C3.ai provides pre-built, configurable enterprise-AI applications to industry. They assist companies with customer engagement, energy management, predictive maintenance, sensor network health, and supply chain optimization.
The company got a lukewarm reception on their latest fiscal third-quarter earnings. Shares promptly dropped over 20%. This is their first earnings release as a public company following a December 2020 IPO.
Revenue was $49.1 million, beating consensus estimates of $47.3 million. Adjusted operational loss was $11.9 million. However, with about a billion dollars in the bank, their burn rate could last for another 20 years. The C3.ai CEO is tech royalty: Thomas Siebel, founder of Siebel Systems, which he sold to Oracle for nearly $6 billion. ( read more)
Matt Turck and John Wu of FirstMark dissected the S-1 recently and point out C3.ai hadn’t fallen into the startup echochamber. It was funded by Siebel, and seems to have access to unlimited capital. It never received the usual buzz that accompanies the usual unicorns about to go public.
They note C3.ai emerged at IPO as a solid enterprise software company with $157 million in revenue, growing year-over-year at 71%, and sports margins of around 75%. ( read more)
So far, The AI Investor has covered mostly larger non-tech firms adopting AI for competitive advantage. C3.ai is an enterprise-AI pure play. We’re sticking with it for the long haul.
Pete Weishaupt owns shares C3.ai. Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. The AI Investor has a disclosure policy.