C3.ai (AI): Future Growth and Stock Outlook

This site is a great place for me (@mifsee(2) has been working on company and stock analysis while learning privately.

This is only a record of my personal analysis and the contents may contain errors or information that differs from the actual situation. Please understand in advance when viewing this site.

Introduction.

With the evolution of AI technology,NVIDIAand other AI semiconductors,super microcomputerInfrastructure such as AI servers, such as the following, is developing rapidly.

Riding this wave of technological innovation, C3.ai (ticker: AI) is experiencing remarkable growth in the AI software industry.

As digital transformation (DX) accelerates across industries, C3.ai has established itself as a leader in the field with enterprise AI solutions that are adaptable to diverse industries.

In particular, Peter Thiel foundedPalantir Technologies, Inc.has achieved profitability and is leading the industry, attention is focused on how C3.ai is positioned in the increasingly competitive AI software market and what unique characteristics and future potential it has.

Based on these points, we will take a deeper look at C3.ai's business, its unique strengths, and its future prospects, and discuss the outlook for its stock price.

What is C3.ai (C3.ai) and what kind of business does it do?

• C3.ai (AI) is,An American technology company that provides enterprise AI software.
• The company was founded in 2009 by Thomas Siebel,Provides AI software and services to accelerate enterprise digital transformation (DX).
• C3.ai has particular strengths in the field of Industrial Internet of Things (IIoT),Provides solutions that leverage machine learning and big data analytics to improve the operational efficiency of companies.
• C3.ai offers a cloud-based service that allows customers to quickly develop and deploy (use immediately) their own AI applications using the C3.ai platform.
• C3.ai's business focuses on combining state-of-the-art AI technology with data analytics to solve complex problems faced by businesses. This enables clients to improve operational efficiency, reduce costs, and create new business opportunities.
• C3.ai software offers an integrated family of deep, low, and no-code development tools using industry standard tools such as Jupyter Notebook, R, Python, and Scala to meet the needs of different development communities The company offers a wide range of products and services to meet the needs of different development communities.

What are C3.ai's main products and services?

C3.ai (C3.ai) is primarily an enterprise AI application development platform and a number of AI applications built using it.
C3.ai's main products include

C3 AI Suite

C3 AI Suite is,A platform that provides comprehensive services for the efficient and cost-effective development of enterprise-wide AI applications.
The platform will support industry-specific value chains and provide pre-built, high-value AI applications related to reliability, fraud detection, sensor network health, supply network optimization, energy management, etc. .

C3 AI Applications

C3.ai includes manufacturing, financial services, government, utilities, oil and gas, chemical, agribusiness, and defense and intelligence,It offers more than 40 turnkey enterprise AI applications that meet business-critical needs in a wide variety of industries.
These applications run on the C3 AI Suite and can address a variety of use cases, including reliability, fraud detection, sensor network health, and supply network optimization.

C3 Generative AI

C3 Generative AI is a platform that serves as an integrated knowledge source for the entire enterprise, providing generative AI solutions to help transform business processes.

With these products and services, C3.ai supports the digital transformation (DX) of companies in diverse industries.

What is C3.ai's business model?

C3.ai's (C3.ai) business model is based on providing enterprise AI applications and platforms.
The heart of this model boils down to the following elements

• Platform services provided byThrough its integrated platform, C3 AI Suite, C3.ai offers a comprehensive set of services that enable companies to develop, deploy, and operate AI applications.
  The platform supports AI model development, data integration, and application scaling, providing a foundation for companies to use AI to optimize business processes and accelerate digital transformation The platform is designed to help companies to optimize their business processes through the use of AI.
• Provide turnkey solutions:. A turnkey solution is one that is ready to operate immediately after delivery.
  C3.ai provides enterprise AI applications focused on specific industries and functions.
  These applications are designed to address specific business needs, such as reliability management, sensor network monitoring, and supply chain optimization, helping companies leverage AI to solve specific problems.
• Customization and flexibilityIt offers a development environment called C3 AI Studio, which allows companies to develop their own AI applications.
• Cross-industry applications:.C3.ai serves a diverse range of industries and offers solutions based on its extensive industry knowledge and experience.

With these business models, C3.ai offers powerful and flexible solutions for companies that want to leverage AI to transform their business processes and improve efficiency.

Companies can use C3.ai's platform and applications to enhance data-driven decision-making and gain a competitive edge.

What's so great about C3.ai?

C3.ai (C3.ai) is software and services that utilize AI technology to promote enterprise DX support,The company is noted for providing concrete and effective solutions to complex problems faced by companies.

The C3.ai platform enables companies to leverage their data to rapidly develop and deploy (get up and running) AI applications.

This will enable companies to enhance data-driven decision-making and optimize business processes.
Also,With more than 40 different types of AI applications, they address specific business needs in a wide range of industries, from manufacturing to financial services to utilities.

Our strength lies in providing solutions that can be customized to meet the challenges and needs of each of these customers,Companies can develop AI applications tailored to their unique business challenges.

In addition, C3.ai isHe has a high degree of expertise in both industry knowledge and AI technology, and his experience in diverse industries allows him to generously provide support to help companies solve the toughest challenges they face.

Thus, C3.ai, with its unique technology and applicability to a wide range of industries, is positioned as a partner to help companies leverage AI to create business value and achieve transformation.

Who is C3.ai's customer base?

C3.ai's clientele is diverse and consists of leading companies in a variety of industries.

Specifically, the company provides AI solutions to solve complex problems and improve efficiency faced by companies in diverse industries and sectors, including manufacturing, financial services, utilities, oil and gas, defense and intelligence, healthcare, retail, telecommunications, and transportation.

For example, Shell and the U.S. Air Force are publicized as C3.ai customers, and these organizations are using C3.ai technology to digitize and optimize their operations.

Shell is using C3.ai technology to drive digital transformation, integrating and analyzing data for decision making, including predictive maintenance to monitor the condition of facilities and equipment in real time, supply chain optimization such as inventory management, and energy consumption management.

Similarly, the U.S. Air Force is optimizing the maintenance of military equipment, optimizing logistics by forecasting demand for supplies, and optimizing mission planning to increase the success rate of operations.

C3.ai's customer base consists of large companies and organizations that want to optimize their business processes and increase their competitiveness through the use of AI technology, especially those that see value in data-driven decision making and efficient operations management.

These companies and organizations are improving operational efficiency and driving innovation through the comprehensive AI solutions provided by C3.ai.

What is the trading market?

C3.ai is listed on the New York Stock Exchange (NYSE).
The ticker symbol is "AI.

The company was founded in 2009 and specializes in AI and enterprise software in the public markets. c3.ai's solutions and services are used by companies worldwide, including North America, Europe, the Middle East, Africa and Asia Pacific C3.ai is a leading provider of AI and enterprise software in the public market.

What are the sectors, industries, and themes to which C3.ai belongs?

sector

Technology: TechnologyC3.ai is part of the technology sector, providing AI-centric enterprise software to automate and streamline business processes.

type of industry

Software - Applications:.C3.ai's software offerings specifically help companies develop AI applications and contribute to data-driven decision making in diverse industries.

Themes belonging to

Digital Transformation: TheIt provides assistance to companies in transforming their business processes through the use of digital technology and accelerates the digitalization of their organizations.

AI (Artificial Intelligence) & Machine Learning:. They help companies use AI and machine learning to solve complex problems and enable intelligent business operations.

C3.ai plays a key role in these sectors, industries, and themes, leading innovation in the areas of AI and digital transformation.

When was C3.ai founded and listed?

C3.ai was founded in 2009 by Thomas Siebel.
Initially named "C3" to help companies manage their carbon footprint, it later became "C3.ai" through "C3 IoT".
In 2020, the company will be listed on the stock market as a public company.

Dividends?

Currently, C3.ai does not pay a dividend.
Like many growing technology companies, C3.ai is reinvesting profits and focusing on business expansion and innovation.

What is the size and growth potential of the industry to which C3.ai belongs?

The enterprise AI software market, of which C3.ai is a part, is currently a sector experiencing significant growth.

The enterprise AI software market size is estimated to be approximately $120 billion in 2023 and is projected to reach approximately $390 billion by 2028, at an estimated compound annual growth rate (CAGR) of approximately 261 TP3T from 2023 to 2028.

Growth in the AI industry is being driven by the increasing adoption of AI technologies in the financial sector and healthcare, advances in cloud computing technology, as well as the growing need for automation and efficiency, with North America leading the way in AI adoption and development, making it an important hub for innovation and commercialization of the technology The U.S. is a key hub for technology innovation and commercialization.

As these indicate,The enterprise AI software market, of which C3.ai is a part, is growing rapidly and has tremendous growth potential for the future.

C3.ai is expected to further accelerate its growth in this growing market by applying AI technology in a wide variety of industries where it has a unique advantage.

Who are some of C3.ai's competitors?

C3.ai's competitors can be divided into two categories: technology companies specializing in AI and general-purpose cloud platform providers.

Competitors specializing in AI

General Purpose Cloud Platform Competitors

Overall, C3.ai, as an AI company, competes with a wide range of companies, from major cloud vendors to AI startups, but has established partnerships with major cloud vendors through partnerships.

Although C3.ai differentiates itself in terms of advanced enterprise AI solutions, competition is expected to intensify.

What are C3.ai's differentiators and advantages over the competition?

C3.ai's differentiator and advantage over the competition is its proprietary AI application development platform and enterprise-level implementation experience.

Below are some differentiators and advantages that C3.ai has.

Competitive differentiators

• We specialize in AI applications for enterprise companies,Provides a number of dedicated industry-specific applicationsThe company has been working on this project for the past several years. This sets it apart from typical AI platforms.
• C3.ai is an AI platform,Provides end-to-end AI systems that integrate industry-specific applications, generative AI, and more.The combination of individual tools is no longer necessary.
• Generative AI has advanced capabilities, including highly accurate and deterministic responses, full traceability, and multimodal data support.

competitive edge

• As a pioneer in the field of AI applications for enterprises, we have accumulated know-how from an early stage. We have already built up a customer base.First mover advantagewith a
• It has a proven track record and use cases in a wide range of industries, including manufacturing, government, and agriculture, and is highly reliable in practical terms.
• Related to AI systems and applicationsThe company holds a large number of patents and has an advantage in intellectual property and technology.

In other words, C3.ai specializes in the specialized field of enterprise AI applications,With its comprehensive AI solutions and highly practical products, the company has an advantage over its competitors.

However, competition in the area of AI will be a challenge in the future, as major cloud companies will inevitably follow suit.

What impact will C3.ai have on the development of AI?

C3.ai is expected to contribute to the development of AI in the following ways

Facilitating AI Adoption in the Enterprise

The C3.ai platform enables enterprise users to quickly and easily develop and deploy AI applications, which will facilitate the widespread adoption of AI in the enterprise.

Reduce the cost of developing AI applications

The C3.ai platform reduces development costs because AI applications can be easily developed with drag-and-drop operations, without the need to write code.

Improving the quality of AI applications

C3.ai's platform can help improve the quality of AI applications because of its enterprise-level security.

Develop industry-specific AI solutions

C3.ai offers solutions for specific industries, and these solutions are designed to meet the needs of each industry and can be used quickly by users.

AI Human Resource Development

C3.ai offers a training program for AI developers. This program can contribute to solving the problem of the shortage of AI developers.

C3.ai is expected to grow along with the AI application development market, and has the potential to make a significant contribution to the development of AI by actively developing new products and services, expanding partnerships, and expanding globally.

What are the risks associated with investing in C3.ai?

Risks associated with investing in C3.ai may include the following

• The AI field is evolving rapidly and competition is intensifying from new entrants and large companies. c3.ai will need to compete with other large technology companies and startups, which may have business implications.
• AI technology is constantly evolving, and C3.ai's ability to quickly adopt the latest technologies and continue to provide innovative products and services could impact investment returns.
• C3.ai's revenues may depend on a relatively small number of large customers, and the loss of these customers or a decrease in their spending could have a significant impact on revenues.
• Economic uncertainty and recession may reduce corporate IT spending and investment in AI, which may negatively impact C3.ai's business.
• In particular, privacy and data protection regulations could have a significant impact on AI companies; C3.ai's ability to adapt and maintain compliance with these regulations will be an important factor in the company's future.

About C3.ai's performance

C3. ai's financial year ends on April 30.
Quarterly results are announced four times throughout the financial year.

• First quarter results around the end of July
• Second quarter results around the end of October
• Third quarter results around the end of January
• The fourth quarter and full year results are due around the end of May of the following year.

First, we will review the following four indicators to perform a minimum performance analysis of C3.ai.

1. Sales: An indicator of a company's performance and growth.
2. Operating Cash Flow and Operating Cash Flow Margin: Indicators that look at how much cash a company generates from its services. The margin is considered excellent when the ratio is 15%.
3. Operating Profit: Profit earned by a company from its core business. An indicator to evaluate a company's performance.
4. EPS: An indicator that looks at a company's earning power "profitability" and "growth potential" in terms of net income per share. The higher the number, the higher the earning power.

Each data is,Investing.com, ,TradingViewSee from

C3.ai (C3.ai stock price)

View a real-time stock price chart (TradingView) showing the current stock price of C3.ai (C3.ai).

The chart shows the Relative Strength Index (RSI). Reference as an indicator of market overheating.

*An overbought indicator when the RSI exceeds 70% to 80%, and conversely, an oversold indicator when the RSI falls below 20% to 30%.

C3.ai Quarterly: Sales Trends

Quarterly sales forecasts and actual sales and year-on-year changes.

Sales forecasts and actual results are shown in graphs.

C3.ai Quarterly: Operating Cash Flow Trends

Quarterly operating cash flow and operating cash flow margin.

Each transition is shown in the graph below.

C3.ai Quarterly: Operating Income Trends

Quarterly operating income.

Each transition is shown in the graph below.

C3.ai Quarterly: EPS Trends

Quarterly EPS forecast and actual EPS.

Each transition is shown in the graph below.

C3.ai's Full Year: Sales Trends

This is the sales forecast for the full year and actual sales and year-on-year changes.

Each transition is shown in the graph below.

C3.ai's Full Year: Operating Cash Flow Trends

Operating cash flow for the full year and operating cash flow margin.

Each transition is shown in the graph below.

C3.ai's Full Year: Operating Income Trends

Operating income for the full year.

Each transition is shown in the graph below.

C3.ai's Full Year: EPS Trends

This is the EPS forecast and actual EPS for the full year.

Each transition is shown in the graph below.

What are the future prospects for C3.ai? What are the future developments?

The following are points that suggest the future potential of C3.ai.
These factors could be factors that influence C3.ai future stock price.

• Growth of the Enterprise AI Market:.As AI technology evolves, demand for AI applications at the enterprise level is increasing; C3.ai already has a strong position in this market and is expected to develop further as the market grows.
• Industry-specific solutions:. C3.ai offers specialized AI solutions for a variety of industries, thereby addressing diverse customer needs.
  This strategy will strongly influence C3.ai's differentiation in the market and drive its growth.
• Strong partnerships:.C3.ai has strong partnerships with leading cloud providers such as AWS, Google Cloud, and Microsoft, which could create new business opportunities and accelerate growth.

Although these factors make us optimistic about the future of C3.ai, we also need to consider the impact of external factors such as market fluctuations and technological evolution.

C3.ai (AI) Q3 FY2023 Financial Results Summary

performance

• Net sales 192 million, up 411 TP3T from the same period last year.
• Subscription Sales 163 million, an increase of 521 TP3T over the same period last year.
• Operating loss 29 million U.S. dollars
• Net loss 34 million U.S. dollars

Customer Trends

• New clients acquired: 63
• Number of clients: 230
• Number of clients with annual contract value exceeding $1 million: 17

guidance

• FY2024 sales: $700 million to $720 million
• FY2024 operating loss: $110 million to $120 million

Highlights

• Net sales Subscription sales are growing strongly, reflecting a growing customer base and increased subscription value from existing customers.
• Customer trends:. The number of new client acquisitions and customers is steadily increasing, which indicates a high demand for C3.ai's products and services.
• Products & Services C3.ai is continuously enhancing its products and services to support AI application development, which translates into increased value for its customers.
• Financials: (1) C3.ai has sufficient funds to support its future growth.
• Guidance:. C3.ai aims to achieve its revenue and operating loss guidance for FY2024, which indicates confidence in the company's growth.

C3.ai (AI) Financial Summary for Q4 and Full Year 2023

• Net sales 310.58 million, an increase of 161 TP3T over the same period last year.
• Subscription RevenueAt $278.1 million, it increased by 211 TP3T over the same period last year and accounted for 901 TP3T of total revenues.
• Net loss279.69 million on a GAAP basis, compared to a loss of $268.84 million in the same period last year.
• Net loss per share: (in millions of yen)2.34 on a GAAP basis, compared to a loss of $2.45 in the same period last year.
• Operating loss318.34 million on a GAAP basis, compared to a loss of $209.49 million in the same period last year.

Fourth Quarter Highlights

• Net sales86.6 million dollars, an increase of 20% over the same period last year.
• Subscription Revenue79.9 million, an increase of 411 TP3T over the same period last year and accounting for 921 TP3T of total revenues.
• Net loss72.93 million on a GAAP basis, compared to a loss of $64.96 million in the same period last year.
• Net loss per share: (in millions of yen) 0.59 on a GAAP basis, compared to a loss of $0.58 in the same period last year.

Performance Factors

• Continuous growthAccelerated revenues for the fifth consecutive quarter, especially federal government-related revenues, which increased by more than 1001 TP3T for the year.
• Pilot Contracts:.47 new contracts were signed in the fourth quarter, 34 of which are new pilot projects.
• Industry Diversification:.Contract and pilot project customers expand across diverse industries. Federal government, defense, aerospace, oil and gas, manufacturing, energy and utilities, and many other industries are adopting the system.

Partnership and Innovation

• Partnerships:.Strengthened partnerships with AWS, Google Cloud, Microsoft Azure, and others, signing 115 agreements.
• C3 Generative AI: TheNew products using generative AI technology have been adopted in 15 different industries and 58 pilot contracts have been signed.

Major Transactions

• Federally Related:.New and expanded contracts with the U.S. Air Force, U.S. Navy, and U.S. Defense Intelligence Agency.
• Contracts with major companies:.Contracts with major companies such as ExxonMobil, Dow, and Cargill to provide solutions such as generative AI and predictive maintenance.

Future Outlook

• Revenue GrowthRevenue growth for FY2025 is projected to be approximately 231 TP3T, in the range of $370M to $395M.
• Non-GAAP operating loss 95 million to $125 million projected.

This shows that C3.ai continues to grow through contracts with the federal government and major companies, and the adoption of new products, especially generative AI technology, is increasing. While revenues are steadily increasing, operating losses remain a challenge.

C3.ai (AI) Q1 FY2024 Financial Summary

Sales and Revenues

• Net sales: Q1 sales were $87.21 million, up 21% from $72.36 million in the same period last year. This is due to the continued increase in demand for AI services, especially for enterprise customers.
• subscription revenue: Subscription revenue was $73.56 million, accounting for 84% of total revenue, up 20% from the same period last year.
• gross margin ratio: Gross profit on a GAAP basis remains high at 60% and 70% on a Non-GAAP basis.

grace (of God, Buddha, etc.)

• net loss: Net loss on a GAAP basis was $62.83 million, or $0.50 per share, a slight improvement from $64.36 million in the same period last year; on a Non-GAAP basis, net loss was $6.87 million, or $0.05 per share, a significant improvement.

Cash Flow

• Operating Cash Flow: Plus $8.0 million, up from $39.36 million in the same period last year.
• free cash flow: Plus $7.11 million, a significant improvement from the previous year's minus $89.02 million.

Business Highlights

• new contract: 71 contracts signed in the first quarter, a 122% increase over the same period last year. Strong growth, especially for state and local governments, expanding the client base in the U.S.
• Generative AI Deployment: Generative AI-related demand continues to increase, with the C3 Generative AI product line being used in a variety of fields. Customers include Cargill, Eletrobras, Valero, and U.S. Marine Corps.

Partner Network

• Collaboration with Google Cloud: 40 contracts signed in Q1 for joint efforts with Google Cloud, a 300% increase over the same period last year. Increased adoption, especially in state and local governments.

Future Guidance

• Q2 Sales Forecast: Sales are expected to be in the range of $88.6 million to $93.6 million.
• Year-round guidance: We expect continued growth, with full-year FY2025 revenue projections ranging from $370 million to $395 million.

C3.ai plans to continue to expand its enterprise AI and generative AI product lines to promote the industrialization of AI technology.

Which brokerage firms can I buy shares of C3.ai (AI)?

The following is a list of major brokerages that offer C3.ai (AI) shares. At these brokerages, you can choose to invest as a CFD (Contract for Difference) in addition to direct stock trading as a foreign stock.

I myself mainly use SBI Securities, but some stocks they handle may not be available for purchase. In such cases, I sometimes use CFDs at Saxo Bank Securities or IG Securities.

Major brokerage firms offering shares of C3.ai (AI)

summary

Through an in-depth look at C3.ai, we have taken a closer look at its operations, unique characteristics, competitive advantages, and performance growth.

Performance data indicate that C3.ai is a startup in the early stages of growth, and although it is currently in the red, the recent narrowing of losses and upward revisions to sales indicate strong market demand and growth prospects.

Winning contracts with government agencies is proof that C3.ai's reliability and track record are highly regarded.

The AI industry is a field with high growth potential and intense competition, but C3.ai is a notable player in the field, and its future development is highly anticipated.

If the company begins to see a path to profitability, it is likely to lead to remarkable growth in its stock price, and that change would be a very attractive development for investors.