Generative AI Changes Everything
C3.ai, Inc. (NYSE: AI), the Enterprise AI application software
company, today announced financial results for its fiscal fourth
quarter and full fiscal year ended April 30, 2023.
Fiscal Fourth Quarter 2023 Financial Highlights
- Revenue: Total revenue for the quarter was $72.4
million.
- Subscription Revenue: Subscription revenue for the
quarter was $56.9 million, constituting 79% of revenue.
- Gross Profit: GAAP gross profit for the quarter was
$47.5 million, representing a 66% gross margin. Non-GAAP gross
profit for the quarter was $53.9 million, representing a 74%
non-GAAP gross margin.
- Remaining Performance Obligations (“RPO”): GAAP RPO was
$381.4 million.
- Current RPO: Current RPO of $186.3 million.
- Net Loss per Share: GAAP net loss per share was $(0.58).
Non-GAAP net loss per share was $(0.13).
- Cash Balance: $812.4 million in cash, cash equivalents,
and investments.
- Free Cash Flow: Positive free cash flow $16.3
million.
Full Year Fiscal 2023 Financial Highlights
- Revenue: Total revenue for the fiscal year was $266.8
million, an increase of 5.6% compared to FY 22.
- Subscription Revenue: Subscription revenue for the
fiscal year was $230.4 million, constituting 86% of revenue,
representing 11.4% growth over FY 22.
- Gross Profit: GAAP gross profit for the fiscal year was
$180.5 million, representing 68% gross margin. Non-GAAP gross
profit was $205.2 million, representing 77% non-GAAP gross
margin.
- Net Loss per Share: GAAP net loss per share was $(2.45).
Non-GAAP net loss per share was $(0.42).
Overall Business Results:
We believe it is generally agreed today that the market for
enterprise AI applications is substantially larger and growing at a
much greater growth rate than experts predicted. C3 AI has been at
the vanguard of the enterprise AI market for over a decade as that
market has developed from its roots in IoT, to unsupervised
learning, supervised learning, NLP, deep learning, reinforcement
learning, and now generative AI.
The interest in applying AI to business processes is more active
than we've ever seen.
C3 AI Applications:
As the enterprise AI market develops, it appears that the bulk
of the demand is increasingly for turnkey enterprise AI
applications, rather than development tools. An evaluation of our
bookings for the past fiscal year indicates that 83% of our
bookings were driven by application sales. 17% of our bookings were
driven by sales of the C3 AI Platform.
C3 AI delivers over 40 enterprise AI applications today.
We are seeing increasing diversity in the industries we serve.
For FY 23, an analysis of our bookings includes:
Oil & Gas
33.8 %
Federal, Defense & Aerospace
28.9 %
High Tech
13.2 %
Energy & Utilities
11.4 %
Manufacturing
4.2 %
Food Processing
2.0 %
Chemicals
1.8 %
Life Sciences
1.5 %
Other
3.2 %
An important leading indicator of our increasing industry
diversity is evidenced by the trial and pilot agreements closed in
Q4 FY 23:
Federal, Defense & Aerospace
36.8 %
Manufacturing
15.8 %
High Tech
10.5 %
Oil & Gas
10.5 %
Agriculture
5.3 %
State and Local
5.3 %
Chemicals
5.3 %
Energy & Utilities
5.3 %
Financial Services
5.3 %
As a result of increasing market demand for enterprise AI — and
from our adoption of consumption-based pricing — we are seeing a
substantial increase in opportunities and shorter sales cycles.
In the fourth quarter of FY 23, the company closed 43
agreements, including 19 pilots. The number of qualified enterprise
opportunities targeted for closure within 12 months in our sales
pipeline has increased by more than 100% in the past year. During
FY 23, we closed 126 agreements, up from 83 the prior year. The
average sales cycle for agreements in Q4 FY 23 was 3.7 months, down
from 5 months in Q4 FY 22.
An examination of the composition of our pilot account profile
suggests there is significant opportunity for growth as these
accounts convert to consumption pricing. Of the 19 pilot accounts
signed in Q4 FY 23:
Pilots
Account size in
revenue
7
> $100 billion
7
$10 - $100 billion
4
$1 - $10 billion
0
$100 million - $1 billion
1
< $100 million
In FY 23, C3 AI expanded its application footprint at Shell,
Koch Industries, U.S. Air Force Rapid Sustainment Office (“RSO”),
PwC, Ball, ExxonMobil, Con Edison, Defense Counterintelligence and
Security Agency (“DCSA”), Baker Hughes, New York Power Authority,
Duke Energy, ATB, Defense Innovation Unit, Roche, Cargill, and
Engie, among others.
In FY 23, we established new customer relationships with
Department of Defense – Common DoD Artificial Intelligence Office;
Daly City, CA; DOW; ExxonMobil; Flex; General Mills; Hexagon;
Nucor; O-I; Pantaleon; Riverside County, CA; Stark County, Ohio;
Telus; DoD-SOCOM; DoD-TRANSCOM; ESAB, and others. Many of these
also expanded their C3 AI engagements during the year.
C3 AI Partner Network:
C3 AI's partner ecosystem is increasingly effective at opening
new doors, providing prospects the assurance of success, and
providing customers with the highest quality service. In FY 23, we
closed 71 agreements with and through our partner network including
Google Cloud, AWS, Microsoft, Baker Hughes, Booz Allen, and others.
C3 AI has grown its qualified 12-month opportunity pipeline with
AWS by over 24% in the last quarter, with particular focus on state
and local government. With Google Cloud, our joint qualified
12-month opportunity pipeline grew from 25 opportunities at the end
of FY 22 to 140 opportunities at the end of FY 23, a 460% increase.
We closed 10 new oil & gas accounts in the year with Baker
Hughes including ExxonMobil, ADNOC, ENI, and others.
C3 Generative AI:
In Q4, we released the C3 Generative AI solution to the market.
It is distinguished from other GPT/LLM solutions in the market in
that — leveraging the capabilities of the C3 AI Platform — it 1)
allows enterprises access to all their enterprise data and open
source data — ERP, CRM, SCADA, text, PDFs, Excel, PowerPoint,
sensor data, open source, etc.; 2) provides traceable,
deterministic, consistent answers; 3) enforces corporate
information access controls and security protocols; 4) has no risk
of LLM-caused data or IP exfiltration; and 5) is
hallucination-free.
We rapidly closed three C3 Generative AI application agreements
in the quarter with large enterprises, including Georgia-Pacific,
Flint Hills Resources, and the U.S. Department of Defense Missile
Defense Agency (MDA). These applications are expected to be live in
Q1 FY 24. We are currently working a substantial pipeline of
additional C3 Generative AI opportunities with large corporations.
The C3 Generative AI application is now available on both the AWS
and Google Cloud marketplaces. It is difficult to estimate the size
of the addressable market for these solutions, but it appears
extraordinarily large.
C3 AI Federal Momentum:
The U.S. Federal Sector represented 29% of our bookings in FY
23.
The U.S. Air Force selected C3 AI as the System of Record
for AI-enabled predictive maintenance. C3 AI’s predictive
maintenance solution, Predictive Analytics & Decision Assistant
(“PANDA”), has been in production use for several years at the USAF
Rapid Sustainment Office (“RSO”). This designation expands C3 AI’s
opportunity to all predictive maintenance applications in the U.S.
Air Force.
Plan for Profitability:
The company continues on-track with its plan for profitability,
with the goal of achieving a sustainably non-GAAP profitable
business by the end of fiscal year 2024, ending April 30, 2024.
Positive results to date, including $16.3 million positive free
cash flow from business operations in Q4 FY 23.
CEO Comments:
“As we began the fiscal year on May 1, the company has never
been better positioned,” said Thomas M. Siebel, C3 AI CEO. “I
believe we now have broad consensus that the addressable market for
Enterprise AI is extraordinarily large and rapidly growing; we have
nearly 1,000 talented, dedicated employees; the C3 AI Platform is
increasingly recognized as the gold-standard in enterprise AI; we
have over 40 production enterprise AI applications that offer the
market rapid time to value; our C3 Generative AI offerings are
being enthusiastically received; our growing market-partner
ecosystem provides us extraordinary reach; with our tried, tested,
and proven management team, our strong work ethic, and armed with
$812 million in cash — we are well positioned to accelerate growth,
gain market share, attain sustainable non-GAAP profitability, and
establish a market-leading position globally in enterprise AI. FY
2024 will be exciting.”
Financial Outlook:
The Company’s guidance includes GAAP and non-GAAP financial
measures.
The following table summarizes C3 AI’s guidance for the first
quarter of fiscal 2024 and full-year fiscal 2024:
(in millions)
First Quarter Fiscal 2024
Guidance
Full Year Fiscal 2024
Guidance
Total revenue
$70.0 - $72.5
$295.0 - $320.0
Non-GAAP loss from operations
($25.0) - ($30.0)
($50.0) - ($75.0)
A reconciliation of non-GAAP guidance measures to corresponding
GAAP measures is not available on a forward-looking basis without
unreasonable effort due to the uncertainty regarding, and the
potential variability of, expenses that may be incurred in the
future. Stock-based compensation expense-related charges, including
employer payroll tax-related items on employee stock transactions,
are impacted by the timing of employee stock transactions, the
future fair market value of our common stock, and our future hiring
and retention needs, all of which are difficult to predict and
subject to constant change. We have provided a reconciliation of
GAAP to non-GAAP financial measures in the financial statement
tables for our historical non-GAAP results included in this press
release. Our fiscal year ends April 30, and numbers are rounded for
presentation purposes.
C3 AI Investor Day – June 22, 2023:
C3 AI will be hosting an Investor Day in New York City to
provide C3 AI investors a company update; additional information
about our product roadmap; product demonstrations; direct access to
the C3 AI Executive team; updates on the partner eco-system; C3
Generative AI demonstrations; and additional company developing
news. The event will be broadcast to the investor community at
large via live webcast.
Conference Call Details
What:
C3 AI Fourth Quarter Fiscal 2023 Financial
Results Conference Call
When:
Wednesday, May 31, 2023
Time:
2:00 p.m. PT / 5:00 p.m. ET
Participant Registration:
https://register.vevent.com/register/BI82803676bd9a45f486a3df9d2260d9a6
(live call)
Webcast:
https://edge.media-server.com/mmc/p/4mip8zax (live and replay)
Investor Presentation Details
An investor presentation providing additional information and
analysis can be found at our investor relations page at
ir.c3.ai.
Statement Regarding Use of Non-GAAP Financial
Measures
The Company reports the following non-GAAP financial measures,
which have not been prepared in accordance with generally accepted
accounting principles in the United States (GAAP), in addition to,
and not as a substitute for, or superior to, financial measures
calculated in accordance with GAAP.
- Non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss
from operations, and non-GAAP net loss per share. Our non-GAAP
gross profit, non-GAAP gross margin, non-GAAP loss from operations,
and non-GAAP net loss per share exclude the effect of stock-based
compensation expense-related charges and employer payroll tax
expense related to employee stock-based compensation. We believe
the presentation of operating results that exclude these non-cash
items provides useful supplemental information to investors and
facilitates the analysis of our operating results and comparison of
operating results across reporting periods.
- Free cash flow. We believe free cash flow, a non-GAAP
financial measure, is useful in evaluating liquidity and provides
information to management and investors about our ability to fund
future operating needs and strategic initiatives. We calculate free
cash flow as net cash provided by (used in) operating activities
less purchases of property and equipment and capitalized software
development costs. This non-GAAP financial measure may be different
than similarly titled measures used by other companies.
Additionally, the utility of free cash flow is further limited as
it does not represent the total increase or decrease in our cash
balances for a given period.
We use these non-GAAP financial measures internally for
financial and operational decision-making purposes and as a means
to evaluate period-to-period comparisons. Non-GAAP financial
measures are not meant to be considered in isolation or as a
substitute for comparable GAAP financial measures and should be
read only in conjunction with our condensed consolidated financial
statements prepared in accordance with GAAP. Our presentation of
non-GAAP financial measures may not be comparable to similar
measures used by other companies. We encourage investors to
carefully consider our results under GAAP, as well as our
supplemental non-GAAP information and the reconciliation between
these presentations, to more fully understand our business. Please
see the tables included at the end of this release for the
reconciliation of GAAP to non-GAAP financial measures.
Use of Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release other than
statements of historical facts, including our market leadership
position, anticipated benefits from our partnerships and
investments, financial outlook, our expectations relating to our
new consumption-pricing model and the impact to our results of
operations, our expectation to be operating profitably on a
non-GAAP basis by the end of fiscal 2024, the expected benefits of
our offerings, our business strategies, plans, and objectives for
future operations, are forward-looking statements. The words
“anticipate,” “believe,” “continue,” “estimate,” “expect,”
“intend,” “may,” “will” and similar expressions are intended to
identify forward-looking statements. We have based these
forward-looking statements largely on our current expectations and
projections about future events and trends that we believe may
affect our financial condition, results of operations, business
strategy, short-term and long-term business operations and
objectives, and financial needs. These forward-looking statements
are subject to a number of risks and uncertainties, including
difficulties in evaluating our prospects and future results of
operations given our limited operating history, our dependence on a
limited number of existing customers that account for a substantial
portion of our revenue, our ability to attract new customers and
retain existing customers, market awareness and acceptance of
enterprise AI solutions in general and our products in particular,
and our history of operating losses. Some of these risks are
described in greater detail in our filings with the Securities and
Exchange Commission, including our Quarterly Reports on Form 10-Q
for the fiscal quarters ended July 31, 2022, October 31, 2022 and
January 31, 2022, and other filings and reports we make with the
Securities and Exchange Commission from time to time, including our
Form 10-K that will be filed for the fiscal year ended April 30,
2023, although new and unanticipated risks may arise. The future
events and trends discussed in this press release may not occur and
actual results could differ materially and adversely from those
anticipated or implied in the forward-looking statements. Although
we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results,
levels of activity, performance, achievements, or events and
circumstances reflected in the forward-looking statements will
occur. Except to the extent required by law, we do not undertake to
update any of these forward-looking statements after the date of
this press release to conform these statements to actual results or
revised expectations.
About C3.ai, Inc.
C3.ai, Inc. (NYSE:AI) is the Enterprise AI application software
company. C3 AI delivers a family of fully integrated products
including the C3 AI Application Platform, an end-to-end platform
for developing, deploying, and operating enterprise AI applications
and C3 AI Applications, a portfolio of industry-specific SaaS
enterprise AI applications that enable the digital transformation
of organizations globally, and C3 Generative AI, a suite of large
AI transformer models for the enterprise.
C3.AI, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share data)
(Unaudited)
Three Months Ended April
30,
Fiscal Year Ended April
30,
2023
2022
2023
2022
Revenue
Subscription(1)
$
56,866
$
56,302
$
230,443
$
206,916
Professional services(2)
15,544
16,015
36,352
45,843
Total revenue
72,410
72,317
266,795
252,759
Cost of revenue
Subscription(3)
23,872
12,958
78,423
45,838
Professional services
1,036
4,405
7,914
17,875
Total cost of revenue
24,908
17,363
86,337
63,713
Gross profit
47,502
54,954
180,458
189,046
Operating expenses
Sales and marketing(4)
51,701
47,450
183,121
173,584
Research and development
49,681
46,378
210,660
150,544
General and administrative
19,400
17,649
77,170
61,040
Total operating expenses
120,782
111,477
470,951
385,168
Loss from operations
(73,280
)
(56,523
)
(290,493
)
(196,122
)
Interest income
8,230
750
21,979
1,827
Other income (expense), net
284
(2,452
)
350
3,019
Loss before provision for income taxes
(64,766
)
(58,225
)
(268,164
)
(191,276
)
Provision for income taxes
190
195
675
789
Net loss
$
(64,956
)
$
(58,420
)
$
(268,839
)
$
(192,065
)
Net loss per share attributable to Class A
and Class B common stockholders, basic and diluted
$
(0.58
)
$
(0.55
)
$
(2.45
)
$
(1.84
)
Weighted-average shares used in computing
net loss per share attributable to Class A and Class B common
stockholders, basic and diluted
112,746
105,824
109,851
104,404
(1)
Including related party revenue of $19,568
and $20,465 for the three months ended April 30, 2023 and 2022,
respectively, and $75,452 and $60,425 for the fiscal years ended
April 30, 2023 and 2022, respectively.
(2)
Including related party revenue of $8,025
and $3,982 for the three months ended April 30, 2023 and 2022,
respectively, and $16,774 and $16,872 for the fiscal years ended
April 30, 2023 and 2022, respectively.
(3)
Including purchases from related party
included in cost of revenue of nil and $190 for the three months
ended April 30, 2023 and 2022, respectively, and nil and $578 for
the fiscal years ended April 30, 2023 and 2022, respectively.
(4)
Including related party sales and
marketing expense of $3,416 and $5,639 for the three months ended
April 30, 2023 and 2022, respectively, and $13,962 and $8,229 for
the fiscal years ended April 30, 2023 and 2022, respectively.
C3.AI, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except for
share and per share data)
(Unaudited)
April 30, 2023
April 30, 2022
Assets
Current assets
Cash and cash equivalents
$
284,829
$
339,528
Short-term investments
446,155
620,633
Accounts receivable, net of allowance of
$359 and $157 as of April 30, 2023 and 2022, respectively(1)
134,586
80,271
Prepaid expenses and other current
assets(2)
23,309
20,004
Total current assets
888,879
1,060,436
Property and equipment, net
84,578
14,517
Goodwill
625
625
Long-term investments
81,418
32,086
Other assets, non-current(3)
47,528
63,218
Total assets
$
1,103,028
$
1,170,882
Liabilities and stockholders’
equity
Current liabilities
Accounts payable(4)
$
24,610
$
54,218
Accrued compensation and employee
benefits
46,513
32,223
Deferred revenue, current(5)
47,846
48,854
Accrued and other current
liabilities(6)
17,070
14,874
Total current liabilities
136,039
150,169
Deferred revenue, non-current
4
288
Other long-term liabilities(7)
37,320
30,948
Total liabilities
173,363
181,405
Commitments and contingencies
Stockholders’ equity
Class A common stock, $0.001 par value.
1,000,000,000 shares authorized as of April 30, 2023 and 2022,
respectively; 110,442,569 and 102,725,041 shares issued and
outstanding as of April 30, 2023 and 2022 respectively
110
103
Class B common stock, $0.001 par value;
3,500,000 shares authorized as of April 30, 2023 and 2022,
respectively; 3,499,992 and 3,499,992 shares issued and outstanding
as of April 30, 2023 and 2022, respectively
3
3
Additional paid-in capital
1,740,174
1,532,917
Accumulated other comprehensive loss
(385
)
(2,148
)
Accumulated deficit
(810,237
)
(541,398
)
Total stockholders’ equity
929,665
989,477
Total liabilities and stockholders’
equity
$
1,103,028
$
1,170,882
(1)
Including amounts from a related party of
$74,620 and $35,848 as of April 30, 2023 and 2022,
respectively.
(2)
Including amounts from a related party of
$4,983 and $4,862 as of April 30, 2023 and 2022, respectively.
(3)
Including amounts from a related party of
$11,279 and $16,141 as of April 30, 2023 and 2022,
respectively.
(4)
Including amounts from a related party of
$2,200 and $18,549 as of April 30, 2023 and 2022, respectively.
(5)
Including amounts from a related party of
$249 and $132 as of April 30, 2023 and 2022, respectively.
(6)
Including amounts from a related party of
$2,448 and $2,510 as of April 30, 2023 and 2022, respectively.
(7)
Including amounts from a related party of
nil and $2,448 as of April 30, 2023 and 2022, respectively.
C3.AI, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Fiscal Year Ended April
30,
2023
2022
Cash flows from operating
activities:
Net loss
$
(268,839
)
$
(192,065
)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization
6,088
5,190
Non-cash operating lease cost
6,992
4,185
Stock-based compensation expense
216,542
113,441
Other
(4,309
)
1,601
Changes in operating assets and
liabilities
Accounts receivable(1)
(54,517
)
(14,156
)
Prepaid expenses, other current assets and
other assets(2)
(576
)
(14,578
)
Accounts payable(3)
(22,041
)
34,481
Accrued compensation and employee
benefits
3,193
10,394
Operating lease liabilities
13,641
(3,266
)
Other liabilities(4)
(10,573
)
(5,604
)
Deferred revenue(5)
(1,292
)
(26,085
)
Net cash used in operating activities
(115,691
)
(86,462
)
Cash flows from investing
activities:
Purchases of property and equipment
(70,518
)
(3,791
)
Capitalized software development costs
(1,000
)
(500
)
Purchases of investments
(745,249
)
(796,487
)
Maturities and sales of investments
876,713
1,117,793
Net cash provided by investing
activities
59,946
317,015
Cash flows from financing
activities:
Repurchase and retirement of Class A
Common stock
—
(15,000
)
Payment of deferred offering costs
—
(105
)
Proceeds from exercise of Class A common
stock options
4,468
20,816
Proceeds from issuance of Class A common
stock under employee stock purchase plan
3,093
—
Taxes paid related to net share settlement
of equity awards
(6,940
)
—
Net cash provided by financing
activities
621
5,711
Net (decrease) increase in cash, cash
equivalents and restricted cash
(55,124
)
236,264
Cash, cash equivalents and restricted cash
at beginning of period
352,519
116,255
Cash, cash equivalents and restricted cash
at end of period
$
297,395
$
352,519
Cash and cash equivalents
$
284,829
$
339,528
Restricted cash included in prepaid
expenses and other current assets
—
425
Restricted cash included in other assets,
non-current
12,566
12,566
Total cash, cash equivalents and
restricted cash
$
297,395
$
352,519
Supplemental disclosure of cash flow
information—cash paid for income taxes
$
578
$
939
Supplemental disclosures of non-cash
investing and financing activities:
Purchases of property and equipment
included in accounts payable and accrued liabilities
$
13,814
$
9,261
Right-of-use assets obtained in exchange
for lease obligations (including remeasurement of right-of-use
assets and lease liabilities due to changes in the timing of
receipt of lease incentives)
$
(5,589
)
$
26,529
Right-of-use assets obtained in exchange
for lease obligations arising from lease modifications
$
3,093
$
1,572
Receivable from exercise of stock options
included in prepaid expenses, other current assets and other
assets
$
61
$
29
Unpaid liabilities related to intangible
purchases
$
1,500
$
2,500
Vesting of early exercised stock
options
$
1,006
$
2,746
(1)
Including changes in related party
balances of $38,772 and $20,668 for the fiscal years ended April
30, 2023 and 2022, respectively.
(2)
Including changes in related party
balances of $(4,741) and $12,739 for the fiscal years ended April
30, 2023 and 2022, respectively.
(3)
Including changes in related party
balances of $(16,349) and $18,493 for the fiscal years ended April
30, 2023 and 2022, respectively.
(4)
Including changes in related party
balances of $(2,510) and $(3,350) for the fiscal years ended April
30, 2023 and 2022, respectively.
(5)
Including changes in related party
balances of $117 and $(7,565) for the fiscal years ended April 30,
2023 and 2022, respectively.
C3.AI, INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In thousands, except
percentages)
(Unaudited)
Three Months Ended April
30,
Fiscal Year Ended April
30,
2023
2022
2023
2022
Reconciliation of GAAP gross profit to
non-GAAP gross profit:
Gross profit on a GAAP basis
$
47,502
$
54,954
$
180,458
$
189,046
Stock-based compensation expense (1)
5,972
3,533
23,637
11,348
Employer payroll tax expense related to
employee stock-based compensation (2)
377
41
1,150
114
Gross profit on a non-GAAP basis
$
53,851
$
58,528
$
205,245
$
200,508
Gross margin on a GAAP basis
66
%
76
%
68
%
75
%
Gross margin on a non-GAAP basis
74
%
81
%
77
%
79
%
Reconciliation of GAAP loss from
operations to non-GAAP loss from operations:
Loss from operations on a GAAP basis
$
(73,280
)
$
(56,523
)
$
(290,493
)
$
(196,122
)
Stock-based compensation expense (1)
48,068
35,628
216,542
113,441
Employer payroll tax expense related to
employee stock-based compensation (2)
1,669
178
5,877
1,972
Loss from operations on a non-GAAP
basis
$
(23,543
)
$
(20,717
)
$
(68,074
)
$
(80,709
)
Reconciliation of GAAP net loss per
share to non-GAAP net loss per share:
Net loss on a GAAP basis
$
(64,956
)
$
(58,420
)
$
(268,839
)
$
(192,065
)
Stock-based compensation expense (1)
48,068
35,628
216,542
113,441
Employer payroll tax expense related to
employee stock-based compensation (2)
1,669
178
5,877
1,972
Net loss on a non-GAAP basis
$
(15,219
)
$
(22,614
)
$
(46,420
)
$
(76,652
)
GAAP net loss per share attributable to
common stockholders, basic and diluted
$
(0.58
)
$
(0.55
)
$
(2.45
)
$
(1.84
)
Non-GAAP net loss per share attributable
to common stockholders, basic and diluted
$
(0.13
)
$
(0.21
)
$
(0.42
)
$
(0.73
)
Weighted-average shares used in computing
net loss per share attributable to common stockholders, basic and
diluted
112,746
105,824
109,851
104,404
(1)
Starting fiscal year 2023, the Company
records stock-based compensation associated with the Company’s
annual bonus program that will be settled by shares of restricted
common stock. Stock-based compensation expense for gross profits
and gross margin includes costs of subscription and cost of
professional services as follows. Stock-based compensation expense
for loss from operations includes total stock-based compensation
expense as follows:
Three Months Ended April
30,
Fiscal Year Ended April
30,
2023
2022
2023
2022
Cost of subscription
$
5,663
$
2,814
$
21,417
$
8,638
Cost of professional services
309
719
2,220
2,710
Sales and marketing
17,214
11,804
71,389
40,344
Research and development
17,449
13,340
90,217
39,200
General and administrative
7,433
6,951
31,299
22,549
Total stock-based compensation expense
$
48,068
$
35,628
$
216,542
$
113,441
(2)
Employer payroll tax expense related to
employee stock-based compensation for gross profits and gross
margin includes costs of subscription and cost of professional
services as follows. Employer payroll tax expense related to
employee stock-based compensation for loss from operations includes
total employer payroll tax expense related to employee stock-based
compensation as follows:
Three Months Ended April
30,
Fiscal Year Ended April
30,
2023
2022
2023
2022
Cost of subscription
$
357
$
35
$
1,003
$
42
Cost of professional services
20
6
147
72
Sales and marketing
604
42
1,767
760
Research and development
576
72
2,523
509
General and administrative
112
23
437
589
Total employer payroll tax expense
$
1,669
$
178
$
5,877
$
1,972
Reconciliation of free cash flow to the GAAP measure of net
cash provided by (used in) operating activities:
The following table below provides a reconciliation of free cash
flow to the GAAP measure of net cash provided by (used in)
operating activities for the periods presented:
Three Months Ended April
30,
Fiscal Year Ended April
30,
2023
2022
2023
2022
Net cash provided by (used in) operating
activities
$
27,054
$
(13,162
)
$
(115,691
)
$
(86,462
)
Less:
Purchases of property and equipment
(10,751
)
(1,608
)
(70,518
)
(3,791
)
Capitalized software development costs
—
—
(1,000
)
(500
)
Free cash flow
$
16,303
$
(14,770
)
$
(187,209
)
$
(90,753
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230531005924/en/
Investor Contact ir@c3.ai
Press Contact Lisa Kennedy (415) 914-8336 pr@c3.ai
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