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C3ai (AI)
NYSE:AI
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C3ai
(NYSE:AI)
54Neutral
Positive Factors
Market Opportunity
C3.ai offers industry-specific AI applications and is seen as an opportunity for long-term capital appreciation due to strong interest in enterprise AI applications.
Partnerships
Keystone partnerships with Azure, AWS, and McKinsey — and their ability to drive customer engagement — remain major drivers of business performance and stock price action.
Negative Factors
Profitability
Profitability remains elusive, with lowered FY25 profit guidance implying negative margins.
C3ai (AI) vs. S&P 500 (SPY)
Market Cap
$2.78B
Dividend YieldN/A
Average Volume (3M)5.26M
Price to Earnings (P/E)―
Beta (1Y)3.08
Revenue Growth23.79%
EPS Growth4.10%
CountryUS
Employees891
SectorTechnology
Sector Strength54
IndustrySoftware
Share Statistics
EPS (TTM)-2.23
Shares Outstanding129,238,720
10 Day Avg. Volume5,002,620
30 Day Avg. Volume5,256,121
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.82
Price to Cash Flow (P/CF)-32.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$30.60Price Target Upside41.54% Upside
Rating ConsensusHold
Number of Analyst Covering11
C3ai Business Overview & Revenue Model
Company DescriptionC3.ai Inc is an enterprise artificial intelligence company. The company provides software-as-a-service applications that enable customers to rapidly develop, deploy, and operate large-scale Enterprise AI applications across any infrastructure. It provides solutions under three divisions namely, The C3 AI Suite, is a comprehensive application development and runtime environment that is designed to allow customers to rapidly design, develop, and deploy Enterprise AI applications of any type; C3 AI Applications, include a large and growing family of industry-specific and application-specific turnkey AI solutions that can be immediately installed and deployed; and C3.ai Ex Machina, analytics for applying data science to every-day business decisions.
How the Company Makes MoneyC3.ai generates revenue primarily through the sale of its software products and services. The company employs a subscription-based revenue model, where customers pay recurring fees to access the C3 AI Suite and other AI applications. These subscriptions often involve multi-year contracts, providing a steady revenue stream. Additionally, C3.ai offers professional services such as implementation, integration, and support to help clients effectively deploy and utilize its AI solutions. Strategic partnerships with major technology companies and industry leaders also contribute to its earnings by expanding market reach and fostering collaborative innovation in AI applications.
C3ai Financial Statement Overview
Summary
C3.ai shows robust revenue growth but struggles with profitability, as evidenced by negative net profit and EBIT margins. The strong gross profit margin is countered by operational inefficiencies and negative cash flow, posing liquidity risks. A solid balance sheet with no debt offers stability, but negative return on equity reflects ongoing challenges.Income Statement
C3ai has shown consistent revenue growth with a TTM revenue of $366.9M, representing a healthy increase from previous years. However, the company struggles with profitability, evident from a negative net profit margin and EBIT margin. The gross profit margin remains strong at approximately 60%, but operating losses due to high expenses are a concern.55
Neutral
Balance Sheet
The balance sheet of C3ai is relatively strong, with substantial stockholders' equity of $860.2M and no total debt as of the latest TTM. The equity ratio is robust, indicating a stable financial structure. However, the negative net income impacts the return on equity, which remains negative, underlining operational inefficiencies.65
Positive
Cash Flow
C3ai's cash flow position is concerning, with negative free cash flow and operating cash flow over the recent periods. Although there is a slight improvement in free cash flow when comparing the latest TTM to the previous year, the company still spends more cash than it generates from operations, posing liquidity risks.50
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 366.92M | 310.58M | 266.80M | 252.76M | 183.22M | 156.67M | Gross Profit |
| 219.96M | 178.56M | 180.46M | 189.05M | 138.70M | 117.88M | EBIT |
| -317.77M | -318.34M | -290.49M | -196.12M | -60.26M | -71.50M | EBITDA |
| -308.10M | -305.62M | -285.50M | -190.93M | -55.96M | -70.19M | Net Income Common Stockholders |
| -281.93M | -279.70M | -268.84M | -192.06M | -55.70M | -69.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 724.33M | 750.37M | 730.98M | 960.16M | 1.09B | 244.98M | Total Assets |
| 1.06B | 1.04B | 1.10B | 1.17B | 1.20B | 305.11M | Total Debt |
| 0.00 | 3.23M | 2.34M | 3.61M | 5.63M | 5.65M | Net Debt |
| -125.09M | -163.92M | -282.49M | -335.92M | -109.73M | -27.46M | Total Liabilities |
| 194.96M | 164.87M | 173.36M | 181.41M | 135.30M | 487.81M | Stockholders Equity |
| 860.18M | 873.35M | 929.66M | 989.48M | 1.06B | -182.70M |
| Cash Flow | Free Cash Flow | ||||
| -53.30M | -107.70M | -187.21M | -90.75M | -39.18M | -64.16M | Operating Cash Flow |
| -48.66M | -62.36M | -115.69M | -86.46M | -37.55M | -61.28M | Investing Cash Flow |
| 19.44M | -66.61M | 59.95M | 317.01M | -767.15M | -124.07M | Financing Cash Flow |
| 39.75M | 11.29M | 621.00K | 5.71M | 887.36M | 119.85M |
C3ai Technical Analysis
Negative
21.62
Price Trends
30.07
Negative
31.20
Negative
28.67
Negative
Market Momentum
-2.93
Positive
28.62
Positive
15.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AI, the sentiment is Negative. The current price of 21.62 is below the 20-day moving average (MA) of 25.38, below the 50-day MA of 30.07, and below the 200-day MA of 28.67, indicating a bearish trend. The MACD of -2.93 indicates Positive momentum. The RSI at 28.62 is Positive, neither overbought nor oversold. The STOCH value of 15.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AI.
C3ai Risk Analysis
C3ai disclosed 61 risk factors in its most recent earnings report. C3ai reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
C3ai Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $196.19B | 421.05 | 10.90% | ― | 28.79% | 112.38% | |
73 Outperform | $30.60B | ― | -1.21% | ― | 27.77% | 89.39% | |
69 Neutral | $18.88B | 1,819.62 | 0.46% | ― | 15.33% | ― | |
66 Neutral | $34.97B | 192.17 | 7.75% | ― | 26.12% | 274.50% | |
62 Neutral | $49.48B | ― | -31.43% | ― | 29.21% | -51.47% | |
58 Neutral | $21.67B | 10.04 | -18.58% | 2.39% | 5.01% | -23.17% | |
54 Neutral | $2.78B | ― | -32.07% | ― | 23.79% | 4.10% |
* Technology Sector Average
Performance Comparison
AI
C3ai
20.92
-8.18
-28.11%
OKTA
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106.63
-1.07
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Zscaler
189.58
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DDOG
Datadog
98.68
-23.97
-19.54%
SNOW
Snowflake
149.83
-9.09
-5.72%
PLTR
Palantir Technologies
79.62
55.19
225.91%
C3ai Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -18.23% | Next Earnings Date: May 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, strategic partnerships, and advancements in AI solutions, indicating a positive outlook for C3.ai. Despite some financial challenges like negative free cash flow and a decline in RPO, the company's strategic alliances and innovation position it well for future growth. The CEO's health issue was addressed with measures in place to ensure business continuity.Highlights
Strong Revenue Growth
Total revenue for Q3 reached $98.8 million, a 26% increase year-over-year. Subscription revenue grew by 22% to $85.7 million.
Strategic Alliances Expansion
Significant progress in partnerships with Microsoft, AWS, and McKinsey QuantumBlack. The partnership with Microsoft alone resulted in 28 agreements closed in Q3 and a 244% year-over-year surge in the joint qualified sales pipeline.
Reduced Operating Loss
Non-GAAP operating loss improved to $23.1 million, better than the guidance range of $38.6 million to $46.6 million.
Strong Partner Ecosystem
71% of agreements delivered in collaboration with partners, highlighting the ecosystem's role in driving business.
Innovative AI Solutions
Advancements in Generative AI and Agentic AI, with 20 pilots closed in Q3, including clients like Mars and the U.S. Department of Defense.
Lowlights
Free Cash Flow Negative
Free cash flow for the quarter was negative $22.4 million, although improved from negative $45.1 million last year.
Remaining Performance Obligations Decline
RPO expected to continue declining in the near term, indicating potential future revenue challenges.
Health Setback of CEO
CEO Tom Siebel experienced a health setback affecting his vision but is managing the business with support and accommodations.
Company Guidance
During the C3.ai third quarter fiscal year 2025 earnings call, the company reported significant growth and strategic advancements. Total revenue for the quarter reached $98.8 million, a 26% increase year-over-year, with subscription revenue growing by 22% to $85.7 million, contributing to a 69% gross margin. The company exceeded its guidance with a non-GAAP operating loss of $23.1 million, compared to the expected range of $38.6 million to $46.6 million. A major highlight was the expansion of strategic alliances, particularly with Microsoft, AWS, and McKinsey QuantumBlack, which resulted in a 460% increase in agreements and a 244% surge in the joint qualified sales pipeline with Microsoft. The company also reported closing 20 C3 Generative AI pilots and strengthening its position in Agentic AI, with innovations that enhance AI model autonomy and efficiency. Looking ahead, C3.ai anticipates revenue for Q4 between $103.6 million and $113.6 million, with a full fiscal year range of $383.9 million to $393.9 million, and continues to focus on expanding its distribution ecosystem and executing its strategic partnerships.C3ai Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
C3ai Appoints Retired General Hyten to Board of Directors
Positive
Oct 9, 2024
C3.ai, Inc. has appointed General John E. Hyten, a retired U.S. military leader with a distinguished 40-year career, to its board of directors. His expertise in AI and defense will play a crucial role in guiding the enterprise AI software company’s strategic direction, especially in federal, defense, and intelligence applications. General Hyten will receive stock options but no cash compensation for his board service, underscoring his commitment to the company’s mission of delivering advanced AI solutions to enhance national security and economic prosperity.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.