C3.ai, Inc. (AI) Q3 2024 Earnings Breakdown

Key Highlights:

• Revenue Growth: C3.ai reported total revenue of $94.3 million for the quarter, a 29% increase year-over-year. This growth was primarily driven by a 22% increase in subscription revenue, which accounted for 86% of total revenue.
• "Subscription revenue increased by $14.7 million, or 22%, for the three months ended October 31, 2024, compared to the same period last year."
• Shift to Consumption-Based Pricing: The company continues its transition to a consumption-based pricing model, impacting revenue recognition and remaining performance obligations (RPO).
• "RPO is not necessarily indicative of future revenue growth because it is not applicable to pay-as-you-go consumption pricing agreements."
• Pilot and Trial Activity: C3.ai executed 36 pilots and trials during the quarter, highlighting continued market penetration efforts and customer acquisition activities.
• Strategic Initiatives: The company is focused on expanding its go-to-market ecosystem through strategic partnerships with companies like Baker Hughes, AWS, Microsoft, and GCP.
• "Our strategy with strategic partners is to establish a significant use case and prove the value of our C3 AI Platform, C3 Enterprise AI Applications, and C3 Generative AI with a flagship customer in each industry in which we participate."
• Investment in Generative AI: C3.ai is investing heavily in generative AI technology, aiming to offer customers autonomous AI agents, multimodal model integration, and natural language summarization capabilities.