C3.ai, Inc. (AI): history, ownership, mission, how it works & makes money

A Brief History of C3.ai, Inc. (AI)

Foundation and Early Years

C3.ai, Inc. was founded in 2009 by Thomas M. Siebel, a prominent figure in the software industry. The company focuses on enterprise AI software and has developed a suite of applications designed to facilitate data-driven decisions.

Initial Funding and Growth

In 2011, C3.ai secured $10 million in Series A funding led by funder Raising Capital. Over the years, the company has raised substantial capital from various investors, including venture capital firms such as Bessemer Venture Partners, Goldman Sachs, and Breyer Capital.

Product Development

C3.ai’s flagship product, the C3 AI Suite, was launched in 2015. This platform enables organizations to build, deploy, and operate large-scale AI applications across multiple industries.

Strategic Partnerships

In 2018, C3.ai entered a partnership with Microsoft to enhance the capabilities of its AI solutions. The collaboration focused on integrating C3.ai’s software with Microsoft Azure, leveraging cloud computing to improve enterprise efficiency.

Public Offering

In December 2020, C3.ai went public on the New York Stock Exchange (NYSE) under the ticker symbol "AI". The initial public offering (IPO) priced shares at $42, raising approximately $651 million for the company. On the first day of trading, shares surged by over 120%.

Financial Performance

As of fiscal year 2023, C3.ai reported revenues of approximately $292 million, a growth of 8% year-over-year. The company also reported a net loss of $90 million.

Market Position and Competitiveness

C3.ai operates within a competitive landscape dominated by key rivals such as Palantir Technologies and IBM Watson. The market for AI software is projected to grow significantly, with estimates suggesting a compound annual growth rate (CAGR) of 40% from 2022 to 2028.

Industry Recognition

Throughout its history, C3.ai has received numerous accolades for its contributions to AI technology. Notably, in 2021, C3.ai was recognized as a leader in AI software by Gartner in its Magic Quadrant report.

Recent Developments

As of 2023, C3.ai has expanded its customer base to over 200 organizations, including major corporations like Shell, United States Air Force, and 3M. The company continues to innovate, focusing on enhancing its AI capabilities and offering solutions tailored to specific industries.

Outlook

Market analysts project C3.ai to continue its growth trajectory, anticipating revenue to exceed $500 million by 2026, driven by increased adoption of AI technologies across various sectors.

A Who Owns C3.ai, Inc. (AI)

Shareholder Composition

The ownership of C3.ai, Inc. is divided among various institutional investors, individual shareholders, and executives. The following table outlines the major shareholders as of the latest available data:

Executive Ownership

Key executives hold a significant portion of shares, which is often indicative of their confidence in the company's future prospects. The following table details executive ownership:

Market Capitalization

The market capitalization of C3.ai, Inc. provides insight into the overall value of the company. As of October 2023, the market capitalization stands at approximately:

$1.25 billion

Stock Performance

C3.ai's stock performance over the past year has shown significant fluctuations. Here is a summary of key financial metrics:

Recent Institutional Investments

Recent changes in institutional investment can impact the stock's stability and investor sentiment. A brief overview of recent institutional transactions includes:

• Increased ownership from The Vanguard Group, Inc. by 1.2% in Q2 2023.
• BlackRock, Inc. reduced its stake by 0.5% in Q1 2023.
• New investment by Morgan Stanley amounting to approximately $20 million in Q2 2023.

Future Outlook

Analysts predict potential growth in shareholder value, largely driven by ongoing contracts and new product offerings. Investment firms project an annual growth rate of:

15% over the next five years

C3.ai, Inc. (AI) Mission Statement

Corporate Mission

The mission of C3.ai, Inc. is to help organizations become more efficient and effective by utilizing artificial intelligence to enhance their operational processes and decision-making capabilities. C3.ai aims to deliver a comprehensive suite of AI software solutions designed to drive digital transformation across various industries.

Vision Statement

C3.ai envisions a future where businesses leverage AI to automate and optimize their operations, yielding substantial improvements in productivity and innovation.

Core Values

• Innovation: Commitment to continuous improvement and cutting-edge technology development.
• Integrity: Upholding ethical standards and transparency in all operations.
• Collaboration: Working together with clients and partners to tailor solutions that meet specific needs.
• Customer Success: Prioritizing the long-term success of customers through dedicated support and service.

Market Position and Financial Overview

As of September 2023, C3.ai had a market capitalization of approximately $3.3 billion. The company reported revenues of $247.8 million for the fiscal year ending April 30, 2023, with a year-over-year growth rate of 19%.

Recent Financial Performance

Client Base

C3.ai services a diverse range of sectors including energy, healthcare, financial services, manufacturing, and government. As of 2023, the number of enterprise customers reached 50, with significant clients including:

• Shell
• Raytheon Technologies
• U.S. Air Force
• Engie

Technological Capabilities

C3.ai’s offerings include:

• C3 AI Suite: A comprehensive platform for developing and deploying AI applications.
• C3 AI CRM: An application designed to enhance customer relationship management using AI.
• C3 AI Energy Management: Solutions for optimizing energy consumption and enhancing sustainability practices.
• C3 AI Supply Chain: Tools for improving supply chain efficiency and resilience.

Partnerships and Collaborations

Key partnerships that bolster C3.ai’s mission include alliances with:

• Microsoft Azure
• Palantir Technologies
• Salesforce

Community Engagement

C3.ai is involved in various community initiatives aimed at promoting AI education and responsible use of technology. The company has launched programs that contribute to

• Scholarships for AI-focused education
• Workshops and seminars for developing AI skills
• Collaborative research with academic institutions

Conclusion

The mission statement and strategic objectives of C3.ai, Inc. reflect its commitment to leveraging AI innovations to transform industries, increase operational efficiency, and drive customer success.

How C3.ai, Inc. (AI) Works

Business Model

C3.ai, Inc. operates primarily in the artificial intelligence and enterprise software sector. The company provides a suite of AI software solutions that enable organizations to deploy and scale AI applications across various industries.

Key Offerings

• C3 AI Suite: A platform for developing and deploying enterprise-scale AI applications.
• AI Solutions for Industries: Tailored solutions for sectors including energy, financial services, and manufacturing.
• Data Integration: Tools for connecting diverse data sources, which is critical for effective AI implementation.

Revenue Streams

As of fiscal year 2023, C3.ai reported revenues of $252.3 million, a 27% increase from the previous fiscal year.

Financial Performance

In the most recent quarter (Q1 FY2024), C3.ai posted a revenue of $70 million, exceeding analyst expectations.

The gross margin as of Q1 FY2024 was approximately 75%, reflecting the efficiency of their software models.

Customer Base

C3.ai serves a diverse set of clients across multiple sectors. The number of customers increased to 200 by the end of FY2023.

Partnerships

• Partnership with Microsoft for cloud computing capabilities.
• Collaboration with the U.S. Department of Defense on AI initiatives.

Market Presence

C3.ai operates in a competitive market with other AI companies, including Palantir Technologies and IBM Watson.

Investment and Funding

The company went public in December 2020, raising $651 million during its IPO.

Stock Performance

Research and Development

C3.ai allocates approximately 40% of its revenue to research and development in order to innovate and enhance its product offerings.

Challenges

Key challenges include:

• High competition in the AI space.
• Market adoption barriers among traditional enterprises.
• Talent acquisition in specialized AI domains.

Future Outlook

Analysts predict a revenue growth rate of approximately 30% for C3.ai in the upcoming fiscal year based on current contracts and market demand.

How C3.ai, Inc. (AI) Makes Money

Revenue Streams

C3.ai, Inc. generates revenue primarily through the following channels:

• Subscription Fees
• Professional Services
• Partner Revenue

Subscription Fees

The majority of C3.ai's revenue comes from subscription fees for its software platform, which enables organizations to build and deploy AI applications.

As of the fiscal year 2023, the total revenue was approximately $285.6 million, comprising:

Professional Services

Alongside subscription fees, C3.ai offers professional services, which include consulting, technical support, and implementation services.

For FY 2023, professional services generated approximately $61.4 million, up from $55.7 million in FY 2022.

Partner Revenue

C3.ai collaborates with various partners, including large technology firms, to enhance its platform and extend its market reach.

In FY 2023, partner revenue was recorded at $8.0 million, which reflects a slight decline from $9.3 million in FY 2022.

Market Segments

C3.ai operates in several key market segments, including:

• Energy
• Manufacturing
• Financial Services
• Government
• Healthcare

Geographical Presence

C3.ai's revenue is derived from various geographical regions, with significant contributions from North America, Europe, and Asia.

Customer Base

C3.ai serves a wide range of industries, and its clientele includes some of the world's largest corporations.

• ExxonMobil
• Raytheon Technologies
• Siemens
• 3M
• United States Air Force

Recent Financial Performance

For FY 2023, C3.ai reported a net loss of $63.0 million, compared to a net loss of $57.0 million in FY 2022.

The company had a cash and cash equivalents balance of $81.2 million as of April 30, 2023, down from $114.0 million at the end of FY 2022.