Analysts Lower Price Target After Earnings; Company Expands US Air Force Rapid Sustainment Office Collaboration

  • Inc AI has expanded the United States Air Force (USAF) Rapid Sustainment Office (RSO) agreement.
  • The arrangement expanded the C3 AI Suite and C3 AI Readiness deployment to support predictive analytics and aircraft maintenance across the Air Force and enhance RSO's overall AI and machine learning capabilities.
  • RSO will expand C3 AI's technology to an additional 20+ USAF aircraft platforms over the next nine months under the arrangement. C3 AI and RSO began on-boarding aircraft platforms in May 2021, ahead of full deployment in January 2022.
  • Yesterday reported fourth-quarter FY21 revenue growth of 26% year-on-year to $52.3 million, beating the analyst consensus of $50.6 million.
  • Revenues from Subscription rose 17% Y/Y to $43.1 million, Professional services increased 89% Y/Y to $9.2 million.
  • Total enterprise AI customer count rose 82% Y/Y to 89.
  • Non-GAAP gross margin remained flat at 78%, while the non-GAAP operating loss reduced 43.5% Y/Y to $15.4 million.
  • The non-GAAP RPO (Remaining Performance Obligations) rose 40% Y/Y to $345.1 million.
  • EPS loss of $(0.24) beat the analyst consensus of $(0.26) loss.
  • The company used $37.6 million in operating cash flow and held $115.4 million in cash and equivalents.
  • Guidance: C3 sees Q1 revenue of $50 million - $52 million.
  • Analyst Updates: Wedbush maintained an Outperform rating while lowering the price target from $175 to $100, still signifying a 46% upside.
  • Piper Sandler maintains an overweight rating but lowers the price target to $98. The analyst said that the stock would be under pressure in the near term. See more Analyst ratings here.
  • Sam Alkharrat became the company President and Chief Revenue Officer (CRO).
  • Price action: AI shares traded lower by 12.7% at $66.46 on the last check Thursday.
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