Investorideas.com – AI Stock News Bites – REDWOOD CITY, Calif. – March 3, 2023 – 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, 2023.
“As we enter Q4 FY 23, we are seeing tailwinds from improved business optimism and increased interest in applying C3 AI solutions to address an increasing range of applications across a broad range of industries,” said Thomas M. Siebel, C3 AI CEO. “The overall business sentiment appears to be improving. This is a dramatic change from what we experienced in mid 2022.”
“In the course of the third quarter we validated our transition to a consumption-based pricing model, expanded our partner ecosystem, expanded our business pipeline, and delivered industry leading product innovation in enterprise AI. We remain on track to become cash positive and non-GAAP profitable by the end of FY 24,” Siebel continued. “The results speak for themselves.”
Fiscal Third Quarter 2023 Financial Highlights
Revenue: Total revenue for the quarter was $66.7 million, exceeding guidance of $63.0 million to $65.0 million.
Subscription Revenue: Subscription revenue for the quarter was $57.0 million, constituting 85.6% of revenue.
Gross Profit: GAAP gross profit for the quarter was $44.4 million, representing a 67% gross margin. Non-GAAP gross profit for the quarter was $51.0 million, representing a 76% non-GAAP gross margin.
Remaining Performance Obligations (“RPO”): GAAP RPO was $403.2 million. Our GAAP RPO represents 151% of Q3 annualized revenue. Non-GAAP RPO was $436.3 million.
Current RPO: Current RPO of $176.3 million, an increase of 7% compared to $164.5 million one quarter ago.
Net Loss per Share: GAAP net loss per share was $(0.57). Non-GAAP net loss per share was $(0.06).
Customer Count: Customer count was 236.
Cash Reserves: With $789.8 million in cash, cash equivalents, and investments, we believe C3 AI is well positioned to sustain equity market turbulence and to continue to invest in growth through enterprise AI innovation and sales expansion, while sustaining our path to profitability.
C3 AI Partner Model Successes
In the third quarter we established, reestablished, and substantially expanded our go-to-market partnerships.
C3 AI and Google Cloud closed deals with eight new customers and expanded our joint pipeline. Our combined sales teams have identified 291 enterprise opportunities for our joint solutions, over 100 of which we are currently engaged in licensing discussions. Thomas Kurian, Google Cloud CEO, and Thomas Siebel, C3 AI CEO, held a joint meeting with a number of clients, prospects, and partners in the U.S. Federal region. Substantial progress has been made to ensure that all C3 AI products perform optimally in the Google Cloud environment. We further expanded our partnership agreement so that customers can purchase C3 AI software solutions on the Google Cloud Marketplace. Together C3 AI and Google Cloud have closed transactions with two global Consumer Packaged Goods companies, three High Tech and Telecom companies, and a large Canadian Financial Services company.
C3 AI and AWS renewed and expanded our go-to-market partnership. AWS funded C3 AI to enhance C3 AI Law Enforcement optimized for AWS, integrating Amazon OpenSearch and AWS Machine Learning services to enhance the speed and quality of analysis for state and local agencies using the application on AWS. C3 AI and AWS are jointly pursuing 75 new opportunities, of which 41 appear highly qualified; and we closed 6 new agreements in the quarter.
C3 AI and Azure collaborated to close a global U.S. Energy company and a European Technology company serving the Construction and Mining sectors. We cooperated to deliver a highly successful pilot engagement to a large U.S. Defense Agency.
C3 AI and Booz Allen established a highly strategic partnership in December focused on providing solutions for the Government, Defense, and Intelligence sectors. C3 AI and Booz Allen are jointly going to market with the C3 AI Platform and suite of pre-built C3 AI Applications. Together the companies have cross trained employees on the C3 AI Platform; are actively pursuing six highly qualified large opportunities; and we already closed our first engagement with the Chief Digital Artificial Intelligence Office (“CDAO”).
C3 AI and Accenture renewed our partnership to help customers drive product innovation, design and development to provide strategic support and systems integration at scale, drawing on Accenture’s experience to transform asset management across industries to help improve profitability and reduce risk. Together the companies have rapidly trained Accenture employees on the C3 AI Platform and have already collaborated to close two pilot deals in the Consumer Packaged Goods and Oil & Gas sectors; are actively engaged with a large Oil & Gas services company; and have generated several new opportunities with target accounts.
C3 AI and EY entered into a teaming agreement to address the needs of the Healthcare industry in the UK.
C3 AI and Peraton entered into a teaming agreement to address the modernization of the Veterans Administration.
C3 AI and Baker Hughes substantially expanded their strategic partnership. The terms of this expansion resulted in an incremental C3 AI booking of $32.5 million, and the frequency of payments due from Baker Hughes was accelerated over the term of the agreement. C3 AI agreed to provide additional products and services to Baker Hughes, and provided Baker Hughes additional flexibility in the manner in which they sell C3 AI products and services. The expanded agreement also enables Baker Hughes to extend the term of the agreement beyond its six-year term. We believe the partnership with Baker Hughes has enhanced our credibility in the Oil & Gas and Chemicals markets. As a result of our partnership with Baker Hughes, combining both joint selling through the partnership and the sales we have closed independently, C3 AI has closed 87 contracts in the Oil & Gas and Chemical industries including LyondellBasell, Shell, ExxonMobil, Petronas, ENI, Aramco, Qatargas, ADNOC, PTTGC, Yokogawa, Baker Hughes, Braskem, and others, from which we have closed over $650 million in bookings and recognized over $350 million in revenue through Q3 FY 23.
C3 AI ESG. C3 AI’s most mature application in market is C3 AI Energy Management. Initially released in Spring 2010, this product is used to measure and manage the energy and greenhouse gas footprint at over 6 million residences and businesses today. In September 2022, we announced the availability of C3 AI ESG, developed as a significant enhancement to the C3 AI Energy Management foundation. C3 AI ESG provides a single source of truth for all matters of materiality related to ESG – aggregated and synthesized from the many ERP, supply chain, procurement, SCADA, CRM, HR, and other enterprise systems installed at an enterprise – all tracked at the asset, division, and corporate level. It enables organizations to publish ESG compliance reports consistent with a multiplicity of conflicting ESG reporting standards including SASB, GRI, TCFD, and CDP. Most importantly, C3 AI ESG provides rich predictive analytics using AI to allow managers to track their gaps to plan for ESG materiality in out years – be it CO2, H2O, methane, workplace injuries, etc. – and recommends mitigation measures to close the gaps so that the company can be assured of meeting its ESG objectives. According to Verdantix, ESG presents a $16 billion addressable market in 2027 and the enthusiasm with which this product is being received suggests that it will be a substantial contributor to growth at C3 AI. Our initial customers of our ESG application are EY, Shell and Baker Hughes. For those interested, a demo is available https://c3.ai/products/c3-ai-esg/#esg-demo.
Read the company’s full news and disclaimer here:
Research more AI stocks with Investorideas.com stock directory
About Investorideas.com – Big Investing Ideas
We publish breaking stock news, stock research, guest posts and create original top rated investing podcasts, plus sector tag articles featuring up and coming companies and industry leaders. Investor Idea’s original branded content includes the Crypto Corner Podcast, Play by Play Sports Podcast, Cannabis News and Stocks on the Move Podcast, Cleantech and Climate Change Podcast, Exploring Mining Podcast, Betting on Gaming Stocks Podcast and the AI Eye Podcast. We also create free investor stock directories for AI and tech, biotech, cannabis, cleantech, crypto, defense, gaming, health and wellness, mining, oil and gas, sports and water.
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions. More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/
Follow us on Twitter https://twitter.com/Investorideas
Follow us on Facebook https://www.facebook.com/Investorideas
Follow us on YouTube https://www.youtube.com/c/Investorideas
This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com