What's your guys take on C3 ai, they have absolutely plummeted in the last 2-3 months even though they slightly beat earnings expectations of 48 million earning 51 million. I would think they'll likely get better which is why I'm not getting why they fell so far so quickly. Wait for more of a dip or you guys think this is the dip for them?

C3.ai(NYSE:AI)

Sector: Technology

Industry: Information Technology Services

Market cap: 6B

C3.ai, Inc is an enterprise artificial intelligence company. The company provides software-as-a-service applications that enable customers to rapidly develop, deploy, and operate large-scale Enterprise AI applications across any infrastructure. It provides solutions under three divisions namely:

• The C3 AI Suite: proprietary model-driven architecture, addresses the requirements for the digital transformation software stack, providing a low-code/no-code AI and Internet of Things, or IoT, platform that accelerates software development, reduces cost and risk, and delivers applications that are flexible enough to meet evolving needs.

• C3 AI Applications: a large and growing family of industry-specific and application-specific turnkey AI solutions that can be immediately installed and deployed such as:

  • Inventory Optimization: a solution to optimize raw material, in-process, and finished goods inventory levels

  • Supply Network Risk: provides visibility into risks of disruption throughout the supply chain operations for enterprise supply chain managers

  • Customer Churn Management: enables account executives and relationship managers to monitor customer satisfaction using transactional, behavioral, and contextual information, as well as to take action to prevent customer churn with AI-based and human-interpretable predictions and warning

  • Production Schedule Optimization: a solution for scheduling production

  • Predictive Maintenance: provides insight into asset risk to maintenance planners and equipment operators

  • Fraud Detection solution

  • Energy Management solution

• C3.ai Ex Machina: analytics for applying data science to every-day business decisions

FINANCIALS

C3 is growing rapidly with a total revenue of $156.7M in the fiscal year ended April 30, 2020 compared to $91.6M in the fiscal year ended April 30, 2019 representing a year-over-year growth of 71%. Over the same period, the subscription revenue grew to $135.4M from $77.5M representing a 75% increase.

C3 has high total contract values for software subscriptions. The average total subscription contract values were:

• 2016: $1.2M

• 2017: $11.7M

• 2018: $10.8M

• 2019: $16.2M

• 2020: $12.1M

BULL ARGUMENT

C3 has a first-mover advantage in Enterprise AI due to investment into their products and technology over the last decade. They have “Lighthouse Customers”, or large global early adopters, in Europe, Asia, and the United States across a range of industries that serve as proof points for other potential customers. Some customers include:

There is an extensive partner ecosystem that includes strategic relationships with established technology leaders like:

• Amazon Web Services

• Fidelity National Information Services

• Google

• IBM

• Microsoft

Although the average total subscription value is decreasing and may continue to decrease, C3 has restructured the sales organization and expanded the market-partner ecosystem to address small, medium, and large sales opportunities. The progress is promising as the average total subscription contract value for six months ended October 31, 2020 was $7.7M.

On February 1, 2021, the launch of the Open AI Energy Initiative was announced by Shell, C3, Baker Hughes, and Microsoft. The initiative provides a framework for energy operators, service providers, equipment providers, and independent software vendors for energy services to offer interoperable solutions powered by the BHC3 AI Suite and Microsoft Azure.

BEAR ARGUMENT

C3 faces intense competition and which could be an “early bird may get the worm, but the second mouse gets the cheese” type of situation as second movers could develop technology to improve upon any shortfalls. The main sources of potential competition include:

• Greater name recognition, longer operating histories, and larger customer bases

• Larger sales and marketing budgets and resources, and the capacity to leverage their sales efforts and marketing across a broader portfolio

• Wider geographic presence

• Lower labor and research and development costs

• Larger and more mature intellectual property portfolios

• Greater financial, technical, and other resources to provide support, make acquisitions, hire talent, and to develop and introduce new products

The Chief Executive Officer, Tom Siebel has received many honors and awards, but if he, or other senior management team members, were to leave the company C3 may not be able to execute their business strategy. Siebel is critical to the overall management and continued development of the AI suite and AI Applications. All of the executive officers are at-will employees and they do not maintain any key person life insurance policies.

C3 has a history of operating losses and may not achieve or sustain profitability in the future. The sales cycles can be long and unpredictable and the sales efforts require considerable time and expense. This is due to investing into sales to large organizations that typically undertake a significant evaluation and negotiation process due to their leverage, size, organization structure, and approval requirements. A limited number of customers have accounted for a substantial portion of C3’s revenue. The top three entities together accounted for 34% and 44% of the revenue for years ended April 30, 2019 and 2020, respectively. The same entities have been with C3 for an average of 3.3 years.

CONCLUSION

Given the success of C3’s customers, I feel it will increase penetration of their existing customer base. They are primed to expand the major account sales organization to focus on large enterprise software agreements. Additionally, C3 will continue to develop high volume distribution channels to address the needs of small and medium businesses. I think they will continue to bring new product families to market that will develop into substantial recurring revenue streams. The total addressable market is rapidly growing and estimated to grow to $271B in 2024, a 12% CAGR from 2020's estimate of $174B. This is a big opportunity for C3. The lock up period ended on June 7, 2021, and earnings happened on June 2, 2021. I believe everyone who wanted to sell has sold at this point. I am bullish and think C3 has great potential for a swing trade, but more so a long-term investment.

I am not a financial advisor. Do your own DD

Current position: 515 shares @ $59.87

https://www.barrons.com/articles/take-profits-in-c3-ai-after-huge-post-ipo-run-2-key-analysts-say-51609778061

I was hyped about this stock for IPO, ready to buy at 40-60 but it skyrocketed to $100 and then a week to 180... it looks like its coming down... do you think it'll go down more or is this a good buy point?

I keep trying to find new information about it, but keep coming up short on discussions.

Whats your thoughts on c3.ai? Is it the future?

This company has been very volatile since it ipo. It is currently at a dip and at one point reached 131 dollars. This stock could be a very quick buy and sell at the price it’s currently at.

What’s you guys opinion

This company just recently had their IPO, and have seen some gains since then. I don’t know much about the company, but I know they have artificial intelligence in the name. When I see AI, my eyes turn green and I start to salivate. Does anyone know more about this company? Do you think they have a lucrative future? Would you invest? Thanks!

Hello fellow investors,

$AI ipo‘ed yesterday and the price has been exploding, but thanks God, not astronomically like DoorDash.

I managed to get in early at around 100$, because I like the fundamentals of C3.AI:

1.Profitable

2.Scalable and simple to integrate in EVERY business (compared to similar companies)

3.Thomas Siebel as a founder and CEO is absolutely legit.

4.They already have solid customers like US AirForce and Dutch Shell.

I don’t consider myself too experienced and maybe I‘m missing some information here.

What are you thoughts on C3.AI ?

P.S. I‘m holding long-term.

For those of you haven’t checked out C3.ai yet you really need to do yourself a favour and take a peak.

I think it’s quite easy to write this one off without much though because it’s up like 150% in two days, but you’d be making a mistake.

I feel strongly that all the other major IPOs way over priced themselves and then still over performed, whereas $AI was priced a bit more appropriately and then over performed.

First off, their Harvard educated CEO is a big deal and has successfully raised a unicorn in the past. Competent leadership is the first thing you should look for when assessing a risky stock, and these guys check that box.

The quick and dirty explanation of why you should be interested in $AI is that in addition to their ongoing software contracts (Shell, Caterpillar, US Airforce etc) C3 is partnering with Adobe and Microsoft to create a CRM that is driven by AI.

For those of you who don’t know, a CRM is any piece of software that a company uses to manage and track clients, customers, sales, communications, emails, web posts, etc etc all in one spot.

Whenever you talk to a customer service rep and they are taking all your info and typing away, that person is working on a CRM.

I work with CRMs in my marketing business, and the fact that I am skilled in CRMs is the primary reason I am worth hiring for most of my clients. As a digital marketing contractor, my CRM skills are more important than my contributions on social media and web dev.

I am speaking from personal experience when I telling you, CRMs are a big deal. They are the back bone of e-commerce and digital workspaces.

The only major player that is soaking up CRM market share right now is Salesforce, which is currently worth a $200B.

Microsoft threw $50m into the IPO for $AI because they are in it for the long haul with these guys, and the investment was an attractive alternative other than a full takeover.

You need to take note when Microsoft does things like this. Microsoft does not normally just yolo on IPOs. They are not an investment fund. They made this purchase with operational and relationship building intent.

With Microsoft and Adobe in the mix, you have everything you could possibly need to make a comprehensive and user friendly CRM that is powered by AI. More importantly, those two companies have their claws in every single private and public organization in the world.

Converting people to this new CRM they are making will be easy for them.

And if you want to completely ignore the AI CRM component of this company, you can also consider that C3.ai is also comparable to Palantir and Snowflake. Those stocks are worth $50B and $100B respectively.

With C3.ai trading at $12B, this one is a no brainer.

In today’s IPO mania, I see no reason this company doesn’t carry a $20B market cap very soon.

In the long run, I see this company as a potential very very smart investment.

Do not be discouraged by the insane growth it has already seen.

PS: I am in for shares at $119.50. It’s also worth noting I got into Palantir at $10 for 80% of my account back when everyone on reddit told me that was a stupid investment. I am just as confident about $AI today as I was $PLTR a few months ago.

Article describes how C3.ai software works in detail: https://www.zdnet.com/article/dissecting-c3-ais-secret-sauce-less-about-ai-more-about-fixing-hadoop/

it seems like it's just a basic, maybe even shit product with good marketing. what do you guys think?

It's a new day, the sun is shining, the tank is clean, and AI is trailing sideways... AI is trading sideways!?!? Who is even $AI?

$AI is the ticket symbol for C3.ai, which is an enterprise AI company. They provide a modular AI solution for enterprise companies and have big name clients across the Federal government, finance, and manufacturing.

AI had IPO last Dec that was largely unnoticed. Their IPO price was $42 on Dec 8 that opened to the public on Dec 9 at $100. There was a somewhat quiet response within the first week staying between $90 - $128 but from Dec 15 - Dec 25 it soared from $99 to it's ATH of $183.90. Since then, it has faced lots of resistance around $150 with support around $120. Over the past few weeks, it's been forming a pennant indicator and accumulating ready for a breakout currently in the handle of a cup and handle.

So let's talk options:

AI only has monthly options, but it's IV is high which is good for selling but can be good for buying if you expect IV to increase. I think it will breakout to $160 - $170 trying to test ATH again, but it's unclear if there will be support for that. I currently have a Feb 19 @ $160 call with a $170 PT.

The main drawback to AI options is liquidity. This is great for sellers as it gives you the opportunity to more or less ask what you want. From a buying perspective, you need to conservative in your entry points because it can rapidly jump due to it's low liquidity resulting in slippage even if you get the direction right.

Others from Trading View concur with a bullish sentiment - https://www.tradingview.com/symbols/NYSE-AI/ideas/.

While I think AI is overall pricey for the long-term, they are in a rapidly growing domain with large contract opportunities to easily double and triple revenue YoY. Just because it's expensive (eg valuation is high), doesn't mean it's not a good deal.

I like to invest in macro themes and AI is one of them IMO. C3.ai has generated a lot of buzz with their IPO but would love some real-world experience on users of their software.

Can anyone comment?

Fk C3.Ai with such retarded opening i really hope that it crashes and burns after the hype so we all can pick it up cheap. At this point im not expecting any ipos to be cheap just purely based on the hype were seeing right now. But here is just a DD i did for it. The company has an interesting business model in which that the company will partner up with another company to create an application that is proven to increase efficiency, reduce cost, track measurements for analysis purposes and so on and will then proceed to sell the same implementation to other companies that may benefit from the applications. The revenue is mainly based on the subscription models to create steady stream of revenue. The company is lead by Tom Siebel, the pioneer of the customer relationship management software business that sold his company to Oracle for 6 billion in 2006 and C3.AI is his next level creation to revolutionize the world. C3.AI is listed as one of the top disruptors of 2020 is backed up by Microsoft and spring creek capital with 50 million of stocks and $ 100 million investment respectively. C3.AI announced the partnership with Raytheon Technologies to develop AI solutions for aerospace and defense missions for government customers, including the U.S. Air Force and intelligence community. They also announced partnership with Microsoft and Adobe for a new customer – relationship management software seeking to comeback Salesforce INC. The potential for C3.AI is limitless because of how broad the scope can be. With a successful implementation of an application, C3.AI could easily spin it off to implement such applications to other industries with incredible scalability and tremendous reduction to developing cost. Before we dive into what the company actually does, here is the overview of the company.

Financial wise, the company has

- A whopping 71% yoy growth

- 86% subscription revenue

- A $271 billion TAM by 2024.

- Narrowing income loss thanks to the rapid growth

The AI technology is a proven technology and is one that is being used daily to help industries moving faster into digital transformation. The currently capability and usage of the AI software is as followed

- Make 1.1Billion predictions per day

- Has 4.8million machine learning models in production use

- Has 622 million sensors generating data for the C3.AI suite

- Has 770 unique enterprise and extraprise source data integration

- Has 50 Million businesses and consumers touched daily

Notable market successes:

- Banks are able to enhance securities lending optimization with estimated value of 14 billion in additional daily trades deployed in 52 weeks

- Healthcare managements are able to enhance production optimization with estimated value of 300% increase in unit production deployed in 4 weeks

- Oil and gas companies are able to predictive maintenance for offshore oil rigs and is able to recapture $28million per year in avoided shutdowns

What is C3.AI

C3.ai is an enterprise AI software company that provides software as a service, applications that enable the rapid deployment of enterprise AI applications of extraordinary scale and complexity that offer significant social and economic benefit.

Two primary software solutions:

1. C3 AI suite: designed to allow customers to apply design, develop, and deploy enterprise AI application to any type (basically a platform that allows you to develop your own applications)

2. C3 AI Application: include a large and growing family of industry specific and application specific turnkey Ai solutions that can be immediately installed and deployed (a prebuilt application that is ready to go for implementations)

The market entry growth strategy of C3.AI is focus on partnering and coordinating with lighthouse customers (the big companies including AWS, Baker Huges, FIS, Google, IBM and Microsoft) to create a proven and scalable applications that work to increase efficiency, cut down on costs and to record measurements on a massive scale for analysis purposes. With the established applications.

C3.AI is then able to

1. Expand those same use cases across similar companies

2. Establish middle market sales organizations, including tele sales, and online sales

3. Leverage on marketing partners as enterprise and mid-market distribution channels

Real world user case:

Engie – largest power producer in the world with

- 114.4 GW power production capacity

- $67 billion annual revenue in europoors money

- 153k employees, operated in 70 counties

With the partnership with Engie, C3.Ai developed and deployed performance optimization for gas power plants, efficiency optimization of heating and cooling plants, energy analysis and management for enterprise and consumer customers, and anomaly detection of wind turbines. C3 was able to bring the scalability required to build industrial AI based application with over 1million sensors, 5 million end points and 17mil measurements per day with the end result of bringing estimated 1.5 billion in annual economic benefits

- Wind turbines with in 12 weeks of deployment sees 2-3% increase in performance resulting in 15-22Mil annual economic value

- Heating and cooling plants see 2-3% saving in energy consumption costs with $3mil annual economic value

- Application in analyze energy for metered facility on the Ohio State university campus and is expected to see 25% energy saving within 10 years within 16 weeks of deployment

- Application to analyze and forecast consumption for electricity and gas retail customers in France of 2.6Mil electricity consumers and 8.6mil has consumers with deployment of 6 months

Revenue model

- Term subscriptions of the C3.AI Suite

- Term subscriptions of C3.AI applications

- Monthly runtime fee of C3 AI Applications and customer-developed application built using the C3.AI suite, usage based upon CPU- hour consumption

- Professional services fees associated with training and assisting customers

In the case of Engie, C3.AI would be making money from subscriptions to C3.AI suite and applications, setting up required trackers for measurements, developing AI applications, a monthly runtime fee if Engie is continuing to develop new applications with C3.AI. With the proven applications and set up, C3.AI then would be able to sell them to other companies that could also benefit from same implementation. With Biden focusing on green energy infrastructures, one could expect the demand of the applications to increase.

Their AI has also been used in sectors like utilities, banking, aerospace & defense, healthcare, retail, telecommunications, smart cities, and transportation. With already proven and prebuilt applications listed below that could be implemented into broader and more general sector.

- Anti-money laundering

- COVID-19 Data lake

- AI CRM

- Energy management

- Fraud detection

- Inventory optimization

- Predictive maintenance

- Production schedule optimization

- Readiness

- Sensor health

- Supply network risk

As C3.Ai continues to work with various more different sectors to create more applications, C3.AI will be able to reach into more boarder market. With already established applications in various broad sectors, C3.AI is going to take AI to the next level by focusing on deep penetration into business solutions, aerospace and defense with the partnership with Microsoft, Adobe and Raytheon Technologies to fully dominate the sectors.

TLDR:

There is none cause im too lazy to type one.

Such an life altering industry .. are they going to be front runners? Anyone jumping in tomorrow?

I noticed on the website there are 3-4 different offerings and was curious on which was is the biggest driver.

Also what is the business challenge that C3 AI is solving for companies?

Why has C3.ai's stock been consistently dropping recently, even though their recent earnings reports have been strong? I recall their stock price was nearly $50 after their recent reports.then decline！ Can someone explain this?

What is it like working at C3.ai? Would love to get specifics on what it's like working on the customer engineering team (i.e., solutions engineer).

Seeing brutal reviews on Glassdoor, but it would be nice to get more specific examples.