C3 AI Announces Fiscal 4th Quarter and Full Year Fiscal 2023 Financial Results 

REDWOOD CITY, Calif. – May 31, 2023 -- 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 Reserves: $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

The company believes 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 ever.

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 bookings for the past fiscal year indicates that 83% of them were driven by application sales. 17% of bookings were driven by sales of the C3 AI Platform.

C3 AI delivers over 40 enterprise AI applications today.

C3 AI is seeing increasing diversity in industries served. For FY 23, an analysis of the company's bookings includes:

An important leading indicator of C3 AI's increasing industry diversity is evidenced by the trial and pilot agreements closed in Q4 FY 23:

As a result of increasing market demand for enterprise AI — and from the company's adoption of consumption-based pricing — the company is 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 sales pipeline has increased by more than 100% in the past year. During FY 23, C3 AI 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.

C3 Generative AI

In Q4, C3 AI 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.

C3 AI 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. C3 AI is 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.

For more from C3 AI’s results, click here.

Source: C3 AI