C3.ai Inc (AI) 2022 Q4 法說會逐字稿

Good afternoon, and thank you for attending today's C3 AI earnings call for the fourth quarter of the fiscal year 2022. My name is Jason, and I will be the moderator for today's call. (Operator Instructions) I would now like to pass the conference over to our host, Paul Phillips, Vice President of Investor Relations.

下午好，感謝各位參加今天C3 AI 2022財年第四季財報電話會議。我是Jason，將擔任今天會議的主持人。 （操作說明）現在我將會議交給我們的主持人，投資人關係副總裁Paul Phillips。

Good afternoon, and welcome to C3 AI's Earnings Call for the Fourth Quarter of Fiscal Year 2022, which ended April 30, 2022. This is Paul Phillips, VP of Investor Relations. With me on the call today are Tom Siebel, Chairman and CEO; and Juho Parkkinen, Chief Financial Officer.

下午好，歡迎參加C3 AI 2022財年第四季（截至2022年4月30日）財報電話會議。我是投資人關係副總裁保羅‧菲利普斯。今天與我一同參加電話會議的還有董事長兼執行長湯姆·西貝爾和財務長尤霍·帕基寧。

After the market closed today, we issued a press release with details regarding our fourth quarter and full year results as well as a supplement to our results both of which can be accessed on the Investor Relations section of our website at ir.c3.ai. This call is being webcast, and a replay will be available on our IR website following the conclusion of the call.

今天股市收盤後，我們發布了新聞稿，詳細介紹了我們第四季度和全年業績，以及業績補充報告。這兩份文件均可在我們網站 ir.c3.ai 的投資者關係頁面查閱。本次電話會議正在進行網路直播，會議結束後，您可以在我們的投資者關係網站上觀看回放。

During today's call, we will make statements relating to our business that may be considered forward-looking under federal securities laws. These statements reflect our views only as of today and should not be considered representative of our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook.

在今天的電話會議中，我們將就公司業務發表一些可能被視為聯邦證券法意義上的前瞻性聲明。這些聲明僅反映我們截至今日的觀點，不應被視為代表我們此後任何日期的觀點。我們不承擔更新任何前瞻性聲明或展望的義務。

These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For a further discussion of the material risks and other important factors that could affect our actual results, please refer to our filings with the SEC.

這些聲明受多種風險和不確定因素的影響，可能導致實際結果與預期有重大差異。有關重大風險和其他可能影響我們實際業績的重要因素的進一步討論，請參閱我們向美國證券交易委員會提交的文件。

Also during the course of today's call, we will refer to certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our press release. Finally, at times in our comments, in response to your questions, we may discuss metrics that are incremental to our usual presentation to provide greater insights into the dynamics of our business or our quarterly results. Please be advised that we may or may not continue to provide this additional detail in the future.

此外，在今天的電話會議中，我們將提及一些非GAAP財務指標。 GAAP指標與非GAAP指標的調整表已包含在我們的新聞稿中。最後，在回答您的問題時，我們有時會討論一些與通常表述不同的指標，以便更深入地了解我們業務的動態或季度業績。請注意，我們未來是否會繼續提供這些額外資訊尚不確定。

With that, let me turn the call over to Tom for his prepared remarks. Tom?

那麼，現在我把電話交給湯姆，讓他發表事先準備好的演講。湯姆？

Thank you, Paul, and good afternoon, everyone. Thank you for joining us. I'm pleased to -- I'm here with Juho Parkkinen, our Chief Financial Officer. And I am pleased to share with you our results for the fourth quarter and for the entire fiscal year of 2022. Bottom line, it was a great quarter.

謝謝保羅，大家下午好。感謝各位的參與。我很高興——我今天和我們的財務長尤霍·帕基寧一起——向大家介紹我們2022財年第四季和全年的業績。總而言之，這是一個非常棒的季度。

We finished the quarter with $72.3 million in revenue, up 38% year-over-year, exceeding our guidance and exceeding, I believe, all analysts' expectations. And I haven't really looked lately at the matrix of high-growth software companies, but I expect that would be in the top decile of growth rates.

本季營收達到7,230萬美元，年增38%，超乎預期，我相信也超越了所有分析師的預期。我最近沒有特別關注高成長軟體公司的排名，但我預計我們的成長率應該可以排進前10%。

Subscription revenue was $56.3 million, up 31% year-over-year. Our non-GAAP gross profit was $58.5 million, a 43% improvement over the previous year. We ended Q4 of fiscal year '22 with GAAP RPO of $477.4 million, a 62% increase year-over-year. Non-GAAP RPO is $516 million, a 50% increase year-over-year. We continue to sustain healthy non-GAAP gross margins of 81%.

訂閱收入為 5,630 萬美元，較去年同期成長 31%。非 GAAP 毛利為 5,850 萬美元，較上年同期成長 43%。 2022 財年第四季末，GAAP 營業利潤為 4.774 億美元，較去年同期成長 62%。非 GAAP 營業利潤為 5.16 億美元，較去年同期成長 50%。我們繼續保持 81% 的健康非 GAAP 毛利率。

Our free cash flow for the quarter was a negative $14.8 million, a 46% improvement year-over-year. We finished the quarter with $992 million in cash and cash equivalents. So we have roughly $1 billion at the bank -- in the bank. And at this rate, it will take quite a few quarters to deplete our cash reserves.

本季我們的自由現金流為負1480萬美元，年增46%。季度末，我們持有現金及現金等價物9.92億美元。因此，我們銀行帳戶裡大約有10億美元。照此速度，我們的現金儲備還需要幾個季度才能耗盡。

Looking at the results for the year, they were quite good, exceeding our guidance and exceeding analyst expectations, finishing the year at $252.7 million in revenue, a 30% growth rate over the previous year. Subscription revenue was $206.9 million, a 31% increase year-over-year, and our non-GAAP gross margin increased a little over 5 points to $81.7 million.

從全年業績來看，表現相當出色，超越了我們自身的預期和分析師的預期，全年營收達到2.527億美元，年增30%。訂閱營收為2.069億美元，年增31%，非GAAP毛利率略為成長5個百分點，達8,170萬美元。

Now I want to talk a little bit about the addressable market opportunity, which is really quite staggering. Enterprise AI software is predicted to be almost a $600 billion market by 2025. We spent the better part of a decade building what we call -- actually more than a decade now, building what we call the C3 AI Suite. That is a software platform that provides all of the services necessary and sufficient to design, develop, provision, operate even in the most complex enterprise applications.

現在我想談談潛在的市場機遇，這確實非常驚人。根據預測，到2025年，企業級人工智慧軟體市場規模將接近6,000億美元。我們花了近十年時間——實際上已經超過十年了——打造了我們稱為C3 AI Suite的軟體平台。該平台提供設計、開發、部署和運行最複雜企業應用程式所需的所有服務。

And on top of that, we have to develop and deliver to the market now 42 enterprise AI applications that meet the needs of manufacturing, utilities, oil and gas, chemicals, aerospace, state and local government and other industries. Now enterprise AI is a very complex market. And it has a lot of players who do a lot of things, and it is confusing to investors, it is confusing to customers, and it is confusing to the market at large. Because we have all of these kinds of bright, shiny objects out there that are provided by hyperscalers and are available as -- some are available as open source solutions. And they do things like provide machine learning libraries or virtualization or data persistence or machine learning pipelines or whatever it may be. And many of these are great products. Many of these are great companies.

除此之外，我們現在還必須開發並向市場交付 42 款企業級人工智慧應用，以滿足製造業、公用事業、石油天然氣、化學、航空航太、州和地方政府以及其他行業的需求。企業級人工智慧市場非常複雜，參與者眾多，業務範圍廣泛，讓投資者、客戶甚至整個市場都感到困惑。因為市面上充斥著各種各樣的「閃亮」產品，它們由超大規模資料中心提供商提供，其中一些以開源解決方案的形式存在。這些產品提供機器學習庫、虛擬化、資料持久化、機器學習管道等等。其中許多產品都很優秀，許多公司也很出色。

But again, this is really very confusing to investors, to customers and the market acquired. And C3 AI is frequently lumped into this category. So I want to take a minute and talk about how we fit into enterprise AI because it's quite different from all this. And it's quite different from the way that these companies fit into the market.

但話說回來，這確實會讓投資人、客戶和目標市場感到非常困惑。 C3 AI 也常被歸入這一類。所以我想花點時間談談我們在企業級人工智慧領域的定位，因為它與上述所有情況都截然不同。它也與這些公司在市場上的定位方式大相逕庭。

These organizations generally make piece meal components that do interesting things like platform independent data persistence, AutoML or whatever. Now the way that we think about enterprise AI applications is the way the market has thought about enterprise application software for the last few decades. Where we first began developing enterprise application software in the early '80s at companies like Oracle and SAP and later PeopleSoft and Siebel Systems and others, we basically built these applications on top of relational database systems.

這些組織通常會開發一些零散的元件，實現諸如平台無關的資料持久化、自動化機器學習（AutoML）等有趣的功能。現今，我們對企業級人工智慧應用的理解，與過去幾十年來市場對企業應用軟體的理解如出一轍。早在上世紀80年代初，像Oracle和SAP這樣的公司就開始開發企業應用軟體，後來又出現了PeopleSoft和Siebel Systems等公司，當時我們基本上都是基於關聯式資料庫系統來建立這些應用的。

And on top of relational databases, we built a set of development tools, we're building teams and reports and forms and whatnot. And we use those to build families of applications that solve business problems like CRM and ERP and manufacturing automation, supply chain management and what have you. A few decades later, this has grown to be roughly a $500 billion software market, and everybody understands it. And these applications are used to solve very real world business problems.

在關係型資料庫的基礎上，我們建立了一套開發工具，包括團隊協作、報表、表單等等。我們利用這些工具開發一系列應用程序，用於解決客戶關係管理 (CRM)、企業資源規劃 (ERP)、製造自動化、供應鏈管理等各種業務問題。幾十年後，這已經發展成為一個價值約 5000 億美元的軟體市場，而且人人都了解它。這些應用程式正被用於解決現實世界中的各種業務難題。

They enable companies, for example, to report their inventory balances and their supply chain. A supply chain, say, for -- at Boeing for a Boeing 777 might be 1 million components in a supply chain that stretches from South Carolina to Shenzhen and consists of resistors and transformers and flat actuators and propulsion devices and flight management systems. And they want to be able to report every 30 days or 90 days or 365 days exactly what was the inventory of each item.

例如，這些系統使公司能夠報告其庫存餘額和供應鏈狀況。以波音公司為例，其波音777的供應鏈可能包含100萬個零件，從南卡羅來納州延伸到深圳，涵蓋電阻器、變壓器、平面致動器、推進裝置和飛行管理系統等。他們希望能夠每30天、90天或365天準確地報告每個零件的庫存。

And by the time you add the Boeing 777 to the 787 to the 767 to the 757 and the Boeing 737 or the Boeing 707, there's a pretty big parts inventory that you need to be able to report accurately. Or you might be able to -- you might want to report on what your customer churn was 60 days ago or 90 days ago. Okay. If you're a bank, you might have to report on how much fraud took place, how much anti-money laundering took place 90 days ago or 180 days ago. And if you don't do this correctly, as CEO, you get to rewrite your resume, you get to pay billions of dollars in fines. And you might go to jail. So it's really quite important to get this right.

當你把波音777、787、767、757、波音737或波音707都算進去之後，你會發現零件庫存非常龐大，你需要能夠準確地進行報告。或者，你可能還需要報告60天前或90天前的客戶流失率。如果你是一家銀行，你可能需要報告90天前或180天前發生的詐欺案件數量以及反洗錢措施的實施情況。如果你沒有正確處理這些訊息，身為CEO，你可能要重寫履歷，支付數十億美元的罰款，甚至可能錮鐺入獄。所以，確保這些資訊準確無誤至關重要。

You might want to report on what your customer churn rates were, for example, at Verizon. And so this enterprise software is on a big market that you know of pretty well as ERP and CRM and supply chain management and what have you. I was there when we started it. And today, it's roughly $0.5 trillion business.

例如，你可能需要報告Verizon的客戶流失率。企業軟體市場非常龐大，你對ERP、CRM、供應鏈管理等等都很熟悉。我參與了它的創立。如今，這個市場規模約有5兆美元。

Now these applications are inherently descriptive in nature. They provide a company a perfect 20/20 hindsight into what happened 3 months ago, 6 months ago, a year ago. Now at C3 AI, we spent a decade at almost $1 billion building a software technology stack that consists of a platform-as-a-service, an application development platform and low-code development tools and now including 42 turnkey enterprise applications. And these with C3 AI, we make these existing enterprise applications predictive in nature.

這些應用本質上都是描述性的。它們能讓公司完美地回顧過去三個月、六個月甚至一年前發生的事情。而C3 AI耗時十年，投入近10億美元，建構了一套軟體技術棧，其中包括平台即服務（PaaS）、應用開發平台和低程式碼開發工具，目前已包含42個開箱即用的企業級應用程式。借助C3 AI，我們讓這些現有的企業級應用程式具備了預測能力。

Okay. So now instead of using a database or relationary database for data storage, we're using the cloud, okay. We're using existing ERP systems and CRM systems, like SAP and Salesforce and Oracle and what have you. And we built an AI application layer that makes these applications predictive in nature so they can tell us what's going to happen in the future so that we can change the future.

好的。現在我們不再使用資料庫或關係型資料庫來儲存數據，而是使用雲端。我們使用現有的ERP系統和CRM系統，例如SAP、Salesforce、Oracle等等。我們建構了一個AI應用層，使這些應用具備預測能力，能夠告訴我們未來會發生什麼，讓我們能夠改變未來。

So rather than simply telling us how many parts we had in each inventory bin historically, a predictive AI application will tell us exactly how many parts we need in each bin, in each of the next 180 days to meet the demand function, okay. Rather than tell us how many customers left us 90 days ago or 180 days ago, these applications will now tell us which customers, by name, are going to leave us in the next 180 days so we can take action to retain them.

因此，預測性人工智慧應用不再只是告訴我們歷史上每個庫存箱裡有多少零件，而是會精確地告訴我們，為了滿足需求，未來180天內每個庫存箱裡需要多少零件。這些應用程式不再只是告訴我們90天前或180天前有多少客戶流失，而是會告訴我們哪些客戶會在未來180天內流失，以便我們採取措施挽留他們。

Rather than tell us, for example, a number of fraudulent events that we had some time ago, it will identify fraudulent events in real time so we can prevent the fraud from happening. The beauty of enterprise AI, okay, is when we apply AI to the market of enterprise applications, they become predictive in nature, okay. We can predict the future and change the future.

例如，它不會只是告訴我們之前發生過多少詐欺事件，而是能夠即時識別詐欺事件，從而幫助我們防患於未然。企業級人工智慧的妙處在於，當我們將人工智慧應用於企業應用市場時，它們就具備了預測能力。我們可以預測未來，也可以改變未來。

Now this promises to be order of a $600 billion market, not too many years down the road. I believe that if we look 2, 3, 4, 5 years out, this is a complete replacement market for everything that happened in enterprise application software in the last 3 decades. I do not believe that in 2 years or 3 years or 4 years, companies are going to be satisfied knowing what their customer churn was 90 days ago. They're going to demand to know which customers are going to leave if we don't take action.

現在看來，這個市場規模預計在不久的將來達到6,000億美元。我相信，如果我們展望未來2、3、4、5年，它將徹底取代過去30年企業應用軟體領域發生的一切。我不認為在2年、3年或4年後，企業會滿足於了解90天前的顧客流失率。他們會要求知道，如果我們不採取行動，哪些客戶會離開。

Rather than know what our nondeployment rate was for tractors, aircraft, automobiles, they're going to want to have predictive maintenance applications that tell them which machines are going to fail in advance so they can fix the devices before they fail and have lower failure rates. That's the big deal. That's what enterprise AI is all about.

他們不再需要知道拖拉機、飛機、汽車的非部署率，而是需要預測性維護應用程序，提前告知他們哪些機器即將發生故障，以便在故障發生前進行維修，從而降低故障率。這才是關鍵所在。這才是企業人工智慧的精髓。

Now when we look at the companies that many people in the market, investors and customers, okay, consider to be competitors of AI, okay, really, none of these are competitors. They're all in fact, parts. Now like C3 AI provides out of the box all of the services necessary to design, develop, provision and operate an AI application, many of our customers, in fact, all of our customers will have some experience working with AI tools. And they want to use many of these third-party products like Databricks for data virtualization or Snowflake for platform independent data persistence or Amazon SageMaker for data scientists or Python to develop machine learning tools. And C3 AI provides the orchestration layer that enables customers to easily knit these solutions together in a cohesive solution.

現在，當我們審視那些被市場上的許多人，包括投資者和客戶，視為人工智慧競爭對手的公司時，實際上，它們都不是真正的競爭對手。它們實際上都是人工智慧的組成部分。 C3 AI 提供開箱即用的所有必要服務，用於設計、開發、部署和運行人工智慧應用程式。事實上，我們所有的客戶都擁有使用人工智慧工具的經驗。他們希望使用許多第三方產品，例如用於資料虛擬化的 Databricks、用於平台無關資料持久化的 Snowflake、用於資料科學家的 Amazon SageMaker，或用於開發機器學習工具的 Python。而 C3 AI 提供的編排層使客戶能夠輕鬆地將這些解決方案整合到一個統一的整體中。

And all of these applications, both open source and proprietary, are entirely compatible with the C3 AI platform. So we need to think of all of these things, Alteryx, TensorFlow, AWS, Google Cloud, Databricks, these look more to us like partners than the competitors. Let's take a look at -- this will be an example of the Shell AI platform, where on top of Azure, they put C3 AI. And because they have investments of value in things like Kubernetes or containerization and Databricks for virtualization and TensorFlow for machine learning libraries, MATLAB, TIBCO, Alteryx, what have you, we enable them to very easily incorporate these into the C3 AI platform market.

所有這些應用程序，無論是開源的還是專有的，都與 C3 AI 平台完全相容。因此，我們需要將 Alteryx、TensorFlow、AWS、Google Cloud、Databricks 等所有這些平台視為合作夥伴，而非競爭對手。我們以 Shell AI 平台為例，他們將 C3 AI 部署在 Azure 之上。由於他們在 Kubernetes（容器化技術）、Databricks（虛擬化技術）、TensorFlow（機器學習庫）、MATLAB、TIBCO、Alteryx 等技術方面投入了大量資金，我們能夠幫助他們輕鬆地將這些技術整合到 C3 AI 平台中。

This is Shell AI, but virtually 100% of our customers, 100% are using some combination of these other products with the C3 AI platform. So it's really quite different than I think what is perceived to be.

這是殼牌人工智慧，但實際上我們100%的客戶都在使用C3人工智慧平台以及其他產品的某種組合。所以它和人們通常的認知大相逕庭。

Bottom line, all of these independent products appear to us -- that appear to some to be competitors are, in fact, partners. They're partners at Shell, at Koch Industries, at the United States Air Force, at virtually every C3 AI customer.

總而言之，在我們看來，所有這些看似獨立的產品——儘管有些人認為它們是競爭對手——實際上卻是合作夥伴。它們在殼牌、科氏工業集團、美國空軍以及幾乎所有C3人工智慧客戶那裡都是合作夥伴。

I want to address the issue of customer capture. Now our customer count has been growing quite substantially in recent years. And in the last year alone, it grew from 151 customers to 223 customers. But -- and if you look at our diversification by industry, it's really becoming increasingly diverse. Oil and gas, which is a pretty good market to be in today with oil in excess of a rough order of $100 a barrel, pretty good business. At the same time, we've seen a lot of diversification outside of oil and gas. And this is a diversification of the industry, including oil and gas. This is bookings without oil and gas. And you can see that while our -- or year-over-year, our bookings in oil and gas grew 95%. Outside of oil and gas, it grew by 116%.

我想談談客戶獲取方面的問題。近年來，我們的客戶數量成長顯著。光是去年，客戶數量就從151家成長到223家。但是，如果您看一下我們按行業劃分的多元化情況，您會發現我們的業務變得越來越多元化。石油和天然氣市場目前相當不錯，油價超過每桶100美元左右，生意興隆。同時，我們在石油和天然氣以外的領域也實現了多元化發展。這裡指的是包含石油和天然氣在內的整個產業的多元化發展。這裡指的是不含石油和天然氣的訂單量。您可以看到，雖然我們石油和天然氣行業的訂單量比去年同期增長了95%，但石油和天然氣以外的訂單量比去年同期增長了116%。

So let's talk about customer penetration. We are very certainly focused on landing new customers. That being said, when you think about many of our large global customers like Shell, Koch Industries, United States Air Force, Department of Defense, Energy, we are very much focused on penetrating these customers deeply. And if we look at this customer base that we have today, it might be 5% to 10% penetrated.

那我們來談談客戶滲透率。我們當然非常重視取得新客戶。話雖如此，想想我們眾多的大型全球客戶，例如殼牌、科氏工業集團、美國空軍、國防部和能源部，我們非常注重深入滲透這些客戶。如果我們看看目前的客戶群，滲透率可能只有5%到10%。

Now with many companies in the AI space or the SaaS software space, investors are really interested how many new logos did the vendor add in the quarter at perhaps $10,000 or $20,000 each. That's not the business we're in, okay. We are in the business of landing very large customers, okay, investing in those customers and making them very large and very successful over a period of years.

現在，許多人工智慧或SaaS軟體公司的投資者真正關心的是供應商在一個季度裡新增了多少個客戶，每個客戶可能價值1萬或2萬美元。但我們的業務並非如此。我們的業務是贏得大客戶，投資這些客戶，並在未來幾年內幫助他們發展壯大，並取得巨大成功。

Let me give you a couple of examples, okay. Shell is, I think, the fifth largest company in the world, one of the largest hydrocarbon producers in the world. Shell has standardized on C3 AI across all lines of business: upstream, downstream, midstream, integration of renewables. Today, they have over 10,000 pieces of equipment monitored by our platform. They have 23 assets in production. Now I understand the asset at Shell isn't a pump or a valve. An asset at Shell is something like Pernis. Pernis being the largest refinery in Europe, that I think processes order of 0.5 billion barrels of oil a day. An asset for Shell would be like Nigeria LN Gas, okay. So an asset of Shell might be larger than 50% of the companies in the world.

我舉幾個例子，好嗎？殼牌公司，我想，是世界第五大公司，也是全球最大的油氣生產商之一。殼牌已在其所有業務線（包括上游、下游、中游以及再生能源整合）中採用C3 AI系統。如今，他們有超過1萬台設備由我們的平台監控。他們有23個生產設施。我知道，對殼牌來說，一個「資產」並非指泵浦或閥門之類的設備。對殼牌來說，一個「資產」可能像佩爾尼斯煉油廠那樣。佩爾尼斯是歐洲最大的煉油廠，每日加工原油量約5億桶。對殼牌來說，一個「資產」也可能像奈及利亞液化天然氣公司（Nigeria LN Gas）。所以，殼牌的一項「資產」規模可能超過全球50%的公司。

And there on the road today, we have 65 assets in production this year. At our Users Group in March, Shell sit up on stage and they said they said they realized, in front of all of our customers at our User Group conference, and they realize $1 billion of economic benefit from their C3 investments last year. And they expect to realize $2 billion of economic benefit from our investors this year.

如今，我們在路上共有65個資產投入生產。在三月的用戶大會上，殼牌公司代表在台上宣布，他們去年從C3投資中獲得了10億美元的經濟效益。他們預計今年將從投資者那裡獲得20億美元的經濟效益。

Now I ask you, how many customers are you aware of from SAP, Salesforce, Siebel Systems, Oracle Corporation, whatever it might be. All 5 companies. How many customers are you aware of who have stood up on stage and said that they are getting $1 billion, $2 billion, $3 billion, $4 billion or $5 billion a year in economic benefit from that solution? I would argue that none of you have ever heard that because it's never been said.

現在我問你們，你們知道SAP、Salesforce、Siebel Systems、Oracle Corporation（或其他任何公司）有多少客戶？這五家公司，你們知道有多少客戶曾公開宣稱他們每年從這些解決方案中獲得10億美元、20億美元、30億美元、40億美元甚至50億美元的經濟效益嗎？我認為你們都沒​​聽過，因為根本沒人這麼說過。

Let's take a look at the United States Air Force Rapid Sustainment Office. This is predictive maintenance for aircraft, and the Air Force has roughly 5,000 aircraft. Here, we're doing AI-based predictive maintenance for B1 bomber, F-15, F-16, F-18, F-35 Joint Strike Fighter. And look at the speed, this project line shows the speed at which we bring these applications into production. So what is this all about? This is about integrating all of the data about missions, about weather, about fuel or kilometry from the devices on the aircraft maintenance systems to build predictive models that will predict what device is going to fail, 50 or 100 flight hours before it fails so that we can avoid the failure. And some of these aircraft cost $100 million a copy, and their current availability rate is, say, 50%.

讓我們來看看美國空軍快速保障辦公室。這是飛機的預測性維護項目，空軍大約有5000架飛機。在這裡，我們正在為B-1轟炸機、F-15、F-16、F-18和F-35聯合攻擊戰鬥機開發基於人工智慧的預測性維護系統。看看這個速度，這個專案線展現了我們將這些應用投入生產的速度。那麼，這一切究竟是為了什麼呢？它旨在整合所有關於任務、天氣、燃油或飛行里程的數據，這些數據來自飛機維護系統上的各種設備，從而建立預測模型，提前50到100個飛行小時預測哪些設備即將發生故障，以便我們能夠避免故障的發生。有些飛機的單價高達1億美元，而它們目前的可用性可能只有50%。

With C3 AI, we can increase the availability by 10%, 20%, 30%. And now we deal with the scale of the United States Air Force. This is worth billions of dollars in economic benefit annually. I believe we have 16 aircraft platforms live today, and we expect to have 22 platforms live by midyear. So deeply penetrating these accounts is what C3 is all about.

借助C3人工智慧，我們可以將可用性提高10%、20%甚至30%。而現在，我們面對的是美國空軍這樣規模龐大的機構。這每年能帶來數十億美元的經濟效益。我相信目前我們有16個飛機平台投入使用，預計到年中將達到22個。因此，深入滲透到這些客戶群正是C3的核心所在。

We continue to be focused, okay, on adding new customers. But at C3 AI, it's more important to look at the lifetime value of our customers than at how many new customers were sized. And yes, our customer base is growing, with new customers in the quarter, we include PwC, EY, the Conti Amadeus. Cargill is a recent customer. Again, what's really more important, okay, is the penetration of these customers. Koch Industries, which is more than a $100 billion business, and they became a customer a couple of years ago, made a decision in the quarter to standardize on C3 across all lines of business. This would include Flint Hills Resources, Georgia-Pacific, Molex, all Koch business units are standardizing on C3.

我們仍專注於拓展新客戶。但在C3 AI，我們更關注客戶的終身價值，而不是新增客戶的數量。沒錯，我們的客戶群正在成長，本季新增客戶包括普華永道、安永和康迪阿瑪迪斯。嘉吉也是我們最近的客戶。再次強調，真正重要的是這些客戶的滲透率。科氏工業集團是市值超過1000億美元的企業，幾年前就成為了我們的客戶。本季度，他們決定在所有業務線全面採用C3系統。這包括弗林特希爾斯資源公司、喬治亞-太平洋公司和莫仕公司，科氏的所有業務部門都將採用C3系統。

Similarly at Cargill, where we do predictive supply chain optimization and supply network risk from one of the largest food producers in the world. And the value of this is quite significant. We're helping feed the world at a time when much of the world is facing famine.

同樣，在嘉吉公司，我們為全球最大的食品生產商之一提供預測性供應鏈優化和供應鏈網路風險管理服務。這項工作的價值非常顯著。在世界許多地區面臨飢荒之際，我們正協助解決全球糧食問題。

So this is what it means to -- for bookings at C3. So this is an example of a large integrated energy company in Europe. Their initial contract was for about EUR 300,000 in over 8 years. It has continued to grow to EUR 120 million. This is an example of a large chemical company in the United States, where their initial contract was for $9 million and then it grew to $14 million and then $59 million. This company stood up at stage at our Users Group and said that they expect to realize $1 billion of economic benefit from C3 this year, $1 billion. This is a major U.S. government agency and how we have penetrated that. This is a large industrial manufacturing company, what have you.

這就是C3預訂的意義所在。舉個例子，一家歐洲大型綜合能源公司，他們的初始合約金額約為30萬歐元，為期8年。之後合約金額持續成長至1.2億歐元。再舉個例子，一家美國大型化學公司，他們的初始合約金額為900萬美元，之後成長至1,400萬美元，最終達到5,900萬美元。這家公司在我們的用戶小組會議上表示，他們預計今年將從C3獲得10億美元的經濟效益，沒錯，是10億美元。這是一個重要的美國政府機構，我們是如何成功打入這個領域的。這是一家大型工業製造公司，等等。

So while we might start small, we might start with a trial -- a free trial, a $50,000 trial, a $500 product, $0.5 million trial or initial project for a couple of million dollars, our goal is to realize sometimes $1 billion, $2 billion, $3 billion, $4 billion in annual economic benefit for the customer. So as you can see, this is quite a different story from what you're used to seeing in enterprise application software where people are selling hundreds of things for $20,000 apiece. So our primary focus is penetrating existing customers. This is an example of the utility in Europe that today is generating billions of dollars of smart an annual benefit from smart grid analytics.

所以，雖然我們可能從小規模做起，例如先推出試用版——免費試用、5萬美元試用、500美元產品、50萬美元試用版，或者啟動一個幾百萬美元的初始項目，但我們的目標是最終為客戶實現每年10億、20億、30億甚至40億美元的經濟效益。由此可見，這與您通常看到的企業應用軟體截然不同，後者往往以每件2萬美元的價格出售數百種產品。因此，我們的主要目標是拓展現有客戶。例如，歐洲一家公用事業公司如今正透過智慧電網分析創造數十億美元的年度收益。

Now the growth strategy. I've covered this. You're all familiar with how we're growing the business. We continue to grow geographically in North America, in Europe, in Asia Pacific. At the same time, we're building vertical market, sales organizations in financial services, manufacturing, what have you. We're aligning with go-to-market partners in each vertical, Baker Hughes in oil and gas, FIS in Financial Services, Raytheon in aerospace and defense. And then we have very meaningful horizontal market partnerships with hyperscalers, very significant relationship with Microsoft, significant and growing relationship with Google, HPE, NVIDIA, and others.

現在來說說成長策略。我之前已經介紹過，大家都很了解我們的業務成長方式。我們在北美、歐洲和亞太地區持續拓展業務。同時，我們也在金融服務、製造業等垂直產業建立銷售團隊。我們與各垂直產業的市場合作夥伴緊密合作，例如石油天然氣領域的貝克休斯、金融服務領域的FIS以及航空航太和國防領域的雷神公司。此外，我們還與超大規模資料中心營運商建立了重要的橫向市場合作關係，與微軟建立了非常重要的合作關係，並與Google、HPE、英偉達等公司保持著密切且不斷發展的合作關係。

And so this is what -- this is how we're expanding all assets of the cube to establish a leadership position. And we've made a big investment in this over the years. I've talked about it. I've talked to you about this. And so how does this investment pay off with these partners, hyperscalers, vertical market partners, utility partners, oil and gas partners, it's paid off pretty well. If we look at our bookings for last year, 64% of our bookings, okay, was generated in partnership with these market partners. So this is becoming really quite significant.

所以，這就是我們拓展所有資源、確立領導地位的方式。多年來，我們在這方面投入了大量資金。我之前也談過，也跟你們談過。那麼，這些投資與合作夥伴——超大規模資料中心、垂直市場合作夥伴、公用事業合作夥伴、油氣合作夥伴——的合作成效如何呢？回報相當豐厚。如果我們看看去年的預訂情況，就會發現64%的預訂量都來自與這些市場合作夥伴的合作。這確實意義重大。

We have a substantial and growing partner ecosystem. We have a recognized market leadership. We have a proven track record of success. We have a veteran management team. We have a very high-performance culture. We have excellence in execution. Big picture, C3 AI today is $0.25 billion software business, growing at roughly 40% compound annual growth rate. We have roughly $1 billion of cash in the bank. And our strategy is, quite simply, to establish and maintain a market leadership position globally in enterprise AI.

我們擁有龐大且不斷成長的合作夥伴生態系統。我們擁有公認的市場領導地位。我們擁有卓著的成功紀錄。我們擁有一支經驗豐富的管理團隊。我們擁有卓越的績效文化。我們擁有卓越的執行力。整體而言，C3 AI 目前是一家年收入 2.5 億美元的軟體公司，年複合成長率約為 40%。我們擁有約 10 億美元的現金儲備。我們的策略非常簡單，就是在全球企業人工智慧領域建立並維持市場領導地位。

Okay. Let's talk about guidance, okay. As I mentioned, the addressable market opportunity is land and expand. Our pipeline continues to expand. Our customer footprint is growing. Our balance sheet is rock solid. Okay. I have never been more optimistic about C3 AI than I am today.

好的。我們來談談業績指引。正如我之前提到的，我們面臨的市場機會在於先佔領市場，然後不斷擴張。我們的銷售管道持續拓展，客戶群也不斷擴大，資產負債表穩健可靠。好的。我對C3 AI的未來從未像今天這樣充滿信心。

We have exceeded revenue guidance for each of the 6 consecutive quarters that we have been a public company. And we are tracking exactly to the long-term plan that we laid out during the IPO road show, listen, play back the tape, it's still on the web, okay, and we're tracking exactly to what we said then. Our revenue growth rate was 38% in the year ending April, okay, up 17% -- up from 17% in the prior year.

自上市以來，我們連續六個季度都超出了營收預期。我們正嚴格按照IPO路演時制定的長期計劃推進，您可以回放當時的錄音，它還在網上，沒錯，我們當時所說的一切都在按計劃進行。截至4月份的財年，我們的營收成長率為38%，比上年同期成長了17%。

Now in the past few years, as you know, okay, we've been making substantial investments in branding and advertising. These investments have contributed substantially to our brand equity and market recognition. I'm confident these were prudent and productive investments, we largely created and not only at the market category of enterprise AI. That being said, it's not lost on us that there's been a fundamental shift in capital market expectations regarding cash flow.

如您所知，過去幾年，我們在品牌建立和廣告方面投入了大量資金。這些投資大大提升了我們的品牌價值和市場認可。我相信這些投資是審慎且卓有成效的，我們不僅在企業人工智慧市場領域，而且在其他領域也取得了顯著成效。儘管如此，我們也清楚地意識到，資本市場對現金流的預期已經發生了根本性的轉變。

Until recently, the market rewarded rapid growth at any cost. This has clearly changed the market currently demanding sustainable growth combined with free cash flow, with free cash flow. We are confident that we can achieve that goal.

直到最近，市場仍推崇不惜一切代價的快速成長。但如今，市場顯然已經發生了變化，它現在需要的是可持續成長以及充足的自由現金流。我們有信心實現這個目標。

Our economic model is quite healthy. This is a structurally profitable business with a strong cash balance and a non-GAAP gross margin of 80%. Our investments in branding and advertising over the last few years have been very effective in establishing C3 AI as a market leader in enterprise AI. And those investments will now permit us to dramatically reduce our branding investments as a percent of revenue going forward. We'll benefit from cost economies of scale, in product marketing and development, and we will realize additional savings from expanding the bulk of our engineering and services capacity in our new Guadalajara, Mexico facility.

我們的經濟模式非常健康。這是一家結構性獲利企業，擁有充裕的現金儲備，非GAAP毛利率高達80%。過去幾年，我們在品牌建立和廣告方面的投入卓有成效，使C3 AI成為企業級人工智慧領域的市場領導者。這些投入將使我們能夠大幅降低未來品牌建立投入佔收入的比例。我們將受益於產品行銷和研發方面的規模經濟效益，並透過擴大位於墨西哥瓜達拉哈拉新工廠的大部分工程和服務能力，實現額外的成本節約。

To drive growth, we will continue to expand our investments in sales, partner capacity and service capacity, commensurate with revenue growth. Our target is to generate sustainable positive free cash flow within 8 to 12 quarters. Under stable market conditions, I would guide to a 30% or greater growth rate for fiscal year 2023. With the current economic and political uncertainty, however, and pervasive market passivism, we are inclined to set the expectations bar low. While we are much more optimistic about the business, we're not sure that guiding high is at any benefit to our shareholders.

為推動成長，我們將持續增加對銷售、合作夥伴能力和服務能力的投資，與收入成長保持同步。我們的目標是在8至12個季度內實現可持續的正自由現金流。在市場穩定的情況下，我預計2023財年的成長率將達到30%或更高。然而，鑑於當前經濟和政治的不確定性以及普遍存在的市場消極情緒，我們傾向於降低預期。雖然我們對業務前景更加樂觀，但我們並不確定過高的預期是否有利於股東。

Also, candidly, we did see some business that we expected to close in Q4 got moved out of the quarter. And we feel there is still too much lumpiness in our pipeline. Taking all of this into consideration, we believe it is prudent to guide -- to provide fiscal year '23 Q1 revenue guidance of $65 million to $67 million, and fiscal year '23 growth targets of 23% to 25%. By the way, there's a typo on the slide, that the vendor was not able to pick up. It's so -- it says '22 and in fact, this is a '23. So I apologize for that error.

坦白說，我們確實發現一些原本預計在第四季度完成的業務被推遲到了本季之外。而且我們感覺目前我們的業務儲備仍然存在太多不均衡之處。考慮到所有這些因素，我們認為謹慎的做法是給出2023財年第一季營收預期為6,500萬美元至6,700萬美元，以及2023財年23%至25%的成長目標。順便說一下，投影片上有拼字錯誤，供應商沒能發現。上面寫的是“22”，但實際上是“23”。對此我深表歉意。

When market conditions stabilize, we expect to target 35 -- 30% to 35% steady-state top line growth, while continuing to grow free cash flow to 20% non-GAAP targets. Now well, free cash flow, it's just a 20% target, so -- predict non-GAAP, okay.

當市場狀況穩定後，我們預期營收將達到30%至35%的穩定成長，同時繼續將自由現金流成長至20%的非GAAP目標。嗯，自由現金流的目標只是20%，所以——預測非GAAP數據，好的。

Now I'm going to turn the call over to our experienced and accomplished Chief Financial Officer, Juho Parkkinen, to provide additional color on our business results and plans. And then we'll throw this open to questions. Juho, over to you.

現在我將把電話交給經驗豐富、成就卓越的財務長尤霍·帕基寧，請他進一步介紹我們的業務成果和計劃。之後，我們將開放提問環節。尤霍，請你提問。

Thank you, Tom. First off, I want to quickly recap on the summary financial results. As Tom mentioned, we ended the quarter with revenue of $72.3 million or 38% growth year-over-year. Subscription revenue increased by a healthy 31% year-over-year growth. I would also like to highlight the remaining performance obligations of $477.4 million, a 62% year-over-year increase. Further, during the quarter, we repurchased approximately 720,000 shares for $15 million under our share repurchase program announced in Q3.

謝謝湯姆。首先，我想快速回顧一下財務績效概要。正如湯姆所提到的，我們本季營收為7,230萬美元，年增38%。訂閱營收年增31%，增幅可觀。我還想重點說明剩餘履約義務為4.774億美元，年增62%。此外，本季我們根據第三季宣布的股票回購計劃，回購了約72萬股股票，總額為1,500萬美元。

With respect to the full year, we are roughly $0.25 billion business, as Tom mentioned, with a 38% year-over-year increase and we've been able to maintain really quite excellent gross margin rates of 79% for the year, which is a 3-point increase from the prior year. Here are the trends from the past year, indicating again a nice healthy growth on a year-over-year basis.

就全年而言，正如湯姆所提到的，我們的營業額約為2.5億美元，年增38%。此外，我們全年維持了79%的毛利率，比前一年提高了3個百分點。以下是過去一年的趨勢，再次顯示我們實現了穩健的同比增長。

And moving on to the deal bands. We were quite happy to see a 35% sequential increase in deals to close 27 deals during the quarter. We saw a nice increase with respect to our band of less than $1 million deals, where we do a lot of transactions in trials to customers. And then in the higher band, we saw application and platform deals, whether it was with new customers directly into enterprise deals, or renewals or expansions with existing customers. Overall, our path towards a lower average TCV continues to improve, where at Q3, we were at $5.6 million and now in Q4, our average TCV was $2.9 million.

接下來談談交易規模。我們很高興看到，本季交易數量較上季成長35%，共完成27筆交易。其中，低於100萬美元的交易數量增幅顯著，這類交易主要涉及客戶試用。而在較高金額的交易中，我們看到了應用程式和平台交易的增加，包括直接與新客戶達成的企業級交易，以及與現有客戶的續約或擴展。整體而言，我們降低平均總合約價值（TCV）的進程持續改善，第三季平均TCV為560萬美元，而第四季已降至290萬美元。

With respect to the revenue mix, subscription revenue was 78% of Q4 revenue and professional services was at 22%. When we think about the sizes of the deals we make with some of the most known entities on the planet, it's not rational for us not to invest in these customers with professional services. We generally see expansions in subscription as a result of successful proserve engagement. We were able to improve our gross margins and our non-GAAP operating margin during the period as well.

就收入組成而言，訂閱收入佔第四季總收入的78%，專業服務收入佔22%。考慮到我們與全球一些最知名企業達成的交易規模，如果我們不投資這些客戶的專業服務，那就太不合理了。通常情況下，成功的專業服務合作能夠帶動訂閱收入的成長。此外，我們在此期間也提高了毛利率和非GAAP營業利潤率。

Path to profitability. We spent some time this quarter thinking about the long-term prospects and the long-term path to a sustained operating profit on a non-GAAP basis. We've broken out, for everybody's benefit, sales and marketing into separate marketing and sales lines. In addition, you see the traditional research and development and G&A as well as cost of revenue. The key takeaway is that we currently operate at a negative 29% non-GAAP operating margin. We are confident that we have a robust, executable plan to get to an operating profit position sometime in FY '24 to FY '25 range.

實現盈利之路。本季度，我們花了一些時間思考長期前景以及如何在非GAAP準則下實現持續的營業利潤。為了方便大家理解，我們將銷售和行銷拆分為獨立的行銷和銷售部門。此外，您還可以看到傳統的研發費用、一般及行政費用以及營業成本。關鍵在於，我們目前的非GAAP營業利益率為-29%。我們有信心製定一個穩健且可執行的計劃，在2024財年至2025財年期間實現營業利潤。

We believe that we are structurally profitable and are able to maintain our growth -- are able to maintain our gross margin on a prospective basis. As we had indicated during the IPO, we have invested heavily in brand recognition, which we believe has been very successful. We believe that we have reached the point where, from here, we can sustain our brand with lower investments.

我們相信公司結構獲利能力良好，能夠維持成長，並在未來維持毛利率。正如我們在IPO時所指出的，我們已在品牌認知度方面投入巨資，並且我們認為這些投入非常成功。我們相信，目前我們已經達到一個階段，即未來只需較少的投資即可維持品牌發展。

With respect to our sales team, we will continue to invest in additional capacity on a global level. With respect to research and development, we are very pleased with our start -- with our Guadalajara application development center professionals and expect strong growth in that team. The natural benefits from economies of scale, combined with the lower human capital costs, will drive R&D spend lower as a proportion of total revenue.

在銷售團隊方面，我們將持續在全球加大投入，提升產能。在研發方面，我們對目前的進展非常滿意——瓜達拉哈拉應用開發中心的專業人員已經初具規模，我們預計團隊將實現強勁成長。規模經濟帶來的自然效益，加上較低的人力資本成本，將降低研發支出佔總收入的比例。

Finally, for G&A-related costs, we expect economies of scale to reduce their proportional spend in this category. Overall, we're excited about our Q4 results and are looking forward for the upcoming fiscal year.

最後，關於一般及行政管理費用，我們預期規模經濟將降低該類別的支出比例。總而言之，我們對第四季的業績感到滿意，並期待即將到來的財年。

And with that, it's time to hear the questions. Operator?

那麼，現在到了提問環節。接線生？

(Operator Instructions) Our first question is from Arvind Ramnani with Piper Sandler.

（操作說明）我們的第一個問題來自 Piper Sandler 公司的 Arvind Ramnani。

Just really want to ask about guidance. On the last earnings call, although you didn't provide formal guidance, you had talked about being comfortable with consensus, which was about 33% growth. And then when I look at this year's number, kind of growth is closer to like mid-20%. If you can just kind of talk about the change in environment that's caused kind of the revision of guidance. Or is it -- do I look at your guidance as sort of more -- sort of conservative and this is a starting point for the year?

我真的很想問一下業績指引的問題。在上次財報電話會議上，雖然您沒有給予正式的業績指引，但您提到對市場普遍預期的33%左右的成長率感到滿意。而我看了今年的數據，成長率似乎更接近20%左右。能否談談導致業績指引調整的環境變化？或者，我應該把您目前的指引視為比較保守的，而這只是今年的起點？

Well, Arvind, it's Tom. Thanks for the question. I haven't seen a lot of enthusiasm and sheer, okay, in any market activity in the last 2 months since our last call. I would say that what we're seeing from the market is really quite dire. If you look at -- candidly, so I think that given everything that is going on in the market, okay, it seemed prudent to us to set market expectations conservatively. And that's what we did.

嗨，Arvind，我是Tom。謝謝你的提問。自從我們上次通話以來，在過去兩個月裡，我並沒有看到市場出現太多熱情或活躍的跡象。可以說，我們目前看到的市場狀況確實相當糟糕。坦白說，鑑於當前市場情勢，我們認為謹慎地設定市場預期是明智之舉。而我們也正是這樣做的。

Perfect. That's great. And just in terms of kind of bookings growth still seems sort of healthy, if you can kind of double click and give us kind of a little bit granularity where you're seeing kind of bookings growth from like any particular industries or clients that you're seeing strong growth from in terms of bookings.

太好了。就預訂量成長而言，目前看來仍然相當健康。如果您能雙擊一下，提供一些更細緻的數據，例如您觀察到哪些特定行業或客戶的預訂量增長強勁，那就太好了。

Yes. Well, if we look at -- let's see where is Q4? Let's see, 42% of our bookings were in manufacturing; 18% in financial services; 15% in defense and aerospace; 13% in oil and gas; 4% in accounting services, and then it goes into agriculture, food processing, retail, hospitals. But it's becoming efficiently diversified.

是的。讓我們來看看──比如說第四季的情況？我們42%的訂單來自製造業；18%來自金融服務業；15%來自國防和航空航太業；13%來自石油和天然氣業；4%來自會計服務業；然後還有農業、食品加工、零售和醫院等行業。但我們的業務正逐步實現高效能多元化。

And as I mentioned, for the year, I think booking growth in oil and gas, which is a big business for us and a good business, was 95%. And outside of oil and gas, I think it was 115%. So diversification strategy is playing out well.

正如我之前提到的，我認為今年石油和天然氣業務（這是我們的一項重要且盈利的業務）的帳面增長率達到了95%。而除石油和天然氣業務之外的其他業務，成長率則達到了115%。因此，多角化策略的實施效果良好。

Our next question comes from Patrick Walravens with JMP Securities.

下一個問題來自 JMP Securities 的 Patrick Walravens。

Great. Tom, can we start by hearing a little bit more about the deals that slipped in Q4?

好的。湯姆，我們能先詳細了解一下第四季那些未能達成的交易嗎？

Let's see. I have to look at the pipeline. I don't really have that one on my desk, Pat. I mean I would say that we did see a number of deals move out of Q4 into Q1 and Q2. They had -- they didn't disappear and they weren't lost. They just kind of moved and they love to -- there's still lumpiness in the business. We did close how many deals in the course of the quarter?

讓我想想。我得看看銷售通路的狀況。帕特，我桌上沒有那份清單。我的意思是，我們確實看到一些交易從第四季度轉移到了第一季和第二季。它們並沒有消失，也沒有失去。它們只是轉移了，而且——業務仍然存在波動。我們這個季度總共完成了多少筆交易？

27.

27.

27. So the number of deals is quite high, but we had -- honestly, we had a number of deals that we expect to close in the quarter but didn't. So the bookings number was not as high as we'd like to be. That being said, the revenue growth exceeded our expectations and everybody's expectations for the quarter and for the year.

27. 因此，交易數量相當高，但說實話，我們有一些預計會在本季完成的交易最終未能達成。所以，實際預訂量並沒有達到我們的期望。即便如此，營收成長仍然超出了我們以及所有人對本季和全年的預期。

Yes. And can I ask how -- so how is May then, so far?

是的。請問一下－五月至今感覺如何？

How is what?

什麼情況？

How was the last month then, the beginning of this quarter?

那麼，上個月，也就是本季初的情況如何？

I'm prepared to comment on the business as of the as of the end of the quarter of, Pat. And we've given our guidance for what we think is going to happen in Q1. And so far, I don't think we've -- I'm really quite confident that we've not fallen short of our guidance. I think we hit it -- every quarter we've been a public company, we've exceeded the guidance. Yes.

帕特，我準備就本季末的業務情況發表評論。我們已經給出了對第一季業績的預期。到目前為止，我認為我們——我真的非常有信心——沒有低於預期。我認為我們達到了預期——自從我們成為上市公司以來，每個季度我們都超過了預期。是的。

Yes. Okay. And so it seems like Bakers Hughes -- I mean last quarter, you called out Baker Hughes because it contributed, I forget what the percentage was, but a really big percentage of the bookings. So was Baker Hughes seems like it was softer this quarter, is that a fair assessment?

是的。好的。所以看起來貝克休斯——我是說上個季度，你特別提到了貝克休斯，因為它貢獻了（我忘了具體比例是多少）非常大的訂單量。那麼貝克休斯這季度的表現似乎有所下滑，這樣的評估準確嗎？

Well, oil and gas was 13% of our business in bookings. So I mean it was pretty strong, and oil and gas last year grew by 95%, which is pretty strong in bookings. So I would not describe it as soft. Did some oil and gas deals move out of the quarter? Yes.

嗯，石油和天然氣業務占我們預訂量的13%。我的意思是，這部分業務相當強勁，而且去年石油和天然氣業務增長了95%，這在預訂量方面也相當可觀。所以我不會用「疲軟」來形容它。有沒有一些石油和天然氣交易轉移到其他季度？是的。

Yes. Okay. And then...

是的。好的。然後…

Business is quite healthy.

業務狀況良好。

Okay. Great. And then Juho, one for you, which is so can you repeat the -- how much of the -- you have a $100 million buyback plan, right? And I think you told us how much you had bought back and I missed it.

好的，太好了。然後是Juho，問你一個問題，你能再說一遍嗎——你們有一個1億美元的股票回購計劃，對吧？我想你之前說過你們已經回購了多少，但我錯過了。

Yes, it was $15 million or 720,000 shares.

是的，是1500萬美元或72萬股。

720,000 shares. Okay. Great. Sorry, last one, one more for you, Juho. What will free cash flow for this coming year if the operating loss is minus 76% to minus 86%, how should we think about free cash flow?

72萬股。好的。太好了。抱歉，最後一個問題，Juho，最後一個問題。如果明年的營業虧損為-76%至-86%，那麼自由現金流會是多少？我們該如何看待自由現金流？

Well, yes, that's a great question. I think on a cash flow basis, we still have a lot of lumpiness in that. I think on a more longer-term perspective as we are going to reach the operating profit goals that I outlined, you're going to start seeing a more sustained operating or free cash flow positive. But as we march towards that goal, there's going to be lumpiness. There's going to be periods where we're going to be closer to positivity and then periods where we're going to be a little bit more free cash flow spend.

嗯，這是一個很好的問題。我認為就現金流而言，我們目前仍然存在很大的波動。從長遠來看，隨著我們逐步實現我之前提到的營業利潤目標，你們將會看到更持續的營業現金流或自由現金流為正。但在我們朝著這個目標邁進的過程中，波動是不可避免的。有些時期我們會更接近正值，而有些時期我們的自由現金流支出會略高一些。

Okay. Just so we don't have unpleasant surprises in Q1. So just for Q1, you guided to an operating loss of negative 23 to 28. Should we expect cash flow to be in that range? Worse? Better? How should we think about it?

好的。為了避免第一季發生意外情況，您先前預測第一季的營業虧損為-23%至-28%。那麼，我們是否應該預期現金流也在這個範圍內？更糟？還是更好？我們該如何看待這個問題？

Well, I think -- yes, that's a good question, Pat. I think more broadly speaking, again, there's going to be -- we're going to have some activities. I think one of the things that you're aware of is that we're having the build-out on the new lease. And as part of that, we'll be incurring some cash outflow items, which don't show up as operating expenses until years after since they're capitalized as part of the new office.

嗯，我想──是的，派特，你問得好。總的來說，我們會有一些活動。我想你也知道，我們正在進行新租約的裝修工程。作為其中的一部分，我們將產生一些現金支出，這些支出在幾年後才計入營運費用，因為它們被資本化為新辦公室的一部分。

We had a tenant improvements in the office building that we're moving into.

我們即將搬入的辦公大樓需要租戶裝修。

Yes.

是的。

Our next question comes from Brad Sills with Bank of America.

下一個問題來自美國銀行的布拉德·西爾斯。

This is Adam on for Brad. So for Juho, just a quick one. How should we be thinking about the Q1 guide in terms of the mix between subscription and professional services revenue? It's kind of been moving into a higher mix of pro services. So just wanted to get your take on how we should be thinking about that going forward.

這裡是Adam替Brad發言。 Juho，我問你個簡短的問題。關於第一季的業績指引，我們該如何看待訂閱收入和專業服務收入的組成？目前來看，專業服務收入的比例似乎越來越高。所以我想聽聽你對未來如何看待這個問題的看法。

I think that's a great question. We've said earlier that we think a long-term target for this mix is probably in the 10% to 15% range. Obviously, this quarter, we ended at 22%. Last quarter, I think it was 18%. I think you should expect somewhere to be in the mid-teens, but there's still going to be some activities in the quarter that may change that. But I think that's a fair assumption at this point.

我覺得這是一個很好的問題。我們之前說過，我們認為該組合的長期目標比例可能在10%到15%之間。顯然，本季我們最終達到了22%。上個季度是18%。我認為最終比例應該在15%左右，但本季的一些活動可能會影響最終結果。不過，我認為目前來看，這個預測是合理的。

Okay. Super helpful. And then a quick one for Tom. You guys kind of called out in the press release the expansion of One Medical. Can you just talk about what the lining point looked like and then how that ultimately evolves into becoming an Ex Machina customer?

好的，非常有幫助。接下來我想問Tom一個問題。你們在新聞稿中提到了One Medical的業務擴張。可以談談當時的轉捩點是什麼，以及最終是如何發展成為Ex Machina的客戶嗎？

Ex Machina. I believe that One Medical began as an Ex Machina customer and has expanded as an Ex Machina customer. So if I'm not mistaken, that's the extent of the product. We have many customers that are only using Ex Machina and that's one of them.

Ex Machina。我相信One Medical最初是Ex Machina的客戶，後來也一直是Ex Machina的客戶。所以如果我沒記錯的話，這就是該產品的全部了。我們有許多客戶只使用Ex Machina的產品，One Medical就是其中之一。

The -- regarding the professional services question, I want to say, I mean, think about kind of what's going on and what we do where we're investing -- maybe we have a $1 million deal or a $10 million deal or a $20 million deal with a company that makes it very clear that if we succeed then 60 -- there's $100 million in business there. So for right now, as we establish market presence and we had established successful customers, it's kind of nonrational for us not to invest professional services in those accounts.

關於專業服務的問題，我想說的是，想想我們正在做的事情，想想我們在哪些方面進行投資——也許我們與一家公司達成了100萬美元、1000萬美元或2000萬美元的交易，這些交易非常明確地表明，如果我們成功，那麼這家公司將獲得1億美元的業務。所以，就目前而言，在我們建立市場地位並擁有成功客戶之後，如果我們不為這些客戶提供專業服務，那就有點不合常理了。

Now professional services for us is a very high-margin business. But that being said, when we can take a company from EUR 300,000 to EUR 120 million and do that kind of over and over again, to not invest in professional services in the few years to get them live, I would suggest, I mean, it's not rational for us not to do that. And in the short term, it's pushed up our professional services revenue a little higher than we would like to see. But we're achieving the objective of market penetration.

現在，對我們來說，專業服務是一項利潤率非常高的業務。話雖如此，如果我們能讓一家公司從30萬歐元發展到1.2億歐元，並且這種增長可以反覆發生，那麼在短短幾年內不投資專業服務來使其上線運營，我認為這是不理智的。短期來看，這確實使我們的專業服務收入略高於預期。但我們正在實現市場滲透的目標。

Our next question comes from Michael Turits with KeyBanc.

我們的下一個問題來自 KeyBanc 的 Michael Turits。

This is Eric Heath on for Michael. On the couple of deals you called out is pushing out of the quarter. I was curious if there was any commonalities across those deals either by geography or vertical.

這裡是 Eric Heath，替 Michael 發言。關於您提到的那幾筆交易，它們都推遲到了季度末。我想知道這些交易在地域或行業方面是否存在任何共同點。

I would say, Eric, across verticals and across geographies and somebody needs to get budget approval or to need to get something signed by some senior executive and it didn't get signed in time or there is some committee that needed to go to where the committee didn't get scheduled. And some of these are in Europe, it's kind of Europe, the deals on Euro time. And so it's -- many of these are large organizations, where they're very bureaucratic in their processes and maybe need to get Board approval or CEO approval or CFO approval or whatever happened and just -- they're operating on their time line and not ours. That's all.

艾瑞克，我想說的是，無論哪個行業、哪個地區，都可能出現這種情況：有人需要獲得預算批准，或者需要高管簽字，但沒能及時完成；或者需要提交給某個委員會，但委員會的會議卻沒能安排上。其中一些案例發生在歐洲，畢竟歐洲的節奏是「歐洲時間」。所以，很多都是大型機構，他們的流程非常繁瑣，可能需要董事會、CEO、CFO或其他任何部門的批准，總之，他們按照自己的時間表運作，而不是我們的。就是這樣。

But I would say it's pretty much across industries and across geographies. It was not -- we didn't see any specific industry fall apart. And I would say given kind of the market dynamics of what's going on with supply chain disruption, I mean, probably one of our biggest products is supply network risk and stochastic optimization of the supply chain. This is becoming really mission-critical and associated with all of our applications where, as you can see from our presentations, our discussions with the customers is how much money are they saving in a year.

但我認為這種情況幾乎遍及各個產業和地區。我們並沒有看到任何特定行業崩潰。考慮到目前供應鏈中斷的市場動態，我們最重要的產品之一就是供應鏈網路風險和供應鏈隨機優化。這正變得至關重要，並且與我們所有的應用都息息相關。正如您從我們的演示中看到的，我們與客戶的討論重點是他們每年可以節省多少錢。

So as people start to tighten their belts in what might be an economy that's turning down, we provide tools that enable them to tighten their belts very cost effectively.

因此，當經濟可能下滑，人們開始勒緊褲帶時，我們提供的工具可以幫助他們以非常經濟有效的方式勒緊褲帶。

That's helpful. And then just I think you had some nice drawdown of the $500 million authorization in the DoD this quarter. So just curious what else you might be seeing in the pipeline, specifically with the DoD and maybe just any broader commentary about opportunities you see in the federal space?

這很有幫助。另外，我認為國防部本季5億美元的授權撥款已經到位。所以，我很好奇您還看到了哪些其他項目正在籌備中，特別是國防部方面的項目，以及您對聯邦政府領域的其他機會有何看法？

DoD business looks good, okay. And we're -- we had continued penetration in the Air Force with RSO. That is now accelerating at a -- I think that offers a big opportunity to accelerate. We have 2 or 3 other agencies in the defense and intelligence communities that have made, okay, and are processing large C3 AI procurements. So we have, I think, $600 million in dry powder there almost to draw down, okay, and in contract vehicles that are in place. And we're working on additional contract vehicles at the same time. So we're very optimistic about the U.S. Defense, Intelligence and Civilian businesses.

國防部的業務看起來不錯。我們－我們透過RSO持續滲透空軍。現在這種滲透正在加速——我認為這為加速發展提供了巨大的機會。國防和情報界還有兩三個機構已經制定並正在處理大型C3人工智慧採購計畫。所以，我認為我們手頭上有近6億美元的可用資金，這些資金已經透過合約機制落實。同時，我們也在製定更多的合約機制。因此，我們對美國國防、情報和民用業務的前景非常樂觀。

Our next question comes from Bob Huang with Morgan Stanley.

下一個問題來自摩根士丹利的鮑勃·黃。

This is Bob sitting in for Sanjit today. So first, maybe if we can talk about just the billings for the next quarter and maybe for the full year a little bit. Obviously, fourth quarter billings are seasonally high, but it was probably a little lighter than what we thought it would have been. Maybe if you can just give us sort of a trajectory or a better understanding of how we should think about billings going forward for the next 12 months or so.

今天由鮑伯代替桑吉特主持。首先，我們能否先談談下一季以及全年的帳單狀況？顯然，第四季度的帳單通常是季節性高峰，但實際數字可能比我們預期的要低。您能否大致預測一下未來12個月左右的帳單走勢，或是幫助我們更好地理解帳單狀況？

Go ahead, Juho.

繼續，尤霍。

Yes. Thanks, Bob, for the question. So I think some of the things that ties to what I was mentioning earlier to Pat on the cash flow items, so we transact in -- we have large deals with large multinationals. And these individual payment terms with specific customers impact the calculated billings metric that you're looking at. So at this point in our company, we're going to have a lot of lumpiness that you see this, you could have an individual quarter where the calculated billings looks really good, and then the next quarter, it could be a little bit less. So I don't think it's a metric that you need to focus on, particularly intensely.

是的。謝謝鮑伯的提問。我認為這和我之前跟帕特提到的現金流項目有些關聯。我們與大型跨國公司進行交易，而這些與特定客戶的特定付款條款會影響您看到的計算帳單金額指標。因此，在我們公司目前這個階段，帳單金額波動較大，您可能會看到某個季度的計算帳單金額非常理想，但下一個季度可能會略有下降。所以我認為您不必特別關注這個指標。

Okay. That's very helpful. My next question, just -- you obviously had some -- quite a bit of success on the energy sector, oil and gas and such. In terms of various verticals that you are in as well as geography, like, for example, Europe versus U.S., oil and gas versus machinery. What verticals are you confident or feel good about going forward? And what are maybe some of the verticals or areas that you might want to keep a closer eye on going forward?

好的，這很有幫助。我的下一個問題是——您在能源領域，例如石油天然氣等領域，顯然取得了相當大的成功。就您涉足的各個垂直領域以及地理而言，例如歐洲與美國、石油天然氣與機械行業，您對哪些垂直領域的未來發展充滿信心或感覺良好？您未來可能希望重點關注哪些垂直領域或領域？

Energy looks strong. Utilities look strong. Oil and gas looks strong. Chemicals look strong. Manufacturing looks strong. We really haven't penetrated telco yet. I think there are big opportunities there. Financial services, I think there are big opportunities there. We're starting now to penetrate consulting companies, EY, PwC and others. I think there's going to be a big opportunity there. We're providing them tools to accelerate their -- what they do.

能源產業表現強勁。公用事業產業表現強勁。石油和天然氣產業表現強勁。化工產業表現強勁。製造業表現強勁。我們尚未真正滲透到電信業。我認為那裡蘊藏著巨大的機會。金融服務業，我認為那裡也蘊藏著巨大的機會。我們現在開始滲透顧問公司，例如安永、普華永道等。我認為那裡也將蘊藏著巨大的機會。我們正在為他們提供工具，以加速他們的業務發展。

So yes, I think it's -- the question is, I mean, ultimately, this is just like CRM or like ERP. All industries adopt, it's just which industries adopt at which rates. And interestingly enough, we're seeing a lot of interest in agribusiness, which is a huge supply chain problem globally as it relates to agribusiness, as the world faces kind of potential famine associated with wheat and rice production. So what we're doing there, with some work with Cargill and others that's really interesting and really important.

所以，是的，我認為——問題在於，歸根結底，這就像客戶關係管理（CRM）或企業資源規劃（ERP）一樣。所有產業都會採用，只是採用的速度不同而已。有趣的是，我們看到農業綜合企業對此非常感興趣，而農業綜合企業在全球範圍內面臨著巨大的供應鏈問題，因為世界正面臨著與小麥和大米生產相關的潛在飢荒。因此，我們正在與嘉吉和其他公司合作，進行一些非常有趣且非常重要的工作。

In general, we don't really see right now a lot of softness out there, but we do read the newspapers, shouldn't we, what you guys write? And we haven't seen a lot of the newspapers. And while we don't see it, our business looks quite good. I think as long as we didn't read the newspapers, or turn off the TV, everything would be fine.

總的來說，我們目前並沒有感受到市場疲軟，但我們都會看報紙，對吧？看看你們寫的文章。我們最近也沒怎麼看報紙。雖然我們沒看到任何跡象，但我們的生意看起來相當不錯。我想，只要我們不看報紙，不關電視，一切都會很順利。

Our next question comes from Pinjalim Bora with JPMorgan.

我們的下一個問題來自摩根大通的 Pinjalim Bora。

Sorry, I was -- I think I was talking to myself on mute, apologies. I wanted to ask you about the deals that got pushed out. From your conversations with those customers, is it entirely driven by macro-related considerations? Or do you think is there an element of the sales organization changes that you have done or the amount of sales capacity that you have currently given the tight labor market?

抱歉，我剛才──我想我剛才是在自言自語，而且是靜音的，不好意思。我想問您關於那些被推遲的交易。根據您與這些客戶的溝通，這完全是受宏觀因素影響嗎？還是您認為與您進行的銷售組織架構調整，或考慮到當前勞動力市場緊張的情況，您目前的銷售能力有限有關？

Sales capacity has grown pretty considerably. Really, we've been -- so it's not a sales capacity issue. It's just, I mean, I'm looking at these transactions that we expected to close, here's one in the United States government. Here's an insurance company. This is an oil and gas company. Here's a beltway bandit, a large energy company in Europe, a pharmaceutical company in Europe, a bank in Canada, food services company in the United States, a retailer in Europe, civilian agency, oil and gas company. I'm going right down the list.

銷售能力成長相當顯著。實際上，我們一直——所以這不是銷售能力的問題。我的意思是，我看著這些我們預期會完成的交易，例如美國政府的一筆交易，一家保險公司，一家石油天然氣公司，一家環城公路劫匪，一家歐洲大型能源公司，一家歐洲製藥公司，一家加拿大銀行，一家美國食品服務公司，一家歐洲零售商，一家民用機構，一家石油天然氣公司。我把名單一直列了下來。

Oil and gas company in Africa, U.S. federal agency, U.S. federal agency, U.S. federal agency, large, big box retailer, division of the Air Force. Here's a company, I don't know what they do. The division of defense, large food provider, local, a county with roughly 1 million people in it, a large credit card provider, U.S. Intelligence Agency. So insurance -- I just read right down the list, okay? Of deals that we're looking at, that we were expecting -- I would say, particularly the ones that we were absolutely expecting in the quarter would be Intel agency, insurance company, a large European oil company, beltway integrator, European energy company, European pharmaceutical company, large exchange, stock exchange, bank in Canada, food services company and manufacturing company in Wisconsin.

非洲的石油天然氣公司、美國聯邦機構、美國聯邦機構、美國聯邦機構、大型零售商、空軍部門。這家公司，我不知道他們是做什麼的。國防部、大型食品供應商、當地約100萬人口的縣、大型信用卡供應商、美國情報機構。還有保險公司——我剛才把名單都念完了，好嗎？我們正在關注的交易，以及我們預期的交易——我想說，特別是我們本季絕對預期的交易包括：情報機構、保險公司、一家大型歐洲石油公司、環城公路系統整合商、歐洲能源公司、歐洲製藥公司、大型交易所、證券交易所、加拿大的一家銀行、一家食品服務公司和一家威斯康辛州的製造公司。

So it varies. It's across industries, across geographies, and it's just -- it's not that their business has gone south that they're going under, it's just that they did -- they are processed in time.

所以情況各不相同。它跨越各個行業，跨越各個地區，而且——並不是說他們的業務走下坡路導致他們倒閉，只是——它們最終會被清算。

Understood. I guess one thing that people trying to understand...

明白了。我想大家都在努力理解的一件事是…

That was not in memory. I was reading right from the list.

那不是我記在腦子裡的，我是直接照清單念的。

Yes. Understood. Well, the follow-up to the -- my follow-up would be that AI obviously -- or C3 obviously saves a lot of money when deployed. You have really big economic benefits, right, when deployed. However, it seems like it's a factor of the large initial outlay, which is kind of creating these problems, right? Otherwise, people should probably adopt AI during a slower economic environment, wouldn't you say?

是的，明白了。那麼，我的後續問題是──人工智慧（AI）或指揮控制（C3）顯然在部署後可以節省大量資金。部署後確實能帶來巨大的經濟效益，對吧？然而，似乎正是由於前期投入巨大，才造成了這些問題，對嗎？否則，人們或許應該在經濟低迷時期採用人工智慧，您覺得呢？

Well, I'm not sure. I mean the initial outlay sometimes is $50,000, sometimes is $10,000. The initial outlay at a $300 billion oil company was $300,000, which were -- might seem like a lot but it's not a lot for a $300 billion company. So I'm not sure the initial outlays -- that I accept that. As you saw from the slides that I showed you, frequently, the initial outlay is $50,000 or $300,000 and then it grows every time.

嗯，我不太確定。我的意思是，初始投資有時是5萬美元，有時是1萬美元。一家市值3000億美元的石油公司的初始投資是30萬美元，這——看起來很多，但對一家3000億美元的公司來說並不算多。所以我不確定初始投資——我接受這個說法。正如你從我給你看的幻燈片中看到的，初始投資通常是5萬美元或30萬美元，然後每次都會成長。

So the average is...

所以平均值是…

Is large compared to a lot of the other things that you look at in the AI space where I think their average sales price is like $20,000. We're not in that game.

與人工智慧領域其他許多產品相比，它的價格相當高，我認為其他產品的平均售價約為 2 萬美元。我們不涉足那個領域。

There are no further questions waiting at the time. So I'll pass the call back over. Go ahead.

目前沒有其他問題需要回答，所以我把電話轉回去。請繼續。

Right. Thanks, everybody, for your time. We'll wrap up the call now and appreciate everyone's interest. Have a good rest of your day.

好的。謝謝大家抽出時間。我們現在就結束通話，感謝大家的關注。祝大家今天剩下的時間愉快。

Thanks, everybody.

謝謝大家。

That concludes the C3 AI earnings call of the fourth quarter fiscal year 2022. Thank you for your participation. You may now disconnect your lines.

C3 AI 2022財年第四季財報電話會議到此結束。感謝您的參與。您可以掛斷電話了。