions at ISC West, integrated with various partners for hybrid cloud and pre-trained vision AI models.
• Diversified global pipeline includes late-stage engagements across smart infrastructure, public safety, defense, and industrial automation.

In the first quarter of 2025, revenue was just over $1 million, primarily from shipments of PCI cards to support smart city customers. The prior year's revenue of $549,000 was from strategic consulting services to an automotive customer. Cost of revenue in Q1 2025 was $327,000 compared to $306,000 in the prior year. The revenue contribution from smart city product shipments was the main driver in Q1 2025.

• Q2 2025 revenue projected to be in the range of $1.5 million to $1.7 million.
• Adjusted EBITDA loss expected to be between $13 million and $14 million.
• Stock-based compensation charge expected to be approximately $10 million.
• Weighted average shares outstanding expected to be approximately 90 million.
• Reaffirmed full fiscal year 2025 revenue guidance in the $19 million to $50 million range.

• Supply chain strain due to recent tariff developments could impact pipeline conversion.
• Macro challenges over the remaining seven months of the fiscal year may affect pipeline conversion.
• Need to continue managing cash burn if the uncertain environment persists.

Q: About some of the new wins like CBIST and Turbo Federal, how to quantify size and timing?

A: These are strategic engagements in chosen markets. CBIST is for smart cities, Turbo Federal is for defense. They range in size from low millions to tens of millions over time, with some expected to start contributing towards the end of 2025.

Q: What is the revenue cycle for different types of customers?

A: Generally, revenue from hardware is recognized upon shipment. Software licenses: perpetual licenses recognized when operative, annual licenses spread over period. Professional services recognized as services are delivered.

Q: Update on next generation of chips and impact of AI model development?

A: The shrinking of AI models is a perfect fit for existing products. Next generation products will focus on efficient inference at the edge, complete programmability, and supporting shrinking multi-model AI, which is being driven by current customer engagements and pipeline.

Q: Clarity on the contract with the Ministry of Defense and proof of concept progress?

A: Engagements with the Ministry of Defense are advancing towards proof of concept and field qualification phases. Revenue from this multi-year contract will include hardware shipments, software licenses, and professional services, with deployment expected towards the end of 2025 and extending into early 2027.

Q: Adjusted EBITDA loss range and stock-based compensation?

A: The adjusted EBITDA loss range reflects the revenue range. The change is due to external costs of the next generation chip, with some costs expected to be deferred towards the end of 2025 into 2026. Stock-based compensation is affected by the completion of the merger triggering RSU vesting conditions.

Q: New vertical AI solution platform and recurring revenue?

A: The vertical AI platform is a packaged hardware plus software solution ready to deploy. It helps end customers with IT spend and enables continuous change management. It provides an opportunity to monetize software as recurring revenue.