Artificial intelligence is a rapidly developing technology and is gradually making its way into various types of processes in businesses. This company is making its way in a specific sector called enterprise artificial intelligence. The main goal is to sell ready-made and customizable AI applications to customers who want to streamline the performance of their business operations. They have already gained interest from global companies.

An AI-focused company with a lot of room to grow.

According to some opinions, artificial intelligence is still in its infancy and is estimated to be a driver of productivity for companies in the future. Predictions suggest that by 2030, up to 70% of companies will implement AI, adding approximately $13 trillion to the global economy. This is a huge opportunity for a company like C3.ai and it is already leading the industry.

A short definition of $AI+0.9%

C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, Asia Pacific and internationally. It provides the C3 AI Application Platform, an application development and runtime environment that enables customers to design, develop and deploy enterprise AI applications. C3 AI Ex Machina for analytics-ready data, C3 AI CRM, an industry-specific customer relationship management solution, and C3 AI Data Vision, which visualizes, understands and leverages relationships between data entities. It also offers C3 AI applications, including C3 AI Inventory Optimization - a solution for optimizing inventory levels of raw materials, work-in-process and finished goods. C3 AI Supply Network Risk, which provides visibility into disruption risks during supply chain operations, and C3 AI Customer Churn Management, which enables account and relationship managers to monitor customer satisfaction as well as prevent customer churn with AI-based, human-interpretable predictions and alerts, and much more...

The largest technology companies in the world have partnered with C3.ai, including Amazon, Microsoft and Google parent company Alphabet, validating the quality of what the company is building. It's one reason why investors should consider owning C3.ai stock, especially since its price is attractive right now, having fallen 90% from its all-time high.

Source: Yahoo.Finance

C3.ai just reported its financial results for the first quarter of fiscal year 2023 (ended July 31), and during that period it grew its customer base 27% year-over-year to 228 companies. These companies operate in at least 11 different industries, from technology to financial manufacturing, highlighting the diversity of C3.ai's AI applications.

As a prime example, C3.ai 's technology is incredibly popular with oil and gas giants looking for advanced AI to help them run cleaner operations. C3.ai helps them reduce carbon emissions and predict critical equipment failures to prevent catastrophic environmental disasters. Global oil giant Shell monitors more than 13,000 pieces of equipment through C3.ai with 1.2 million daily data streams.

Technology leaders Amazon, Microsoft and Alphabet are partnering with C3.ai to build on their extensive cloud services segments. With the rapid shift to online operations in many businesses, the cloud has become a critical enabler, and there is a race among providers to provide the most effective solutions. Specifically with Google Cloud, one of C3.ai's roles is to help small businesses adopt AI faster and extract maximum value from their AI applications.

The collaboration with Microsoft also continues to expand, as they signed 16 new sales in the first quarter on top of an existing $200 million deal.

Financial metrics

• Share price drop of 15% following the release of quarterly results. Investors were disappointed with the company's goals and guidance for the full fiscal year 2023, estimating growth of only 7%.
• Despite this, the company managed to increase its quarterly revenue by 25% year-on-year to $65 million.
• Transitioning from subscription-based pricing to a consumption-based model.
• The company is not yet profitable as they are investing heavily in expansion, which could pay off in the long run.
• Loss for 2022 of approximately $192 million.
• They have capital of over 900 million, so they can afford to invest in expansion for now.

Source.

As we can see the median price of the 8 analysts is at $16, LOW $13 and HIGH $25 for the next year. 1 of them has BUY status, 6 hold HOLD status and 1 with SELL status.

Source.

We can see some interesting data and changes in the fund portfolios associated with this company. 5 of them were raising stake and on the other hand 5 of them were selling. What is interesting is the fundraising of Fidelity and BlackRock.

https://www.youtube.com/watch?v=LOdnpnd6VgY&ab_channel=PalantirVision

In this video you can see the analysis and views on C3.AI compared to Palantir.

As we can see the company certainly has an interesting and promising business model that is trusted by globally known technology companies. The company is still loss making and investing a lot in expansion, which may not be to the liking of investors. The room for growth here is certainly interesting as the industry is estimated to be in the hundreds of billions of dollars and the stock price is about -90% of ATH, which is also interesting...However, make your own opinion and don't take this as investment advice, just an analysis from a retail investor.