Surge in public sector business growth continues for C3.AI
Artificial intelligence software provider C3.AI says that new contracts with the Air Force, Space Force and additional work with the Missile Defense Agency helped to spur growth in in recent months.
The company cited a 33% rise in public sector revenues Thursday as it reported an overall 32% surge in subscription revenues for the 2nd quarter of its fiscal 2022. C3.AI also announced the appointment of retired Army Lt. Gen. H.R. McMaster to its board.
C3.AI is one of the few companies providing advanced AI analytics to Department of Defense agencies, including the Air Force, and recently appointed former commanding general of Army Cyber Command, Ed Cardon, as chair of the business.
Total subscription revenues rose to $47.4 million, up from $35.9 million in the prior-year period, the company said.
The New York Stock Exchange-listed company was established in 2009 by former Siebel Systems founder Tom Siebel and has racked up notable AI contracts with federal agencies, including with the Defense Innovation Unit and the Air Force.
Overall, the company has increased its customer count to 104 customers, which it said represented 63% year-on-year growth. Non-GAAP gross profit for the quarter rose by 25% to $42.3 million.
“The company expects this [public sector] growth rate to accelerate substantially in the second half of the year,” it said.