C3.ai, Inc. · NYSE:AI
C3.ai — Q2 2023 Earnings Presentation
30 slides from C3.ai's earnings presentation, Dec 7, 2022
Slide 1: Investor Supplemental FY23-Q2
Investor Supplemental FY23-Q2 December 7, 2022
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: © 2022 C3.ai Inc. All Rights Reserved.
3 © 2022 C3.ai Inc. All Rights Reserved.
Slide 4: FY23-Q2 Highlights
FY23-Q2 Highlights Subscription Operating Customer cRPO2 Attractive Revenue Margin Growth Margins 26% (24)% 16% $164M 77% YoY1 Growth 15 Point YoY YoY Customer Current RPO2 Non-GAAP Improvement Growth Gross Margin (1) FY23-Q2 QTD vs FY22-Q2 QTD (2) Current RPO (cRPO) refers to the revenue expected t
Slide 5: Customer Success
Customer Success 5 © 2022 C3.ai Inc. All Rights Reserved.
Slide 6: C3 AI Partner Model Success
C3 AI Partner Model Success 6 © 2022 C3.ai Inc. All Rights Reserved.
Slide 7: New Product Enhancements
New Product Enhancements 7 © 2022 C3.ai Inc. All Rights Reserved.
Slide 8: Launched C3 AI ESG
Launched C3 AI ESG C3 AI ESG Harnesses AI and ML to enable companies to monitor ESG (environmental, social, and governance) performance, capture opportunities, and accelerate initiatives to meet ESG goals Reduces the time required to gather, manage, and analyze disparate ESG data Automates reporting
Slide 9: New Release of C3 AI Reliability
New Release of C3 AI Reliability C3 AI Reliability Enhanced Reliability user experience and analytics for more intuitive, expanded insights Enhanced Reliability ML Pipelines to accelerate model scale-out, DS experience, and alert management Introduced standardized front- and back-end packages to acc
Slide 10: Major New Release of C3 AI CRM
Major New Release of C3 AI CRM C3 AI CRM Manage forecasts and analyze pipeline generation and progression for any organizational hierarchy, overlay, or fiscal cadence Configure and operate C3 AI CRM with a rich, self-service admin portal Key Features include: • Multi-hierarchy and multi-cadence fore
Slide 11: Announced New Functionality & Pricing for C3 AI Ex Machina
Announced New Functionality & Pricing for C3 AI Ex Machina C3 AI Ex Machina Complete analytics, machine learning, and data visualization Connect easily to any data source including Snowflake, Databricks, BigQuery, & more Process & prep data fast on a distributed engine Train AI / ML models without c
Slide 12: Guidance
Guidance FY23-Q3 FY23 FY24 Total Revenue $63 – $65 million $255 – $270 million ~$340+ YoY Growth % (10)% – (7)% 1% – 7% ~30%+ Non-GAAP Loss from Operations ($29) – ($25) million ($98) – ($85) million Our guidance includes GAAP and non-GAAP financial measures. A reconciliation of non-GAAP guidance me
Slide 13: Finance Update
Finance Update 13 © 2022 C3.ai Inc. All Rights Reserved.
Slide 14: FY23-Q2 Summary Financial Results
FY23-Q2 Summary Financial Results FY23-Q2 % Change Y/Y Revenue $62.4 million +7% Subscription Revenue $59.5 million +26% Non-GAAP Gross Profit $47.8 million +5% Remaining Performance Obligations (“RPO”) $417.3 million (10)% Non-GAAP RPO $453.5 million (14)% Non-GAAP Gross Margin 77% (1)% Free Cash F
Slide 15: Quarterly Total Revenue: FY21-Q3 to FY23-Q2
Quarterly Total Revenue: FY21-Q3 to FY23-Q2 7% YoY Growth $ in Millions $72 $70 $65 $62 $58 $52 $52 $49 FY21-Q3 FY21-Q4 FY22-Q1 FY22-Q2 FY22-Q3 FY22-Q4 FY23-Q1 FY23-Q2 Note: Fiscal year ends April 30. Numbers and percentages are rounded for presentation purposes. 15 © 2022 C3.ai Inc. All Rights Rese
Slide 16: Total Revenue Mix
Total Revenue Mix $ in Millions $62.4 7% $58.3 YoY $59.5 % of Total Revenue 26% YoY 95% % of $47.4 Total Revenue Subscription Revenue 81% Professional Services 19% $10.9 Revenue $2.9 5% FY22-Q2 FY23-Q2 Note: Numbers and percentages are rounded for presentation purposes. 16 © 2022 C3.ai Inc. All Righ
Slide 17: Non-GAAP Gross Margin
Non-GAAP Gross Margin Non-GAAP Total Gross Margin Non-GAAP Subscription Gross Margin 78% 81% 77% 77% FY22-Q2 FY23-Q2 FY22-Q2 FY23-Q2 Note: Non-GAAP subscription and total gross margin are non-GAAP financial measures. Refer to the Appendix for a reconciliation of these non-GAAP financial measures to
Slide 18: Non-GAAP Operating Income and Margin
Non-GAAP Operating Income and Margin Non-GAAP Operating Income Non-GAAP Operating Margin FY22-Q2 FY23-Q2 FY22-Q2 FY23-Q2 $ in Millions -$15.0 -24% -$22.6 -39% Note: Non-GAAP operating income and non-GAAP operating margin, are non-GAAP financial measures. Refer to the Appendix for reconciliations of
Slide 19: Deal Bands
Deal Bands $ in Millions FY22-Q2 FY23-Q2 18 7 6 3 2 1 0 0 <$1M $1M - $5M $5M - $10M $10M + <$1M $1M - $5M $5M - $10M $10M + Average TCV $19.0 M $0.8 M Note: Fiscal year ends April 30. Numbers are rounded for presentation purposes. 19 © 2022 C3.ai Inc. All Rights Reserved.
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: C3 AI Investment Thesis
C3 AI Investment Thesis Huge Addressable Market of $596 Billion by 20251 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 Corporat
Slide 22: © 2022 C3.ai Inc. All Rights Reserved.
22 © 2022 C3.ai Inc. All Rights Reserved.
Slide 23: Appendix
Appendix 23 © 2022 C3.ai Inc. All Rights Reserved.
Slide 24: Income Statement
Income Statement LAA 6JIN M 1I A 8 NJ AL $ $ 4 IO LS $ LEG $ $ 4OGS $ 8 NJ AL $ 4 IO LS $ LEG $ $ 4OGS $ 8 NJ AL $ :APAIOA O M LE NEJI ) ,)( ( -- ( , ( ( ($, ) $,( ) $ ) $ )- )$, 9LJ AMMEJI G MALPE AM ) (, ( $ - ,( $ ,)) ,- $ ) , , -$$ JN G :APAIOA ( ( (- $- ) ,( ) ($ ), - ) $, ($, 0JMN J LAPAIOA O
Slide 25: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations C 5 MCL 1 7 M ( % % 3 N ( % J (% % 3N ( % 7 M ( % 3 N ( % J (% % 3N ( % 7 M ( % 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
Slide 26: Other Metrics
Other Metrics October 31, 2021 January 31, 2022 April 30, 2022 July 31, 2022 October 31, 2022 Customer Count 203 218 223 228 236 We count as a Customer each distinct division, department, business unit, or group within a Customer-Entity that uses our product(s). In situations where our Customer (or
Slide 27: Current RPO and BH related RPO
Current RPO and BH related RPO Ø Revenue expected to be recognized from remaining performance obligations was approximately $417.3 million as of October 31, 2022 of which $164.5 million is expected to be recognized over the next 12 months and the remainder thereafter. Ø Our RPO related to Baker Hugh
Slide 28: Booking Diversity by Industry
Booking Diversity by Industry Federal, Aerospace & Life Sciences Logistics & Transportation Chemicals 0.2% Retail Defense 3.4% 2.4% 2.4% 1.6% Agriculture & Forestry Energy & Utilities 6.1% Agriculture & Forestry 0.1% 2.0% Financial Services Manufacturing 0.1% 1.9% Manufacturing Financial Services 0.
Slide 29: Booking Diversity by Industry (excluding Oil and Gas)
Booking Diversity by Industry (excluding Oil and Gas) Financial Services Retail Chemicals 4.5% Agriculture & Forestry Agriculture & 5.0% Manufacturing 4.5% 3.8% Forestry 5.0% Manufacturing Telecomm Logistics & 3.6% 6.1% 2.0% Transportation Financial Services 6.4% 1.8% Life Sciences 9.5% Energy & Uti
Slide 30: C3.ai
Ss C3.al