C3 AI Announces Fiscal Third Quarter 2022 Financial Results

03/02/2022

Revenue Growth of 42% year over year to $69.8 million

Raises Guidance to Reflect FY 2022 Revenue Growth of 38%

C3.ai, Inc. (“C3 AI,” “C3,” or the “Company”) (NYSE: AI), the Enterprise AI software company, today announced financial results for its fiscal third quarter ended January 31, 2022.

“Our third quarter results displayed strength in all aspects of our business, including revenue growth of 42% year over year,” said CEO Thomas M. Siebel. “These results were driven by substantially increased sales momentum due to the successful refocusing of our sales organizations, expanded customer count, increased industry diversification for our AI products and the further recognition of our technology leadership in this industry. We believe C3 AI is on track to establish a global leading market position in Enterprise AI.”

Mr. Siebel added, “We remain confident in our long-term prospects based on our accelerating progress and the magnitude of the addressable enterprise AI market opportunity. Given these trends and our progress to date, we have raised our fiscal year 2022 guidance to reflect revenue growth of 38% over fiscal year 2021.”

Fiscal Third Quarter 2022 Financial Highlights

  • Revenue: Total revenue for the quarter was $69.8 million, an increase of 42% compared to $49.1 million one year ago.
  • Subscription Revenue: Subscription revenue for the quarter was $57.1 million, an increase of 34% compared to $42.7 million one year ago.
  • Gross Profit: GAAP gross profit for the quarter was $52.4 million, a 75% gross margin, compared to $36.9 million one year ago. Non-GAAP gross profit for the quarter was $55.8 million, an 80% gross margin, compared to $37.3 million one year ago.
  • Remaining Performance Obligations (“RPO”): GAAP RPO increased by 90% to $469.3 million, up from $247.5 million one year ago. Significantly, our GAAP RPO now represents 168% of Q3 annualized sales. Non-GAAP RPO increased by 81% to $536.7 million, up from $295.9 million one year ago.
  • Net Loss per Share: GAAP net loss per share was $(0.38), compared to $(0.21) one year ago. Non-GAAP net loss per share was $(0.07), compared to $(0.13) one year ago.
  • Raising Guidance: Based on recent results and current outlook, the Company has raised fiscal year 2022 revenue guidance to $252.0 million, a 38% increase over the prior year.

Customer Wins and Expansions

  • Shell continues to expand its C3 AI application footprint with over 10,000 devices currently monitored by C3 ML models and 23 large-scale assets in production deployment including Pernis, the largest refinery in Europe, and Nigeria LNG. Shell currently processes 1.3 trillion predictions per month with the C3 AI Suite and applications. Shell again expanded the duration and scale of its contractual relationship with C3 during the quarter.
  • The Department of Defense (“DoD”)awarded C3 AI a five-year, $500 million transaction agreement, accelerating the ability for any DoD agency to acquire the Company’s suite of Enterprise AI products and services.
  • We achieved a new production deployment with the Defense Counterintelligence and Security Agency; and secured additional business with the U.S. Space Force.
  • LyondellBasell, one of the world’s largest plastic and chemical companies, signed a five-year, significantly expanded contract to accelerate the deployment of additional Enterprise AI and machine-learning applications across the company with the C3 AI Suite and C3 AI Reliability Suite.
  • Royal Philips, a global leader in health technology, closed a new contract on the C3 AI Supply Chain Suite to enhance resiliency, visibility, and agility for Philips’ supply chains across the company’s North American operations.
  • Cargill substantially increased and extended its C3 AI contract to expand its deployment of C3 AI Supply Chain Suite of applications.
  • ENGIE, our energy-services partner, expanded the use and extended the term of its C3.ai contract to deliver a broader range of AI-enabled, end-to-end energy and sustainability (ESG) solutions to serve both the public and private sectors.
  • Swift, the global provider of secure financial messaging services, expanded its relationship with C3 AI, leveraging the C3 AI Financial Services Suite.
  • Baker Hughes: Our business activity with our JV alliance partner BakerHughesC3.ai continues to accelerate globally.
  • Customer Count increased substantially year over year.

Other Corporate Highlights

  • Sales: In the third fiscal quarter, the Company successfully refocused its sales organizations to its traditional strategic accounts engagement model, delivering immediate and positive results.
  • Leadership: C3 AI appointed Lisa A. Davis to its Board of Directors. Ms. Davis is a recognized global leader in the industrial and energy industries, bringing more than 30 years of experience to the Company. She has served in various capacities and leadership positions with several of the world’s largest corporations, including Texaco and Shell, and as CEO of Siemens Gas and Power.
  • Federal AI Tailwinds: The FY 2022 National Defense Authorization Act, Section 227, signed into law on December 27, 2021, requires that, “The Secretary of Defense shall ensure that, to the maximum extent practicable, commercial artificial intelligence companies are able to offer platforms, services, applications, and tools to Department of Defense components through processes and under Part 12 of the Federal Acquisitor Regulation.” We believe this represents a secular change in procurement policies for AI solutions for DoD, requiring primacy in the selection and use of commercial off the shelf software solutions from commercial vendors like C3 AI, rather than traditional custom development by custom project-specific developers that have largely proven to be unsuccessful. We believe this will help to accelerate C3 AI’s Federal business in the coming years.
  • New AI Application Development Center: C3 AI opened a software development and professional service center in Guadalajara, Mexico. The Company plans to hire as many as 1,000 senior software and service engineers in Mexico over the next few years. C3 AI is making this investment to meet the growing, global demand for Enterprise AI applications and associated services, and because the talent pool in Guadalajara is among the best in the world.
  • Cash Reserves: With $1.02 billion in cash, cash equivalents, and investments, C3 AI is well positioned to continue to invest in market leadership through enterprise AI innovation and brand equity and sales expansion.
  • Stock Repurchase Program: In December 2021, the Company's board of directors approved a stock repurchase program for the repurchase of up to $100 million of C3 AI’s outstanding shares of class A common stock for the 18 months following the date it was approved.

Financial Outlook:

The Company’s guidance includes GAAP and non-GAAP financial measures.

The following table summarizes C3 AI’s guidance for the full-year fiscal 2022:

(in millions)

 

Full Year Fiscal 2022 Guidance

Total revenue

 

$251.0 - $252.0

Non-GAAP loss from operations

 

($90.0) - ($94.0)

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP results included in this press release. Our fiscal year ends April 30, and numbers are rounded for presentation purposes.

Conference Call Details

What:

 

C3 AI Third Quarter Fiscal 2022 Financial Results Conference Call

When:

 

Wednesday, March 2, 2022

Time:

 

2:00 p.m. PT / 5:00 p.m. ET

Live Call:

 

(833) 927-1758, Domestic

 

 

(929) 526-1599, International

 

 

Conference ID: 473103

Webcast:

 

https://event.on24.com/wcc/r/3574335/DDB99DECA3706870460ABE808A34A0C9 (live and replay)

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at our investor relations page at ir.c3.ai.

Statement Regarding Use of Non-GAAP Financial Measures

The Company reports the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP), in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

  • Non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, and non-GAAP net loss per share. Our non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, and non-GAAP net loss per share exclude the effect of stock-based compensation expense-related charges and employer payroll tax expense related to employee stock-based compensation. We believe the presentation of operating results that exclude these non-cash items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.
  • Non-GAAP RPO: Non-GAAP RPO represents our GAAP RPO plus the associated cancellable contracted backlog. We believe the presentation of our RPO inclusive of the cancellable backlog provides useful supplemental information to investors about our aggregate contractual backlog and facilitates the analysis of our operating results and comparison of operating results across reporting periods.

We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP financial measures.

Other Metrics

Customer-Entity and Customer.

We define a Customer-Entity as each entity that is the ultimate parent of a party contracting with us.

We commonly enter into enterprise-wide agreements with Customer-Entities that include multiple operating units or divisions. 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 Customer-Entity) has developed software using our C3 AI Suite or developed derivative works of our C3 AI Applications and has sold that software or service to its end customer(s), we also include such end customers in our Customer count. In addition, where our software is sold to a third-party under a reseller arrangement, we include the end customer of such arrangement in our Customer count. We only count Customers and Customer-Entities for which there is revenue in the period through a Customer-Entity contract. We exclude free trials from both our Customer-Entity and Customer counts.

During the period ending January 31, 2022, we performed an analysis of our Customer-Entity usage. We found that despite the definition our previous Customer count did not capture all the distinct divisions, departments, business units, or groups that were using our software or services. We also identified that while our previous Customer count included situations where (i) our Customer (or Customer-Entity) had developed software using our C3 AI Suite or derivative works of our C3 AI Applications and had sold that software or service to its end customer(s), and (ii) our software or services were sold to a third-party under a reseller arrangement, our previously stated definition did not explicitly include those scenarios.

For clarity, we have provided our customer count historically using both the prior and current methodology. We intend to only present the revised calculation of Customer on a go-forward basis, as we believe it is a more accurate representation. Please see the tables included at the end of this release for these calculations in Other Metrics.

Use of Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical facts, including our market leadership position, anticipated benefits from our partnerships and investments, financial outlook, our business strategies, plans, and objectives for future operations, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties. Some of these risks are described in greater detail in our filings with the Securities and Exchange Commission, including our Quarterly Reports on Form 10-Q for the fiscal quarters ended July 31, 2021 and October 31, 2021 and, when available, January 31, 2022, although new and unanticipated risks may arise. The future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Except to the extent required by law, we do not undertake to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations.

About C3.ai, Inc.

C3.ai, Inc. (NYSE:AI) is the Enterprise AI application software company. C3 AI delivers a family of fully integrated products including the C3 AI Suite, an end-to-end platform for developing, deploying, and operating enterprise AI applications and C3 AI Applications, a portfolio of industry-specific SaaS enterprise AI applications that enable the digital transformation of organizations globally.

C3.AI, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended January 31,

 

Nine Months Ended January 31,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue

 

 

 

 

 

 

 

 

Subscription(1)

 

$

57,084

 

 

$

42,699

 

 

$

150,614

 

 

$

114,248

 

Professional services(2)

 

 

12,689

 

 

 

6,410

 

 

 

29,828

 

 

 

16,685

 

Total revenue

 

 

69,773

 

 

 

49,109

 

 

 

180,442

 

 

 

130,933

 

Cost of revenue

 

 

 

 

 

 

 

 

Subscription(3)

 

 

12,275

 

 

 

7,023

 

 

 

32,880

 

 

 

22,694

 

Professional services

 

 

5,079

 

 

 

5,203

 

 

 

13,470

 

 

 

10,113

 

Total cost of revenue

 

 

17,354

 

 

 

12,226

 

 

 

46,350

 

 

 

32,807

 

Gross profit

 

 

52,419

 

 

 

36,883

 

 

 

134,092

 

 

 

98,126

 

Operating expenses

 

 

 

 

 

 

 

 

Sales and marketing(4)

 

 

43,146

 

 

 

28,450

 

 

 

126,134

 

 

 

64,898

 

Research and development

 

 

40,931

 

 

 

18,748

 

 

 

104,166

 

 

 

48,145

 

General and administrative

 

 

15,748

 

 

 

8,184

 

 

 

43,391

 

 

 

21,433

 

Total operating expenses

 

 

99,825

 

 

 

55,382

 

 

 

273,691

 

 

 

134,476

 

Loss from operations

 

 

(47,406

)

 

 

(18,499

)

 

 

(139,599

)

 

 

(36,350

)

Interest income

 

 

410

 

 

 

129

 

 

 

1,077

 

 

 

997

 

Other income (expense), net

 

 

7,742

 

 

 

1,721

 

 

 

5,471

 

 

 

4,163

 

Net loss before provision for income taxes

 

 

(39,254

)

 

 

(16,649

)

 

 

(133,051

)

 

 

(31,190

)

Provision for income taxes

 

 

193

 

 

 

203

 

 

 

594

 

 

 

456

 

Net loss

 

$

(39,447

)

 

$

(16,852

)

 

$

(133,645

)

 

$

(31,646

)

Net loss per share attributable to Class A common shareholders, basic and diluted

 

$

(0.38

)

 

$

(0.23

)

 

$

(1.29

)

 

$

(0.64

)

Net loss per share attributable to Class A-1 common shareholders, basic and diluted

 

$

 

 

$

(0.10

)

 

$

 

 

$

(0.52

)

Net loss per share attributable to Class B common shareholders, basic and diluted

 

$

(0.38

)

 

$

(0.13

)

 

$

(1.29

)

 

$

(0.12

)

Weighted-average shares used in computing net loss per share attributable to Class A common stockholders, basic and diluted

 

 

101,593

 

 

 

68,648

 

 

 

100,341

 

 

 

43,481

 

Weighted-average shares used in computing net loss per share attributable to Class A-1 common stockholders, basic and diluted

 

 

 

 

 

6,667

 

 

 

 

 

 

6,667

 

Weighted-average shares used in computing net loss per share attributable to Class B common stockholders, basic and diluted

 

 

3,500

 

 

 

3,500

 

 

 

3,500

 

 

 

3,500

 

(1)

 

Including related party revenue of $19,740 and $7,951 for the three months ended January 31, 2022 and 2021, respectively, and $39,960 and $21,571 for the nine months ended January 31, 2022 and 2021, respectively.

(2)

 

Including related party revenue of $4,892 and nil for the three months ended January 31, 2022 and 2021, respectively, and $12,890 and nil for the nine months ended January 31, 2022 and 2021, respectively.

(3)

 

Including related party cost of revenue of $191 and nil for the three months ended January 31, 2022 and 2021, respectively, and $388 and nil for the nine months ended January 31, 2022 and 2021, respectively.

(4)

 

Including related party sales and marketing expense of $2,398 and nil for the three months ended January 31, 2022 and 2021, respectively, and $2,590 and nil for the nine months ended January 31, 2022 and 2021, respectively.

     

C3.AI, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data)

(Unaudited)

 

 

January 31, 2022

 

April 30, 2021

Assets

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$

204,531

 

 

$

115,355

 

Short-term investments

 

 

764,104

 

 

 

978,020

 

Accounts receivable, net of allowance of $57 and $812 as of January 31, 2022 and April 30, 2021, respectively(1)

 

 

68,178

 

 

 

65,460

 

Prepaid expenses and other current assets(2)

 

 

25,754

 

 

 

14,302

 

Total current assets

 

 

1,062,567

 

 

 

1,173,137

 

Property and equipment, net

 

 

5,297

 

 

 

6,133

 

Goodwill

 

 

625

 

 

 

625

 

Long-term investments

 

 

54,012

 

 

 

 

Other assets, non-current(3)

 

 

65,006

 

 

 

16,582

 

Total assets

 

$

1,187,507

 

 

$

1,196,477

 

Liabilities and stockholders’ equity

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable(4)

 

$

14,478

 

 

$

12,075

 

Accrued compensation and employee benefits

 

 

22,588

 

 

 

21,829

 

Deferred revenue, current(5)

 

 

58,524

 

 

 

72,263

 

Accrued and other current liabilities(6)

 

 

33,598

 

 

 

18,318

 

Total current liabilities

 

 

129,188

 

 

 

124,485

 

Deferred revenue, non-current

 

 

924

 

 

 

2,964

 

Other long-term liabilities(7)

 

 

30,720

 

 

 

7,853

 

Total liabilities

 

 

160,832

 

 

 

135,302

 

Commitments and contingencies

 

 

 

 

Stockholders’ equity

 

 

 

 

Class A common stock, $0.001 par value. 1,000,000,000 shares authorized as of January 31, 2022 and April 30, 2021; 102,784,741 and 98,667,121 shares issued and outstanding as of January 31, 2022 and April 30, 2021, respectively

 

 

103

 

 

 

99

 

Class B common stock, $0.001 par value; 3,500,000 shares authorized as of January 31, 2022 and April 30, 2021; 3,499,992 and 3,499,992 shares issued and outstanding as of January 31, 2022 and April 30, 2021, respectively

 

 

3

 

 

 

3

 

Additional paid-in capital

 

 

1,510,343

 

 

 

1,410,325

 

Accumulated other comprehensive (loss) income

 

 

(796

)

 

 

81

 

Accumulated deficit

 

 

(482,978

)

 

 

(349,333

)

Total stockholders’ equity

 

 

1,026,675

 

 

 

1,061,175

 

Total liabilities and stockholders’ equity

 

$

1,187,507

 

 

$

1,196,477

 

(1)

 

Including amounts from a related party of $15,727 and $15,180 as of January 31, 2022 and April 30, 2021, respectively.

(2)

 

Including amounts from a related party of $5,010 and $1,662 as of January 31, 2022 and April 30, 2021, respectively.

(3)

 

Including amounts from a related party of $17,356 and $6,602 as of January 31, 2022 and April 30, 2021, respectively.

(4)

 

Including amounts from a related party of $2,415 and $56 as of January 31, 2022 and April 30, 2021, respectively.

(5)

 

Including amounts from a related party of $575 and $7,697 as of January 31, 2022 and April 30, 2021, respectively.

(6)

 

Including amounts from a related party of $18,534 and $3,413 as of January 31, 2022 and April 30, 2021, respectively.

(7)

 

Including amounts from a related party of $2,448 and $4,895 as of January 31, 2022 and April 30, 2021, respectively.

     

C3.AI, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Nine Months Ended January 31,

 

 

 

2022

 

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(133,645

)

 

$

(31,646

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

Depreciation and amortization

 

 

3,761

 

 

 

3,189

 

Non-cash operating lease cost

 

 

2,369

 

 

 

2,474

 

Stock-based compensation expense

 

 

77,813

 

 

 

14,270

 

Other

 

 

255

 

 

 

(115

)

Changes in operating assets and liabilities

 

 

 

 

Accounts receivable(1)

 

 

(1,963

)

 

 

588

 

Prepaid expenses, other current assets and other assets(2)

 

 

(21,108

)

 

 

(6,931

)

Accounts payable(3)

 

 

2,237

 

 

 

7,447

 

Accrued compensation and employee benefits

 

 

759

 

 

 

4,303

 

Operating lease liabilities

 

 

(2,303

)

 

 

(2,636

)

Other liabilities(4)

 

 

14,304

 

 

 

1,213

 

Deferred revenue(5)

 

 

(15,779

)

 

 

2,016

 

Net cash used in operating activities

 

 

(73,300

)

 

 

(5,828

)

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

 

(2,183

)

 

 

(1,166

)

Capitalized software development costs

 

 

(500

)

 

 

 

Proceeds from sale of non-marketable equity security

 

 

 

 

 

725

 

Purchases of investments

 

 

(540,290

)

 

 

(232,287

)

Maturities and sales of investments

 

 

698,312

 

 

 

280,997

 

Net cash provided by investing activities

 

 

155,339

 

 

 

48,269

 

Cash flows from financing activities:

 

 

 

 

Proceeds from initial public offering and private placements, net of underwriting discounts

 

 

 

 

 

851,859

 

Proceeds from repayment of shareholder loan

 

 

 

 

 

26,003

 

Payment of deferred offering costs

 

 

(105

)

 

 

(6,710

)

Proceeds from exercise of Class A common stock options

 

 

19,334

 

 

 

13,825

 

Net cash provided by financing activities

 

 

19,229

 

 

 

884,977

 

Net increase in cash, cash equivalents and restricted cash

 

 

101,268

 

 

 

927,418

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

116,255

 

 

 

33,604

 

Cash, cash equivalents and restricted cash at end of period

 

$

217,523

 

 

$

961,022

 

Cash and cash equivalents

 

$

204,531

 

 

$

960,122

 

Restricted cash included in other assets

 

 

12,992

 

 

 

900

 

Total cash, cash equivalents and restricted cash

 

$

217,523

 

 

$

961,022

 

Supplemental disclosure of cash flow information—cash paid for income taxes

 

$

677

 

 

$

435

 

Supplemental disclosures of non-cash investing and financing activities:

 

 

 

 

Purchases of property and equipment included in accounts payable and accrued liabilities

 

$

483

 

 

$

349

 

Right-of-use assets obtained in exchange for lease obligations

 

$

26,529

 

 

$

 

Unpaid liabilities related to intangible purchases

 

$

2,500

 

 

$

 

Receivable from exercise of stock options included in prepaid expenses, other current assets and other assets

 

$

45

 

 

$

 

Deferred offering costs included in accounts payable and accrued liabilities

 

$

 

 

$

503

 

Vesting of early exercised stock options

 

$

2,391

 

 

$

2,073

 

(1)

 

Including changes in related party balances of $547 and $(780) for the nine months ended January 31, 2022 and 2021, respectively.

(2)

 

Including changes in related party balances of $14,102 and nil for the nine months ended January 31, 2022 and 2021, respectively.

(3)

 

Including changes in related party balances of $2,359 and nil for the nine months ended January 31, 2022 and 2021, respectively.

(4)

 

Including changes in related party balances of $12,674 and nil for the nine months ended January 31, 2022 and 2021, respectively.

(5)

 

Including changes in related party balances of $(7,122) and $7,859 for the nine months ended January 31, 2022 and 2021, respectively.

     

C3.AI, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except percentages)

(Unaudited)

 

 

Three Months Ended January 31,

 

Nine Months Ended January 31,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Reconciliation of GAAP gross profit to non-GAAP gross profit:

 

 

 

 

 

 

 

 

Gross profit on a GAAP basis

 

$

52,419

 

 

$

36,883

 

 

$

134,092

 

 

$

98,126

 

Stock-based compensation expense (1)

 

 

3,343

 

 

 

378

 

 

 

7,815

 

 

 

858

 

Employer payroll tax expense related to employee stock-based compensation (2)

 

 

8

 

 

 

 

 

 

73

 

 

 

 

Gross profit on a non-GAAP basis

 

$

55,770

 

 

$

37,261

 

 

$

141,980

 

 

$

98,984

 

 

 

 

 

 

 

 

 

 

Gross margin on a GAAP basis

 

 

75

%

 

 

75

%

 

 

74

%

 

 

75

%

Gross margin on a non-GAAP basis

 

 

80

%

 

 

76

%

 

 

79

%

 

 

76

%

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP loss from operations to non-GAAP loss from operations:

 

 

 

 

 

 

 

 

Loss from operations on a GAAP basis

 

$

(47,406

)

 

$

(18,499

)

 

$

(139,599

)

 

$

(36,350

)

Stock-based compensation expense (1)

 

 

31,361

 

 

 

6,589

 

 

 

77,813

 

 

 

14,270

 

Employer payroll tax expense related to employee stock-based compensation (2)

 

 

356

 

 

 

 

 

 

1,794

 

 

 

 

Loss from operations on a non-GAAP basis

 

$

(15,689

)

 

$

(11,910

)

 

$

(59,992

)

 

$

(22,080

)

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP net loss per share to non-GAAP net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss on a GAAP basis

 

$

(39,447

)

 

$

(16,852

)

 

$

(133,645

)

 

$

(31,646

)

Stock-based compensation expense (1)

 

 

31,361

 

 

 

6,589

 

 

 

77,813

 

 

 

14,270

 

Employer payroll tax expense related to employee stock-based compensation (2)

 

 

356

 

 

 

 

 

 

1,794

 

 

 

 

Net loss on a non-GAAP basis

 

$

(7,730

)

 

$

(10,263

)

 

$

(54,038

)

 

$

(17,376

)

 

 

 

 

 

 

 

 

 

GAAP net loss per share attributable to common shareholders, basic and diluted

 

$

(0.38

)

 

$

(0.21

)

 

$

(1.29

)

 

$

(0.59

)

Non-GAAP net loss per share attributable to common shareholders, basic and diluted

 

$

(0.07

)

 

$

(0.13

)

 

$

(0.52

)

 

$

(0.32

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

 

105,093

 

 

 

78,815

 

 

 

103,841

 

 

 

53,648

 

 

 

 

(1)

 

Stock-based compensation expense for gross profits and gross margin includes costs of subscription and cost of professional services as follows. Stock-based compensation expense for loss from operations includes total stock-based compensation expense as follows:

 

 

Three Months Ended January 31,

 

Nine Months Ended January 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Cost of subscription

 

$

2,639

 

$

214

 

$

5,824

 

$

557

Cost of professional services

 

 

704

 

 

164

 

 

1,991

 

 

301

Sales and marketing

 

 

8,850

 

 

2,790

 

 

28,540

 

 

5,835

Research and development

 

 

12,846

 

 

846

 

 

25,860

 

 

1,952

General and administrative

 

 

6,322

 

 

2,575

 

 

15,598

 

 

5,625

Total stock-based compensation expense

 

$

31,361

 

$

6,589

 

$

77,813

 

$

14,270

     

(2)

 

Employer payroll tax expense related to employee stock-based compensation was immaterial and as such was excluded in periods prior to January 31, 2021. Employer payroll tax expense to employee stock-based compensation for gross profits, gross margin and loss from operations includes employer payroll tax expense to employee stock-based compensation as follows:

 

 

Three Months Ended January 31,

 

Nine Months Ended January 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Cost of subscription

 

$

7

 

$

 

$

7

 

$

Cost of professional services

 

 

1

 

 

 

 

66

 

 

Sales and marketing

 

 

202

 

 

 

 

718

 

 

Research and development

 

 

38

 

 

 

 

437

 

 

General and administrative

 

 

108

 

 

 

 

566

 

 

Total employer payroll tax expense

 

$

356

 

$

 

$

1,794

 

$

                         

Reconciliation of remaining performance obligations (“RPO”) to Non-GAAP RPO:

The following table presents a reconciliation of RPO to Non-GAAP RPO:

 

 

As of January 31,

 

 

 

2022

 

 

2021

RPO

 

$

469,276

 

$

247,451

Cancellable amount of contract value

 

 

67,454

 

 

48,405

Non-GAAP RPO

 

$

536,730

 

$

295,856

C3.AI, INC.
OTHER METRICS
(Unaudited)

Customer-Entity and Customer.

Our Customer-Entity count is as follows:

 

 

January 31, 2021

 

April 30, 2021

 

July 31, 2021

 

October 31, 2021

 

January 31, 2022

Customer-Entities

 

39

 

32

 

44

 

53

 

50

Based on the revised approach, our best estimate of our Customer count is as follows:

 

 

January 31, 2021

 

April 30, 2021

 

July 31, 2021

 

October 31, 2021

 

January 31, 2022

Customer count

 

 

 

 

 

 

 

 

 

 

Revised calculation

 

120

 

151

 

180

 

203

 

218

Based on the prior calculation, our prior Customer count is as follows:

 

 

January 31, 2021

 

April 30, 2021

 

July 31, 2021

 

October 31, 2021

 

January 31, 2022

Customer count

 

 

 

 

 

 

 

 

 

 

Prior calculation

 

75

 

89

 

98

 

104

 

110

 

Investor Contact
ir@c3.ai

Press Contact
Lisa Kennedy
(415) 914-8336
pr@c3.ai

Source: C3.ai