Slides
Page 1
Investor SupplementalFY25-Q2December 9, 2024
Page 2
© 2024C3.ai Inc. All Rights Reserved. Disclaimer 2 This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements regarding our market leadership position, anticipated benefits from our partnerships, financial outlook, our sales and customer opportunity pipeline including our industry diversification, the expected benefits of our offerings (including the potential benefits of our C3 Generative AI offerings), and our business strategies, plans, and objectives for future operations. 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, including our history of losses and ability to achieve and maintain profitability in the future, our historic dependence on a limited number of existing customers that account for a substantial portion of our revenue, our ability to attract new customers and retain existing customers, market awareness and acceptance of enterprise AI solutions in general and our products in particular, the length and unpredictability of our sales cycles and the time and expense required for our sales efforts. 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, 2024 and, when available, October31, 2024, 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. This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry.This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates.Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation.In addition, projections, assumptions, and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk.In addition to the financials presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation includes non-GAAP financial information.We believe that non-GAAP financial information, when taken collectively with financial information presented in accordance with GAAP, may be helpful to investors because it provides consistency and comparability with past financial performance.There are a number of limitations related to the use of non-GAAP financial metrics versus their nearest GAAP equivalents.For example, other companies may calculate non-GAAP metrics differently or may use other metrics to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial metrics as tools for comparison.We urge you to review the non-GAAP financial information with the financial information presented in accordance with GAAP, and not to rely on any single financial measure to evaluate our business.
Page 3
© 2024C3.ai Inc. All Rights Reserved. FY25-Q2 Highlights 3 Subscription Revenue Growth1 22%$730.4MCash BalanceRevenue Growth1 29% (1)FY25-Q2 QTD vs FY24-Q2 QTD and percentages are rounded for presentation purposes 58Number of Agreements
Page 4
© 2024C3.ai Inc. All Rights Reserved.4
Page 5
© 2024C3.ai Inc. All Rights Reserved. FY23-Q4FY24-Q1FY24-Q2FY24-Q3FY24-Q4FY25-Q1FY25-Q20% 11% 17%18%20%21% 29% FY23-Q4FY24-Q1FY24-Q2FY24-Q3FY24-Q4FY25-Q1FY25-Q2 Revenue Growth Accelerates 5 Percentages are rounded for presentation purposes % growth YoY
Page 6
© 2024C3.ai Inc. All Rights Reserved. 6 Joint Sales and MarketingProduct DevelopmentJoint DeliveryTechnical Integration C3 AI ReliabilityC3 AI Demand ForecastingC3 AI Sourcing OptimizationC3 AI ESGC3 AI Property AppraisalC3 Generative AI for Public BenefitsC3 AI Energy Management Immediately Available C3 AI and Microsoft Forge Strategic Alliance to Accelerate Enterprise AI Adoption
Page 7
© 2024C3.ai Inc. All Rights Reserved. •Established as a preferred AI application software provider on Microsoft Azure •All C3 AI Enterprise AI applications available on Azure Portal•Orderable on Microsoft Paper•Orderable on Microsoft Portal•Commissions paid to Azure Reps•Joint Sales•Joint Marketing•Close Development & Coordination•Term: October 2024 to March 2030 Highlights of C3 AI Microsoft Strategic Alliance Agreement 7
Page 8
© 2024C3.ai Inc. All Rights Reserved. Revenue Growth Accelerates 8 Q1 FY24Q2 FY24Q3 FY24Q4 FY24Q1 FY25Q2 FY25Total revenue (K)$72,362$73,229$78,401$86,590 $87,213 $94,338 % growth YoY11%17%18%20%21%29% RPO (K)$334,560$303,552$286,867$244,304$204,470$260,520 Subscription revenue% growth YoY8%12%23%41%20%22% Percentages are rounded for presentation purposes
Page 9
© 2024C3.ai Inc. All Rights Reserved. C3 AI Customer Success 9
Page 10
© 2024C3.ai Inc. All Rights Reserved. C3 AI Awarded Patent for AI Agents 10 Enterprise Generative Artificial Intelligence ArchitectureKey Patented Technology•AI Orchestrator•Autonomy•Multimodal Model Integration•Natural Language Summarization•Traceability and Security
Page 11
© 2024C3.ai Inc. All Rights Reserved. FY25 Q2 C3 AI Partner Model Success 11 •Microsoft & C3 AI established a new strategic alliance to accelerate Enterprise AI adoption. C3 AI is established as a preferred AI application provider on Azure and creating a joint go-to-market engine fueled by Azure sales channels•Capgemini & C3 AI extended their partnership, with Capgemini scaling its C3 AI practice to deliver rapid Enterprise AI solutions across industries•Google Cloud and C3 AI jointly closed 20 agreements, an increase of more than 180% year-over-year•In Q2, C3 AI closed 62% of total agreements through its partner network.
Page 12
© 2024C3.ai Inc. All Rights Reserved. Guidance 12 Our guidance includes GAAP and non-GAAP financial measures. 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 presentation. Our fiscal year ends April 30, and numbers are rounded for presentation purposes. FY25-Q3FY25Total Revenue$95.5 – $100.5 million$378.0 – $398.0 million YoY Growth %22% – 28%22% – 28% Non-GAAP Loss from Operations($38.6) – ($46.6) million ($105.0) – ($135.0) million
Page 13
© 2024C3.ai Inc. All Rights Reserved. Finance Update 13
Page 14
© 2024C3.ai Inc. All Rights Reserved. FY25-Q2Summary Financial Results 14 FY25-Q2Revenue $94.3 millionSubscription Revenue$81.2 millionSubscription and Prioritized Engineering Services Revenue Combined$90.8 millionNon-GAAP Gross Profit$66.3 millionNon-GAAP Gross Margin70%Non-GAAP Loss from Operations($17.1) millionNon-GAAP Net Loss ($7.8) millionFree Cash Flow ($39.5) million Note: Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP loss from Operations, Non-GAAP Net Loss and Free cash flow are non-GAAP financial measures.Refer to the Appendix for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure.Numbers and percentages are rounded for presentation purposes.
Page 15
© 2024C3.ai Inc. All Rights Reserved. 2% 4%7% 10% 91%86% FY24-Q2FY25-Q2 Total Revenue Mix 15 Note: Numbers and percentages are rounded for presentation purposes. Service Fees Revenue Subscription Revenue % of Total Revenue Prioritized Engineering Services Revenue
Page 16
© 2024C3.ai Inc. All Rights Reserved. Federal, Defense and Aerospace49.0% Manufacturing18.8% Professional Services9.3% Energy and Utilities6.9% High Technology4.5% Life Sciences3.5% Other3.0%State and Local Government2.2% Financial Services1.9%Chemicals0.9% Manufacturing35.7% Federal, Defense and Aerospace33.3% High Technology16.1% Agriculture and Forestry4.3% Energy and Utilities3.6%State and Local Government2.4% Automotive1.5%Life Sciences0.9% Food Processing0.8%Chemicals0.6%CPG0.5%Others0.5% Bookings Diversity by Industry: FY25-Q2 16 Total BookingsFY25-Q2*Total BookingsFY24-Q2 Note: Fiscal year ends April 30.Percentages are rounded for presentation purposes.% calculation is based on dollar amount* Excludes $87.8 million of non-cancellable commitments where actual product selection and quantities of specific products or services will be determined at a later date.
Page 17
© 2024C3.ai Inc. All Rights Reserved. State and Local Government25.0% Manufacturing25.0%Chemicals11.1% Automotive8.3% Oil and Gas5.6% Pharmaceuticals5.6% Construction5.6% Federal, Defense and Aerospace5.6% Retail2.8% Life Sciences2.8%CPG2.8% Pilots & Trials Diversity by Industry: FY25-Q2 17 Pilots & Trials Note: Fiscal year ends April 30.Percentages are rounded for presentation purposes.% calculation is based on deal count
Page 18
© 2024C3.ai Inc. All Rights Reserved. State and Local Government26.7% Automotive20.0%Federal, Defense and Aerospace13.3% Manufacturing13.3% Life Sciences6.7% Construction6.7% Chemicals6.7% Pharmaceuticals6.7% Generative AI Pilots & Trials Diversity by Industry: FY25-Q2 18 Generative AIPilots & TrialsFY25-Q2 Note: Fiscal year ends April 30.Percentages are rounded for presentation purposes.% calculation is based on deal count
Page 19
© 2024C3.ai Inc. All Rights Reserved. Pilot Account Profile FY25-Q2 19 1 7 1313 2 $0 - $100M$100M - $1B$1B - $10B$10B - $100B>$100B # Pilots Account size in revenue
Page 20
© 2024C3.ai Inc. All Rights Reserved. C3 AI Investment Thesis 20 Veteran Disciplined Management TeamHigh-Performance Corporate Culture Huge Addressable Market Proven Track Record of Success Excellence in Execution Patented Enterprise AI Application Platform Substantial Market Partner Ecosystem First-mover Advantage Recognized AI Market Leadership
Page 21
© 2024C3.ai Inc. All Rights Reserved. 21
Page 22
© 2024C3.ai Inc. All Rights Reserved. Appendix 22
Page 23
© 2024C3.ai Inc. All Rights Reserved. Income Statement 23
Page 24
© 2024C3.ai Inc. All Rights Reserved. GAAP to Non-GAAP Reconciliation 24
Page 25
© 2024C3.ai Inc. All Rights Reserved. Free Cash Flow 25