C3 AI reported a non-GAAP loss per share of USD 0.13 in Q4 FY2023, better than analysts' estimated loss per share of 0.17 and 0.21 recorded over the same period last year. Net loss for the quarter worsened by 11.2% YoY to USD 65.0 million from USD 58.4 million in Q4 FY2022, primarily due to an increase in operating expenses (up 8.3% YoY).

It generated a gross profit of USD 47.5 million (down 13.6% YoY) in Q4 FY2023, translating to a gross profit margin of 65.6% (down 10.4 percentage points YoY). This was attributable to higher Subscription cost of sales, which nearly doubled to USD 23.9 million during the quarter.

Total revenue improved marginally to USD 72.4 million (up 0.1% YoY), on the back of higher Subscription revenue of USD 56.9 million (up 1.0% YoY), partly offset by lower Professional fees, which declined 2.9% YoY to USD 15.5 million.

For the full year of FY2023, C3 AI reported total revenue of USD 266.8 million (up 5.6% YoY) and a net loss of USD 268.8 million, compared to USD 192.1 million in the prior year.

In terms of guidance, the company projects to generate total revenue between USD 70.0 million–72.5 million (implying a growth rate of 7.2%–11.0% YoY) and non-GAAP loss from operations between USD 25.0 million–30 million (vs loss of USD 14.5 million in Q1 FY2023) in Q1 FY2024. For the full year of FY2024, it estimates to generate total revenue between USD 295.0 million–320.0 million (implying a growth rate of 10.6%–19.9% YoY) and non-GAAP loss from operations between USD 50.0 million–75.0 million (vs loss of USD 68.1 in FY2023).