Enterprise artificial intelligence software provider C3.ai, Inc. (AI) saw its stock surge over 6% in pre-market trading on Tuesday, following the company's better-than-expected fiscal second-quarter results and an upbeat outlook for the full year. The strong performance highlights the growing demand for AI solutions across industries as businesses look to streamline operations and drive efficiencies.

For the quarter ended October 31, 2024, C3.ai reported revenue of $94.3 million, exceeding analysts' estimates of $91 million. The company's subscription revenue, which accounts for 86% of total revenue, grew by an impressive 22% year-over-year, underscoring the robust demand for its AI software offerings.

On the profitability front, C3.ai posted an adjusted loss of just 6 cents per share, significantly narrower than the 16 cents loss analysts had anticipated. This marks the seventh consecutive quarter of accelerating revenue growth for the company, reflecting its growing market traction and successful execution.

A key factor driving investor optimism was C3.ai's announcement of a new strategic alliance with tech giant Microsoft, positioning the company as a "preferred AI application provider" on Microsoft's Azure cloud platform. This partnership gives C3.ai access to Microsoft's vast salesforce and is expected to accelerate the adoption of its enterprise AI solutions across various industries.

Buoyed by the strong quarterly performance and the potential of the Microsoft alliance, C3.ai raised its fiscal 2025 revenue guidance to a range of $378 million to $398 million, surpassing analysts' expectations of $382.57 million. This optimistic outlook underscores the company's confidence in its market strategy and growth prospects.

Overall, C3.ai's impressive results and raised guidance highlight the company's ability to capitalize on the growing enterprise adoption of AI technologies. With its innovative solutions and strategic partnerships like the one with Microsoft, C3.ai appears well-positioned to drive further growth and solidify its position in the rapidly evolving AI landscape.