NYSE$AI

C3.ai Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

C3.ai's first quarter of fiscal year 2024 showed strong traction with enterprise AI applications and especially C3 Generative AI, with revenue at the high end of guidance.

C3.ai's total revenue for the quarter was $72.4 million, with subscription revenue constituting 85% of the total. The company experienced strong traction with enterprise AI applications, especially C3 Generative AI, and closed eight new agreements for C3 Generative AI during the quarter. C3 AI's Federal business is showing significant strength, with Federal bookings up 39% compared with the year-ago quarter.

  • Total revenue for the quarter was $72.4 million, at the high end of guidance.
  • Subscription revenue was $61.4 million, representing 85% of total revenue.
  • GAAP gross profit was $40.5 million, with a 56% gross margin; non-GAAP gross profit was $49.6 million, with a 69% non-GAAP gross margin.
  • C3 AI closed 20 agreements with and through its partner network, with over 60% of business closed through the network.

Headline financials

Total Revenue

$72.4M

Previous: $65.3M+10.8%
EPS (adj)

-$0.09

Previous: -$0.12+25.0%
GAAP gross margin

0.6%

No prior period
Capital Expenditures

-$11.3M

Previous: -$15.5M+27.0%
Free Cash Flow

-$75.7M

Previous: -$87.4M+13.4%
Net Income

-$64.4M

Previous: -$71.9M+10.5%
Operating Income

-$74.1M

Previous: -$73.2M-1.2%
Gross Profit

$40.5M

Previous: $46.9M-13.5%
Cash & Equivalents

$206M

Previous: $222M-7.0%
Total Assets

$1.09B

Previous: $1.14B-4.2%
Stock-Based Comp

$50.9M

Previous: $56.6M-10.2%

Revenue & EPS history

C3.ai · Revenue · Quarterly

$72.4M

Q1 2024+10.8%vs Q1 2023
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

C3.ai · $72.4M total across 2 segments · Q1 2024

  • Subscription
    $61.4M+7.6%
  • Professional services
    $11M+32.9%

Forward guidance

The Company’s guidance includes GAAP and non-GAAP financial measures. Total revenue is expected to be between $72.0 - $76.5 million. Non-GAAP loss from operations is expected to be between ($27.0) - ($40.0) million.

Tailwinds

  • Total revenue is expected to be between $72.0 - $76.5 million.
  • The company expects to be cash positive in Q4 FY 24 and in FY 25.
  • The company has a technology foundation that is tried, tested, and proven.
  • The company has a strong portfolio of applications in place.
  • The company has a pricing and distribution model that meets the needs of the market.

Headwinds

  • Non-GAAP loss from operations is expected to be between ($27.0) - ($40.0) million.
  • The company will be investing in Generative AI solutions and does not expect to be non-GAAP profitable in Q4 FY 24.
  • Stock-based compensation expense-related charges are impacted by the timing of employee stock transactions.
  • The future fair market value of our common stock is difficult to predict.
  • Future hiring and retention needs are difficult to predict and subject to constant change.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-1.0%

Avg return

Earnings day

-3.2%

Avg return

5 days after

-5.2%

Avg return

30 days after

41%

9 / 22 earnings

Positive

+37.4%

Q3 2023

Best reaction

-21.1%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-1.3%-0.5%+24.7%
Q3 2026+0.5%-11.7%-24.7%
Q2 2026+4.1%+6.8%-8.4%
Q1 2026-9.1%-5.6%+14.9%
Q4 2025+20.7%+11.5%+5.3%
Q3 2025-9.7%-16.4%-17.5%
Q2 2025+3.0%-2.6%-17.8%
Q1 2025-9.9%-8.8%+2.7%
Q4 2024+18.5%+22.2%+20.2%
Q3 2024+22.8%+13.2%-10.1%
Q2 2024-13.4%-6.3%-9.3%
Q1 2024-12.2%-10.2%-21.3%
Q4 2023-15.6%-19.6%-17.1%
Q3 2023+37.4%+26.1%+61.9%
Q2 2023+7.6%+10.1%-8.7%
Q1 2023-21.1%-21.2%-32.1%
Q4 2022-6.9%+1.4%+1.2%
Q3 2022+6.3%-7.6%+4.4%
Q2 2022-18.7%-18.2%-15.4%
Q1 2022-7.5%-1.8%-11.0%
Q4 2021-4.9%-15.1%-15.6%
Q3 2021-12.4%-15.4%-41.4%
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Q1 2020

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