C3.ai, Inc. · NYSE:AI
C3.ai — Q1 2024 Earnings Presentation
32 slides from C3.ai's earnings presentation, Sep 6, 2023
Slide 1: Investor Supplemental FY24-Q1
Investor Supplemental FY24-Q1 September 6, 2023
Slide 2: Disclaimer
Disclaimer This press release 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 press release parties and by us rela
Slide 3: © 2023 C3.ai Inc. All Rights Reserved.
3 © 2023 C3.ai Inc. All Rights Reserved.
Slide 4: Letter from our Chief Executive Officer: The Evolution of C3 AI
Letter from our Chief Executive Officer In 2012, C3 engaged McKinsey & Co. to conduct a study and make recommendations for maximizing growth including optimal company positioning and an associated pricing and product strategy. In the 2000-2020 timeframe, utility companies globally were The Evolution
Slide 5: C3 AI: 2019 – Present
C3 AI: 2019 – Present But enterprises are finding that there are a number of disqualifying attributes of the LLM solutions currently being proposed by hyperscalers, consultants, and others: 1) LLM answers are frequently random; 2) LLM answers are not traceable to ground truth; As the market for clou
Slide 6: FY24-Q1 Highlights
FY24-Q1 Highlights Number of Operating Cash Revenue Growth1 cRPO2 Cash Balance Agreements Flow 32 $3.9M 11% $171M $810M (1) FY24-Q1 QTD vs FY23-Q1 QTD (2) Current RPO (cRPO) refers to the revenue expected to be recognized from remaining performance obligations over the next 12 months (3) Percentages
Slide 7: FY24-Q1 C3 AI Partner Model Success
FY24-Q1 C3 AI Partner Model Success • Closed 32 agreements during Q1 FY24, of which 20 were with partners • Qualified opportunity pipeline with partners has increased by over 100% in the past year • Our qualified pipeline with cloud partners grew by 61% from Q4 FY23 to Q1 FY24 • Booz Allen partnersh
Slide 8: C3 AI Customer Success
C3 AI Customer Success 8 © 2023 C3.ai Inc. All Rights Reserved.
Slide 9: C3 AI Customer Success
C3 AI Customer Success 9 © 2023 C3.ai Inc. All Rights Reserved.
Slide 10: C3 AI Customer Success: US Department of Defense
C3 AI Customer Success The DoD uses the C3 AI Platform and C3 AI Applications across many Services, Components, and Combatant Commands to realize a significant improvement in Readiness and Decision Advantage. Beginning in 2017, in collaboration with the Defense Innovation Unit (DIU), C3 AI began wor
Slide 11: C3 AI Customer Success: Shell
C3 AI Customer Success C3 AI applications are deployed across the entire Shell asset base. Shell’s predictive maintenance program monitors almost 20,000 pieces of equipment and over two billion rows of data a day. C3 AI identifies failure in advance, helping to protect workers, keep equipment runnin
Slide 12: C3 AI Customer Success: Koch Industries
C3 AI Customer Success We continue to expand our partnership with Koch Industries, particularly at Georgia-Pacific and Flint Hills Resources. We generate almost 4 million monthly predictions across 300-plus assets using our reliability and supply chain applications. Koch initiated two generative AI
Slide 13: C3 AI Customer Success: Bank of America
C3 AI Customer Success The C3 AI applications deployed at Bank of America deliver customer insights, optimize business workflows, and provide recommendations to its Liquidity Product Specialists and Treasury Sales Officers. These applications are all expected to generate significant annual benefits,
Slide 14: C3 Generative AI
C3 Generative AI 14 © 2023 C3.ai Inc. All Rights Reserved.
Slide 15: C3 Generative AI
C3 Generative AI C3 Generative AI is a unified knowledge source that enables enterprise users to rapidly locate, retrieve, and act on enterprise data and insights through an intuitive search and chat interface. Deterministic Responses Traceable to Ground Truth Enterprise Access Controls No LLM-Cause
Slide 16: Apply C3 Generative AI for Industries, Business Processes, and Enterprise Systems
Apply C3 Generative AI for Industries, Business Processes, and Enterprise Systems C3 Generative AI for Industries C3 Generative AI for Business Processes C3 Generative AI for Aerospace C3 Generative AI for Customer Service C3 Generative AI for Defense C3 Generative AI for Energy Management C3 Genera
Slide 17: Guidance
Guidance FY24-Q2 FY24 Total Revenue $72.0 – $76.5 million $295.0 – $320.0 million YoY Growth % 15% – 23% 11% – 20% Non-GAAP Loss from Operations ($27.0) – ($40.0) million ($70.0) – ($100.0) million Our guidance includes GAAP and non-GAAP financial measures. A reconciliation of non-GAAP guidance meas
Slide 18: Finance Update
Finance Update 18 © 2023 C3.ai Inc. All Rights Reserved.
Slide 19: FY24-Q1 Summary Financial Results
FY24-Q1 Summary Financial Results FY24-Q1 Revenue $72.4 million Subscription Revenue $61.4 million Non-GAAP Gross Profit $49.6 million Remaining Performance Obligations (“RPO”) $334.6 million Non-GAAP Gross Margin 69% Current RPO $170.6 million Non-GAAP net loss per share $(0.09) Free Cash Flow $(8.
Slide 20: 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 21: Deal Bands
Deal Bands $ in Millions FY23-Q1 FY24-Q1 23 23 9 7 1 0 0 0 <$1M $1M - $5M $5M - $10M $10M + <$1M $1M - $5M $5M - $10M $10M + Average TCV $1.4 M $0.8 M Note: Fiscal year ends April 30. Numbers are rounded for presentation purposes. 21 © 2023 C3.ai Inc. All Rights Reserved.
Slide 22: Total Revenue Mix
Total Revenue Mix 85% % of Subscription % of 87% Total Revenue Revenue Total Revenue Professional Services Revenue 13% 15% FY23-Q1 FY24-Q1 Note: Numbers and percentages are rounded for presentation purposes. 22 © 2023 C3.ai Inc. All Rights Reserved.
Slide 23: Pilots & Trials Diversity by Industry FY24-Q1
Pilots & Trials Diversity by Industry FY24-Q1 High Technology Chemicals 8.3% 4.2% CPG Agriculture & Forestry 4.2% 12.5% Energy & Utilities 12.5% Pilots & Trials Federal, Defense & Aerospace 33.3% Manufacturing 12.5% Local 12.5% Note: Fiscal year ends April 30. Percentages are rounded for presentatio
Slide 24: Diversity by Industry FY24-Q1
Diversity by Industry FY24-Q1 Energy & Utilities High Technology 5.8% 5.2% Agriculture & Forestry Manufacturing 1.9% 7.9% Oil & Gas 1.5% CPG 0.6% Local 9.8% Total Bookings Federal, Defense & Aerospace 67.3% Note: Fiscal year ends April 30. Percentages are rounded for presentation purposes. % calcula
Slide 25: Generative AI Pilots & Trials Diversity by Industry FY24-Q1
Generative AI Pilots & Trials Diversity by Industry FY24-Q1 Federal, High Defense & Technology Aerospace 12.5% 12.5% Local 12.5% Energy & Generative AI Utilities 25.0% Pilots & Trials CPG 12.5% Agriculture & Manufacturing Forestry 12.5% 12.5% Note: Fiscal year ends April 30. Percentages are rounded
Slide 26: Pilot Account Profile
Pilot Account Profile # Pilots 8 7 6 3 Account size $100M - $1B $1B - $10B $10B - $100B >$100B in revenue 26 © 2023 C3.ai Inc. All Rights Reserved.
Slide 27: 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 28: © 2023 C3.ai Inc. All Rights Reserved.
28 © 2023 C3.ai Inc. All Rights Reserved.
Slide 29: Appendix
Appendix 29 © 2023 C3.ai Inc. All Rights Reserved.
Slide 30: Income Statement
Income Statement 30 © 2023 C3.ai Inc. All Rights Reserved.
Slide 31: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 31 © 2023 C3.ai Inc. All Rights Reserved.
Slide 32: C3.ai
Ss C3.al