C3.ai Files 10-Q for Q1 FY2025

TL;DR

C3.ai's Q1 FY25 10-Q is in. Check financials.

AI Summary

C3.ai, Inc. filed its 10-Q for the period ending July 31, 2024. The filing details financial performance and operational updates for the company. Specific financial figures and operational highlights are presented within the report.

Why It Matters

This filing provides investors with the latest financial health and strategic direction of C3.ai, influencing investment decisions and market perception.

Risk Assessment

Risk Level: medium — As a technology company in a competitive market, C3.ai faces inherent risks related to innovation, market adoption, and financial performance.

Key Numbers

• 0430 — Fiscal Year End (Indicates the end of the company's fiscal year.)
• 2025 Q1 — Reporting Quarter (Specifies the first quarter of fiscal year 2025.)

Key Players & Entities

• C3.ai, Inc. (company) — Filer of the 10-Q
• 20240731 (date) — End of the reporting period
• 20240905 (date) — Filing date
• 1400 SEAPORT BLVD REDWOOD CITY CA 94063 (address) — Company's business and mailing address

FAQ

Key Financial Figures

• $0.001 — stered Class A Common Stock, par value $0.001 per share AI New York Stock Exchange

Filing Documents

• ai-20240731.htm (10-Q) — 1483KB
• exhibit101merelsvpopsletter.htm (EX-10.1) — 7KB
• fy25-q1302certificationxceo.htm (EX-31.1) — 11KB
• fy25-q1302certificationxcfo.htm (EX-31.2) — 11KB
• fy25-q1906certificationxceo.htm (EX-32.1) — 5KB
• fy25-q1906certificationxcfo.htm (EX-32.2) — 5KB
• image_1a.jpg (GRAPHIC) — 2KB
• 0001628280-24-039467.txt ( ) — 6777KB
• ai-20240731.xsd (EX-101.SCH) — 42KB
• ai-20240731_cal.xml (EX-101.CAL) — 71KB
• ai-20240731_def.xml (EX-101.DEF) — 262KB
• ai-20240731_lab.xml (EX-101.LAB) — 527KB
• ai-20240731_pre.xml (EX-101.PRE) — 383KB
• ai-20240731_htm.xml (XML) — 884KB

Financial Information

Part I. Financial Information 7 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 7 Condensed Consolidated Balance Sheets 7 Condensed Consolidated Statements of Operations 8 Condensed Consolidated Statements of Comprehensive Loss 9 Condensed Consolidated Statements of Stockholders' Equity 10 Condensed Consolidated Statements of Cash Flows 11 Notes to Condensed Consolidated Financial Statements 12 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 4.

Controls and Procedures

Controls and Procedures 45

Other Information

Part II. Other Information 46 Item 1.

Legal Proceedings

Legal Proceedings 46 Item 1A.

Risk Factors

Risk Factors 46 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 84 Item 3. Defaults Upon Senior Securities 84 Item 4. Mine Safety Disclosures 84 Item 5. Other Information 84 Item 6. Exhibits 85

Signatures

Signatures 86 2 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition, business strategy, plans and objectives of management for future operations, and the benefits and timing of the rollout of new technology, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will" or "would" or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following: our expectations regarding our revenue, expenses, and other operating results, including statements relating to the portion of our remaining performance obligations that we expect to be recognized as revenue in future periods our ability to acquire new customers and successfully retain existing customers our ability to increase usage of our C3 AI Software, which includes our C3 AI Platform, C3 AI Applications and C3 Generative AI our ability to achieve or sustain profitability future investments in our business, our anticipated capital expenditures, and our estimates regarding our capital requirements; the costs and success of our sales and marketing efforts, and our ability to promote our brand our growth strategies for our C3 AI Software our expectations regarding our C3 AI Software; the estimated addressable market opportunity for our C3 AI Software the expected timing of our product releases; our expectations regarding

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) C3.AI, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except for share and per share data) (Unaudited) July 31, 2024 April 30, 2024 Assets Current assets Cash and cash equivalents $ 133,820 $ 167,146 Marketable securities 628,715 583,221 Accounts receivable, net of allowance of $ 390 and $ 359 as of July 31, 2024 and April 30, 2024, respectively 140,070 130,064 Prepaid expenses and other current assets 23,806 23,963 Total current assets 926,411 904,394 Property and equipment, net 86,480 88,631 Goodwill 625 625 Other assets, non-current 44,104 44,575 Total assets $ 1,057,620 $ 1,038,225 Liabilities and stockholders' equity Current liabilities Accounts payable $ 31,615 $ 11,316 Accrued compensation and employee benefits 33,927 44,263 Deferred revenue, current 39,580 37,230 Accrued and other current liabilities 12,805 9,526 Total current liabilities 117,927 102,335 Deferred revenue, non-current 717 1,732 Other long-term liabilities 64,055 60,805 Total liabilities 182,699 164,872 Commitments and contingencies (note 6) Stockholders' equity Class A common stock 123 120 Class B common stock 3 3 Additional paid-in capital 2,027,274 1,963,726 Accumulated other comprehensive income (loss) 281 ( 563 ) Accumulated deficit ( 1,152,760 ) ( 1,089,933 ) Total stockholders' equity 874,921 873,353 Total liabilities and stockholders' equity $ 1,057,620 $ 1,038,225 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 7 Table of Contents C3.AI, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended July 31, 2024 2023 Revenue Subscription (1) $ 73,456 $ 61,352 Professional services (2) 13,757 11,010 Total revenue 87,213 72,362 Cost of revenue Subscription 33,292 30,434 Professional services 1,755 1,379 Total cost of revenue 35,047 31,813 Gross profit 52

Business

Business C3.ai, Inc. (including its subsidiaries, "C3 AI" or "the Company") is an enterprise artificial intelligence ("AI") software provider. The Company's C3 AI Platform supports accelerating digital transformation in various industries with prebuilt and configurable C3 AI Applications for business use cases including predictive maintenance, fraud detection, sensor network health, supply network optimization, energy management, anti-money laundering, and customer engagement. The Company supports customers in the United States, Europe, and other parts of the world. The Company was initially formed as a limited liability company in Delaware on January 8, 2009 and converted to a Delaware corporation in June 2012. Basis of Presentation and Principles of Consolidation The Company prepares its unaudited condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") and applicable rules and regulations of the U.S. Securities and Exchange Commission (the "SEC") regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with U.S. GAAP. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2024, which was filed with the SEC on June 18, 2024. In management's opinion, these unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company's financial position as of July 31, 2024 and the results of operations for the three months ended July 31, 2024, and cash flows for the three months ended July 31, 2024. The r

View Full Filing

View this 10-Q filing on SEC EDGAR