Increasing Revenue Growth. Raising
Guidance.
Growth Accelerates for Fifth Consecutive
Quarter, Record Federal Growth
Subscription Revenue for the Fourth Quarter
Increased 41% Year-Over-Year
C3.ai, Inc. (“C3 AI,” “C3,” or the “Company”) (NYSE: AI), the
Enterprise AI application software company, today announced
financial results for its fiscal fourth quarter and full fiscal
year ended April 30, 2024.
“We finished a strong quarter and closed out a huge year for C3
AI. This was our fifth consecutive quarter of accelerating revenue
growth. Our fourth quarter revenue grew by 20% year-over-year to
$86.6 million, exceeding the top end of our guidance. Our full year
revenue grew by 16% to $310.6 million, also exceeding the top end
of our guidance,” said C3 AI CEO and Chairman Thomas M. Siebel.
“Demand for Enterprise AI is intensifying, and our first to market
advantage in Enterprise AI positions us well to capitalize on it.
Our Enterprise AI applications have been adopted across 19
industries, underscoring increasing market diversity. Our federal
revenue grew by more than 100% for the year. The interest we are
seeing in our generative AI applications is staggering.”
Fiscal Fourth Quarter 2024 Financial Highlights
- Revenue: Total revenue for the quarter was $86.6
million, an increase of 20% compared to $72.4 million one year
ago.
- Subscription Revenue: Subscription revenue for the
quarter was $79.9 million, constituting 92% of total revenue, an
increase of 41% compared to $56.9 million one year ago.
- Gross Profit: GAAP gross profit for the quarter was
$51.6 million, representing a 60% gross margin. Non-GAAP gross
profit for the quarter was $60.9 million, representing a 70%
non-GAAP gross margin.
- Net Loss per Share: GAAP net loss per share was $(0.59).
Non-GAAP net loss per share was $(0.11).
- Cash Reserves: $750.4 million in cash, cash equivalents,
and marketable securities.
- Free Cash Flow: Positive free cash flow of $18.8
million.
Full Year Fiscal 2024 Financial Highlights
- Revenue: Total revenue for the fiscal year was $310.6
million, an increase of 16% compared to $266.8 million one year
ago.
- Subscription Revenue: Subscription revenue for the
fiscal year was $278.1 million, constituting 90% of total revenue,
an increase of 21% compared to $230.4 million one year ago.
- Gross Profit: GAAP gross profit for the fiscal year was
$178.6 million, representing 57% gross margin. Non-GAAP gross
profit was $215.6 million, representing 69% non-GAAP gross
margin.
- Net Loss per Share: GAAP net loss per share was $(2.34).
Non-GAAP net loss per share was $(0.47).
Business Highlights
C3 AI is leading with Enterprise AI applications. In FY24, 88%
of all bookings were driven by application sales and 12% of our
bookings were driven by sales of the C3 AI Platform.
- In FY24, the Company closed 191 agreements (an increase of 52%
year-over-year) including 123 pilots (an increase of 151%
year-over-year).
- In the fourth quarter of FY24, the Company entered into new
agreements with ExxonMobil, A.P. Moller-Maersk, General Mills,
Quest Diagnostics, Flextronics, BASF Petronas, Worley Limited,
Thales Group, the U.S. Navy, the U.S. Intelligence Community, the
U.S. National Science Foundation, The Secil Group, Cargill, Nucor
Corporation, and Dow, among others.
- In State & Local Government, the Company expanded its
engagement with Riverside County in California to include
commercial property appraisals and entered into a new agreement
with the Pasco County Sheriff’s Office.
- In the fourth quarter of FY24, the Company closed 47
agreements, including 34 new pilots and continued to diversify
across industries.
- In the fourth quarter of FY24, our pilot distribution by
industry was as follows:
Manufacturing
29.4%
Federal, Defense and Aerospace
20.6%
Agriculture
11.8%
Chemicals
8.8%
Life Sciences
5.9%
Oil and Gas
5.9%
State and Local Government
5.9%
Energy and Utilities
5.9%
Logistics and Transportation
2.9%
Construction
2.9%
Customer Success
C3 AI remains the leader in AI-powered predictive maintenance
solutions, continuing to deliver significant economic value across
industries, with heavy adoption in the Industrial, Manufacturing,
and Energy sectors.
- Dow, one of the world's largest chemical manufacturers,
is enhancing its predictive maintenance capabilities with C3 AI.
Using C3 AI Reliability, Dow reduced steam cracker downtime and is
now scaling out C3 AI Reliability to additional sites and assets.
Additionally, Dow will install C3 Generative AI on top of C3 AI
Reliability to provide equipment operators with AI insights,
improve alert responses, and expedite the personnel onboarding
process. “C3 AI is our partner that’s working with us on predictive
analytics around [steam] crackers — so a 20% reduction around
[steam] cracker downtime, by looking at furnace operations and how
that works, is a big outcome that we’re expecting,” said Jim
Fitterling, CEO, Dow. “We’ve got it on one [steam] cracker right
now and then we’ll look to scale that across the fleet.”
- Holcim, a European leader in sustainable building
solutions, started with a C3 AI Reliability production pilot in May
2023 and now has 31 facilities in production, monitoring 3,000
sensors from critical equipment including vertical roller mills.
“C3 AI is playing an important role in Holcim’s digital
transformation, providing innovative AI solutions that drive
efficiency and sustainability,” said Roze Wesby, Head of Plants of
Tomorrow, Holcim. “The collaboration between C3 AI and Holcim has
led to advancements in operational efficiency at scale, raising the
bar for predictive maintenance in our sites. Thanks to C3 AI’s
platforms, Holcim has achieved a step-change in asset lifecycle
management; improving our reliability and capacity for our
customers, as well as reducing environmental impact.”
- Con Edison, one of the nation’s largest energy companies
that delivers electric, gas, and steam power to approximately 10
million customers, uses the C3 AI Platform to improve operational
efficiency, public safety, billing performance, customer
satisfaction, and energy efficiency. Starting with the advanced
metering infrastructure (AMI) project in 2017, Con Edison has
worked with C3 AI to build out an Enterprise AI program, including
applications to predict meter health issues, optimize and conserve
voltage outputs, and quickly detect customer safety concerns. “The
AMI project, the largest in Con Edison’s history, included the
deployment of 5.3 million smart meters and resulted in significant
benefits such as improved outage management and energy efficiency,”
said Tom Magee, General Manager, AMI Operations & Solutions,
Con Edison. “The use of AI and machine learning has enhanced public
safety, optimized grid operation, and achieved substantial energy
savings and emission reductions for customers.”
Federal Growth
- C3 AI’s Federal business had a remarkable year with revenue
more than doubling in FY24.
- The Company closed 65 Federal agreements, an increase of 48%
year-over-year and made inroads to 10 new Federal
organizations.
- In the fourth quarter of FY24, the Company entered into new and
expansion agreements with the U.S. Air Force, the U.S. Navy, the
U.S. Marine Corps, the U.S. Intelligence Community, the Defense
Counterintelligence and Security Agency, the Chief Digital
Artificial Intelligence Office, Thales Group, and the National
Science Foundation.
- The U.S. Air Force Rapid Sustainment Office (RSO)
entered into a renewed agreement, significantly expanding their AI
footprint by expanding the capabilities and increasing the number
of aircraft and systems monitored on the Predictive Analytics and
Decision Assistant (PANDA) application. PANDA, co-developed by the
U.S. Air Force and C3 AI, optimizes fleet maintenance, increases
aircraft availability, and minimizes downtime. The application,
which is the designated U.S. Air Force System of Record for all
predictive maintenance projects within the RSO, will now monitor
systems on two new aircraft (T-7 and KC-46) and expand to include
new systems of three currently monitored aircraft (B-1B, C-5, and
KC-135). “C3 AI’s cutting-edge technology has been a game-changer
for the U.S. Air Force, driving unparalleled advancements in
predictive analytics and maintenance,” said Jimmy Lawrence, Deputy
Program Executive Officer and Deputy Director for the Rapid
Sustainment Office, USAF Life Cycle Management Center, USAF
Materiel Command, Wright-Patterson Air Force Base, Ohio. “The
implementation of C3 AI’s solutions has revolutionized the
operational capabilities of the Air Force, leading to significant
improvements in aircraft readiness and efficiency.”
- The U.S. Navy entered into a new agreement that builds
on the work between C3 AI and the U.S. Air Force on the
Crowd-Sourced Flight Data (CSFD) Program and expands it into flight
test parametric analysis of electronic emissions on the F-35. The
CSFD Program enables the rapid delivery of software-defined
warfighter capabilities, decreasing risks to operational forces by
discovering and resolving anomalies in fielded weapon systems
before those systems are required in combat.
Partner Network
C3 AI’s partners remain a key driver of growth and customer
success.
- In FY24, C3 AI closed 115 agreements through its partner
network, an increase of 62% year-over-year. This includes 91
agreements with AWS, Google Cloud, and Microsoft Azure.
- The joint 12-month qualified opportunity pipeline with partners
increased by 63% year-over-year.
- In the fourth quarter of FY24, partner supported bookings grew
by 76% year-over-year with the Company closing 28 agreements
through its partner network, including AWS, Baker Hughes, Booz
Allen, Google Cloud, and Microsoft.
- The Company deepened its partnership with Fractal and Paradyme
to support Version 8 upgrades, customer service engagements, and
pilot delivery. These organizations have established dedicated
practices around C3 AI and are committed to training over 200 C3
AI–qualified engineers and data scientists in FY25.
C3 Generative AI
The broad applicability of C3 Generative AI is driving the
Company into new verticals and accelerating industry
diversification.
- In FY24, the company closed 58 pilot agreements for C3
Generative AI, across 15 different industries. The distribution by
industry was as follows:
Federal, Defense and Aerospace
20.7%
Manufacturing
12.1%
Agriculture
10.3%
State and Local Government
10.3%
Financial Services
6.9%
Chemicals
5.2%
Construction
5.2%
Consumer Packaged Goods
5.2%
Energy and Utilities
5.2%
Oil and Gas
5.2%
Pharmaceuticals and Life Sciences
5.2%
Others
8.5%
- In the fourth quarter of FY24, the Company closed 13 C3
Generative AI pilots with ExxonMobil, Cargill, Dow, Hunter
Engineering, Norfolk Iron & Metal, Revvity, and the National
Science Foundation, among others.
- The Company further differentiated C3 Generative AI from other
market offerings with:
- Streamlined omni-modal data integration through a visual
administrative interface, allowing queries across multiple sources
such as Snowflake, Oracle, Databricks tables, and documents in
Amazon S3 and Google Cloud.
- Proprietary, fine-tuned large language models (LLMs) for more
capable, accurate, and faster structured data queries.
- Automatic support for questions and answers in over 130
languages.
- Dynamic swapping of LLMs and retrievers with a single click,
including automatic updates to related retrieval configurations,
baseline prompts, and orchestration parameters.
- Advanced support for querying images and data tables embedded
in documents.
- Enhanced accuracy with automated topic modeling of data
contained in documents.
- Availability of all core product features in air-gapped
environments.
- Advanced orchestration for complex queries involving multiple
LLMs and retrieval tools.
- Improved C3 Generative AI co-pilot LLM to accelerate the
productivity of developers and data scientists on the C3 AI
Platform.
Financial Outlook:
We are expecting additional acceleration of C3 AI revenue growth
to approximately 23% in FY25. We plan to continue to invest in
growth to build a long-term cash generating profitable market
leader in Enterprise AI.
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 2025 and full-year fiscal 2025:
(in millions)
First Quarter Fiscal
2025
Guidance
Full Year Fiscal 2025
Guidance
Total revenue
$84.0 - $89.0
$370.0 - $395.0
Non-GAAP loss from operations
$(22.0) - $(30.0)
$(95.0) - $(125.0)
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.
Conference Call Details
What:
C3 AI Fourth Quarter and Full Fiscal Year
2024 Financial Results Conference Call
When:
Wednesday, May 29, 2024
Time:
2:00 p.m. PT / 5:00 p.m. ET
Participant Registration:
https://register.vevent.com/register/BIa4098dae2ede4f80a85f5a3a50b873e3
(live call)
Webcast:
https://edge.media-server.com/mmc/p/zjmvtizr (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. The words “anticipate,” “believe,” “continue,” “estimate,”
“expect,” “intend,” “may,” “will” and similar expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain these words. Forward-looking
statements in this press release include, but are not limited to,
statements regarding our market leadership position, anticipated
benefits from our partnerships, financial outlook, our sales and
customer opportunity pipeline including our industry
diversification, the expected benefits of our offerings (including
the potential benefits of our C3 Generative AI offerings), and our
business strategies, plans, and objectives for future operations.
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 our history of losses and ability to
achieve and maintain profitability in the future, our historic
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, the length and unpredictability of our sales cycles
and the time and expense required for our sales efforts. 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, 2023, October
31, 2023 and January 31, 2024, 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, 2024, 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 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
domain-specific generative AI offerings 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,
2024
2023
2024
2023
Revenue
Subscription(1)
$
79,903
$
56,866
$
278,104
$
230,443
Professional services(2)
6,687
15,544
32,478
36,352
Total revenue
86,590
72,410
310,582
266,795
Cost of revenue
Subscription
34,825
23,872
128,469
78,423
Professional services
154
1,036
3,553
7,914
Total cost of revenue
34,979
24,908
132,022
86,337
Gross profit
51,611
47,502
178,560
180,458
Operating expenses
Sales and marketing(3)
63,247
51,701
214,167
183,121
Research and development
50,618
49,681
201,365
210,660
General and administrative
20,053
19,400
81,370
77,170
Total operating expenses
133,918
120,782
496,902
470,951
Loss from operations
(82,307
)
(73,280
)
(318,342
)
(290,493
)
Interest income
9,482
8,230
40,079
21,979
Other (expense) income, net
(173
)
284
(641
)
350
Loss before provision for income taxes
(72,998
)
(64,766
)
(278,904
)
(268,164
)
Provision for income taxes
(71
)
190
792
675
Net loss
$
(72,927
)
$
(64,956
)
$
(279,696
)
$
(268,839
)
Net loss per share attributable to Class A
and Class B common stockholders, basic and diluted
$
(0.59
)
$
(0.58
)
$
(2.34
)
$
(2.45
)
Weighted-average shares used in computing
net loss per share attributable to Class A and Class B common
stockholders, basic and diluted
122,676
112,746
119,362
109,851
(1)
Including related party revenue of nil and
$19,568 for the three months ended April 30, 2024 and 2023,
respectively, and $10,581 and $75,452 for the fiscal years ended
April 30, 2024 and 2023, respectively.
(2)
Including related party revenue of nil and
$8,025 for the three months ended April 30, 2024 and 2023,
respectively, and $5,804 and $16,774 for the fiscal years ended
April 30, 2024 and 2023, respectively.
(3)
Including related party sales and
marketing expense of nil and $3,416 for the three months ended
April 30, 2024 and 2023, respectively, and $810 and $13,962 for the
fiscal years ended April 30, 2024 and 2023, respectively.
C3.AI, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except for
share and per share data)
(Unaudited)
April 30, 2024
April 30, 2023
Assets
Current assets
Cash and cash equivalents
$
167,146
$
284,829
Marketable securities
583,221
446,155
Accounts receivable, net of allowance of
$359 and $359 as of April 30, 2024 and 2023, respectively(1)
130,064
134,586
Prepaid expenses and other current
assets(2)
23,963
23,309
Total current assets
904,394
888,879
Property and equipment, net
88,631
84,578
Goodwill
625
625
Long-term investments
—
81,418
Other assets, non-current(3)
44,575
47,528
Total assets
$
1,038,225
$
1,103,028
Liabilities and stockholders’
equity
Current liabilities
Accounts payable(4)
$
11,316
$
24,610
Accrued compensation and employee
benefits
44,263
46,513
Deferred revenue, current(5)
37,230
47,846
Accrued and other current
liabilities(6)
9,526
17,070
Total current liabilities
102,335
136,039
Deferred revenue, non-current
1,732
4
Other long-term liabilities
60,805
37,320
Total liabilities
164,872
173,363
Commitments and contingencies
Stockholders’ equity
Class A common stock, $0.001 par value.
1,000,000,000 shares authorized as of April 30, 2024 and 2023,
respectively; 120,205,931 and 110,442,569 shares issued and
outstanding as of April 30, 2024 and 2023 respectively
120
110
Class B common stock, $0.001 par value;
3,500,000 shares authorized as of April 30, 2024 and 2023,
respectively; 3,499,992 and 3,499,992 shares issued and outstanding
as of April 30, 2024 and 2023, respectively
3
3
Additional paid-in capital
1,963,726
1,740,174
Accumulated other comprehensive loss
(563
)
(385
)
Accumulated deficit
(1,089,933
)
(810,237
)
Total stockholders’ equity
873,353
929,665
Total liabilities and stockholders’
equity
$
1,038,225
$
1,103,028
(1)
Including amounts from a related party of
$74,620 as of April 30, 2023.
(2)
Including amounts from a related party of
$4,983 as of April 30, 2023.
(3)
Including amounts from a related party of
$11,279 as of April 30, 2023.
(4)
Including amounts due to a related party
of $2,200 as of April 30, 2023.
(5)
Including amounts from a related party of
$249 as of April 30, 2023.
(6)
Including amounts due to a related party
of $2,448 as of April 30, 2023.
C3.AI, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Fiscal Year Ended April
30,
2024
2023
Cash flows from operating
activities:
Net loss
$
(279,696
)
$
(268,839
)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization
12,719
6,088
Non-cash operating lease cost
742
6,992
Stock-based compensation expense
215,761
216,542
Accretion of discounts on marketable
securities
(17,214
)
(4,558
)
Other
98
249
Changes in operating assets and
liabilities
Accounts receivable(1)
4,522
(54,517
)
Prepaid expenses, other current assets and
other assets(2)
3,208
(576
)
Accounts payable(3)
(12,883
)
(22,041
)
Accrued compensation and employee
benefits
(6,218
)
3,193
Operating lease liabilities
17,332
13,641
Other liabilities(4)
8,155
(10,573
)
Deferred revenue(5)
(8,888
)
(1,292
)
Net cash used in operating activities
(62,362
)
(115,691
)
Cash flows from investing
activities:
Purchases of property and equipment
(25,256
)
(70,518
)
Capitalized software development costs
(2,750
)
(1,000
)
Purchases of investments
(827,901
)
(745,249
)
Maturities and sales of investments
789,292
876,713
Net cash (used in) provided by investing
activities
(66,615
)
59,946
Cash flows from financing
activities:
Proceeds from exercise of Class A common
stock options
13,751
4,468
Proceeds from issuance of Class A common
stock under employee stock purchase plan
10,763
3,093
Taxes paid related to net share settlement
of equity awards
(13,220
)
(6,940
)
Net cash provided by financing
activities
11,294
621
Net decrease in cash, cash equivalents and
restricted cash
(117,683
)
(55,124
)
Cash, cash equivalents and restricted cash
at beginning of period
297,395
352,519
Cash, cash equivalents and restricted cash
at end of period
$
179,712
$
297,395
Cash and cash equivalents
$
167,146
$
284,829
Restricted cash included in other assets,
non-current
12,566
12,566
Total cash, cash equivalents and
restricted cash
$
179,712
$
297,395
Supplemental disclosure of cash flow
information—cash paid for income taxes
$
975
$
578
Supplemental disclosures of non-cash
investing and financing activities:
Purchases of property and equipment
included in accounts payable and accrued liabilities
$
474
$
13,814
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)
$
1,833
$
(5,589
)
Right-of-use assets obtained in exchange
for lease obligations arising from lease modifications
$
—
$
3,093
Receivable from exercise of stock options
included in prepaid expenses, other current assets and other
assets
$
3
$
61
Unpaid liabilities related to intangible
purchases
$
—
$
1,500
Vesting of early exercised stock
options
$
507
$
1,006
(1)
Including changes in related party
balances of $12,444 and $38,772 for the fiscal years ended April
30, 2024 and 2023, respectively.
(2)
Including changes in related party
balances of $(810) and $(4,741) for the fiscal years ended April
30, 2024 and 2023, respectively.
(3)
Including changes in related party
balances of $248 and $(16,349) for the fiscal years ended April 30,
2024 and 2023, respectively.
(4)
Including changes in related party
balances of $(2,448) and $(2,510) for the fiscal years ended April
30, 2024 and 2023, respectively.
(5)
Including changes in related party
balances of $(46) and $117 for the fiscal years ended April 30,
2024 and 2023, 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,
2024
2023
2024
2023
Reconciliation of GAAP gross profit to
non-GAAP gross profit:
Gross profit on a GAAP basis
$
51,611
$
47,502
$
178,560
$
180,458
Stock-based compensation expense (1)
8,828
5,972
35,320
23,637
Employer payroll tax expense related to
employee stock-based compensation (2)
493
377
1,736
1,150
Gross profit on a non-GAAP basis
$
60,932
$
53,851
$
215,616
$
205,245
Gross margin on a GAAP basis
60
%
66
%
57
%
68
%
Gross margin on a non-GAAP basis
70
%
74
%
69
%
77
%
Reconciliation of GAAP loss from
operations to non-GAAP loss from operations:
Loss from operations on a GAAP basis
$
(82,307
)
$
(73,280
)
$
(318,342
)
$
(290,493
)
Stock-based compensation expense (1)
56,729
48,068
215,761
216,542
Employer payroll tax expense related to
employee stock-based compensation (2)
2,173
1,669
7,720
5,877
Loss from operations on a non-GAAP
basis
$
(23,405
)
$
(23,543
)
$
(94,861
)
$
(68,074
)
Reconciliation of GAAP net loss per
share to non-GAAP net loss per share:
Net loss on a GAAP basis
$
(72,927
)
$
(64,956
)
$
(279,696
)
$
(268,839
)
Stock-based compensation expense (1)
56,729
48,068
215,761
216,542
Employer payroll tax expense related to
employee stock-based compensation (2)
2,173
1,669
7,720
5,877
Net loss on a non-GAAP basis
$
(14,025
)
$
(15,219
)
$
(56,215
)
$
(46,420
)
GAAP net loss per share attributable to
common stockholders, basic and diluted
$
(0.59
)
$
(0.58
)
$
(2.34
)
$
(2.45
)
Non-GAAP net loss per share attributable
to common stockholders, basic and diluted
$
(0.11
)
$
(0.13
)
$
(0.47
)
$
(0.42
)
Weighted-average shares used in computing
net loss per share attributable to common stockholders, basic and
diluted
122,676
112,746
119,362
109,851
(1)
Stock-based compensation expense for gross profit 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,
2024
2023
2024
2023
Cost of subscription
$
8,788
$
5,663
$
34,032
$
21,417
Cost of professional services
40
309
1,288
2,220
Sales and marketing
19,218
17,214
71,751
71,389
Research and development
19,561
17,449
72,036
90,217
General and administrative
9,122
7,433
36,654
31,299
Total stock-based compensation expense
$
56,729
$
48,068
$
215,761
$
216,542
(2)
Employer payroll tax expense related to
employee stock-based compensation for gross profit 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,
2024
2023
2024
2023
Cost of subscription
$
490
$
357
$
1,673
$
1,003
Cost of professional services
3
20
63
147
Sales and marketing
642
604
2,606
1,767
Research and development
869
576
2,839
2,523
General and administrative
169
112
539
437
Total employer payroll tax expense
$
2,173
$
1,669
$
7,720
$
5,877
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,
2024
2023
2024
2023
Net cash provided by (used in) operating
activities
$
21,343
$
27,054
$
(62,362
)
$
(115,691
)
Less:
Purchases of property and equipment
(2,538
)
(10,751
)
(25,256
)
(70,518
)
Capitalized software development costs
—
—
(2,750
)
(1,000
)
Free cash flow
$
18,805
$
16,303
$
(90,368
)
$
(187,209
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240529444896/en/
Investor Contact ir@c3.ai
C3 AI Public Relations Edelman Lisa Kennedy (415)
914-8336 pr@c3.ai
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