On December 6, 2023, C3.ai Inc (AI, Financial) released its 8-K filing, announcing the financial results for its fiscal second quarter ended October 31, 2023. The company reported a significant uptick in revenue and customer engagement, underpinned by growing interest in its generative AI offerings and a strategic shift to a consumption-based pricing model.
Fiscal Second Quarter 2024 Financial Highlights
C3.ai Inc (AI, Financial) reported total revenue of $73.2 million for the quarter, marking a 17% increase year-over-year. Subscription revenue was a major contributor, accounting for 91% of the total revenue at $66.4 million, up 12% from the previous year. The company's GAAP gross profit for the quarter was $41.1 million, translating to a 56% gross margin. On a non-GAAP basis, the gross profit was higher at $50.4 million, representing a 69% non-GAAP gross margin.
The company's net loss per share on a GAAP basis was $(0.59), while the non-GAAP net loss per share was $(0.13). C3.ai Inc (AI, Financial) also reported robust cash reserves, with $762.3 million in cash, cash equivalents, and investments. A significant increase in customer engagement was noted, with a total of 404 customers engaged during the quarter, an 81% increase from the previous year.
Operational and Strategic Developments
During the quarter, C3.ai Inc (AI, Financial) closed 62 agreements, including 36 pilots, with notable new and expanded agreements with companies such as GSK, Indorama, First Business Bank, Con Edison, Roche, Nucor Corporation, and Hewlett Packard Enterprise. The company's federal business also showed strength, with federal bookings nearly doubling from the previous year.
Success stories highlighted in the report include collaborations with Nucor to optimize production schedules and with Con Edison to implement C3 Generative AI for infrastructure data analysis. The Defense Logistics Agency also utilized C3 AI's solutions to improve supply chain efficiency.
The company's partnership ecosystem, including AWS, Baker Hughes, Booz Allen, Google Cloud, and Microsoft, continues to drive growth, with a 75% increase in the qualified opportunity pipeline with partners over the past year. C3.ai Inc (AI, Financial) and AWS have expanded their Strategic Collaboration Agreement to focus on advanced generative AI solutions for enterprises.
Financial Outlook and Analyst Commentary
Looking ahead, C3.ai Inc (AI, Financial) provided guidance for the third quarter of fiscal 2024, with total revenue expected to be between $74.0 and $78.0 million. The non-GAAP loss from operations is projected to be between $(40.0) and $(46.0) million. For the full fiscal year 2024, the company anticipates total revenue to be in the range of $295.0 to $320.0 million, with a non-GAAP loss from operations between $(115.0) and $(135.0) million.
Thomas M. Siebel, CEO and Chairman of C3.ai Inc (AI, Financial), commented on the company's performance, stating,
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."He also noted the positive reception to the company's transition to a consumption-based pricing model.
Conclusion
C3.ai Inc (AI, Financial) has demonstrated a strong quarter with significant growth in revenue and customer engagement. The company's strategic focus on generative AI and consumption-based pricing appears to be resonating with customers and partners alike. As C3.ai Inc (AI) continues to invest in innovation and expand its offerings, investors and stakeholders will be watching closely to see how these initiatives translate into long-term financial performance.
For a detailed analysis of C3.ai Inc (AI, Financial)'s financial results, including the reconciliation of GAAP to non-GAAP financial measures, investors are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from C3.ai Inc for further details.
