C3.ai, Inc. has recently released its 10-K report, providing a detailed overview of its financial performance and operations. C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company, offering the C3 AI platform, C3 AI Ex Machina, C3 AI CRM, and C3 Generative AI Product Suite. The company also provides integrated turnkey enterprise AI applications for various industries, including oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications markets. C3.ai, Inc. is headquartered in Redwood City, California and has strategic partnerships with Baker Hughes, Booz Allen, Raytheon, AWS, Google, and Microsoft.
In its 10-K report, C3.ai, Inc. discussed the management's discussion and analysis of financial condition and results of operations. The company generates revenue primarily from the sale of subscriptions, which accounted for 90%, 86%, and 82% of its total revenue in the fiscal years ended April 30, 2024, 2023, and 2022, respectively. Additionally, C3.ai, Inc. generates revenue from professional services, including implementation services, training, and prioritized engineering services. The total revenue for the fiscal year ended April 30, 2024, was $310.6 million, representing a 16% increase compared to the prior fiscal year, with subscription revenue growing to $278.1 million for the same period, a 21% increase compared to the prior fiscal year.
The report also highlighted the company's transition from a primarily subscription-based pricing model to a consumption-based pricing model, aligning with industry-standard cloud software pricing standards. This transition was expected to have a short-to-medium term negative effect on revenue growth, as the average sales price was significantly reduced, and the contracts often lacked a time-certain multi-period commitment. However, despite the initial decrease, revenue growth eventually increased as the consumption-based pricing model went into effect. The market has reacted to these announcements by moving the company's shares -1.7% to a price of $28.71. For more information, read the company's full 10-K submission here.
