AI - Earnings call transcript Q4 2021

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Operator

Good day and thank you for standing by and welcome to the C3.ai Fourth Quarter Fiscal Year 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker’s remarks, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today. Paul Phillips. ahead. go Please

Paul Phillips

Investor our welcome and quarter and of fourth issued our market ended earnings as the the website IR for regarding be Barter, are Officer. VP and be call XX, press full on Financial With Good call supplement is results, Chief conclusion details a the section website Executive the full following to today, release on Officer fiscal quarter well year call closed fourth today of will Phillips, This available Paul and This Siebel, to being which year the of with fiscal the on of we accessed CX.ai. ir.cX.ai. Relations XXXX. call. of Investor me our which webcast our Chairman afternoon Tom a at replay is as CX.ai’s Relations Chief and year After April David results, both can XXXX, and a

During statements our today’s forward-looking laws. considered should of relating be securities to under only federal we maybe These statements business not that our our of today considered views representative as and will views any obligation reflect call, differ materially or from of any subsequent to cause results to update risks could actual date. We These and any expectations. forward-looking of as statements statements variety to disclaim outlook. a subject are uncertainties that make

to will is course certain the other today’s our risks release. measures financial during factors refer we refer Also our material For could the of A our results, reconciliation non-GAAP and important in to SEC. a discussion to of GAAP measures. with further of non-GAAP the call, included press please financial that filings affect

of his incremental responses detail our additional dynamics not in over or Please times comments insight Finally, business are the this to presentation that, let may me prepared With we at or prepared Tom? discuss into usual annual to metrics the turn continue we that our provide greater our in that to your provide be Tom the may to remarks. advised or call questions, for may future. results. to our

Tom Siebel

Well, everyone. report in state business. pleased QX quarter well-positioned update the that afternoon, Bottom an is good very I was ‘XX to the Paul coming accelerate and year. thank growth to year. I you and share give the CX.ai of a to was line, on gain year you, am fiscal a market great to substantially and pleased continue great am

talk non-GAAP guidance Let’s We operating and quarter about for our our fourth both exceeded income. revenue results.

XXX% believe bookings it to not, Our quarter or year over grew, the in a QX compared earlier.

ago, bookings year quarter $XX.X the for XX% million, quarter-to-quarter. of profit of a for the year-over-year. Revenue an up the gross year-over-year. million increase margin XX% quarter from $XX.X profit in million, Subscription $XX.X a was increase million, was a quarter ago, million XX% gross profit $XX.X XXX% fourth year-over-year. XX% in revenue grew to $XX.X of gross Gross compared increase an was year Our an

$XXX.X to million XX% million year an ago, year orders, of RPO a year-over-year. million cancelable Our XX% a of Including $XXX.X were compared $XXX.X non-GAAP to obligations an performance was million year-over-year. compared increase earlier, remaining $XXX.X increase our

rate at XX, count growth enterprise the Our XX% an the year-over-year. total AI customer was of year representing end

profit million profit XX%, total gross a year margin value increase to XX% year-over-year. XX% an a a constant up year fiscal for from $XXX.X $XXX.X million, in year year the was million year-over-year. average let’s XX% Total $XX.X for year-over-year. in $XXX.X to from our entirety. from ‘XX, increase fiscal compared million, continued fiscal $XXX.X experienced year continued Now, an contract decrease million for a year Most customer million greater Gross for up as to of half in year-over-year. of revenue, gross subscription in Subscription importantly, XX% forward. ago, an at $XXX.X year of revenue in ‘XX of ago, and smoothing million a look to ‘XX increase Subscription million, growth providing revenue the accelerating ‘XX visibility importantly, of the going year was million bookings revenue, year a the was the year. earlier, momentum revenue take $XX.X the the of – $X.X revenue course year in year fiscal We in year the remained $XXX.X percentage

Bank, Commonwealth of business York Yokogawa University military including Health NCS, Medical, and Authority deployments New existing intelligence, Force, Sustainment School sustainability. Mateo fourth gas, Shell Electric enterprise in quarter, manufacturing, and We had States Industries, Sciences, MEG FIS, Rapid Standard financial Japan. Energy, signed Health application States United CX.ai and SWIFT, George Duke substantially projects initiated Koch Chartered our and Infor, the the production new Force, with Specifically, San number County, with expanded oil Office, and Stanford Power at Medicine we and Care, a enjoyed ConEd, new energy in We Industries, the Joint of F-XX United Corporation new Office. utilities contracts ENGIE. and One Air America, enterprise services, defense Bank, Washington Air XM, Energy footprint agreements in expanded AI with enterprise AI the of and also Bank Program customers, U.S. the and Koch

expansion end Shell spans and significantly X Importantly, deployment a to Shell XX% XX, CX.ai that years. major the several over in expansion of of XX over assets. the years total the This at increase previous the across the CX.ai that executed applications accelerate a represents excess of ML of year, at was forged have number global CX.ai slightly very of significant up Shell partnership the and an the end past from of customers year Again, year-over-year. importantly, the

ecosystem expand global partner continue our and to capabilities. distribution We to extend service our market

the exceeding CX.ai. this solutions services upon including CX of strategic FIS the Intelligence, by compliance Baker launch joint and During revenue wide-ranging AML, or by partner announced and AI fiscal The powered FIS quarter, leader, technology relationship alliance industry, in solutions to CX.ai. across Hughes, The ERP for cloud enterprise-class previously company Infor’s industries native partnership for the financial its to FIS strategic builds a saw leader, ‘XX an alliance. Anti-Money Laundering its continued success expand learning jointly And with Credit technology formed launch company expanded with extend Infor, the financial with year powered capabilities. its machine target

is Let’s difficult and of overstate product the talk of the a at technology. bit engineering innovation about It little rate to CX.ai. significance and product

this itself. million million And X.X predictions billion daily. constellations. process learning scale Applications at now of released and sensor XX of you we In have more integrated these one the applications. XX times data concurrent deployments, the to manage than And evaluate per XXX availability the unique for day. of quarter the with larger addition suite alone, some to updates X.X extraprise the as our of day. general applications give Operating As deployments we AI and feel end AI We update excess released more we more enterprise complexity these than in of and of across CX.ai Suite to production fourth of the course enterprise features machine AI the over per QX, billion AI of into XX We we models. vertical and than end massive year, of markets, X in upgrades were CX XXX the a sources

large levels customers availability Gold performance suite a service the the Our year. and exceptional constitute course with offering characteristics of would superlative, remain CX.ai standard and release opportunity the our Machina data The product production Ex served of this Ladies Alteryx. over for industry. of XX.XX% gentlemen, in CX growing the rapidly software market citizen the the a needs opens for new previously serving by scientist

interested, you we the over billion to our of I making your CX.ai market enthusiastic go the for we am For those the Machina, CRM. a most next $XX represents are website and AI trial you lead. Ex to on market, will sign-up like about I now of am advancements segment eye space. Keep a this confident it, generation CRM free CRM that addressable encourage you in if right. I

exciting The energy CX.ai operators, providers, in geographies offer initiative, a market of to equipment number February, independent we for service open and Suite software year growing for CX the by accelerates deployment the expanded initiative CX.ai AI product that Open CX.ai the segments. CX.ai. in and see expect energy releases AI is solutions and to ‘XX vendors Announced interest providing market applications. the and can year. enterprise Fiscal coming solutions announcements enterprise software and and providers great an availability and You Microsoft, AI the marketplace industries, across of by AI for accelerating Energy AI enterprise industry framework With Shell in from solutions Open year the Azure. powered was a rapidly Microsoft interoperable

leadership market We associated capacity. are and partner ecosystem our aggressively extend our product investing technology expand and to distribution to

year. planning to our quarter outcomes line, David that, was I coming As and we we year. the increasingly position the it the accelerating and And software. color AI more continue for application strong CFO, well-positioned growth to a Bottom customers, enterprise leadership high-value turn with establish the in a to for across David? over are will in for Barter complete global on performance we execute on board delivering are

David Barter

million, fourth particularly XXXX from the deal obligation. drive quarter quarter, both ago fiscal will accounts in We to future deferred AI and up for increasing backlog Thank help in building strong in reflected fourth also and XX% you, billings profitability Tom. exceeded calculated volume with our a $XX.X was Revenue due in significant demand enterprise for as revenue, while year remaining in and beyond. late the guidance year the applications, our revenue our performance quarter that receivable, growth

and our with and growth strong revenue with to of half and will consistent grew from for revenue professional quarter million On while revenue reliability revenue $X.X Baker from and mix our fiscal data XX% from COVID even quarter, fiscal a services basis, revenue in professional our on year, full year first compelling XX% professional our XX% reflected gas services. was XX% services the make impact million from improvement $XX.X oil a in XXXX. fourth the the and subscriptions business. applications customer customers. of QX, XX% the our and more increased reflecting Hughes that to Subscription XX% implementation growth was revenue virtual subscriptions which year fourth in in In growth Our engagement over was QX had the the activity meaningful of is

anticipate a mix basis. trended upper on the in XX% to continue range revenue We subscription

variation be quarter-to-quarter. However, in there the some revenue may mix

was Our services highlighted such and X industry high-tech, life growth telco. revenue by verticals, verticals, newer as different including some from sciences, contributions financial

a of our revenue Geographically, verticals prior XXXX. increased full fiscal EMEA year. course year fiscal revenue the our drove activity year the XX% compared to revenue year and these On and EMEA diversification compared of to Over in of newer in APAC basis, to contributed XXXX, APAC X% continue also expand. in XX% as XX%

contracted meaningful sales Our execution an our performance also at RPO QX of the from a or increase in million, quarter remaining XX% obligation, $XXX.X backlog. Total the was of drove a end we quarter. the the increase and third from a prior million, the sequential quarter. months, Current XX of $XXX.X increase from XX% RPO, ago was year XX% recognize next to increase in which an in expect

$XX.X from additional million. cancellation of had million produces When a contracts RPO, with we rate. addition, In GAAP our the non-GAAP combined backlog contracted RPO this with of $XXX.X

Hughes any Baker commitment $XXX.X XX% quarter sequential was important to of an include customer represents end XX% that the non-GAAP $XXX.X leads the not our grew fourth of quarter. note ago, that have a of and and It’s non-GAAP an to does does with XX% an from the third backlog RPO RPO this a adjusted not Our year-over-year. of it from million million, increase This associated contract. at year RPO existing increase

update performance on, I Before moving brief and a to on gas. provide would oil in like our

$X.X million Our our the Hughes million revenue quarter, to Hughes Baker party with relationship end contractual party the of Hughes revenue $XX.X year revenue and financials, partnership with the reported situations relationship assisted has directly was the Baker related the related $XX.X was the the million. as revenue partner balance In Baker process. contracted portion of where XXXX. Hughes with partner sales exceeded its and revenue revenue CX.ai market is component revenue increased non-related the but commitment generated In a of Baker of $XX.X is and related party $XX.X was it as compared fourth to revenue reflects the XX% million Baker million. Hughes customer, fiscal the it in

year party $XX.X party For and full XXXX, million million. fiscal was the revenue non-related related was $XX.X revenue

stock portion was compensation expenses the press employer non-GAAP transactions. payroll of year XX.X% which margin XX.X%, up related A and reconciliation from release. non-GAAP Turning the profitability, be in to provided tax referring Gross expense I fourth will GAAP to quarter a is to our excludes metrics, expense and stock-based ago. earnings with to

our year For full XX.X%. The prior increased margin, year. XXXX, gross was year was to the expansion from which margin from by fiscal up driven XX.X%, XX.X%, margin up gross subscription XX% over the in

loss favorable and an Our fourth to a to increase million was to operating XX, quarter. XX% $XX.X the our sequential In loss of million the increased by compared of million. headcount $XX quarter guidance in fourth the third $XX quarter,

compared billion $XX.X an cash end and ended year Shifting of For in outflow the flow thoughtfully by the the outflow balance fourth expanding with continue our with in $X.XX headcount the million and business. quarter. position quarter. increased equivalents the expenditures investments fiscal of to and we our of year capital sheet XXX, invest $XXX,XXX. as increase market cash the we will of leadership We third $X.XX full was cash to we to had the $XX.X We of fourth in year-over-year quarter, an including year, cash throughout Free focus a in our billion invest million at XX%. scale and flows, on cash operating

fiscal and in Reflecting million. outflow well from a fourth over XX% the grew quarter. year cash end million, year an million, operating XXXX, $XX.X the to fiscal activity flow the an increase year. as cash in up accounts a $XX.X XX% healthy Deferred XXXX deal was million outflow flow $XX.X was of as full receivable quarter third For from of quarter, to increased of increase XXX% sequential on the revenue $XX.X prior free the fourth the

quarter. the to Now, turning and first XXXX fiscal our guidance for year

with We are healthy beginning contracted backlog. a year the

of our we I revenue This As subscription levels. meaningful QX, XX% current our back level quarter us with RPO revenue revenue growth will to mix In increased RPO expect mentioned year sequentially earlier, prior to provides increased last non-GAAP and will XX% continue coverage. and climb expand subscription sequentially.

We as also quarter. to subscription the expect revenue professional It’s when that business. continue services we increase revenue software important been slightly mind expand. margin mix company. On keep year-over-year expect given basis, our to be of compared approximately $X focus structurally has Gross profitable to to year less million QX designed will CX.ai in a a a to full our prior in

revenue point will by will to it to be of of $XXX range We year expect full $XXX the With be that we gross it the growth noting the is And worth for in finally, anticipate million, driven leadership higher operating then margin expand of we range in non-GAAP remaining our more another by of year. market. mind, the in million invest coming that fiscal the in year, for to the XXXX, $XXX to in quarters million loss QX to in $XXX balanced million. Investment position subscriptions. be and will thoughtfully expand our the

joining better you today’s over to will of initiatives non-GAAP growth quarter a loss the revenue to our $XX In for even questions. of strong the increasing believe million year operating million to revenue and well underway I position of our for the our range in With turn million. Thank $XX fourth first call. an demand year we deliver exceeded for guidance the and in quarter. the fiscal fiscal $XX to operating XXXX. expect and range we in operator million the Operator? For in in are performance summary, $XX income ‘XX, call And technology, for we the we

Operator

Daniel line Ives our first Thank coming Wedbush. with have from [Operator you. the of question Instructions] We

open. is line Your

Daniel Ives

when you having gas financials? vertically across in penetration speaking and about Yes, just base? thanks. versus see utilities just success you think and to a verticals about from oil Are that starting you Can I are talk more more customer

Tom Siebel

gas the began chunk we concentration huge recall then mean, we couple here I that’s you ago of had oil yes, we as big entered will of in business. years and a now a Well, our and pretty – and a business utilities

services as now used as particularly We the to with and relationship quite compliance, margin of and that’s it Bank Volcker America have significant in lending. world going with Rule on our chain financial as cash with and a laundering, Standard financial FIS are services of us of Chartered production optimization. substantial seeing a are we success remains for expect management, customer discussions products of anti-money for in initial Bank expansion we big optimization churn, was fantastic Manufacturing supply number the see business

segments deals we substantial we industry both across of range diversification medium will of large contract X of and So, clearly a I mean, I are terms reduction X wider have did, a very resulting our And is value. in of we increasing in additional – and range and in deals, a instead doing diversifying wide deals small now we see think very, and only that like years large average ago, deals industries. mix

did, So, out, aerospace, the all those all health, did as the will database that the market and in mini did relational AI expect play just computer travel, name I this adopted precision, you think and to plays CRM like sectors. sectors, business enterprise, transportation, and it across we be

Daniel Ives

has mean, given just XX, push, what just and it’s versus really contrast, to XX I more from you especially year have where gone strategic you years? pull a last when changed it talking you a you follow-up, CEOs, just to are how versus about or CIOs, just even a X with customers, you ago are And Great. talk CX from conversation a Thanks. can more ago? is months having stands in almost it can that terms quick – today the of seen just and of it’s compare

Tom Siebel

calendar hit tough, right. And – closed, of calendar this transactions are quarters we ‘XX, mean, hit, okay, Rome think where we closed, two have I doing inflection York the closed. Chicago enterprise closed, we then after an were point London it should these New large year first year I Paris and closed, COVID really Well,

And so slow did that us down.

Now, when more top of of quality had we this of last July towards stuff about very much seems the the more we And it we application customers products we today is May, deliver satisfied transformation market enterprise into made at agenda. at to cost, lower ever more the more digital transformation plan are clearly acceleration. saw the efficiently, been. of And stuff credible make mandate into get hands AI efficiently, June, than to year, in higher dramatic everybody’s have digital

I we a think job of leadership that that are really with high major Princeton, I financial in production but think cases the institutions Illinois, – demonstrating kind helping Carnegie-Mellon, thought all all we good doing at work like place is in services the end, KTH, place are pretty utilities, us MIT, we AI, Berkeley, over of doing the aerospace. the Stanford, in manufacturing over have now in and use in research

And are has never have the so And cycles shorter been. the larger, pipeline they sales been than okay. ever

what So we years look – next like. are now are right optimistic X coming the about pretty we

Daniel Ives

Great, thanks.

Operator

question Bank with We the of Brad America. next of have Sills from our coming line

open. is line Your

Brad Sills

are becomes companies? these of or audience pervasively the capabilities deals by guys for you question. the As the my changing still Are your AI taking through sales critical more if change line these more in owner, just Great. for CIO of general where seeing Thanks scientist now much ask you data that about at seeing is very are you AI forefront I Is as a sponsored environment a will, business? more it wanted a a the to and organizations? for sales one, sales audience.

Tom Siebel

changing. good it I Well, is Brad. think it’s a question, And

But is near divisions organization to top Ex in pretty the there or selling from individual someplace, And scientists Bank places, it at at data I uptake would at time other to varies these or like America, a the If substantial. at you basically something. the the organizations organization, see starting data $XXX like and say, starting it’s on top. like of very to they or all scientists were uptake citizen Machina,

X, little sooner interested. they Chartered the with haven’t a this I hot at frustrated start to think to Bank it lot the And bottom with we Bank the have accomplish we of really they are is seem growing make people have they or been last a whether in but been the we X, it’s X rapidly of at top to or what America attempting bit been accomplish. or years, market, Standard a – to later, Koch, able or middle, start So,

So, we present able fix that and to the business prospect being of is good.

Brad Sills

And Tom. may I That’s more great. you, then if Thank one please.

smaller these footprint? expand of that expansion towards we these pivoted some different greater you larger deals, is of a that deals the How Should you does wins Thank these are smaller from deals land that velocity some opportunity? where what mean land in you As for deals, of smaller much. bigger? perhaps so in see early

Tom Siebel

really think a metric it medium and the a question. us NRR year into mean, the selling CRM, clearly at are I really selling $XXX because mean, here been million, and million, mean, or are I were $X,XXX And all less selling landing you a a there becomes yes. And contracts I can – selling time a it $XX as $XX important game. as you we businesses, long get $XX and as in it’s is when time. are now. that XX, historically, fiscal that’s you to remember And NRR changing large. were as ‘XX, deals so I becomes answer good doing and so you has small million Machina, we duration for Ex

of is out, So, in business bookings. I out of long deals, a I our evening large standards lot de and $XXX would deals, But it getting looks good de healthy minimis. mix transactions. say, run in month it’s certainly a a think of the terms medium certainly minimis by

have with that don’t anymore. deal to we So

Brad Sills

Thanks, Tom. great. That’s

Operator

you. Thank

the Turits our have with KeyBanc. from of We Michael line coming next question

Your line open. is

Michael Turits

if little Is it Can Shell on a you it does, forward? give just revenue deal? Hey, more the going us impact, Tom. does it an bit How expansion?

Tom Siebel

more it’s revenue. is revenue it’s and more it revenue Well, and

trials them. place and production the contracts was Originally, a in that the be was then in expanded think Shell, this, years X trot in did it on what about small it third Micro was second existing could or we successful. we then wrong that I X years think And okay. had I kind or I duration. a contract, with And larger I So, and expanded with those to which to of couple forget enterprise enterprise X year were deal, a I deal, of they duration.

Now, very which of reinventing of call, initiative renewables. very, downstream, and all business is Shell very with basically itself aspects Shell bright then really is much aspects midstream are around combination to this of they business of a AI, Azure number top this basically people and CX.ai applying who a importantly, of sitting upstream, AI on Shell’s all

before by am electricity but successful strategy, think like privy it application Shell’s all expired. deploying me year company, their really business. they Anyhow, renew applications many, I looks I a but to were might decided it to all of Shell’s to they an XXXX, become not of many

expand applications put number a you new to CX We dramatically Shell, and entered so into a this another. kind being independently one Open CX can the them stack. us relationship And assets apply work X-year with to with and develop the CX applications the trade that’s they marketplace of they it’s to AI of a sponsored all they of that which them in marketplace can which think as of And basically energy can their CX to the Initiative, providers by which and Microsoft. can

X and perceived non-refundable it Shell deal. transaction a that as commitment. it’s in irrevocable, leader years. is important a is in will of strategic And and It’s because gas industry, space. And – at technology a plus think we that very bell a of serve is something Shell So, substantial cow a the oil it’s

will that in think a kind play quite to but pleased of of are healthy. yucky, and already oil to renewable we help are fuel our we gas all that. very companies I themselves able people think, reinventing is is know role as and which these energy be oil gas a business, so guys And and lot And

Michael Turits

of Thanks, much terms David, progress in Machina about us Ex what a might the you Tom. of in to the down? if you guide? your little a TCV could like of from was built And aspects, how And down then moving could, if be quarter and in terms the talk market couple maybe move really one there it’s into the bit

David Barter

I hear your couldn’t Michael, you could it question, part of quite please? repeat the second

Michael Turits

sorry that. am about again, So, I

could all market first angles the maybe from Ex you is about couple move much traction it of approach Machina, is how a built and So, down how all, much of with TCV, and how guide next for quarter you the just into it was in Machina? moving Ex year year, but in And the are from on down? not the what effectively that

David Barter

going of Machina Great a up in midpoint looking Michael, you think questions. we year. course over Ex about in we to we accelerating business, the in at that. planned our planning, revenue of XX, XX our And are terms the way the certainly revenue, of our see subscription features as guide, can our

how outlook terms thought in to about the our in have accelerate it thought our planned level go-to-market we So a teams for of detailed about and the as growth. on we to continue we year

TCV the $X.X in quarter, of million about terms then the of terms in of Machina TCV we at were quarter. So and in in Ex

Michael Turits

Okay. Alright, Tom. Thanks very much.

Tom Siebel

Thank you.

Operator

from line of our the question with have We Patrick next Colville Deutsche coming Bank.

is open. Your line

Patrick Colville

market Hey, you see was thank much evolving. you interested so for really hear and I question. my of The to the kind is fascinating taking how presentation

and kind me guess is in help in dollars is sequentially revenue quarter of flat yet. basically guide, the into understand it the in just this implicit your flat though, this just again guide kind Just Subscription translates doesn’t like seem implicit of and quarter. I first

of see between puts this can just have fantastic just long-term kind and the versus takes that articulated translating kind we now? into that So potential this of dollars and me near-term of help understand the you kind

Tom Siebel

was for going QX over ‘XX The year. there back downward okay, the has is you out bookings. and bookings, to quarter very in on QX last artifact downward of are we kind look artifact are is to big And think and year fiscal is QX about on be correct. is QX am of at it a say pressure quarter quarter fine at there am year we this And to that pressure is wrong, if it projections – a that was QX long – year had kind of on The bit in Part going or months. why what’s disclose, guidance, year, XX wasn’t, about what’s was. waterfalls great I of came others at And and I an is bookings, little year, QX. and have the from okay. there some was QX I and kind on growth in raising be I I okay, that and over seriously of you even think very of as very a if I go kind QX, seeing, growth of correct of the going a will – you healthy very think to us to for around the revenue not XX%. revenue an think a we to back thrashing the of you like the in consensus going QX part waters everything a ‘XX, for year wasn’t QX the X%. ‘XX are And me be, the that you there going we look we flat and quarter-to-quarter Patrick, not will was term be And are – in that’s be which quarter. going for QX what the healthy don’t And

Patrick Colville

again, it’s I into third year. beyond fourth And as Great. think quarter kind I mean, guess That’s we we of when sticking remember IPO, of kind material a the of fiscal time second, I next talking very helpful. the mean, fiscal suggests a the the the factors, guide of of number reacceleration. numbers including quarter of here, and first I are coronavirus. about exit

Thank this in of for We there that fiscal Are in you. other kind are key talking are revenue contract aware factors of of? Hughes reasons of ‘XX the reset. they reacceleration still or second the Baker about collapsing should we the be subscription half

Tom Siebel

came year in ‘XX I think bookings the of we saw or was we what rate mean, something? year the and into reacceleration in – okay. as of And fiscal second growth think I fiscal XX% we when I fiscal ‘XX, like half ‘XX, gone, blowing Well, wasn’t a year growth really,

David Barter

XX%.

Tom Siebel

okay, XX% sorry.

David Barter

numbers. big It was

Tom Siebel

significantly big number. was It non-zero. was It

and then teeth kicked it COVID. we big, got the with in Okay, was

you’re clearly is acute Okay, ever just – and business. we is the what think digital the COVID more the is been. interest it I reacceleration of and that transformation what over. a And And in year just is has seeing of in the is half second than saw

enterprise in ever than AI significant interest more Okay, been. it is has the

and Okay, than our perceived more as provider a ever substantial, more reliable we we’re been. have

think I just of we’re So what a as acceleration the business, thing. good it’s seeing

Patrick Colville

for much. so Really Great. time. appreciate the taking Thank you

Operator

question next our have Needham. with the We coming Andrews from of Jack line

open. line Your is

Jack Andrews

taking was for my you difficult afternoon, historically applicants just Tom, question. just Good to CX. been thanks I to environment, Hey, at for it’s could speak secure the wonder if hiring opportunities

you of way the finding build days? scale able types organization you of to could so to organization are you the speak out in these want the terms to people right the to And

Tom Siebel

we to the and think this there Jack. very, interviews of environment. And XX,XXX, over XX,XXX – heart very think to hired be And was we hiring number question. I to a annualizes to this Last It’s those I applicants, of what Silicon net XX,XXX. roughly Of applicants we one count okay, former Valley, world of XX. quarter, I from the a those great is and had XX,XXX almost in CX.ai, supposed X,XXX, we’re like, challenging had reviewed them okay. all job data date, the

really most experienced sales okay, people and have us. leadership, and sales marketing to we the trained, and an trained and scientists in join and application who the highly want brightest leadership, data world, engineers So, and

fortunate in so this, slowed at down. we’re going very in And respect, what’s rate the bottle to the as with need not that very, but on. get people CX coming And of to interest go we trying forward, we figure to work has

pretty down. definitely the what has not was, XX,XXX apply jobs and you in slowed who or it by rewarding. is, here quarter, for really people, But go XX,XXX look last like, morale I you it encourage, culture get if for Glassdoor.com. who’s people the Okay, hiring it’s if like, I and of interested I what is And think, up the rate to good go people either you in interest feel a anybody and

Jack Andrews

around That’s great. for color that. Thanks the

follow-up Just as a question.

really I that. some clarity some appreciated? deal further you the referenced around maybe remarks, of strong that prepared that would provide is your your wonder in partnerships something be in think, volume you Was quarter, context any within organically late could I was coalescing happened of the result more that base? just your customer Or

Tom Siebel

think, I like I Jack, anything said that. don’t

David Barter

paragraphs. Jackie of heard one my think have it I may in

Tom Siebel

But out I missed was of that room. the I

David Barter

Jack were the like our in think measures, so how performance And our I bookings accounts deferred of revenue and is correlation, that strengthening in the RPO. manifested highlighting of just receivable terms all we between

just And saw… you so what

Jack Andrews

Okay, thanks.

David Barter

to bookings results. percolate the just You begin through saw financial

Jack Andrews

Thanks.

Operator

next from with have Mark We of question the Murphy our line coming JPMorgan.

Your open. line is

Mark Murphy

Tom. to such good that’s your would base. like firmer Is Yes, inflation portion for year How oil commodity benefit that gas, assume services? higher this strong end you growth higher that’s where as is on I’m interest a customer financial thank driving safe from versus later a from year? you, your in and because the see pretty it pipeline ago footing of or much markets prices wondering, some rates, that of signaling just and

Tom Siebel

or something, $X is but right. what Well, remember or I year couldn’t away, oil better where a know I ago, It have than and oil roughly I $XX and like like today, was gas, gas ago, something about a prices know half didn’t a a you a barrel you were navigating it that. year give

to barrel money negative oil seem the So you get assure and at than at you $XX, do is I a $XX it’s to banks to business can printing of world. the – be around all that, it easy with know

some we do than expect segments. segments And healthier for those have us. So they the outsized look time in in growth see to

in way, and health. seen We’re mean, large not that us going to the been a And organization it, be a precision see air. you’re where put around that’s not in investing of hiring Telco, investment the some this expect I you’ve in defense we’ll intelligence. in now big you’d manifested in to we’ve large expect put to Telco, we’re a year snapping together

yes, and industries today those business. look banking further very gas we oil be penetrating And the and will So healthy. businesses

Mark Murphy

Okay.

on As wasn’t the or are in dollar me a extension, to for amount? show, reflected whether is is follow-up, metrics? manifest seeing able clear would comment the QX that that the I the that we’re QX in And guess, partnership something RPO I regarding you to balance that

Tom Siebel

and it tell sounds it by let’s We I bringing size say didn’t that could take of bread if in all one. in in RPO. QX, and a of of It’s you, in I shy, down. contribute to deals, terms of you it but the it’s $X total and RPO. the deals And our the bigger size like deals, of box, our some That’s of the closed of million, the a contract size what number it’s than good value average say the it’s divide

Mark Murphy

Yes.

grew just Okay. I And the one final David, on CRPO, then well, one, think it sequentially.

could I bit you piece grew a I instance, think CRPO faster? that longer RPO we a perspective term in for year-over-year, of that do maybe the be quarters there think prior – to commenting can X% there? the portions. it how road? is current see it faster was But kind on do A growing any analyst number couple the down you think or that drive little of XX% look

David Barter

Yes. the answer. This short is

Mark Murphy

Thank you.

Operator

line We Canaccord. with have Hynes our next question coming from of David the

line open. Your is

David Hynes

reimagine kind most you you and you you the most. home vision AI? just highlighted with I’m what’s market? Tom, the hanging of see for that is much. the that CRM very do fruit in the run to low like, thanks Is Hey, going curious, it excites CRM where opportunity

Tom Siebel

sure it. me not excited most exceedingly the I’m it’s but excited really Well, I’m about

our biggest market. not be Okay. going to It’s

health, of large gas, market, CRM, enabled thing about CRM That being oil all have you. basically what maybe Our I enabled you $XX billion billion it today. think all said next banking, biggest the that worth they market guys, commercial when is they going the in okay. okay, of to hypothetical and no data, an let’s so is Boeing, transportation, a have The and to of CRM be used think these company, travel, generation data okay, combine $XX precision are a take enterprise idea aircraft, all Boeing AI of addressable is with sorts today’s an has manufacturing CRM exogenous sell sell take writ AI AI system, CRM what

force system, same. of they kind but a or Siebel have the probably or something, CRM sales Okay, all they’re

just the are the the it it JPMorgan guys Okay, have where in back. they you whatever it to the systems that they all else, sales forecasts needed get put sales sales like get the and put the to and everyplace sales and manager have the they just in off guys that Chase the guys and put there systems

Okay.

already kind get, are put be And so sales garbage lines way. work of of it garbage of of Well, XX,XXX system. of XXX salespeople your all they these in supposed that have you really at forecasting is which to some each of think and records that putting forecast. And doesn’t you your XXX,XXX Merck, lines so in

in is data we let’s more the if think Dave of And combining he’s useless. Airlines, think aren’t got now this imagine is deals jet data talking magnitude system Xx but social of peace. the at of NLP And rates, information supposed are not country the Boeing’s of growth about people really companies, with Boeing. market about analyst customers, he’s is Airlines, Bank Calhoun that’s at Southwest about to them data the however, CRM Lufthansa, at and prices, Now, order that prices this, with reports, Lufthansa, American equity these almost that Southwest because about the about a hypothetical, just got, all sales in information at prices, we’re close Airlines, country at, put contacts the are in fuel more at on the of their the that media, it’s about America opportunities think, equity commodity GDP okay, travel about war, travel, passenger exogenous NLP on prices amount,

quarter? That a and this from order is the going layoff time, zero, just reason Okay, close like to XX% be for would goes XXX airlines down time okay. like if do is Airlines media, what’s Southwest probability XX% announcing and Max, this NLP to that stock this for XXX whatever their a

forecast see Calhoun, close? So at the is news is prices, how prices, we the market. are jet take data going the to at Gamble, precise they only of Calhoun XXs is Dave tell Gamble stock revenue, time only needs need actually to all amount to something Okay, right about very reports, reports, function rates, they prices, of order talk that signals commodity fuel and Procter realize models the learning country meet at demand the what going growth right okay, because to country that need revenue to so stuff war, the their you products, aside of in the can XXXXs can the pace right. – from deals machine GDP they because and Procter revenue, make let’s and like not set forecast Analysts those not build to

a have these in – of demonstrated can can order AI more models, we build we literally we build are So that okay, precise. now magnitude that

for of most be customer, that on you. we okay. have the customer okay, in for market offer of revenue levels hate research churn vendors, manufacturing, their us the for what And forecasting, health an the these products products an satisfaction year going will customer have this excellent levels these on are banking, to for done in industry aerospace, telling CRM CRM going what’s forecasting, relates And people today. I’m well today. extensive As customer releasing it product, care, see that excellent to you’re perceived okay, And you,

as the that’s key CRM of a we’re in so it’s And what’s that levels to of leadership the I customer the market. an believe are intersection position people segment to here. CRM, last hired uniform, some We’ve AI And and in billion establish very going dissatisfaction you AI, $XX market. related

us. exciting unfamiliar market, entirely that some soon seeing that as And other I’m be going you it’s joining not a with. key some or You’ll to be is are know, people very people announcements market

to there. fun going some And have so we’re

bet they’re companies this. going we’re a no survive. people we against using in That toehold is put things? think establish I in for existing they’re way segment? how are interested to continue to Don’t companies, significant of AI CRM business, Will great to that where going these out

David Hynes

yes. Yes,

that like Okay, versus year differs today of versus kind it’s it helpful. direct And then a maybe business maybe what you could ago? mix and partner led speak looked the of to how

Tom Siebel

How add? you so… will shift do Okay, we partner

David Barter

assisted I guess. Partner

Tom Siebel

partner is right. Well, think I assisted, Yes.

a we’re and And Okay. into have to really scale. would going Microsoft, we’re I’m market massive kicking It’s just really David. question, say Hughes work we not and great with of now to certain kind any. I Baker we okay, go at with gear.

FIS. Okay with

Okay, mean, with in larger ever it Singtel it than our think and today go to Asia. Partner market mean, I Infor assisted. is and I right. think has we’re been. to ready probably I pipeline I

I this think say that again. it off is never the record. I

I by it’s XX%. off something. year, $X.X for pipeline think But like probably Okay, it’s our billion this or

Microsoft I’m so speculate Baker give but that something and XX% would or are those dry. I my right. that think about the pretty it it’s me I that, in Okay, would I Hughes it’s some say, be I like – with deal of front slack to home. bring transactions, or on any me, either a engaged partner, Actually, numbers one, of a would guys. have we don’t

David Hynes

Yes, Thank you. data okay. the That’s helpful point.

Tom Siebel

rely we Can I partner equation. am an important for of the partner really is the us? close This on so to the ecosystem not deal part sure.

We to have it are going ourselves. to close

telling I’m or the good Microsoft, you. they’re Judson happens Satya Okay, guys. to pretty at partner but assistance, partner if be Althoff your going to, there’s sales

Operator

Thank you.

from coming of We have Sanjay our the Singh with next Morgan line Stanley. question

open. Your line is

Sanjay Singh

like that start of the sales to time out at nicely, count go-to-market sense or taking get you environment velocity spending to what’s wanted XX customers starting I relating of [ph]? a to of up the from hiring sales the of perspective, on that to from accelerate driving to sort that, sort IPO. just think the to picked a door the wanted Thank through of question around to really execution, are better see help sales previous XX to customer this you count, come And questions. customer follow-up for up they’re which I pretty productivity

Tom Siebel

that. are IPO, we’re are we’re only one, I Sanjay, that influencing that Number that having. elephants things very two Well, seeing think, there pre you recall

Okay, group. at major accounts we’re only a

we’ve then, of mass a judicial since organization, building kind ever and middle sales market organization. organization, been Okay. enterprise sales sales a market And a,

they we this One a transaction, quarter, in they’ve believe, on of our Marketplace, okay. Asia, I did, on done did pretty Azure – place large the the Microsoft, thing to

that. up it CX.ai.com. hundreds the people And you now, doing and card XX X you okay, and I use all use, encourage And is credit Okay. to for CX.ai go – name, mean, mark of and days hundreds your address. for to are free. I guys, in put number,

group the marketplaces ecosystem, the group we’re to cancel you we’re to going middle Okay, Sanjay, group, Baker combined there dial the But in internet Microsoft, is, please at have put expand days place, do two is we’ll the major being so going Hughes, okay. doing we’re accounts of market subscription, a with expand market to I going you. XX it forget couple think put mass are years sales, so putting we and remember, enterprise AWS, number a your including to do in what things. we’re to group, please place, remember and then said we’re this partner a that and all telesales in also one or ago in and

much just in a So size of larger resulting different it’s deals. a diversity

before I as starting mean, IPO, early So the the this strategy communicated early we were the as that well we execute said going XXXX. in I to

and it executing work. it We’re

Sanjay Singh

the we’ve that follow-up is broader the some quarters for including talked of though, a at CX is, topic and the environment it’s Tom sense, and about around landscape, total sort competitive makes then that other look the which question the It kind a of like of And everybody’s couple it data vendors doing of is multiple like of parts that a in or view health. space stuck learning, like, weed. of machine few multiple own lot proof your seems either concept customers workflows and parts of the on pro science, know I are a now,

of they back where approach the question with end you do customers think? dance where the that come Going like in of to journey sort we to of do that end together a are sort platform to sort fits CX, that of

Tom Siebel

they systems build themselves. themselves. I with build mean, own systems everybody’s And build They all How that relation Okay. build do. systems tried Stanley? to okay. themselves. They themselves. tried tried CRM IT things try people the what those to They that’s ERP their going database for Morgan build they to themselves. Well, to tried, to try And worked think of to I

crashing Okay, systems how comes Chase down platform, CRM own build around to I system, I that out and of of their that was JPMorgan themselves crash mean, all AI their it tried would them. own build tried to today to after just system. okay, they Chase? tried they there, build their JPMorgan work they trying to All those is ERP own build for came

this gone works. So and Jamie they know from way their many AI millions I own hundreds in, spend, and everybody be to some they begin will will dollars billions how a year it don’t a of trying vendor. build new will platform the CEO of in I and then to will That’s buy commercial fire

customers, use, our this it bigger United Air be Koch and one would well. Industries, every ENGIE, themselves, virtually Army of So, Futures Command, out so to a build Shell, States work that GE have Force, could tried

couple and has and seen this so burn times vendor. And go it’s over have them. to try for from over They and a we just is and reliable crash industry to themselves They have that buy phase the a a this it the it in and just through. everybody over phase got

Sanjay Singh

I appreciate you. the background. Thank

Operator

Thank you.

of with Sandler. next Ramnani from line the have Arvind We coming our Piper question

open. is line Your

Arvind Ramnani

have applications? couple using you overall about been Can Hi, but your Tom. questions a talk Most questions. across industries my I same question of of asked, of have base applicability different or did different product. I the code about had a

Tom Siebel

Yes, and I before, talked but it. question. asking Arvind, it’s about I you good this I do And really appreciate really have you mean, a

sarcastic across And is family for So, a for I Industries, optimization And think of Intelligence maintenance Command, have predictive Shell adjudication AI-based counterintuitive supply industries. oil identification for different all the AI for at clearance or we aerospace. services, for Koch Space XX of deliver we you offshore for that for products we chain Agency, manufacturing, of whether gas, have today for products rigs, the do. five about different object which financial we Defense doing the what’s are

applications, these Shell, predictive management, Now, whether separate cash same of data, with user Bank APIs to oil are those separate separate rigs base. at interfaces, separate offshore of products that XX% but the or maintenance of it’s code aggregate the America, are running codes all documentation, for across it’s

broken this driven the so And we of and And this counterintuitive. that’s that. model have really beauty is code architecture the on

everything Okay, able do we so – we reusable. are is to

the so mean, And people, of know I property applications. the and broken us, using invention, AI idea architecture code, okay, this it all patents intellectual to have have a what IoT for is that’s the been enterprise we we awarded our model-driven

going to the machine customer problem, interface anti-money for the So, oil Then interface from maybe offshore the all XX% on laundering models APIs that the they X% pressure that I these user to trivial. it’s expression, code. sources, compressors data agree maintenance changes but that for agree are trivial a of the installation but to the quite the from The models. of we the the differs we hopefully it learning non-trivial, cost, And are hope customer is we are but then learning from differs user data machine use predictive most the can part okay. from what say source low rigs, constitute

Arvind Ramnani

$XX year really bit questions in adding was added good fiscal wanted a answered fiscal just midpoint of before you look of million are I have you guidance, in I at which little million. And couple like then, know pandemic but the you frame a $XX ‘XX. the maybe to ‘XX, revenue I And when hit, At guide, a differently. Terrific. the on it

more also it some seems has you you from like $XX some you million. delays of delays bit million kind of boost but add conservatism, that than last experienced fair the year have should revenue guidance because pent-up So, adding, that and like $XX have demand the

get maybe? sense So, a I of your just conservative guide wanted how to

Tom Siebel

day Well, of little hope will and I bit was Arvind, I credible. you end and know people I at that the am the credible a that that me believe

we beat do and to meet So we and And exceed, want are focusing on and are is exceed. exceed, being we – credible. beat what

expected we that of companies are I enterprise think software are don’t the XX% I or growth what’s the middle So, how know – in growing, something? application rate many

David Barter

XX%.

Tom Siebel

we many are compound out, not stuff check annual XX%. don’t XX% software this rates, suspect I but know I the to would growing growth I mean, I enterprise top companies be deck, decile. – how little assure the to and higher. at move really move improve can that in in in suspect it top the now would hopefully, And year. top it’s I we year but this right intend And the come a up next decile back

Arvind Ramnani

you. Terrific. Thank

Operator

JMP coming from the line We next have Pat our question of with Group. Walravens

line is Your open.

Pat Walravens

and you congratulations on Thank quarter. Great. the

So, are Tom, just for you oil of Ex your this top year, for you gas, strategic services, what Machina, tell CRM, can us have and imperatives? coming three got financial this here, sort

Tom Siebel

It’s really good question. a

from globally. scale this I we Manager think this will have will business some that we some there some and new leadership who making this have the have is and in Pat this seen Federal, Cardon, Ed saw this be to you we market are with in you the the of of of our that And strategic on adding sure Cardon, is senior in seen CX imperatives announcements we a CX place Federal and announcements joining been focused coming there – of months. see into The area are is Snabe, General very the the a is Co-CEO can company number expect is last the you’ve to is going Jim we agree have And a you of that And Chairman number General can number of there board. bringing have And rapidly announcements really you see I we the significant. the – and SAP rich X The that of are you I bigger think growing. leadership address works. will foundation mean, of technology. really, technology it with been I in think than have we and you much –

leaving in customers. satisfied our of string We wake – we have highly us are a

wheels good we pretty doing and are of building And is bearings mean, very brand else we equity. I this vehicles, job competitive and dynamics market are at selling ball vehicles carburetors, a The basically, okay. are think and selling I not significant. everybody okay. we are selling

much dynamics. not competitive is in terms the there on so And going of

have to in just to that Japan, And sure leadership in scale etcetera. we Europe, make federal manufacturing, so seasoned we healthcare, business need in in place the this aerospace, telecommunications, Asia-Pacific, systems, in in

Glassdoor I go consistent and and think the continue. you think you focus on I That if has look been on game if its that this human capital. will for human are years many interested, is and it capital

Pat Walravens

you. Thank Great.

Operator

will turn back this at I remarks. Thank time. Siebel you. to the further over for no questions There are call closing now Tom

Tom Siebel

appreciate in better Okay. company we company, busy when day, Ladies us. of has am and interest. whether And whether seize June market XXXX, know more day of – are has history when been of market to there has no in time for now this your has to – your I you been this or positioned, been market that very the taking okay the better opportunity. check been has company that We opportunity on out there report been it positioned you this the thank is we gentlemen, to pleased

but out a see build So, tell that there we probability is the it with approach And pretty it’s can I company turns when we this will X, years, you, some approach substantial we as great X X, how we I next enthusiasm. here. think over, might

So, Thank for interest. questions. for and And a thank thank your you all day. you you your wish your great you for support we

Operator

conference This for you concludes participating. call. today’s Thank

now You may disconnect.

C3.ai (AI) 3 Jun 212021 Q4 Earnings call transcript