C3.ai (AI) Oppenheimer 27th Virtual Annual Technology, Internet & Communications Conference summary

Company history and core competencies

• Over four decades of experience in enterprise application software, including inventing the CRM market and building a dominant market share before selling to Oracle.

• Early focus on cloud computing, IoT, and big data, starting work on enterprise AI applications in 2008, well before the mainstream adoption of these technologies.

• Invested $2–3 billion over 12–15 years to build a comprehensive AI software stack and 90 turnkey enterprise AI applications across multiple industries.

• Deployed large-scale AI applications for major corporations and government agencies, establishing a leadership position in enterprise AI.

Market positioning and business model

• Transitioned from subscription-based to consumption-based pricing, initially impacting growth but now driving accelerating revenue increases.

• Reported sequential revenue growth over the last five quarters, with the most recent quarter showing 20% year-over-year growth.

• Forecasts 23% year-over-year revenue growth for the current fiscal year, with a focus on the applications layer of AI rather than infrastructure or silicon.

• Well-capitalized with approximately $750 million in the bank, enabling continued investment in product and market expansion.

AI market trends and competitive landscape

• Sees a shift in value from infrastructure and silicon to applications, predicting that 80% of long-term value in AI will reside in applications.

• Highlights the complexity of building enterprise AI applications and the preference for turnkey solutions over custom development.

• Notes that many competitors are retrofitting legacy software with AI, but claims a significant lead in customer satisfaction and application breadth.

• Identifies Generative AI as a transformative force, potentially doubling the addressable market for enterprise AI to a trillion-dollar opportunity.