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C3 AI Announces Second Quarter Fiscal 2024 Financial Results

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C3 AI, Inc. (NYSE: AI) reported a 17% year-over-year increase in total revenue to $73.2 million for the fiscal second quarter ended October 31, 2023. Subscription revenue constituted 91% of the total revenue, reaching $66.4 million. The company's GAAP gross profit was $41.1 million, with a 56% gross margin, and a non-GAAP gross profit of $50.4 million, representing a 69% non-GAAP gross margin. C3 AI also announced a 81% year-over-year growth in customer engagement, reaching 404 customers. The company closed 62 agreements, including 36 pilots, and expanded agreements with key customers like GSK, Indorama, and First Business Bank. C3 AI also saw significant growth in its federal business, with federal bookings representing almost half of total bookings, and closing 20 new federal agreements. The company's generative AI offerings received unprecedented interest and traction, with 20 new agreements closed for C3 Generative AI in the second quarter.
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Revenue accelerated 17% year-over-year; Increased traction in C3 Generative AI

Customer engagement increased 81% year-over-year

REDWOOD CITY, Calif.--(BUSINESS WIRE)-- C3.ai, Inc. (“C3 AI,” “C3,” or the “Company”) (NYSE: AI), the Enterprise AI application software company, today announced financial results for its fiscal second quarter ended October 31, 2023.

“It was a solid quarter, with total revenue growing 17% year-over-year to $73.2 million, and customer engagement growing by 81% year-over-year. We saw unprecedented interest and traction in our generative AI offerings. Importantly, we are seeing a return to accelerating revenue growth as we continue our transition to a consumption-based pricing model,” said C3 AI CEO and Chairman Thomas M. Siebel. “In the trailing four quarters, we have seen top line year-over-year revenue growth increase from -4% in Q3 FY23, to 0% in Q4 FY23, to 11% in Q1 FY24, to 17% in Q2 FY24.”

Fiscal Second Quarter 2024 Financial Highlights

  • Revenue: Total revenue for the quarter was $73.2 million, an increase of 17% compared to $62.4 million one year ago.
  • Subscription Revenue: Subscription revenue for the quarter was $66.4 million, constituting 91% of total revenue, an increase of 12% compared to $59.5 million one year ago.
  • Gross Profit: GAAP gross profit for the quarter was $41.1 million, representing a 56% gross margin. Non-GAAP gross profit for the quarter was $50.4 million, representing a 69% non-GAAP gross margin.
  • Net Loss per Share: GAAP net loss per share was $(0.59). Non-GAAP net loss per share was $(0.13).
  • Cash Reserves: $762.3 million in cash, cash equivalents, and investments.
  • Customer Engagement: Customer Engagement for the quarter was 404, an increase of 81% compared to 223 one year ago. [See FY23-Q4 Investor Supplemental for more details on Customer Engagement methodology.]

Key Customers

During the quarter, C3 AI closed 62 agreements including 36 pilots.

  • The Company entered into new agreements with GSK, Indorama, and First Business Bank and expanded agreements with Con Edison, Roche, Nucor Corporation, and Hewlett Packard Enterprise, among others.
  • C3 AI’s federal business continues to show significant strength with federal bookings representing almost half of total bookings, up nearly 187% from the year prior. C3 AI signed 20 new federal agreements, including five agreements for C3 Generative AI.
  • The Company closed new and expanded deals with the U.S. Navy, the Office of the Director of National Intelligence, Joint Staff J8, the Defense Logistics Agency, and the Administration for Children & Families, a division of the Department of Health & Human Services.

Customer Success Stories

  • Building on its success in the manufacturing sector, C3 AI continues to work with Nucor to optimize production schedules across several mills, expanding the largest U.S. steel producer’s AI program. This expansion with Nucor also included two new use cases initiated in Q2: AI to improve forecasting, and generative AI targeted at facilitating proper health and safety procedures.
  • Con Edison, a customer since 2017, continues to expand its use of C3 AI applications, most recently with C3 Generative AI to help workers quickly find answers to questions and analysis related to smart meter, service, and infrastructure data. In the second quarter, Con Edison completed two pilots of the newest application, which have since converted to production.
  • C3 AI also converted two pilots and expanded its federal business within the U.S. Department of Defense at the Defense Logistics Agency (“DLA”), which provides logistical, acquisition, and technical support for the Army, Navy, Air Force, Marine Corps and other federal agencies and allies. C3 AI is helping the DLA improve efficiency, visibility, and readiness across the supply chain predicting consumption, inventory, and transportation of critical goods such as parts, components, and fuel.
  • In Q2, the Administration for Children and Families (“ACF”), a division of the U.S. Department of Health and Human Services, has made the first order to C3 AI under a $90 million blanket purchase agreement. As a critical civilian agency, the ACF works to help unaccompanied children who cross the U.S. border find temporary shelter or permanent homes. The ACF will use the C3 AI Platform to perform complex data analysis more efficiently, examining the scope and resource landscape for children within the agency’s care, including staffing needs and how long these children are with their case managers — and ultimately use the resulting insights to inform decision makers on resource allocation and needs.

Key News

Pilot Growth

During the quarter, C3 AI closed 62 agreements including 36 pilots. The 36 pilots represented an increase from 24 pilots in the first quarter and 13 pilots in the year-ago quarter. Notably, 20 of these pilots were generative AI pilots, an increase from eight in the first quarter.

Consumption Pricing

In Q1 FY23, C3 AI introduced a transition to a consumption-based pricing model to fuel growth, which the Company believes is becoming the standard among enterprise SaaS companies in the industry. The consumption-based pricing model is based on vCPU/hour, in line with industry-standard cloud software pricing standards. The transition has been met with great reception among C3 AI’s prospects, customers, and partners. Since this transition, the Company has closed over 100 pilots on the new consumption pricing model. The Company believes traction with C3 Generative AI: AWS Marketplace Edition will further accelerate the Company’s consumption pricing adoption and customer engagement metrics.

C3 Generative AI

Recent estimates suggest that the market for Enterprise AI applications is bigger and expanding faster than certain experts previously anticipated. Bloomberg Intelligence estimates that generative AI will become a $1.3 trillion market by 2032. Goldman Sachs predicts that AI could increase corporate profits by 30% in the next decade, and that generative AI alone could raise the global GDP by 7%. C3 AI believes it is in a prime position to see a significant increase in opportunities for Enterprise AI, and the Company is also well-positioned to accelerate growth, gain market share, attain sustainable non-GAAP profitability and establish a market-leading position globally. As such, the Company plans to further accelerate its investment in generative AI, deepening its investments in lead generation, branding, market awareness, and customer success.

C3 AI closed 20 new agreements for C3 Generative AI in the second quarter. C3 Generative AI is addressing use cases across multiple industries including manufacturing, financial services, and defense & intelligence.

  • The generative AI qualified pipeline grew to over 225 in Q2, an increase of more than 55% from Q1.
  • C3 AI has announced a no-code, self-service generative AI application in AWS Marketplace, C3 Generative AI: AWS Marketplace Edition, allowing users of all technical levels to begin using generative AI in minutes in their enterprise. The application provides a starting point for customers and can be quickly scaled across the enterprise and can be used together with all other C3 AI applications. C3 Generative AI: AWS Marketplace Edition is now available under a 14-day free trial in AWS Marketplace via private preview.

Financial Outlook:

The Company’s guidance includes GAAP and non-GAAP financial measures.

The following table summarizes C3 AI’s guidance for the third quarter of fiscal 2024 and full-year fiscal 2024:

(in millions)

Third Quarter Fiscal 2024

Guidance

 

Full Year Fiscal 2024

Guidance

Total revenue

$74.0 - $78.0

 

$295.0 - $320.0

Non-GAAP loss from operations

$(40.0) - $(46.0)

 

$(115.0) - $(135.0)

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 Second Quarter Fiscal 2024 Financial Results Conference Call

When:

Wednesday, December 6, 2023

Time:

2:00 p.m. PT / 5:00 p.m. ET

Participant Registration:

https://register.vevent.com/register/BIe37b9b099bea488eb9570b24243fce69 (live call)

Webcast:

https://edge.media-server.com/mmc/p/zc6c5s27/ (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.

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, the expected benefits of our offerings (including the potential benefits of our C3 Generative AI 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 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, 2023 and, when available, October 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 Platform, an end-to-end platform for developing, deploying, and operating enterprise AI applications, 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 October 31,

 

Six Months Ended October 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenue

 

 

 

 

 

 

 

Subscription(1)

$

66,449

 

 

$

59,508

 

 

$

127,801

 

 

$

116,534

 

Professional services(2)

 

6,780

 

 

 

2,900

 

 

 

17,790

 

 

 

11,182

 

Total revenue

 

73,229

 

 

 

62,408

 

 

 

145,591

 

 

 

127,716

 

Cost of revenue

 

 

 

 

 

 

 

Subscription

 

30,937

 

 

 

19,165

 

 

 

61,371

 

 

 

33,257

 

Professional services

 

1,179

 

 

 

1,587

 

 

 

2,558

 

 

 

5,901

 

Total cost of revenue

 

32,116

 

 

 

20,752

 

 

 

63,929

 

 

 

39,158

 

Gross profit

 

41,113

 

 

 

41,656

 

 

 

81,662

 

 

 

88,558

 

Operating expenses

 

 

 

 

 

 

 

Sales and marketing(3)

 

49,895

 

 

 

44,936

 

 

 

93,780

 

 

 

87,923

 

Research and development

 

50,399

 

 

 

50,051

 

 

 

101,267

 

 

 

105,928

 

General and administrative

 

20,215

 

 

 

18,635

 

 

 

40,104

 

 

 

39,882

 

Total operating expenses

 

120,509

 

 

 

113,622

 

 

 

235,151

 

 

 

233,733

 

Loss from operations

 

(79,396

)

 

 

(71,966

)

 

 

(153,489

)

 

 

(145,175

)

Interest income

 

10,480

 

 

 

4,224

 

 

 

20,602

 

 

 

6,762

 

Other (expense) income, net

 

(638

)

 

 

(945

)

 

 

(877

)

 

 

(1,966

)

Loss before provision for income taxes

 

(69,554

)

 

 

(68,687

)

 

 

(133,764

)

 

 

(140,379

)

Provision for income taxes

 

226

 

 

 

163

 

 

 

374

 

 

 

342

 

Net loss

$

(69,780

)

 

$

(68,850

)

 

$

(134,138

)

 

$

(140,721

)

Net loss per share attributable to Class A and Class B common stockholders, basic and diluted

$

(0.59

)

 

$

(0.63

)

 

$

(1.15

)

 

$

(1.30

)

Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted

 

118,656

 

 

 

108,876

 

 

 

117,125

 

 

 

107,885

 

(1)

 

Including related party revenue of $10,581 and $35,568 for the six months ended October 31, 2023 and 2022, respectively, and $19,238 for the three months ended October 31, 2022.

(2)

 

Including related party revenue of $5,804 and $150 for the six months ended October 31, 2023 and 2022, respectively, and $21 for the three months ended October 31, 2022.

(3)

 

Including related party sales and marketing expense of $810 and $7,031 for the six months ended October 31, 2023 and 2022, respectively, and $3,531 for the three months ended October 31, 2022.

 

C3.AI, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data)

(Unaudited)

 

 

October 31, 2023

 

April 30, 2023

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

149,009

 

 

$

284,829

 

Marketable securities

 

613,260

 

 

 

446,155

 

Accounts receivable, net of allowance of $359 and $359 as of October 31, 2023 and April 30, 2023, respectively(1)

 

143,153

 

 

 

134,586

 

Prepaid expenses and other current assets(2)

 

25,662

 

 

 

23,309

 

Total current assets

 

931,084

 

 

 

888,879

 

Property and equipment, net

 

92,651

 

 

 

84,578

 

Goodwill

 

625

 

 

 

625

 

Long-term investments

 

 

 

 

81,418

 

Other assets, non-current(3)

 

46,754

 

 

 

47,528

 

Total assets

$

1,071,114

 

 

$

1,103,028

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities

 

 

 

Accounts payable(4)

$

25,740

 

 

$

24,610

 

Accrued compensation and employee benefits

 

37,648

 

 

 

46,513

 

Deferred revenue, current(5)

 

40,486

 

 

 

47,846

 

Accrued and other current liabilities(6)

 

10,280

 

 

 

17,070

 

Total current liabilities

 

114,154

 

 

 

136,039

 

Deferred revenue, non-current

 

68

 

 

 

4

 

Other long-term liabilities

 

45,616

 

 

 

37,320

 

Total liabilities

 

159,838

 

 

 

173,363

 

Commitments and contingencies

 

 

 

Stockholders’ equity

 

 

 

Class A common stock

 

116

 

 

 

110

 

Class B common stock

 

3

 

 

 

3

 

Additional paid-in capital

 

1,856,307

 

 

 

1,740,174

 

Accumulated other comprehensive loss

 

(775

)

 

 

(385

)

Accumulated deficit

 

(944,375

)

 

 

(810,237

)

Total stockholders’ equity

 

911,276

 

 

 

929,665

 

Total liabilities and stockholders’ equity

$

1,071,114

 

 

$

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 from 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 from a related party of $2,448 as of April 30, 2023.

 

C3.AI, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Six Months Ended October 31,

 

 

2023

 

 

 

2022

 

Cash flows from operating activities:

 

 

 

Net loss

$

(134,138

)

 

$

(140,721

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

Depreciation and amortization

 

6,220

 

 

 

2,413

 

Non-cash operating lease cost

 

454

 

 

 

1,101

 

Stock-based compensation expense

 

104,049

 

 

 

112,643

 

Accretion of discounts on marketable securities

 

(8,755

)

 

 

(582

)

Other

 

 

 

 

186

 

Changes in operating assets and liabilities

 

 

 

Accounts receivable(1)

 

(8,567

)

 

 

(14,668

)

Prepaid expenses, other current assets and other assets(2)

 

(665

)

 

 

(3,204

)

Accounts payable(3)

 

(2,918

)

 

 

(28,197

)

Accrued compensation and employee benefits

 

(2,551

)

 

 

(1,050

)

Operating lease liabilities

 

7,804

 

 

 

650

 

Other liabilities(4)

 

1,709

 

 

 

(882

)

Deferred revenue(5)

 

(7,296

)

 

 

(18,534

)

Net cash used in operating activities

 

(44,654

)

 

 

(90,845

)

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

 

(16,631

)

 

 

(39,978

)

Capitalized software development costs

 

(2,750

)

 

 

(1,000

)

Purchases of marketable securities

 

(489,871

)

 

 

(384,024

)

Maturities and sales of marketable securities

 

412,554

 

 

 

455,534

 

Net cash (used in) provided by investing activities

 

(96,698

)

 

 

30,532

 

Cash flows from financing activities:

 

 

 

Proceeds from issuance of Class A common stock under employee stock purchase plan

 

5,055

 

 

 

 

Proceeds from exercise of Class A common stock options

 

10,163

 

 

 

1,782

 

Taxes paid related to net share settlement of equity awards

 

(9,686

)

 

 

(3,375

)

Net cash provided by (used in) financing activities

 

5,532

 

 

 

(1,593

)

Net decrease in cash, cash equivalents and restricted cash

 

(135,820

)

 

 

(61,906

)

Cash, cash equivalents and restricted cash at beginning of period

 

297,395

 

 

 

352,519

 

Cash, cash equivalents and restricted cash at end of period

$

161,575

 

 

$

290,613

 

Cash and cash equivalents

$

149,009

 

 

$

277,622

 

Restricted cash included in other assets

 

12,566

 

 

 

12,566

 

Restricted cash included in prepaid expenses and other current assets

 

 

 

 

425

 

Total cash, cash equivalents and restricted cash

$

161,575

 

 

$

290,613

 

Supplemental disclosure of cash flow information—cash paid for income taxes

$

281

 

 

$

136

 

Supplemental disclosures of non-cash investing and financing activities:

 

 

 

Purchases of property and equipment included in accounts payable and accrued liabilities

$

7,293

 

 

$

18,361

 

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)

$

778

 

 

$

 

Unpaid liabilities related to intangible purchases

$

 

 

$

1,500

 

Vesting of early exercised stock options

$

294

 

 

$

561

 

(1)

 

Including changes in related party balances of $12,444 and $18,023 for the six months ended October 31, 2023 and 2022, respectively.

(2)

 

Including changes in related party balances of $(810) and $(2,431) for the six months ended October 31, 2023 and 2022, respectively.

(3)

 

Including changes in related party balances of $248 and $(16,396) for the six months ended October 31, 2023 and 2022, respectively.

(4)

 

Including changes in related party balances of $(2,448) and $(2,510) for the six months ended October 31, 2023 and 2022, respectively.

(5)

 

Including changes in related party balances of $(46) and $255 for the six months ended October 31, 2023 and 2022, respectively.

 

C3.AI, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except percentages)

(Unaudited)

 

 

Three Months Ended October 31,

 

Six Months Ended October 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Reconciliation of GAAP gross profit to non-GAAP gross profit:

 

 

 

 

 

 

 

Gross profit on a GAAP basis

$

41,113

 

 

$

41,656

 

 

$

81,662

 

 

$

88,558

 

Stock-based compensation expense(1)

 

8,993

 

 

 

5,965

 

 

 

17,509

 

 

 

11,308

 

Employer payroll tax expense related to employee stock-based compensation(2)

 

297

 

 

 

186

 

 

 

838

 

 

 

572

 

Gross profit on a non-GAAP basis

$

50,403

 

 

$

47,807

 

 

$

100,009

 

 

$

100,438

 

 

 

 

 

 

 

 

 

Gross margin on a GAAP basis

 

56

%

 

 

67

%

 

 

56

%

 

 

69

%

Gross margin on a non-GAAP basis

 

69

%

 

 

77

%

 

 

69

%

 

 

79

%

 

 

 

 

 

 

 

 

Reconciliation of GAAP loss from operations to non-GAAP loss from operations:

 

 

 

 

 

 

 

Loss from operations on a GAAP basis

$

(79,396

)

 

$

(71,966

)

 

$

(153,489

)

 

$

(145,175

)

Stock-based compensation expense(1)

 

53,169

 

 

 

56,013

 

 

 

104,049

 

 

 

112,643

 

Employer payroll tax expense related to employee stock-based compensation(2)

 

1,274

 

 

 

991

 

 

 

3,774

 

 

 

3,033

 

Loss from operations on a non-GAAP basis

$

(24,953

)

 

$

(14,962

)

 

$

(45,666

)

 

$

(29,499

)

 

 

 

 

 

 

 

 

Reconciliation of GAAP net loss per share to non-GAAP net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss on a GAAP basis

$

(69,780

)

 

$

(68,850

)

 

$

(134,138

)

 

$

(140,721

)

Stock-based compensation expense(1)

 

53,169

 

 

 

56,013

 

 

 

104,049

 

 

 

112,643

 

Employer payroll tax expense related to employee stock-based compensation(2)

 

1,274

 

 

 

991

 

 

 

3,774

 

 

 

3,033

 

Net loss on a non-GAAP basis

$

(15,337

)

 

$

(11,846

)

 

$

(26,315

)

 

$

(25,045

)

 

 

 

 

 

 

 

 

GAAP net loss per share attributable common shareholders, basic and diluted

$

(0.59

)

 

$

(0.63

)

 

$

(1.15

)

 

$

(1.30

)

Non-GAAP net loss per share attributable common shareholders, basic and diluted

$

(0.13

)

 

$

(0.11

)

 

$

(0.22

)

 

$

(0.23

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

118,656

 

 

 

108,876

 

 

 

117,125

 

 

 

107,885

 

(1)

 

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 October 31,

 

Six Months Ended October 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Cost of subscription

$

8,514

 

$

5,486

 

$

16,570

 

$

9,758

Cost of professional services

 

479

 

 

 

479

 

 

 

939

 

 

 

1,550

 

Sales and marketing

 

18,226

 

 

 

19,080

 

 

 

35,005

 

 

 

35,859

 

Research and development

 

16,685

 

 

 

23,905

 

 

 

33,718

 

 

 

49,122

 

General and administrative

 

9,265

 

 

 

7,063

 

 

 

17,817

 

 

 

16,354

 

Total stock-based compensation expense

$

53,169

 

 

$

56,013

 

 

$

104,049

 

 

$

112,643

 

(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 October 31,

 

Six Months Ended October 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Cost of subscription

$

282

 

$

170

 

$

791

 

$

456

Cost of professional services

 

15

 

 

 

16

 

 

 

47

 

 

 

116

 

Sales and marketing

 

463

 

 

 

356

 

 

 

1,468

 

 

 

886

 

Research and development

 

415

 

 

 

386

 

 

 

1,232

 

 

 

1,329

 

General and administrative

 

99

 

 

 

63

 

 

 

236

 

 

 

246

 

Total employer payroll tax expense

$

1,274

$

991

$

3,774

$

3,033

 

Investor Contact

ir@c3.ai

C3 AI Public Relations

Cheryl Sanclemente

415-988-4960

pr@c3.ai

Source: C3.ai

C3 AI reported a total revenue of $73.2 million for the fiscal second quarter ended October 31, 2023.

C3 AI reported a 17% year-over-year increase in total revenue.

Subscription revenue constituted 91% of the total revenue for C3 AI.

C3 AI reported a GAAP gross profit of $41.1 million for the fiscal second quarter.

C3 AI reported a customer engagement of 404, representing an 81% year-over-year increase.
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About AI

c3 ai is a leading #enterpriseai software provider for accelerating digital transformation. c3 ai delivers the c3 ai application platform for developing, deploying, and operating large-scale ai, predictive analytics, and iot applications, in addition to an increasingly broad portfolio of turnkey ai applications. the core of the c3 ai offering is a proprietary, model-driven ai architecture that dramatically enhances data science and application development.