2024 Q4 - Annual Report

TableofContents (MarkOne) UNITEDSTATES SECURITIESANDEXCHANGECOMMISSION Washington,D.C.20549 FORM10-K oANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934 ForthefiscalyearendedApril30,2024OR ☐TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934Forthetransitionperiodfromto CommissionFileNumber:001-39744 C3.ai,Inc. (Exactnameofregistrantasspecifiedinitscharter) Delaware26-3999357 (Stateorotherjurisdictionofincorporationororganization) 1400SeaportBlvd (I.R.S.EmployerIdentificationNo.) RedwoodCity,CA94063 (Addressofprincipalexecutiveoffices)(Zipcode) Registrant'stelephonenumber,includingareacode:(650)503-2200 SecuritiesregisteredpursuanttoSection12(b)oftheAct: Titleofeachclass TradingSymbol(s) Nameofeachexchangeonwhichregistered ClassACommonStock,parvalue$0.001pershare AI NewYorkStockExchange Securitiesregisteredpursuanttosection12(g)oftheAct:None Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.Yes☒No☐ IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.Yes☐No☒ Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.Yes☒No☐ IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyeveryInteractiveDataFilerequiredtobesubmittedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitsuchfiles).Yes☒No☐ Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,asmallerreportingcompany,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct. Largeacceleratedfiler ☒ Acceleratedfiler ☐ Non-acceleratedfiler ☐ Smallerreportingcompany ☐ Emerginggrowthcompany ☐ Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.☐ Indicatebycheckwhethertheregistranthasfiledareportonandattestationtoitsmanagement’sassessmentoftheeffectivenessofitsinternalcontroloverfinancialreportingunderSection404(b)oftheSarbanes-OxleyAct(15U.S.C.7262(b))bytheregisteredpublicaccountingfirmthatpreparedorissueditsauditreport.☒ IfsecuritiesareregisteredpursuanttoSection12(b)oftheAct,indicatebycheckmarkwhetherthefinancialstatementsoftheregistrantincludedinthefilingreflectthecorrectionofanerrortopreviouslyissuedfinancialstatements.☐ Indicatebycheckmarkwhetheranyofthoseerrorcorrectionsarerestatementsthatrequiredarecoveryanalysisofincentive-basedcompensationreceivedbyanyoftheregistrant’sexecutiveofficersduringtherelevantrecoveryperiodpursuantto§240.10D-1(b).☐ Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct).Yes☐No☒ Theaggregatemarketvalueofvotingstockheldbynon-affiliatesoftheregistrantonOctober31,2023(thelastbusinessdayoftheregistrant’sfiscalsecondquarter),basedontheclosingpriceof$24.40forsharesoftheregistrant’sClassAcommonstockasreportedbytheNewYorkStockExchange,wasapproximately$1.7billion. AsofJune12,2024,theregistranthadoutstanding121,317,784sharesofClassAcommonstockand3,499,992sharesofClassBcommonstock. DOCUMENTSINCORPORATEDBYREFERENCE Portionsoftheregistrant’sdefinitiveproxystatementrelatingtoits2024annualmeetingofshareholders(the“2024ProxyStatement”)areincorporatedbyreferenceintoPartIIIofthisAnnualReportonForm10-Kwhereindicated.The2024ProxyStatementwillbefiledwiththeU.S.SecuritiesandExchangeCommissionwithin120daysaftertheendoftheregistrant’sfiscalyearendedApril30,2024. 1 TABLEOFCONTENTS SpecialNoteRegardingForward-LookingStatementsSelectedRisksAffectingOurBusiness PartI. Page Item1.Business7 Item1A.RiskFactors23 Item1B.UnresolvedStaffComments60 Item1C.Cybersecurity61 Item2.Properties62 Item3.LegalProceedings62 Item4.MineSafetyDisclosures62 PartII Item5. MarketforRegistrant’sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities 63 Item6. [Reserved] 64 Item7. Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations 65 Item7A. QuantitativeandQualitativeDisclosuresAboutMarketRisk 85 Item8. FinancialStatementsandSupplementaryData 86 Item9. ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure 125 Item9A. ControlsandProcedures 125 Item9B. OtherInformation 128 Item9C. DisclosureRegardingForeignJurisdictionsthatPreventInspections 128 PartIII Item10. Directors,ExecutiveOfficersandCorporateGovernance 129 Item11. ExecutiveCompensation 129 Item12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters 129 Item13. CertainRelationshipsandRelatedTransactions,andDirect