Intelligence Finance learned that C3.ai (AI.US) exceeded expectations in the second quarter and raised its revenue forecast for fiscal 2025, as demand for its enterprise artificial intelligence software surged as companies seek tools to streamline workflows. According to data compiled by LSEG, Q2 revenue was US$94.3 million, up 29% year-on-year, topping analysts' estimates of US$91 million. Adjusted, the company reported a loss of 6 cents, while analysts expected a loss of 16 cents.
Subscription revenue grew 22% to US$81.2 million, while professional services revenue jumped 94% year-on-year to US$13.2 million.
The company now expects full-year revenue to be between US$378 million and US$398 million, up from its previous forecast of US$370 million to US$395 million. Analysts had previously expected the company's annual revenue to be US$382.6 million. For the third quarter, C3.ai expects revenue to be between US$95.5 million and US$105 million, with a midpoint of US$100 million slightly above analysts' estimates of US$97.5 million.
The California-based company provides software for enterprises to build and develop artificial intelligence applications across various industries, including energy, manufacturing, financial services and healthcare. C3.ai has been rolling out products with generative artificial intelligence as corporate customers' interest in AI has grown. The company said it completed 15 trials focused on generative AI this quarter, including with carmaker Rolls-Royce and the U.S. Navy.
After the earnings release, the company's stock rose 14.8% in after-hours trading. The stock has gained more than 45% so far this year, partly due to its expanded relationship with cloud giant Microsoft (MSFT.US). C3.ai will become a "preferred" artificial intelligence application provider on Microsoft Azure.