Financial Data and Key Metrics Changes - C3.ai reported a 20% year-over-year revenue growth in Q4, reaching $86.6 million, exceeding guidance and analyst expectations [8][30] - Subscription revenue increased by 41% year-over-year to $79.9 million, accounting for 92% of total revenue [9][30] - Full-year revenue reached $310.6 million, a 16% increase from the previous year, with subscription revenue at $278.1 million, up 21% [9][30] - Non-GAAP gross profit was $60.9 million, resulting in a gross margin of 70% [9][31] - Free cash flow for the quarter was $18.8 million, with total cash, cash equivalents, and investments at $750.4 million [9][31] Business Line Data and Key Metrics Changes - The transition to pay-as-you-go consumption pricing has led to a significant increase in smaller transactions, with average total contract value (TCV) dropping from over $16 million in FY19 to $900,000 last quarter [10] - Professional services revenue was $6.7 million, representing 8% of total revenue, down from 21.5% in Q4 FY23, indicating a better mix towards subscription revenue [30] Market Data and Key Metrics Changes - C3.ai's bookings distribution for Q4 included approximately 50% from Federal, Defense, and Aerospace, 15% from Oil and Gas, and 11% from State Government [16] - The company signed 34 pilots in Q4, a 79% increase from the previous year, with a total of 172 pilots signed cumulatively [33] Company Strategy and Development Direction - C3.ai focuses exclusively on Enterprise AI applications, believing that applications will dominate the value stack as silicon and infrastructure become commoditized [11][13] - The company aims to establish a market leadership position in a potentially $1 trillion addressable software market, emphasizing long-term growth and investment [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the accelerating revenue growth, projecting a 23% increase in revenue for FY25, with Q1 guidance set at $84 million to $89 million [29] - The company anticipates continued investment in growth, particularly in sales capacity and service to support increased demand [52] Other Important Information - C3.ai launched 30 Generative AI products in FY24, receiving nearly 50,000 inquiries from businesses, indicating strong market interest [25] - The company has established a robust partner network, closing 115 agreements in the past year, a 62% increase from the prior year [23] Q&A Session Summary Question: Can you talk about the improvements in Version 8 and its sustainability? - Management indicated that Version 8 was a four-year engineering effort, resulting in a significant architectural revamp, and while performance increases are expected, they may not be as substantial in the near future [35][36] Question: What is the outlook for the Federal, Defense, and Aerospace vertical? - Management views the Federal sector as a growth engine, with significant investments and agreements in place, particularly with the Air Force and Navy [38][40] Question: How are newly converted customers ramping consumption compared to previous cohorts? - Management noted that they have not disclosed specific consumption revenue separately but expect it to ramp up meaningfully in the future [48][49] Question: What drives lower margins during the pilot phase? - Management explained that they prioritize customer success over immediate profitability during pilots, which can lead to margin degradation [64][65]

C3.ai, an enterprise artificial intelligence (AI) software company, reported strong fourth-quarter results for fiscal year 2024, exceeding both its own guidance and analysts’ expectations. The company saw its fifth consecutive quarter of accelerating revenue growth, with subscription revenue increasing 41% year-over-year.The performance comes at a time when the AI industry is experiencing rapid growth and increased attention, particularly in the field of generative AI (GenAI). C3.ai’s focus on enterprise AI ...

C3.ai, Inc. (AI) came out with a quarterly loss of $0.11 per share versus the Zacks Consensus Estimate of a loss of $0.31. This compares to loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 64.52%. A quarter ago, it was expected that this company would post a loss of $0.28 per share when it actually produced a loss of $0.13, delivering a surprise of 53.57%.Over the last four quarters, the company has surpassed cons ...

C3 AI Announces Fiscal Fourth Quarter and Full Fiscal Year 2024 Financial Results Increasing Revenue Growth. Raising Guidance. Growth Accelerates for Fifth Consecutive Quarter, Record Federal Growth Subscription Revenue for the Fourth Quarter Increased 41% Year-Over-Year REDWOOD CITY, Calif. — May 29, 2024 — C3.ai, Inc. ("C3 AI," "C3," or the "Company") (NYSE: AI), the Enterprise AI application software company, today announced financial results for its fiscal fourth quarter and full fiscal year ended April ...

These three AI stocks to sell have had less-than-ideal performances this year and lack a solid foundation despite their promise to turn things around. If you are holding these stocks, it may be better to sell them before they take any more losses that hurt your pockets.Let’s learn about the top AI stocks to sell.BigBear.ai (BBAI)Source: MacroEcon / Shutterstock.comBigBear.ai (NYSE:BBAI) is an AI company focusing on security and supply chain AI. The company also recently completed an acquisition of Pangiam I ...

Pre-market futures are mixed to start a holiday-shortened week. This follows the Nasdaq notching a new closing high prior to Memorial Day weekend. The S&P 500 and Dow also closed higher Friday, though the Dow still has a ways to go to re-capture 40K. Currently, the Dow is -33 points, the S&P is +8 and the Nasdaq — still the leader among major indices — is up +55 points at this hour. the 2-year bond yield is ticking toward 5%, currently 4.925%, and the 10-year is at 4.465%.We’ll close this week with the all- ...

Artificial intelligence is generally considered to be the “can’t miss” opportunity of the 2020s and beyond. I’ve seen estimates of compound annual growth ranging from 19% through 2032 to a much higher 37% through 2030. In either case, the potential for massive returns is evident. However, with such strong growth projections, there are also bound to be instances of overpricing, especially in AI stocks.That’s what We will be discussing here, AI stocks that are substantially overpriced at present. The thrust o ...

PALM BEACH, Fla., May 23, 2024 (GLOBE NEWSWIRE) -- FN Media Group News Commentary - Cloud infrastructure is an integration of A.I., hardware and software resources that create the cloud. The cloud providers maintain worldwide data hubs with multiple IT infrastructure elements, such as servers, physical storage equipment, and networking devices. These form the physical equipment by using all types of OS configurations. They also install different types of software that are needed for an application to run sm ...

Artificial intelligence (AI) name C3.ai (NYSE:AI) will announce fiscal fourth-quarter earnings after the close on Wednesday, May 29. C3.ai stock sports a 9.5% year-to-date deficit despite all the rage surrounding the AI space. Still, the equity bounced 25.4% over the last 30 days, and is now trading well above its April 16, 12-month low of $20.23. At last check, AI is down 1.8% at $26.03. The stock has a negative history of post-earnings reactions, finishing five of its past eight next-day sessions lower, t ...

Summary of C3.ai, Inc. Conference Call Company Overview - **Company**: C3.ai, Inc. (NYSE:AI) - **Industry**: Enterprise AI - **CEO**: Tom Siebel - **Conference Date**: May 20, 2024 Key Points Company Background - Tom Siebel has a history in software, founding Siebel Systems in 1993, which became a leading CRM provider with $2 billion in revenue and 4,500 customers globally [4][5] - C3.ai was founded to leverage cloud computing, big data, IoT, and predictive analytics, focusing on enterprise AI since 2009 [5][6] Market Opportunity - The addressable market for enterprise AI is projected to be between $1 trillion and $2 trillion [8][14] - C3.ai claims to be the only company with 90 applications targeting this market, aiming to establish a global market leadership position [8][12] Infrastructure and Software Dynamics - There is a significant growth in infrastructure spending, particularly by companies like NVIDIA, but the software stack has not seen a similar inflection yet [9][10] - The value in enterprise AI is expected to shift from silicon and infrastructure to applications, with applications projected to account for 70% of the value in the long run [11][12] C3.ai Platform and Applications - C3.ai simplifies the scaling of enterprise AI by providing a comprehensive platform that integrates various components necessary for application development [18][21] - The platform includes generative AI tools and supports various learning models, making it adaptable to different needs [23][31] - C3.ai has reported significant economic benefits for clients, such as Shell, which has realized $2 billion annually from using C3.ai applications [16][34] Competitive Landscape - C3.ai does not see direct competition from major cloud providers like Amazon or Google, as their applications are complementary to these platforms [54][55] - The primary competition is the internal IT departments of companies attempting to build their own solutions using disparate tools [55] Customer Demand and Growth Metrics - C3.ai reported a 23% year-over-year growth in subscription revenue and an 80% increase in customer count [40][44] - The transition to consumption-based pricing has shown positive results, with accelerating growth observed in recent quarters [41][44] Macro Environment - There is a strong demand for AI solutions, with no budget constraints reported by major clients like JPMorgan Chase and Bank of America [38][39] - The market for enterprise AI is developing rapidly, driven by CEO-level decisions rather than traditional budget constraints [38] Use Cases and Productivity Gains - Key applications of C3.ai include predictive maintenance, supply chain optimization, and fraud detection, with significant productivity increases reported by clients [57][61] - For example, the U.S. Air Force has achieved a 25% increase in aircraft availability through predictive maintenance applications [60] Challenges and Considerations - The generative AI market is vast but presents challenges such as cybersecurity risks, data exfiltration, and IP liability [28][29][31] - C3.ai claims to have addressed these issues, making their platform secure and reliable for enterprise use [31] Future Outlook - C3.ai is focused on capturing the large addressable market and leveraging its first-mover advantage in enterprise AI [64] - The company is committed to investing in market share and brand rather than immediate profitability, drawing parallels to the growth trajectories of companies like Amazon and Salesforce [46][47] Conclusion C3.ai is positioned as a leader in the enterprise AI space, with a robust platform and significant market opportunities. The company is focused on driving growth through innovative applications while addressing the challenges associated with generative AI and enterprise solutions.