Revenues in 9M2019 - 9M2020
Invest in IPO C3.ai
C3.ai is an enterprise artificial intelligence software provider for accelerating digital transformation. It was founded in 2009 in Redwood, California. C3 delivers a comprehensive and proven set of capabilities for developing, deploying, and operating large scale AI, predictive analytics, and IoT applications 10 to 100x faster than alternative approaches. C3.ai has raised a total of $228.5M in funding over 6 rounds.
The C3 AI Suite supports the value chain in various industries with prebuilt and configurable AI applications for business use cases including predictive maintenance, fraud detection, sensor network health, supply network optimization, energy management, anti-money laundering, and customer engagement. The Company supports customers in the United States, Europe, and the rest of the world.
The company serves a large and rapidly growing market, estimated to be $174 billion in 2020, growing to $271 billion in 2024, a 12% compound annual growth rate, or CAGR. The company will continue to expand enterprise sales organization globally, focused on divisions of Fortune 500 companies as well as with smaller and medium-sized businesses.
C3.ai has won many industry recognitions, including CNBC Disruptor 50 (2020, 2019, 2018), BloombergNEF Pioneer (2020), Forbes Cloud 100 (2020, 2019, 2018, 2017), Deloitte Technology Fast 500 (2019), and EY Entrepreneur of the Year (2018, 2017), and has been named a leader by Forrester Wave: Industrial IoT Software Platforms (2019, 2018). The company has won the Glassdoor Best Place to Work award, was named a WayUp Top 100 Internship Program, and is consistently ranked amongst the best places to work.
C3 AI Suite and C3 AI Applications allow organizations to dramatically simplify and accelerate Enterprise AI adoption. Compared to the structured programming approach that most organizations typically attempt, we estimate that our model-driven architecture speeds development by a factor of 26, while reducing the amount of code that must be written by up to 99%.
C3.ai has a history of operating losses and may not achieve or sustain profitability in the future.
The company faces intense competition from several large players, including Palantir, Datarobot, H2O.ai, Alteryx and others. The rising competition could adversely affect the results of operations.
Limited number of customers have accounted for a substantial portion of the company's revenue. If existing customers do not renew their contracts with, or if relationships with the largest customers are impaired or terminated, C3.ai revenue could decline, and the results of operations would be adversely impacted.
C3.ai (AI) plans to sell 15.5 million shares at a price range of $31 to $34. The company intends to raise as much as $500M in an IPO of its common stock at about $3.4B valuation.
The company booked $163M in revenue for the last 12 months. Gross margin is around 75%. The company has grown rapidly in 2020 with revenue growth of 70%. However, revenues grew by 16% YoY in the last quarter. The major part of the revenue is generated from subscriptions to software, accounting for roughly 86% of the total revenue.
Similar public company is Alteryx (AYX), which is trading at 15x sales with revenue growth of 26% and gross margin of 91%. C3.ai is asking investors to pay 21x sales with slowing revenue growth of 16% and gross margin of 75%. Spring Creek Capital and Microsoft Corporation have entered into an agreement to purchase $100M and $50M in a private placement at a price per share equal to the initial public offering price. This investment idea has a high potential return of more than 40%.
2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.
We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».
The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.
After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.
Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.
From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.
The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.
3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.
1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.
20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.
TO EARLY EXIT
Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.
Our risk managers ensure proper support throughout the entire transaction.
IN THE PROFIT FROM THE FIRST DAY
Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.
LOW ENTRY THRESHOLD
Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.