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C3.ai (AI) Q4 Loss Narrower Than Expected, Revenues Rise Y/Y
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C3.ai, Inc. (AI - Free Report) reported fourth-quarter fiscal 2022 adjusted loss of 21 cents per share, which beat the Zacks Consensus Estimate by 27.59%. The company had reported a non-GAAP loss of 15 cents in the year-ago quarter.
Revenues of $72.3 million beat the consensus mark by 1.47% and increased 38.3% year over year, driven by the rapid adoption of its model-driven AI architecture and services.
C3.ai shares were down 21.02% in after-hours trading following the fourth-quarter results. C3.ai shares are down 40.7% year to date compared with the Zacks Computer and Technology sector’s decline of 24.6% over the same time frame.
Quarter Details
C3.ai’s subscription revenues (77.9% of revenues) increased 30.6% year over year to $56.3 million. Professional service revenues (22.1% of revenues) surged 74.7% year over year to $16 million.
Bookings from the rapidly expanding Oil and Gas market segment grew 95% year over year. Bookings from the non-Oil and Gas segments — including utilities, banking, manufacturing, agriculture, defense, aerospace, energy efficiency, ESG — grew 116% year over year.
In the reported quarter, the non-GAAP gross margin expanded 260 basis points (bps) on a year-over-year basis to 80.9%.
Non-GAAP sales and marketing (S&M), research and development (R&D), and general and administrative (G&A) expenses increased 47.9%, 123.9%, and 51.2% on a year-over-year basis to $47.5million, $46.4 million, and $17.6 million, respectively.
For the fiscal fourth quarter, C3.ai reported non-GAAP loss from operations of $20.7 million compared with non-GAAP loss from operations of $15.4 million reported in the year-ago quarter.
User & Partnership Details
The total number of C3.ai enterprise customers at the end of the fiscal 2022 was 223, up 48% year over year.
Notable customer wins included U.S. Defense Counterintelligence and Security Agency (“DCSA”), Raytheon Technologies (RTX - Free Report) , San Mateo County Sheriff’s Office, Koch Industries, Cargill and others.
Adoption of C3 AI, the company’s flagship solution, remained robust in the reported quarter. Raytheon selected C3 AI to enhance its Multi-Spectral Targeting System, using applications including C3 AI Process Optimization, C3 AI Supply Network Risk, and C3 AI Inventory Optimization.
Cargill expanded its use of C3 AI to include demand forecasting and supply network risk, in addition to the C3 AI Supply Chain Suite of applications.
C3.ai’s expanding partner base, which includes the likes of Alphabet (GOOGL - Free Report) , Hewlett-Packard, and NVIDIA is also driving top-line growth.
During the reported quarter, Alphabet’s Google launched two supply chain solutions supported by C3 AI, among others. The solutions combine Google’s Vertex AI forecasting, Cortex data acceleration, and Google's breadth of real-time data, such as news, searchtrends, weather, and transportation routes — with C3 AI Supply Chain.
The C3 AI and Google collaboration added customers including 1-800-FLOWERS, United Parcel Service, Tyson Foods, and Canadian bank, ATB Financial, in the reported quarter.
Balance Sheet
As of Apr 30, 2022, C3.ai had total cash, cash equivalents and short-term investments of $960.2 million compared with $968.6 million as of Jan 31, 2022.
Non-GAAP remaining performance obligation was $516.8 million, up 50% year over year.
Guidance
For first-quarter fiscal 2023, C3.ai expects revenues between $65 million and $67 million. Non-GAAP loss from operations is expected between $23 million and $28 million.
For fiscal 2023, C3.ai expects revenues between $308 million and $316 million. Non-GAAP loss from operations is expected between $76 million and $86 million.
Zacks Rank & A Stock to Consider
Currently, C3.ai carries a Zacks Rank #3 (Hold).
A better-ranked stock from the same sector is Samsara (IOT - Free Report) . This Zacks Rank #2 (Buy) stock is scheduled to release first-quarter fiscal 2023 results on Jun 2.
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C3.ai (AI) Q4 Loss Narrower Than Expected, Revenues Rise Y/Y
C3.ai, Inc. (AI - Free Report) reported fourth-quarter fiscal 2022 adjusted loss of 21 cents per share, which beat the Zacks Consensus Estimate by 27.59%. The company had reported a non-GAAP loss of 15 cents in the year-ago quarter.
Revenues of $72.3 million beat the consensus mark by 1.47% and increased 38.3% year over year, driven by the rapid adoption of its model-driven AI architecture and services.
C3.ai shares were down 21.02% in after-hours trading following the fourth-quarter results. C3.ai shares are down 40.7% year to date compared with the Zacks Computer and Technology sector’s decline of 24.6% over the same time frame.
Quarter Details
C3.ai’s subscription revenues (77.9% of revenues) increased 30.6% year over year to $56.3 million. Professional service revenues (22.1% of revenues) surged 74.7% year over year to $16 million.
Bookings from the rapidly expanding Oil and Gas market segment grew 95% year over year. Bookings from the non-Oil and Gas segments — including utilities, banking, manufacturing, agriculture, defense, aerospace, energy efficiency, ESG — grew 116% year over year.
C3.ai, Inc. Price, Consensus and EPS Surprise
C3.ai, Inc. price-consensus-eps-surprise-chart | C3.ai, Inc. Quote
In the reported quarter, the non-GAAP gross margin expanded 260 basis points (bps) on a year-over-year basis to 80.9%.
Non-GAAP sales and marketing (S&M), research and development (R&D), and general and administrative (G&A) expenses increased 47.9%, 123.9%, and 51.2% on a year-over-year basis to $47.5million, $46.4 million, and $17.6 million, respectively.
For the fiscal fourth quarter, C3.ai reported non-GAAP loss from operations of $20.7 million compared with non-GAAP loss from operations of $15.4 million reported in the year-ago quarter.
User & Partnership Details
The total number of C3.ai enterprise customers at the end of the fiscal 2022 was 223, up 48% year over year.
Notable customer wins included U.S. Defense Counterintelligence and Security Agency (“DCSA”), Raytheon Technologies (RTX - Free Report) , San Mateo County Sheriff’s Office, Koch Industries, Cargill and others.
Adoption of C3 AI, the company’s flagship solution, remained robust in the reported quarter. Raytheon selected C3 AI to enhance its Multi-Spectral Targeting System, using applications including C3 AI Process Optimization, C3 AI Supply Network Risk, and C3 AI Inventory Optimization.
Cargill expanded its use of C3 AI to include demand forecasting and supply network risk, in addition to the C3 AI Supply Chain Suite of applications.
C3.ai’s expanding partner base, which includes the likes of Alphabet (GOOGL - Free Report) , Hewlett-Packard, and NVIDIA is also driving top-line growth.
During the reported quarter, Alphabet’s Google launched two supply chain solutions supported by C3 AI, among others. The solutions combine Google’s Vertex AI forecasting, Cortex data acceleration, and Google's breadth of real-time data, such as news, searchtrends, weather, and transportation routes — with C3 AI Supply Chain.
The C3 AI and Google collaboration added customers including 1-800-FLOWERS, United Parcel Service, Tyson Foods, and Canadian bank, ATB Financial, in the reported quarter.
Balance Sheet
As of Apr 30, 2022, C3.ai had total cash, cash equivalents and short-term investments of $960.2 million compared with $968.6 million as of Jan 31, 2022.
Non-GAAP remaining performance obligation was $516.8 million, up 50% year over year.
Guidance
For first-quarter fiscal 2023, C3.ai expects revenues between $65 million and $67 million. Non-GAAP loss from operations is expected between $23 million and $28 million.
For fiscal 2023, C3.ai expects revenues between $308 million and $316 million. Non-GAAP loss from operations is expected between $76 million and $86 million.
Zacks Rank & A Stock to Consider
Currently, C3.ai carries a Zacks Rank #3 (Hold).
A better-ranked stock from the same sector is Samsara (IOT - Free Report) . This Zacks Rank #2 (Buy) stock is scheduled to release first-quarter fiscal 2023 results on Jun 2.
IOT shares have been down 59.4% year to date. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.