•
Oct 31, 2022

C3.ai Q2 2023 Earnings Report

C3.ai's Q2 2023 financial results were announced, revealing a solid quarter with subscription revenue growth.

Key Takeaways

C3.ai reported a 7% increase in total revenue, reaching $62.4 million, with subscription revenue growing by 26% to $59.5 million. The company's transition to a consumption-based pricing model and sales restructuring impacted short-term revenue growth and RPO, but are expected to accelerate revenue growth in the medium and long term. C3.ai is targeting non-GAAP profitability and positive cash flow by the end of fiscal year 2024.

Total revenue increased by 7% year-over-year to $62.4 million.

Subscription revenue grew by 26% year-over-year to $59.5 million.

GAAP net loss per share was $(0.63), while non-GAAP net loss per share was $(0.11).

The number of completed contracts more than doubled year-over-year, while the average contract value decreased due to the new pricing model.

Total Revenue
$62.4M
Previous year: $58.3M
+7.1%
EPS
-$0.11
Previous year: -$0.23
-52.2%
Gross Margin
67%
Gross Profit
$41.7M
Previous year: $42.3M
-1.5%
Cash and Equivalents
$278M
Previous year: $167M
+65.8%
Free Cash Flow
-$77M
Previous year: -$19.8M
+288.7%
Total Assets
$1.1B
Previous year: $1.16B
-5.5%

C3.ai

C3.ai

C3.ai Revenue by Segment

Forward Guidance

C3 AI provided guidance for the third quarter of fiscal year 2023, expecting total revenue between $63.0 million and $65.0 million, and a non-GAAP loss from operations between ($25.0) million and ($29.0) million. For the full fiscal year 2023, the company anticipates total revenue between $255.0 million and $270.0 million, and a non-GAAP loss from operations between ($85.0) million and ($98.0) million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income