C3 AI Announces Fiscal Third Quarter 2022 Financial Results

Rhea-AI Summary

C3.ai reported a 42% year-over-year revenue growth to $69.8 million for Q3 FY 2022. The increase is attributed to enhanced sales momentum and the expansion of its customer base. Subscription revenue grew by 34% to $57.1 million. The company raised its FY 2022 revenue guidance to $252 million, a 38% increase over the previous year. C3.ai also saw significant growth in remaining performance obligations, reflecting 90% growth to $469.3 million. Despite a net loss per share of $(0.38), C3.ai is optimistic about its market position and future prospects.

Positive

• 42% revenue growth to $69.8 million.
• Subscription revenue increased by 34% to $57.1 million.
• Raised FY 2022 revenue guidance to $252 million, a 38% increase.
• Remaining Performance Obligations increased by 90% to $469.3 million.
• Cash reserves of $1.02 billion for further investments.

Negative

• GAAP net loss per share increased to $(0.38) from $(0.21).

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

Raises Guidance to Reflect FY 2022 Revenue Growth of 38%

REDWOOD CITY, Calif.--(BUSINESS WIRE)-- 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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220302005206/en/

Investor Contact

ir@c3.ai

Press Contact

Lisa Kennedy

(415) 914-8336

pr@c3.ai

Source: C3.ai

FAQ

What is C3.ai's revenue growth for Q3 FY 2022?

C3.ai reported a revenue growth of 42% year-over-year, totaling $69.8 million for Q3 FY 2022.

What is C3.ai's FY 2022 revenue guidance?

C3.ai raised its FY 2022 revenue guidance to between $251 million and $252 million.

How much cash reserves does C3.ai have?

C3.ai has cash reserves of $1.02 billion, which supports its investment plans.

What were the subscription revenue figures for Q3 FY 2022?

The subscription revenue for Q3 FY 2022 was $57.1 million, a 34% increase year-over-year.

What is the remaining performance obligations growth reported by C3.ai?

C3.ai reported a 90% increase in remaining performance obligations, totaling $469.3 million.