Slide 1: Investor Supplemental FY23-Q3
Investor Supplemental FY23-Q3 March 2, 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-Q3 Highlights
FY23-Q3 Highlights Deal Growth Non-GAAP net Customer cRPO2 Attractive loss per share Growth Margins 35% $(0.06) 8% $176M 76% YoY1 Growth 14% YoY YoY Customer 7% QoQ increase Non-GAAP Improvement Growth Gross Margin (1) FY23-Q3 QTD vs FY22-Q3 QTD (2) Current RPO (cRPO) refers to the revenue expected
Slide 5: C3 AI Partner Model Success with Cloud
C3 AI Partner Model Success with Cloud • Further expanded partnership to • Expanded and renewed • Jointly closed deals with a global ensure any C3 AI is available to go-to-market partnership US Energy company, and a customers on the GCP Marketplace European Technology company • AWS funded an enhance
Slide 6: C3 AI Partner Model Success with Global System Integrators
C3 AI Partner Model Success with Global System Integrators • Established strategic partnership • Renewed partnership • Agreement to address • Agreement to address for Government, Defense, and UK Healthcare modernization of the Intelligence sector • Joint development of Industry needs Veterans Admini
Slide 7: C3 AI Partner Model Success with Industry
C3 AI Partner Model Success with Industry • Strategic partnership expanded with Baker Hughes • Closed 87 contracts in the Oil & Gas and Chemical industry • Closed deals worth over $650 million in bookings and recognized over $350 million in revenue through Q3 FY 23 7 © 2023 C3.ai Inc. All Rights Res
Slide 8: New Products and Enhancements
New Products and Enhancements 8 © 2023 C3.ai Inc. All Rights Reserved.
Slide 9: Launched Generative AI Product Suite
Launched Generative AI Product Suite • The C3 Generative AI Product Suite embeds advanced transformer models with C3 AI’s pre-built AI applications accelerating customers’ ability to leverage these models across their value chains • C3 Generative AI for Enterprise Search provides enterprise users wi
Slide 10: ESG Reporting and Data Auditing
ESG Reporting and Data Auditing C3 AI ESG • Part of the C3 AI Sustainability Suite which includes C3 AI ESG • C3 AI ESG provides a single source of truth for all matters of materiality related to ESG – aggregated and synthesized from the many ERP, supply chain, procurement, SCADA, CRM, HR, and other
Slide 11: C3 AI Leadership
C3 AI Leadership 11 © 2023 C3.ai Inc. All Rights Reserved.
Slide 12: Global Energy Industry Veteran Joins Board of Directors
Global Energy Industry Veteran Joins Board of Directors KR Sridhar, PhD Member, C3 AI Board of Directorsard of Directors Mr. Sridhar has served as a member of our board of directors since February 2023. Mr. Sridhar serves as Founder and Chairman, Chief Executive Officer of Bloom Energy Corporation.
Slide 13: Royal Marines General Sir Gordon Messenger Joins C3 AI Advisory Board
Royal Marines General Sir Gordon Messenger Joins C3 AI Advisory Board General Sir Gordon Messenger KCB DSO* OBE Member, C3 AI Advisory Board General Messenger has served as a member of our Advisory board since January 2023. General Messenger recently retired and had served as Vice Chief of the Defen
Slide 14: Guidance
Guidance FY23-Q4 FY23 Total Revenue $70 – $72 million $264 – $266 million YoY Growth % (3)% – (0.4)% 4% – 5% Non-GAAP Loss from Operations ($24) – ($28) million ($69) – ($73) million Our guidance includes GAAP and non-GAAP financial measures. A reconciliation of non-GAAP guidance measures to corresp
Slide 15: Finance Update
Finance Update 15 © 2023 C3.ai Inc. All Rights Reserved.
Slide 16: FY23-Q3 Summary Financial Results
FY23-Q3 Summary Financial Results FY23-Q3 Revenue $66.7 million Subscription Revenue $57.0 million Non-GAAP Gross Profit $51.0 million Remaining Performance Obligations (“RPO”) $403.2 million Non-GAAP RPO $436.3 million Non-GAAP Gross Margin 76% Free Cash Flow ($71.7) million Free Cash Flow adjusted
Slide 17: Detailed Path to Profitability – Non-GAAP Operating Margin
Detailed Path to Profitability – Non-GAAP Operating Margin -36% -42% -12% Initial Target Op Margin Steady State Op Margin 30% +2% +20% -35% 26% 28% 16% 25% 20% Op Margin 23% 17% 13% -23% 15% 10% 20% 28% 33% 24% 22% 11% 29% 18% 18% 26% 47% 50% 37% 46% 30% 24% 46% 16% 16% 15% 12% 10% 8% 15% FY23-Q3 A
Slide 18: 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 19: Quarterly Total Revenue: FY21-Q4 to FY23-Q3
Quarterly Total Revenue: FY21-Q4 to FY23-Q3 $ in Millions $72 $70 $67 $65 $62 $58 $52 $52 FY21-Q4 FY22-Q1 FY22-Q2 FY22-Q3 FY22-Q4 FY23-Q1 FY23-Q2 FY23-Q3 Note: Fiscal year ends April 30. Numbers are rounded for presentation purposes. 19 © 2023 C3.ai Inc. All Rights Reserved.
Slide 20: Deal Bands
Deal Bands $ in Millions FY22-Q3 FY23-Q3 20 12 6 4 3 1 1 0 <$1M $1M - $5M $5M - $10M $10M + <$1M $1M - $5M $5M - $10M $10M + Average TCV $5.6 M $1.9 M Note: Fiscal year ends April 30. Numbers are rounded for presentation purposes. 20 © 2023 C3.ai Inc. All Rights Reserved.
Slide 21: Total Revenue Mix
Total Revenue Mix $ in Millions Subscription % of 82% % of Revenue Total Revenue 86% Total Revenue Professional Services Revenue 18% 14% FY22-Q3 FY23-Q3 Note: Numbers and percentages are rounded for presentation purposes. 21 © 2023 C3.ai Inc. All Rights Reserved.
Slide 22: Non-GAAP Gross Margin
Non-GAAP Gross Margin Non-GAAP Total Gross Margin Non-GAAP Subscription Gross Margin 76% 74% FY23-Q3 FY23-Q3 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 the most directly compar
Slide 23: Non-GAAP Operating Income and Margin
Non-GAAP Operating Income and Margin Non-GAAP Operating Income Non-GAAP Operating Margin FY22-Q3 FY23-Q3 FY22-Q3 FY23-Q3 $ in Millions -$15.0 -$15.7 -22.5% -22.5% Note: Non-GAAP operating income and non-GAAP operating margin, are non-GAAP financial measures. Refer to the Appendix for reconciliations
Slide 24: Diversity by Industry FY23-Q3
Diversity by Industry FY23-Q3 High Technology Financial Services Manufacturing Telecommunications 3.0% 2.6% 3.0% 5.9% Accounting Services Local 2.4% 5.9% Energy & Utilities High Federal, 1.2% Technology Aerospace & 11.8% Defense CPG 15.7% 0.1% Financial Other Federal, Services 0.1% Aerospace & 11.8%
Slide 25: 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 26: © 2023 C3.ai Inc. All Rights Reserved.
26 © 2023 C3.ai Inc. All Rights Reserved.
Slide 27: Appendix
Appendix 27 © 2023 C3.ai Inc. All Rights Reserved.
Slide 28: Income Statement
Income Statement 28 © 2023 C3.ai Inc. All Rights Reserved.
Slide 29: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 29 © 2023 C3.ai Inc. All Rights Reserved.
Slide 30: Other Metrics
Other Metrics January 31, 2022 April 30, 2022 July 31, 2022 October 31, 2022 January 31, 2023 Customer Count 218 223 228 236 236 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 31: Current RPO and BH related RPO
Current RPO and BH related RPO Ø Revenue expected to be recognized from remaining performance obligations was approximately $403.2 million as of January 31, 2023 of which $176.3 million is expected to be recognized over the next 12 months and the remainder thereafter. Ø Our RPO related to Baker Hugh
Slide 32: Ss C3.al
Ss C3.al