Slide 1: Investor Supplemental FY23-Q4
Investor Supplemental FY23-Q4 May 31, 2023
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of the Private This presentation also contains estimates and other statistical data made by independent Securities Litigation Reform Act of 1995. All statements contained in this presentation other parties and by us
Slide 3: © 2023 C3.ai Inc. All Rights Reserved.
3 © 2023 C3.ai Inc. All Rights Reserved.
Slide 4: FY23-Q4 Highlights
FY23-Q4 Highlights Number of Attractive Qualified cRPO2 Positive Free Agreements During Margin Pipeline Growth Cash Flow the Quarter 43 74% 100%+ $186M $16M YoY1 Growth 59% Non-GAAP gross Last 12 Months Margin (1) FY23-Q4 QTD vs FY22-Q4 QTD (2) Current RPO (cRPO) refers to the revenue expected to be
Slide 5: FY23 Highlights
FY23 Highlights Number of Attractive Non-GAAP Subscription Bookings Agreements Margin Operating Revenue Driven By C3 AI During the Year Margin Applications 126 77% (25.5)% 86% 83% YoY1 Growth 52% Non-GAAP Gross (32)% in FY22 82% in FY22 17% Driven By Margin C3 AI Platform (1) FY23 vs FY22 (2) Percen
Slide 6: FY23: C3 AI Partner Model Success
FY23: C3 AI Partner Model Success • Closed 126 deals during FY23, of which 71 were with partners • Qualified enterprise opportunities targeted for closure within 12 months in our sales pipeline has increased by over 100% in the past year • Joint qualified 12-month opportunity pipeline with Google Cl
Slide 7: Federal Momentum: U.S. Air Force Designates C3 AI Predictive Maintenance
Federal Momentum U.S. Air Force Designates C3 AI Predictive Maintenance Solution as System of Record 7 © 2023 C3.ai Inc. All Rights Reserved.
Slide 8: New Products and Enhancements
New Products and Enhancements 8 © 2023 C3.ai Inc. All Rights Reserved.
Slide 9: Generative AI Product Suite
Generative AI Product Suite • The C3 Generative AI Product Suite embeds advanced transformer models with C3 AI’s pre-built AI applications, accelerating a customer’s ability to leverage these models across their value chains • C3 Generative AI for Enterprise Search provides enterprise users with a t
Slide 10: How C3 Generative AI is Unique
How C3 Generative AI is Unique Standard LLM Architecture C3 Generative AI Architecture Text / Text / Sensor Log Documents HTML Code Documents HTML Code Tables Apps Data Files Prone to random responses Deterministic responses Lacks traceability Full traceability Lacks Enterprise Access Controls Full
Slide 11: Guidance
Guidance FY24-Q1 FY24 Total Revenue $70.0 – $72.5 million $295.0 – $320.0 million YoY Growth % 7% – 11% 11% – 20% Non-GAAP Loss from Operations ($25.0) – ($30.0) million ($50.0) – ($75.0) million Our guidance includes GAAP and non-GAAP financial measures. A reconciliation of non-GAAP guidance measur
Slide 12: Finance Update
Finance Update 12 © 2023 C3.ai Inc. All Rights Reserved.
Slide 13: FY23-Q4 Summary Financial Results
FY23-Q4 Summary Financial Results FY23-Q4 Revenue $72.4 million Subscription Revenue $56.9 million Non-GAAP Gross Profit $53.9 million Remaining Performance Obligations (“RPO”) $381.4 million Non-GAAP Gross Margin 74% Current RPO $186.3 million Non-GAAP net loss per share $(0.13) Free Cash Flow $16.
Slide 14: FY23 Summary Financial Results
FY23 Summary Financial Results FY23 Revenue $266.8 million Subscription Revenue $230.4 million Non-GAAP Gross Profit $205.2 million Non-GAAP Gross Margin 77% Non-GAAP net loss per share $(0.42) Note: Non-GAAP Gross Profit is a non-GAAP financial measures. Refer to the Appendix for a reconciliation o
Slide 15: Plan for Profitability – Non-GAAP Operating Margin
Plan for Profitability – Non-GAAP Operating Margin Steady State Op Margin +20% Target Op Margin +1% 20% 2% Current Operating Margin 23% -33% 10% Cost of Revenue 26% 16% Marketing 18% 18% 17% Sales 29% Research & Development General & Administrative 32% 24% 44% 16% 11% 8% FY23-Q4 FY24-Q4 (E) Steady S
Slide 16: Consumption Based Revenue Transition
Consumption Based Revenue Transition Phase 3 Scale out & Consumption Phase 1 – Introduction & Transition Acceleration • First pilots started along with trials • Pilots have a lower TCV and higher initial investment costs • Revenue growth flattens and gross margin compresses Phase 2 Deal Ramp & Early
Slide 17: Deal Bands
Deal Bands $ in Millions FY22-Q4 FY23-Q4 30 18 12 6 1 2 1 0 <$1M $1M - $5M $5M - $10M $10M + <$1M $1M - $5M $5M - $10M $10M + Average TCV $2.9 M $1.2 M Note: Fiscal year ends April 30. Numbers are rounded for presentation purposes. 17 © 2023 C3.ai Inc. All Rights Reserved.
Slide 18: Total Revenue Mix
Total Revenue Mix $ in Millions Subscription % of % of Revenue Total Revenue 78% 79% Total Revenue Professional Services Revenue 22% 21% FY22-Q4 FY23-Q4 Note: Numbers and percentages are rounded for presentation purposes. 18 © 2023 C3.ai Inc. All Rights Reserved.
Slide 19: Bookings Diversity FY23
Bookings Diversity FY23 C3 AI Platform Led FY23 17% Bookings Driven By AI Applications Led 83% Note: Fiscal year ends April 30. Percentages are rounded for presentation purposes. % calculation is based on dollar amount 19 © 2023 C3.ai Inc. All Rights Reserved.
Slide 20: Bookings Diversity by Industry FY23
Bookings Diversity by Industry FY23 Chemicals Food Processing 1.8% 2.0% Life Sciences 1.5% Accounting Services Manufacturing 1.0% 4.2% Financial Services 1.0% Logistics & Transportation Energy & 0.4% Utilities Agriculture & Forestry 11.4% 0.4% Retail High 0.3% Technology 13.2% Others 0.1% Total Book
Slide 21: Diversity by Industry FY23-Q4
Diversity by Industry FY23-Q4 Food Processing Chemicals 6.5% 4.2% Manufacturing Oil & Gas 2.0% 13.9% Accounting Services 0.9% Agriculture & Forestry 0.4% State & Local Financial Services 0.2% Total Bookings Energy / Federal, Utilities Defense & 29.2% Aerospace 42.5% Note: Fiscal year ends April 30.
Slide 22: Pilots & Trials Diversity by Industry FY23-Q4
Pilots & Trials Diversity by Industry FY23-Q4 Chemicals Energy / Utilities 5.3% 5.3% State & Local Financial Services 5.3% 5.3% Agriculture & Forestry 5.3% Oil & Gas 10.5% Pilots & Trials Federal, High Defense & Technology Aerospace 10.5% 36.8% Manufacturing 15.8% Note: Fiscal year ends April 30. Pe
Slide 23: Pilot Account Profile
Pilot Account Profile # Pilots 7 7 4 1 0 Account size <$100M $100M - $1B $1B - $10B $10B - $100B >$100B in revenue 23 © 2023 C3.ai Inc. All Rights Reserved.
Slide 24: C3 AI Investment Thesis
C3 AI Investment Thesis Huge Addressable Market of $791.5 Billion by 20261 First-mover Advantage Patented Enterprise AI Application Platform Substantial Market Partner Ecosystem Recognized AI Market Leadership Proven Track Record of Success Veteran Disciplined Management Team High-Performance Corpor
Slide 25: © 2023 C3.ai Inc. All Rights Reserved.
25 © 2023 C3.ai Inc. All Rights Reserved.
Slide 26: Appendix
Appendix 26 © 2023 C3.ai Inc. All Rights Reserved.
Slide 27: Income Statement
Income Statement LAA 6JIN M 1I A 4OGS $ 8 NJ AL $ 4 IO LS $ LEG $ $ 4OGS $ 8 NJ AL $ 4 IO LS $ LEG $ $ :APAIOA O M LE NEJI ( ( ($, ) $,( ) $ ) $ )- )$, ) $( ) , 9LJ AMMEJI G MALPE AM ,( $ ,)) ,- $ ) , , -$ - ) )(( JN G :APAIOA ) ($ ), - ) $, ($, - ( $ 0JMN J LAPAIOA O M LE NEJI - - ) -), ( $- - ) -
Slide 28: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations C 5 MCL 1 3N ( % 7 M ( % 3 N ( % J (% % 3N ( % 7 M ( % 3 N ( % ( J (% % ( N L JM O N ) ), )%- , %-) (% ,% %- , %)( - 8 A LL L O L O N -) %- - % - - %% )) M 9 O N )% - ( ,,( , ( , (%- )%- , ) % 2 8 LM A LN L JM O N ( ( , - )% ) ( -, M E$ L GJ L M - ( ) ( - ) ) , )- (
Slide 29: Customer Engagement Summary
Customer Engagement Summary Ø C3 AI serves a diverse range of customers across various segments with a wide variety of products and services that have distinct pricing models. Ø Customer count is therefore extremely complicated and not an accurate indicator of market acceptance of C3 AI products. Ø
Slide 30: Customer Engagement and Count (1 of 2)
Customer Engagement and Count (1 of 2) Summary Our customer composition is diverse and includes various customer segments with different purchasing decisions and pricing models. We offer a wide range of products and services, which results in a complex sales tapestry. The company has historically pr
Slide 31: Customer Engagement and Count (2 of 2)
Customer Engagement and Count (2 of 2) To help us better articulate the growth in our customer base and use cases, we retained external consultants to recommend a best-practice methodology that is consistent and auditable. As a result of that recommendation, we have decided to change our definition
Slide 32: Current RPO and BH related RPO
Current RPO and BH related RPO Ø Revenue expected to be recognized from remaining performance obligations was approximately $381.4 million as of April 30, 2023 of which $186.3 million is expected to be recognized over the next 12 months and the remainder thereafter. Ø Our RPO related to Baker Hughes
Slide 33: Ss C3.al
Ss C3.al