REDWOOD CITY, Calif. – June 1, 2022 – C3.ai, Inc. (“C3 AI,” “C3,” or the “Company”) (NYSE: AI), the Enterprise AI application software company, today announced financial results for its fourth quarter and full fiscal year ended April 30, 2022.
“Our fourth quarter results showed continued strength across the business and came in ahead of expectations, with revenue growing 38% year over year,” said CEO Thomas M. Siebel. “Our full fiscal year was equally strong. Revenue increased 38% to $252.8 million compared with fiscal 2021. Importantly, we continued to diversify our customer base throughout the fiscal year, with notable expansion in defense, intelligence, utilities, agriculture, chemicals, aerospace, and manufacturing.”
Mr. Siebel added, “Our strong fiscal 2022 performance further strengthens our position as a global leader in the Enterprise AI market and sets the stage for growth in fiscal 2023.”
Fourth Quarter Fiscal 2022 Financial Highlights
- Revenue: Total revenue for the quarter was $72.3 million, an increase of 38% compared to $52.3 million one year ago.
- Subscription Revenue: Subscription revenue for the quarter was $56.3 million, an increase of 31% compared to $43.1 million one year ago.
- Gross Profit: GAAP gross profit for the quarter was $55.0 million, representing a 76% gross margin, compared to $40.6 million, an increase of 35% one year ago. Non-GAAP gross profit for the quarter was $58.5 million, representing an 81% gross margin, compared to $41.0 million, an increase of 43% one year ago.
- Remaining Performance Obligations (“RPO”): GAAP RPO increased by 62% to $477.4 million, up from $293.8 million one year ago. Significantly, our GAAP RPO increased to 165% of Q4 annualized sales. Non-GAAP RPO increased by 50% to $516.8 million, up from $345.1 million one year ago.
- Net Loss per Share: GAAP net loss per share was $(0.55), compared to $(0.24) one year ago. Non-GAAP net loss per share was $(0.21), compared to $(0.15) one year ago.
- Free Cash Flow: Free Cash Flow for Q4 was $(14.8) million, a 54% improvement from $(32.2) million one year ago.
- Cash Reserves: With $992.2 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.
Full Year Fiscal 2022 Financial Highlights
- Revenue: Total revenue for the fiscal year was $252.8 million, an increase of 38% compared to $183.2 million one year ago. Revenue growth accelerated to 38%, compared to a 17% growth one year ago.
- Subscription Revenue: Subscription revenue for the fiscal year was $206.9 million, an increase of 31% compared to $157.4 million one year ago.
- Gross Profit: GAAP gross profit for the fiscal year was $189.0 million, representing a 75% gross margin, compared to $138.7 million one year ago. Non-GAAP gross profit for the fiscal year was $200.5 million, representing a 79% gross margin, compared to $139.9 million one year ago.
- Net Loss per Share: GAAP net loss per share was $(1.84), compared to $(0.83) one year ago. Non-GAAP net loss per share was $(0.73), compared to $(0.49) one year ago.
- Customer Count: Customer count grew to 223 from 151, a 48% increase year over year.
Select Customer Wins
- The U.S. Department of Defense (“DoD”) awarded C3 AI the first two orders from its five-year, $500 million transaction agreement signed in December 2021. The agreement accelerates the ability for any DoD agency to acquire C3 AI Products and Services.
- The C3 AI Application Platform was selected by the U.S. Defense Counterintelligence and Security Agency (“DCSA”) to enable next-generation AI applications to accelerate DCSA’s initial awards and ongoing maintenance of security clearances, helping to maintain a stable inventory of background investigations critical to U.S. national security.
- Raytheon Technologies selected C3 AI to enhance its Multi-Spectral Targeting System, using applications including C3 AI Process Optimization, C3 AI Supply Network Risk, and C3 AI Inventory Optimization.
- San Mateo County Sheriff’s Office signed a multi-year agreement to deploy C3 AI Intelligence Analysis, a crime data aggregation and analysis application that delivers near real-time insights to improve the efficiency of investigations and the safety of personnel in the field.
- C3 AI and Google Cloud continue to make significant progress collaborating, and in Q4 added customers including 1-800-FLOWERS, United Parcel Service, Tyson Foods, and Canadian bank ATB Financial.
Select Customer Expansions
- Koch Industries, one of the largest private companies in America, renewed and expanded its contract with C3 AI as it scales Enterprise AI solutions across its diverse group of companies over the next five years.
- Cargill, a global food company, expanded its use of C3 AI to include demand forecasting and supply network risk, in addition to the C3 AI Supply Chain Suite of applications.
- One Medical, a membership-based primary care practice, is using C3 AI Ex Machina, our no-code solution, to automate tasks such as insurance validation.
- Petronas, a global energy company, expanded its relationship with Baker Hughes and C3 AI, establishing a dedicated AI Center of Excellence in Kuala Lumpur to scale deployment of the BHC3 Reliability Application.
- Google launched two supply chain solutions supported by C3 AI, among others. The solutions combine Google’s Vertex AI forecasting, Cortex data acceleration, and Google’s breadth of real-time data – such as news, search trends, weather, and transportation routes – with C3 AI Supply Chain to improve on-time customer delivery through better demand forecasting, optimized inventory and production, and supplier lead time visibility.
- C3 AI formed new partnerships with PwC, EY, and Accenture.
- ENGIE, our energy-services partner, continues to expand its use of ESG Applications on top of the C3 AI Application Platform.
- FIS continues to expand, deliver, and sell AI/Machine Learning (ML) and smart-lending solutions built on the C3 AI Application Platform.
Other Corporate Highlights
Significant Momentum in Federal:
- C3 AI appointed Martin F. Klein to the C3 AI executive team to oversee our defense and intelligence operations. Mr. Klein most recently served as the Chief Operating Officer of the DoD’s Joint Artificial Intelligence Center (“JAIC”).
- FedRAMP Ready Status: The C3 AI Application Platform was designated FedRAMP Ready by the Federal Risk and Authorization Management Program (“FedRAMP”). FedRAMP is a U.S. government-wide program that provides a standardized approach to cloud security. C3 AI’s FedRAMP Ready makes it easier and faster for government agencies to approve and implement the C3 AI Application Platform.
- Authority to Operate (ATO) from USAF: The United States Air Force (“USAF”) Rapid Sustainment Office (“RSO”) expanded its agreement with C3 AI, and USAF granted RSO Condition Based Maintenance Plus program with a continuous Authority to Operate (ATO). This allows the RSO and C3 AI to analyze and make predictions on controlled unclassified information. The RSO currently uses the C3 AI Predictive Analytics and Decision Assistant (“PANDA”) application, to optimize fleet maintenance, increase aircraft availability, and minimize aircraft downtime.
Continued Market Expansion:
- Bookings from the rapidly expanding Oil and Gas market segment grew 95% year over year. Bookings from the non-Oil and Gas segments—including primarily utilities, banking, manufacturing, agriculture, defense, aerospace, energy efficiency, ESG, etc. – grew 116% year over year.
- Significant Product Enhancements: C3 AI announced the general availability of C3 AI Version 8 to dramatically accelerate the development of large-scale AI applications. Version 8 is a complete re-architecture of the C3 AI Application Suite and its prebuilt AI applications, enabling dramatic performance improvements and a seamless development experience from data engineering and transformations to AI/ML model and application prototyping.
- Turnkey Enterprise AI Applications: As of Q4 FY22, we have 42 turnkey Enterprise AI applications to meet the predictive analytics needs of the manufacturing, utilities, aerospace, defense, intelligence, banking, agriculture, consulting, medical products, oil and gas, energy efficiency, and chemical industries in addition to state and local government.