Revenue $66.7 million. Exceeded guidance.
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 at
https://c3.ai/products/c3-ai-esg/#esg-demo.
C3 AI Intellectual Property. C3 AI continues to make
significant investments in technology innovation. We have been
awarded 26 patents to date and have an additional 96 patents
pending. One of our most important inventions is the model driven
architecture for enterprise AI applications – the core architecture
of the C3 AI Platform. We have been issued several patents for this
architecture, including Systems, Methods, and Devices for an
Enterprise AI Application Development Platform, Siebel, et al. U.S.
Patent # No. 10,817,530. The C3 AI Platform provides all the
software services necessary and sufficient for the rapid
development, deployment, and operation of enterprise AI
applications. It also serves as an orchestration system allowing us
to immediately embed and exploit the utility of ongoing innovations
in the open source and proprietary world. Examples include new
techniques in machine learning, virtualization, encryption,
Databricks, Snowflake, Vertex AI, Amazon Sagemaker, Azure ML,
TensorFlow, Jupyter, Python, etc., all of which are entirely
compatible with the C3 AI Platform and are commonly used by our
customers. The recent explosion of innovation and availability of
large-language models and generative pre-trained transformers
provided by OpenAI, Google, Microsoft and others are immediately
compatible and interoperable with the C3 AI Platform enabling us to
increase the utility of our C3 AI Platform and C3 AI Applications.
We believe importance of these ongoing developments in Generative
AI are difficult to overstate.
C3 Generative AI. By combining the utility of the C3 AI
Platform, predictive analytics, enterprise search, natural language
processing, generative pre-trained transformers, and reinforcement
learning, we have developed a novel technique to fundamentally
improve the nature and utility of the human-computer interface for
enterprise applications. We believe that this represents a
breakthrough development that will dramatically facilitate the ease
of use and explainability of enterprise AI applications, in
addition to providing users immediate controlled access to
potentially the entire corpus of data and information systems
within an enterprise. We expect C3 Generative AI for Enterprise
Search to be incorporated into the C3 AI Platform and C3 AI
Applications and generally available in Spring 2023. It is
currently being deployed as a utility in the C3 AI Platform, at
Koch Industries, and Baker Hughes. To protect this intellectual
property, we have several patents pending in multiple jurisdictions
around the world, including Systems and Methods to Apply Generative
AI to Transform Information Access and Content Creation for
Enterprise Information Systems, Siebel, et al. For those
interested, we have provided an example demo of C3 Generative AI:
https://c3.ai/products/c3-generative-ai-product-suite/#crm-demo.
Our pipeline of qualified opportunities for the coming year is
in excess of 500. As a result of our successful transition to
consumption-based pricing our pilot pipeline has increased, the
number of deals we are closing in quarter is increasing, our
average selling price is decreasing, our partnerships are
strengthening, and our innovation accelerates apace – all of which
portend the opportunity for substantially increased revenue growth
in FY 24, and beyond while we simultaneously manage the company on
a well-engineered path to profitability.
Financial Outlook:
The Company’s guidance includes GAAP and non-GAAP financial
measures.
The following table summarizes C3 AI’s guidance for the fourth
quarter of fiscal 2023 and full-year fiscal 2023:
(in millions)
Fourth Quarter Fiscal 2023
Guidance
Full Year Fiscal 2023
Guidance
Total revenue
$70 - $72
$264 - $266
Non-GAAP loss from operations
($24) - ($28)
($69) - ($73)
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 Third Quarter Fiscal 2023 Financial
Results Conference Call
When:
Thursday, March 2, 2023
Time:
2:00 p.m. PT / 5:00 p.m. ET
Participant Registration:
https://register.vevent.com/register/BI475641e7eb5043d3b21151cf2869c07b
(live call)
Webcast:
https://edge.media-server.com/mmc/p/barehejb (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.
- Non-GAAP RPO: Non-GAAP RPO represents our GAAP RPO plus
the associated cancellable contracted backlog. We believe the
presentation of our RPO inclusive of the cancellable backlog
provides useful supplemental information to investors about our
aggregate contractual backlog and facilitates the analysis of our
operating results and comparison of operating results across
reporting periods.
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 Annual Report on Form 10-K for
the fiscal year ended April 30, 2022, and other filings and reports
we make with the Securities and Exchange Commission from time to
time, including our Quarterly Reports on Form 10-Q for the fiscal
quarters ended July 31, 2022, October 31, 2022 and, when available,
January 31, 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.
C3.AI, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share data)
(Unaudited)
Three Months Ended January
31,
Nine Months Ended January
31,
2023
2022
2023
2022
Revenue
Subscription(1)
$
57,043
$
57,084
$
173,577
$
150,614
Professional services(2)
9,626
12,689
20,808
29,828
Total revenue
66,669
69,773
194,385
180,442
Cost of revenue
Subscription(3)
21,294
12,275
54,551
32,880
Professional services
977
5,079
6,878
13,470
Total cost of revenue
22,271
17,354
61,429
46,350
Gross profit
44,398
52,419
132,956
134,092
Operating expenses
Sales and marketing(4)
43,497
43,146
131,420
126,134
Research and development
55,051
40,931
160,979
104,166
General and administrative
17,888
15,748
57,770
43,391
Total operating expenses
116,436
99,825
350,169
273,691
Loss from operations
(72,038
)
(47,406
)
(217,213
)
(139,599
)
Interest income
6,987
410
13,749
1,077
Other income (expense), net
2,032
7,742
66
5,471
Loss before provision for income taxes
(63,019
)
(39,254
)
(203,398
)
(133,051
)
Provision for income taxes
143
193
485
594
Net loss
$
(63,162
)
$
(39,447
)
$
(203,883
)
$
(133,645
)
Net loss per share attributable to Class A
and Class B common stockholders, basic and diluted
$
(0.57
)
$
(0.38
)
$
(1.87
)
$
(1.29
)
Weighted-average shares used in computing
net loss per share attributable to Class A and Class B common
stockholders, basic and diluted
110,735
105,093
108,869
103,841
(1)
Including related party revenue of $20,316
and $19,740 for the three months ended January 31, 2023 and 2022,
respectively, and $55,884 and $39,960 for the nine months ended
January 31, 2023 and 2022, respectively.
(2)
Including related party revenue of $8,599
and $4,892 for the three months ended January 31, 2023 and 2022,
respectively, and $8,749 and $12,890 for the nine months ended
January 31, 2023 and 2022, respectively.
(3)
Including related party cost of revenue of
nil and $191 for the three months ended January 31, 2023 and 2022,
respectively, and nil and $388 for the nine months ended January
31, 2023 and 2022, respectively.
(4)
Including related party sales and
marketing expense of $3,515 and $2,398 for the three months ended
January 31, 2023 and 2022, respectively, and $10,546 and $2,590 for
the nine months ended January 31, 2023 and 2022, respectively.
C3.AI, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except for
share and per share data)
(Unaudited)
January 31, 2023
April 30, 2022
Assets
Current assets
Cash and cash equivalents
$
311,142
$
339,528
Short-term investments
461,298
620,633
Accounts receivable, net of allowance of
$359 and $157 as of January 31, 2023 and April 30, 2022,
respectively(1)
143,678
80,271
Prepaid expenses and other current
assets(2)
30,392
20,004
Total current assets
946,510
1,060,436
Property and equipment, net
75,197
14,517
Goodwill
625
625
Long-term investments
17,369
32,086
Other assets, non-current(3)
55,512
63,218
Total assets
$
1,095,213
$
1,170,882
Liabilities and stockholders’
equity
Current liabilities
Accounts payable(4)
$
19,990
$
54,218
Accrued compensation and employee
benefits
39,522
32,223
Deferred revenue, current(5)
38,893
48,854
Accrued and other current
liabilities(6)
25,203
14,874
Total current liabilities
123,608
150,169
Deferred revenue, non-current
51
288
Other long-term liabilities(7)
24,184
30,948
Total liabilities
147,843
181,405
Commitments and contingencies
Stockholders’ equity
Class A common stock, $0.001 par value.
1,000,000,000 shares authorized as of January 31, 2023 and April
30, 2022; 108,508,976 and 102,725,041 shares issued and outstanding
as of January 31, 2023 and April 30, 2022, respectively
109
103
Class B common stock, $0.001 par value;
3,500,000 shares authorized as of January 31, 2023 and April 30,
2022; 3,499,992 and 3,499,992 shares issued and outstanding as of
January 31, 2023 and April 30, 2022, respectively
3
3
Additional paid-in capital
1,693,574
1,532,917
Accumulated other comprehensive loss
(1,035
)
(2,148
)
Accumulated deficit
(745,281
)
(541,398
)
Total stockholders’ equity
947,370
989,477
Total liabilities and stockholders’
equity
$
1,095,213
$
1,170,882
(1)
Including amounts from a related party of
$82,143 and $35,848 as of January 31, 2023 and April 30, 2022,
respectively.
(2)
Including amounts from a related party of
$4,983 and $4,862 as of January 31, 2023 and April 30, 2022,
respectively.
(3)
Including amounts from a related party of $12,495 and $16,141 as of
January 31, 2023 and April 30, 2022, respectively.
(4)
Including amounts from a related party of
nil and $18,549 as of January 31, 2023 and April 30, 2022,
respectively.
(5)
Including amounts from a related party of
$318 and $132 as of January 31, 2023 and April 30, 2022,
respectively.
(6)
Including amounts from a related party of $2,448 and $2,510 as of
January 31, 2023 and April 30, 2022, respectively.
(7)
Including amounts from a related party of
nil and $2,448 as of January 31, 2023 and April 30, 2022,
respectively.
C3.AI, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended January
31,
2023
2022
Cash flows from operating
activities:
Net loss
$
(203,883
)
$
(133,645
)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization
3,257
3,761
Non-cash operating lease cost
5,820
2,369
Stock-based compensation expense
168,474
77,813
Other
(1,779
)
255
Changes in operating assets and
liabilities
Accounts receivable(1)
(63,609
)
(1,963
)
Prepaid expenses, other current assets and
other assets(2)
(7,745
)
(21,108
)
Accounts payable(3)
(26,250
)
2,237
Accrued compensation and employee
benefits
1,069
759
Operating lease liabilities
(3,296
)
(2,303
)
Other liabilities(4)
(4,606
)
14,304
Deferred revenue(5)
(10,197
)
(15,779
)
Net cash used in operating activities
(142,745
)
(73,300
)
Cash flows from investing
activities:
Purchases of property and equipment
(59,767
)
(2,183
)
Capitalized software development costs
(1,000
)
(500
)
Purchases of investments
(497,288
)
(540,290
)
Maturities and sales of investments
674,440
698,312
Net cash provided by investing
activities
116,385
155,339
Cash flows from financing
activities:
Payment of deferred offering costs
—
(105
)
Proceeds from exercise of Class A common
stock options
2,364
19,334
Taxes paid related to net share settlement
of equity awards
(4,815
)
—
Net cash (used in) provided by financing
activities
(2,451
)
19,229
Net (decrease) increase in cash, cash
equivalents and restricted cash
(28,811
)
101,268
Cash, cash equivalents and restricted cash
at beginning of period
352,519
116,255
Cash, cash equivalents and restricted cash
at end of period
$
323,708
$
217,523
Cash and cash equivalents
$
311,142
$
204,531
Restricted cash included in other
assets
12,566
12,567
Restricted cash included in prepaid
expenses and other current assets
—
425
Total cash, cash equivalents and
restricted cash
$
323,708
$
217,523
Supplemental disclosure of cash flow
information—cash paid for income taxes
$
219
$
677
Supplemental disclosures of non-cash
investing and financing activities:
Purchases of property and equipment
included in accounts payable and accrued liabilities
$
12,618
$
483
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)
$
2,033
$
26,529
Unpaid liabilities related to intangible
purchases
$
1,500
$
2,500
Vesting of early exercised stock
options
$
842
$
2,391
(1)
Including changes in related party
balances of $46,295 and $547 for the nine months ended January 31,
2023 and 2022, respectively.
(2)
Including changes in related party
balances of $(3,525) and $14,102 for the nine months ended January
31, 2023 and 2022, respectively.
(3)
Including changes in related party
balances of $(18,549) and $2,359 for the nine months ended January
31, 2023 and 2022, respectively.
(4)
Including changes in related party
balances of $(2,510) and $12,674 for the nine months ended January
31, 2023 and 2022, respectively.
(5)
Including changes in related party
balances of $186 and $(7,122) for the nine months ended January 31,
2023 and 2022, respectively.
C3.AI, INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(In thousands, except
percentages)
(Unaudited)
Three Months Ended January
31,
Nine Months Ended January
31,
2023
2022
2023
2022
Reconciliation of GAAP gross profit to
non-GAAP gross profit:
Gross profit on a GAAP basis
$
44,398
$
52,419
$
132,956
$
134,092
Stock-based compensation expense (1)
6,357
3,343
17,665
7,815
Employer payroll tax expense related to
employee stock-based compensation (2)
201
8
773
73
Gross profit on a non-GAAP basis
$
50,956
$
55,770
$
151,394
$
141,980
Gross margin on a GAAP basis
67
%
75
%
68
%
74
%
Gross margin on a non-GAAP basis
76
%
80
%
78
%
79
%
Reconciliation of GAAP loss from
operations to non-GAAP loss from operations:
Loss from operations on a GAAP basis
$
(72,038
)
$
(47,406
)
$
(217,213
)
$
(139,599
)
Stock-based compensation expense (1)
55,831
31,361
168,474
77,813
Employer payroll tax expense related to
employee stock-based compensation (2)
1,175
356
4,208
1,794
Loss from operations on a non-GAAP
basis
$
(15,032
)
$
(15,689
)
$
(44,531
)
$
(59,992
)
Reconciliation of GAAP net loss per
share to non-GAAP net loss per share:
Net loss on a GAAP basis
$
(63,162
)
$
(39,447
)
$
(203,883
)
$
(133,645
)
Stock-based compensation expense (1)
55,831
31,361
168,474
77,813
Employer payroll tax expense related to
employee stock-based compensation (2)
1,175
356
4,208
1,794
Net loss on a non-GAAP basis
$
(6,156
)
$
(7,730
)
$
(31,201
)
$
(54,038
)
GAAP net loss per share attributable
common shareholders, basic and diluted
$
(0.57
)
$
(0.38
)
$
(1.87
)
$
(1.29
)
Non-GAAP net loss per share attributable
common shareholders, basic and diluted
$
(0.06
)
$
(0.07
)
$
(0.29
)
$
(0.52
)
Weighted-average shares used in computing
net loss per share attributable to common stockholders, basic and
diluted
110,735
105,093
108,869
103,841
(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 January
31,
Nine Months Ended January
31,
2023
2022
2023
2022
Cost of subscription
$
5,996
$
2,639
$
15,754
$
5,824
Cost of professional services
361
704
1,911
1,991
Sales and marketing
18,316
8,850
54,175
28,540
Research and development
23,646
12,846
72,768
25,860
General and administrative
7,512
6,322
23,866
15,598
Total stock-based compensation expense
$
55,831
$
31,361
$
168,474
$
77,813
(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 January
31,
Nine Months Ended January
31,
2023
2022
2023
2022
Cost of subscription
$
190
$
7
$
646
$
7
Cost of professional services
11
1
127
66
Sales and marketing
277
202
1,163
718
Research and development
618
38
1,947
437
General and administrative
79
108
325
566
Total employer payroll tax expense
$
1,175
$
356
$
4,208
$
1,794
Reconciliation of remaining performance obligations (“RPO”)
to Non-GAAP RPO:
The following table presents a reconciliation of RPO to Non-GAAP
RPO:
As of January 31,
2023
2022
RPO
$
403,159
$
469,276
Cancellable amount of contract value
33,171
67,454
Non-GAAP RPO
$
436,330
$
536,730
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230302005592/en/
Investor Contact ir@c3.ai
Press Contact Lisa Kennedy (415) 914-8336 pr@c3.ai
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