C3.ai, Inc.

Good day, and thank you for standing by. Welcome to the C3AI Fiscal Fourth Quarter and Fiscal Year 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today. Amit Berri, please go ahead.

Good afternoon, and welcome to C3AI's earnings call for the fourth quarter and full fiscal year 2026, which ended on April 30th, 2026. My name is Amit Berri, and I lead investor relations at C3AI. With me on the call today are Tom Siebel, Chairman and Chief Executive Officer, Stephen Ehikin, President, and Hitesh Lad, Chief Financial Officer. After the market closed today, we issued a press release with details regarding our fourth quarter results, which can be accessed through the investor relations section on our website at ir.c3.ai. This call is being webcast, and a replay will be available on our website following the conclusion of the call. During today's call, we will make statements related 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. 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. All figures will be discussed on a non-GAAP basis unless otherwise noted. Also during today's call, we will refer to certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures to the extent reasonably available is included in our press release. Finally, at times in our prepared remarks, in response to your questions, we may discuss metrics that are incremental to our usual presentation to give greater insight 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. And with that, let me turn the call over to Tom.

Good afternoon, everybody. This is Tom. And just when you thought it was safe, I'm back. We have an enormous opportunity before us. And the opportunity is to create enormous value for our shareholders. The performance of this company has been staggeringly disappointing. We're looking at a turnaround opportunity. And the fundamental nature of this turnaround opportunity is to change everything about the way we manage this business. In the process, we're gonna create enormous financial returns for our shareholders. Along these lines, I've been working with the senior executive leadership and the board for the last couple of months. We have restructured the company. We have restructured sales. We have restructured products. We have restructured services. We have put together a strategic plan. We have put together the objectives. And we have a clear plan in place to turn this company around and create value for our shareholders. The restructuring of the company, first introduced by Stephen Ahicki in February, has been expanded and accelerated by my return. The headcount has been reduced from 1,075 to roughly 700. We have taken almost $135 million in annual operating costs for the business structure. C3 AI Federal has been entirely reorganized through a new and highly experienced leader, The sales organization has been completely restructured globally under, again, a very highly experienced, seasoned chief revenue officer. In the past weeks, we have reorganized the company top to bottom. We have new leadership throughout the organization. We have restructured the company. We have restructured C3 Federal under new leadership. We have restructured C3 Sales under new leadership. We have restructured products under new leadership. We have brought together end products, the platform group, the applications group, the product marketing group, and the customer services group, all in one organization under senior seasons leadership. We have restructured the service team, the objectives in place, the strategy is written, and we are now going to town. Just like the company, just like sales, the products group has been completely redesigned and re-engineered. We've brought together under one senior leader who's been with the company for 14 years, four functions, including the platform team, the applications team, the product marketing team, and the services team in one place. So we have one organization basically responsible for designing the product, coding the product, quality assuring the product, and delivering the product to make sure that customers are successful. The services organization has also been completely re-engineered and completely designed under a new senior leader who's been with the company for more than seven years. We've taken four layers out of that org structure from seven to three. The organization has been redesigned so that for every one of our customers where we're working on pilots or production deployments, we have a dedicated team assigned to the customer. They move in with the customer and they stay with the customer until the project is done and the customer is successful. I am absolutely satisfied. The new structure is going to result in higher levels of customer satisfaction, more successful customer deployments, and more rapid expansion of our customer deployments into large enterprise expanding contract relationships. As I look at the performance of the company in recent quarters, and particularly the sales performance, it is just unspeakably horrible, and it's surreal. This is resulting in... in market multiples for the company that are candidly well-earned. Okay. And scathing analysis from analysts and sell-side analysts that are candidly well-deserved. I am here to fix that. Okay. And, you know, as it relates to enterprise sales, this is not an area which I'm entirely unfamiliar with. I think just to return to fundamental hygiene and fundamental sales protocol, just the basics will take this company a long, long way towards increasing their hold of value. And the company is sufficiently well capitalized to basically obviate any question of the need for a financing event. We have enough capital there to meet the mission that is before us. I want to give you an update on the restructuring that Stephen introduced last quarter. We have expanded those objectives and we have accelerated those objectives. We have reduced headcount by approximately 35% across all organizations. The workforce actions are in place. They are done. The cost controls are in place. The budget is in place. The plans are in place. The costs have been reduced by order of $135 million a year. And we are well on our way to becoming a fully agentic enterprise, adopting these agentic tools to fundamentally change the way we do business across the enterprise and to dramatically increase productivity in every aspect of our business. The products organizations today are largely leveraging AI tools for all programming activities. These agentic tools have been adopted across the organization, legal, finance, sales, marketing, wherever it may be, to increase productivity. really dramatically across the enterprise. Sales in particular are leveraging the misogynistic tool to focus on market development, business development, and strategies to increase their penetration of existing customers and large global new customers. across every function. Our people in the organization are operating with an energetic AI-first mindset, increasing productivity across all business functions. This is now all about execution. And we're going to have our heads down every hour, every day, every month, every quarter. And the early indications are that this is moving in the right direction. Our priorities are clear. They're well understood. They are articulated. The objectives are distributed and they're understood. If we look at sales, for example, our go-to-market activities have changed significantly. We're focusing on using technologies and agentic technologies focused on penetrating territories, penetrating large accounts with campaigns that will develop over multiple quarters and multiple years, rather than the narrow focus that was in place before focused on relatively small opportunities that might be in place for any given quarter. The executive team, all of the employees at C3 AI are laser focused on doing whatever it takes with the objectives in place to turn the company to significant quarter-to-quarter offline revenue growth to establish the company as one that generates free cash flow every quarter, and to establish the company as a company that generates non-GAAP profitability quarter after quarter after quarter. The opportunity to increase your holder value at C3AI is enormous, and that is exactly what we're going to do. Talk is cheap. And rather than rain forth with idle promises that everybody will largely ignore, we're going to accept the challenge to deliver acceptable financial results, to deliver growth, to deliver cash generation, non-gap profitability generation, and let the results speak for themselves. Game on. With that, let me turn this over to my colleagues. Our CFO, Atesh Lath, is going to talk about the results of the quarter. And Atesh and Stephen Akikian will be available to answer questions they may have. Thank you very much for your interest, and I look forward to updating you as this develops at the end of Q1 and the end of Q2. Thank you, thank you, thank you.