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  "documentTitle": "C3.ai, Inc. (AI)",
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  "authorName": "Spruce Point Capital Management",
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  "notes": "Uses red flags and boxes to draw attention to the discrepancy between reported margins and cost descriptions.",
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      "kind": "callout",
      "text": "Spruce Point calls on management to explain how all of the direct revenues recognized from the Baker Hughes JV are being recognized at +99% gross margins? Perhaps, even more unusually, how can professional services revenues recognized from the Baker Hughes JV be recognized at 100% gross margins? When we asked a former employee with knowledge of the relationship how this was possible, the answer was, “it would be impossible.”",
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      "text": "Spruce Point calls on management to explain how all of the direct revenues recognized from the Baker Hughes JV are being recognized at +99% gross margins?",
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      "text": "gross margin: 99%",
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      "text": "\"it would be impossible.\" — a former employee with knowledge of the relationship",
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      "text": "Sources: IPO Prospectus, FY21 10-K, 2Q'22 10-Q, 1Q'22 10-Q,",
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