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C3.ai
🇺🇸 NYSE:AI
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Jul 31, 2023

C3.ai Q1 2024 Earnings Report

C3.ai's first quarter of fiscal year 2024 showed strong traction with enterprise AI applications and especially C3 Generative AI, with revenue at the high end of guidance.

Key Takeaways

C3.ai's total revenue for the quarter was $72.4 million, with subscription revenue constituting 85% of the total. The company experienced strong traction with enterprise AI applications, especially C3 Generative AI, and closed eight new agreements for C3 Generative AI during the quarter. C3 AI's Federal business is showing significant strength, with Federal bookings up 39% compared with the year-ago quarter.

Total revenue for the quarter was $72.4 million, at the high end of guidance.

Subscription revenue was $61.4 million, representing 85% of total revenue.

GAAP gross profit was $40.5 million, with a 56% gross margin; non-GAAP gross profit was $49.6 million, with a 69% non-GAAP gross margin.

C3 AI closed 20 agreements with and through its partner network, with over 60% of business closed through the network.

Total Revenue
$72.4M
Previous year: $65.3M
+10.8%
EPS
-$0.09
Previous year: -$0.12
-25.0%
Gross Margin
0.56%
Gross Profit
$40.5M
Previous year: $46.9M
-13.5%
Cash and Equivalents
$206M
Previous year: $222M
-7.0%
Free Cash Flow
-$8.9M
Previous year: -$53.8M
-83.5%
Total Assets
$1.09B
Previous year: $1.14B
-4.2%

C3.ai

C3.ai

C3.ai Revenue by Segment

Forward Guidance

The Company’s guidance includes GAAP and non-GAAP financial measures. Total revenue is expected to be between $72.0 - $76.5 million. Non-GAAP loss from operations is expected to be between ($27.0) - ($40.0) million.

Positive Outlook

  • Total revenue is expected to be between $72.0 - $76.5 million.
  • The company expects to be cash positive in Q4 FY 24 and in FY 25.
  • The company has a technology foundation that is tried, tested, and proven.
  • The company has a strong portfolio of applications in place.
  • The company has a pricing and distribution model that meets the needs of the market.

Challenges Ahead

  • Non-GAAP loss from operations is expected to be between ($27.0) - ($40.0) million.
  • The company will be investing in Generative AI solutions and does not expect to be non-GAAP profitable in Q4 FY 24.
  • Stock-based compensation expense-related charges are impacted by the timing of employee stock transactions.
  • The future fair market value of our common stock is difficult to predict.
  • Future hiring and retention needs are difficult to predict and subject to constant change.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View C3.ai