B 端人工智能可能会迎来爆发？C3.ai 增长加速，股价暴涨

Is B2B AI about to explode?

On Wednesday, February 28th, C3.AI, a company focusing on enterprise-level AI software, released a Q3 earnings report (ending January 31, 2024) that exceeded market expectations, driving the stock price up by over 12% in after-hours trading on Wednesday. Over the past year, the company has achieved a nearly 43.22% increase.

The financial report revealed two highlights: adjusted EPS loss lower than expected, revenue higher than expected, and revenue growth accelerating:

The company reported a net loss of $73 million in Q3, or a loss of $0.6 per share. In the same period last year, the loss was $63.2 million, or $0.57 per share. Although the company's losses increased, the adjusted loss per share was $0.13, better than analysts' expected $0.28.

C3.ai's revenue for the quarter was $78.4 million, up from $66.7 million in the same period last year, and higher than analysts' expected $76.1 million. Additionally, C3.ai's revenue growth accelerated from 17% in the previous quarter to 18%.

Regarding performance guidance, for the fourth quarter, C3.ai predicts revenue to be between $82 million and $86 million, while analysts expect $83.9 million.

Analysts pointed out that due to the huge demand potential in the enterprise AI market, C3.AI's successful diversification strategy, effective new pricing model, and signing of new agreements and pilot projects, the company achieved better-than-expected losses and accelerated revenue growth, leading investors to be optimistic about C3.ai and the future potential of the enterprise AI market, driving the stock price up.

Huge Demand in the Enterprise AI Market

Tom Siebel, CEO of C3.ai, stated during the company's earnings conference call that the enterprise market is currently very active, and the company has long predicted that the enterprise AI market will be massive. While these predictions have been questioned by the market in the past, he believes that C3.ai's correctness has been proven, demonstrating the company's ability to accelerate growth in the vast potential enterprise AI market.

Siebel also mentioned that the company is facing "overwhelming demand," with C3.ai's products and services receiving significant attention and demand in the market, far exceeding the company's expectations for its enterprise AI solutions.

C3.ai Balancing Private and Public Sectors

In terms of specific business progress, C3.ai has made advancements in three key areas:

1. In its earnings report, C3.ai pointed out that the company "continues to achieve diversification across various industries." The company has not only been successful in the private sector but has also made significant progress in the public sector. Specifically, in the most recent quarter, orders from state and local governments accounted for 29% of total orders, while orders from federal, defense, and aerospace customers accounted for 25% of total orders.

Analysts believe that this cross-industry diversification strategy is an important development direction for C3.ai, as it helps the company reduce reliance on any single market or industry, thereby maintaining business stability and growth potential when facing fluctuations in specific industries.

At the same time, attracting customers from highly regulated and complex industries (such as defense and aerospace) also demonstrates the high standards of performance, security, and reliability of the solutions provided by C3.ai.

1. C3.ai has made significant progress in expanding its business and attracting new customers. In the most recent quarter, C3.ai announced the successful signing of 50 agreements, including 29 new pilot projects.

2. Siebel shared the decision effectiveness of the company's transition to a usage-based pricing model six months ago. He stated:

"This pricing model change has been very effective, significantly reducing barriers for enterprises to collaborate with us, making it easier for more companies to start using C3.ai's products and services."

A usage-based pricing model means that customer costs are determined based on the actual amount of services used. This model is more flexible and can adjust costs based on the specific needs and usage of customers, thereby attracting a wider customer base.

Analysts believe that this shift in pricing model is an important strategic adjustment for C3.ai because it not only helps lower the trial threshold for potential customers but also increases customer acquisition rates. In this way, C3.ai can more effectively expand its market share, enhance customer stickiness, and increase revenue potential.