C3.ai Inc (NYSE:AI), the Enterprise AI application software company, stock fell 2.52% (As on December 10, 11:23:23 AM UTC-4, Source: Google Finance) after the company raised its forecast for fiscal year 2025 revenue, helped by healthy demand for the company’s enterprise artificial intelligence software as companies look for tools to help streamline their workflow. Subscription revenue for the quarter was $81.2 million, constituting 86% of total revenue, an increase of 22% compared to $66.4 million one year ago. Subscription and prioritized engineering services revenue combined was $90.8 million, constituting 96% of total revenue, an increase of 27% compared to $71.3 million one year ago.

Meanwhile, the Company has signed a new global alliance agreement with Microsoft on September 30 for an initial five-and-a-half-year term ending March 2030 to accelerate growth in Enterprise AI. Now, All C3 AI Enterprise AI and C3 Generative AI solutions are now available on the Azure Price List. All C3 AI Enterprise AI and generative AI software solutions are now orderable on the Azure Marketplace. All C3 AI solutions are all sellable by the entire Azure sales organization globally. Microsoft will subsidize C3 AI pilots and C3 AI production deployments over the term of the agreement.

Additionally, in Q2, the Company closed 62% of total agreements with and through its partner network. C3 AI and Capgemini extended their partnership to advance Enterprise AI for business transformation. Google Cloud and C3 AI jointly closed 20 agreements, an increase of more than 180% year-over-year.

AI in the second quarter of FY 25 has reported the adjusted loss per share of 6 cents, beating the analysts’ estimates for the adjusted loss per share of 16 cents. The company had reported the adjusted revenue growth of 29 percent to $94.3 million in the second quarter of FY 25, beating the analysts’ estimates for revenue of $91 million, according to data compiled by LSEG.

For Q3, C3.ai guided adjusted operating loss in a range of $38.6M to $46.6M on revenue in the range of $95.5B to $100.5M. Analysts were expecting revenue of $97.6M.

Looking to fiscal 2025, the company sees an adjusted operating loss in the range of $105M to $135M on revenue in the range of $378B to $398M, compared with prior guidance for an adjusted operating loss in a range of $95M to $125M on revenue in the range of $370B to $395M.