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C3.ai (AI) Q4 Loss Narrows Year Over Year, Revenues Rise

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C3.ai, Inc. (AI - Free Report) reported fourth-quarter fiscal 2021 adjusted loss of 24 cents per share, which was narrower than adjusted loss of 82 cents per share reported in the year-ago quarter. The Zacks Consensus Estimate for loss was pegged at 29 cents per share.
 
Revenues of $52.3 million beat the consensus mark by 3.5% and increased 25.6% year over year driven by rapid adoption of its model-driven AI architecture and services.

Markedly, on Dec 11, 2020, C3.ai completed its initial public offering.

C3.ai, Inc. Price, Consensus and EPS Surprise

C3.ai, Inc. Price, Consensus and EPS Surprise

C3.ai, Inc. price-consensus-eps-surprise-chart | C3.ai, Inc. Quote

Quarter Details

C3.ai’s subscription revenues (82.5% of revenues) increased 17.3% year over year to $43.1 million. Professional service revenues (17.5% of revenues) soared 89% year over year to $9.2 million.

The total number of C3.ai enterprise customers at the end of fiscal fourth quarter was 89, up 82% year over year.

C3.ai continued to accelerate customer momentum and expanded its enterprise AI footprint in Defense and Intelligence, Financial Services, Manufacturing, Oil & Gas, Utilities, and Energy Sustainability, with new enterprise production deployments at the United States Air Force, Bank of America (BAC - Free Report) , Standard Chartered Bank (SCBFF - Free Report) , Koch Industries, MEG Energy, Duke Energy, and ENGIE.

This Zacks Rank #3 (Hold) company also initiated new enterprise AI projects with 3M, ConEd, FIS, Infor, Koch Industries, New York Power Authority, and Shell, and signed new contracts with Commonwealth Bank, George Washington University School of Medicine and Health Sciences, NCS, One Medical, San Mateo County, Stanford Health Care, SWIFT, and Yokogawa Electric Corporation, as well as expanded business with the US Air Force, including the Rapid Sustainment Office (RSO) and the F-35 Joint Program Office (JPO). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the reported quarter, non-GAAP gross margin expanded 80 basis points (bps) on a year-over-year basis to 78.3%.

Non-GAAP sales and marketing (S&M) and general and administrative (G&A) expenses decreased 14.7% and 6.1% on a year-over-year basis to $28.5 million and $8.5 million, respectively.

Non-GAAP sales & marketing (S&M) expenses as a percentage of revenues were 54.5%, significantly down from 80.3% reported in the year-ago quarter. Meanwhile, as a percentage of revenues, G&A expenses contracted 550 bps to 16.3%.

Non-GAAP research and development (R&D) increased 13.1% on a year-over-year basis to $19.4 million. As a percentage of revenues, R&D expenses contracted 410 bps to 37%.

During the fiscal fourth quarter, C3.ai expanded its relationship with strategic partner and financial technology leader FIS to launch joint solutions for the financial services industry, including FIS Credit Intelligence powered by C3 AI. This builds on the previously announced launch of FIS AML Compliance Hub powered by C3 AI.

Moreover, the company released C3 AI v7.19 and v7.20, delivering significant new features and enhancements including new advanced AutoML capabilities in the no-code AI and analytics platform C3 AI Ex Machina, as well as the release of C3 AI UI Designer in C3 AI Integrated Design Studio, a no-code development tool that allows users to create C3 AI application user interfaces rapidly and easily with drag-and-drop components.

In addition, in partnership with Baker Hughes (BKR - Free Report) , C3 AI released BHC3 Production Schedule Optimization application for demand planning & manufacturing production scheduling.

For the fiscal fourth quarter, the company reported non-GAAP loss from operations of $15.4 million compared with non-GAAP loss from operations of $27.3 million reported in the year-ago quarter.

Balance Sheet & Cash Flow

As of Apr 30, 2021, C3.ai had total cash, cash equivalents, and short-term investments of $1.09 billion compared with $1.12 billion as of Jan 31, 2021.

Cash used by operating activities totaled $37.5 million in the reported quarter compared with $5.8 million in the previous quarter.

Non-GAAP remaining performance obligation was $345 million, up 39.8% year over year.

Guidance

For first-quarter fiscal 2022, C3.ai expects revenues between $50 million and $52 million. Non-GAAP loss from operations is expected between $28 million and $35 million

For full-year fiscal 2022, C3.ai expects revenues between $243 million and $247 million. Non-GAAP loss from operations is expected between $107 million and $119 million.

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