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  "documentTitle": "C3.ai, Inc. (AI)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2022-02-16 00:00:00",
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  "notes": "The slide uses a red callout box to highlight the discrepancy between sell-side growth projections and the firm's own backlog analysis.",
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      "kind": "callout",
      "text": "Spruce Point believes projections from “all other customers” ex: Baker Hughes embedded in sell-side estimates are simply too high given significant employee turnover across verticals and regions, and our backlog analysis.",
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      "text": "Revenue: 20%",
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      "text": "Growth from “All Other Customers” excluding Baker Hughes has grown in the range of 16% to 24% since April 2019. Yet, the sell-side is modeling an acceleration to +40% in FY23. This is more than double the growth rate we have witnessed since April 2019. We’ve documented significant sales turnover across many of C3’s verticals. Spruce Point's applied a similar logic to understand growth in C3.ai’s backlog excluding commitments from Baker Hughes We estimate that Backlog (see backlog analysis) from all other customers has increased ~$6m thus far this year from $163.1m to $169.2m which does not substantiate the 40% revenue growth that sell-side analysts currently expects",
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      "text": "Source: Bloomberg, Spruce Point Research (1) Non-Direct Baker Hughes revenues are assumed to be recognized at 100% gross margins",
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      "kind": "table",
      "text": "Financial table showing Revenues, Cost of Revenues, Gross Profit, and GM% for Baker Hughes Direct, Non-Direct, and All Other Customers across FY19-FY23E.",
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      "text": "Spruce Point Projections",
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