The global Artificial Intelligence (AI) market is expected to grow at 40% CAGR from $62.35 billion in 2020 through to 2028. Tom Siebel’s C3.ai (NYSE: AI) Is making big inroads in this market through partnerships and product innovation.

C3.ai’s Financials

C3.ai’s second-quarter revenues grew 41% to $58.3 million, ahead of the market’s estimate of $56.8 million. Adjusted loss per share of $0.23 surpassed the Street’s estimates of loss per share of $0.32.

Its subscription revenues grew 32% to $47.4 million. Professional service revenues grew 97.83% to $10.86 million.

For the third quarter, C3.ai forecast revenues of $66-$68 million, compared with the market’s forecast of $66.78 million. For the full year, C3.ai forecast revenues of $248-$251 million, compared with the market’s forecast of $249.44 million.

C3.ai’s Offerings

C3.ai continued to expand its enterprise AI footprint in a number of industries, including agriculture, agricultural implements, manufacturing, oil and gas, insurance, financial services, life sciences, and energy. It reported several new enterprise production deployments at Cargill, Johnson Controls, Shell, Liberty Mutual, and PTT Global Chemical. It also expanded its presence in the public sector business in defense and intelligence, with new production deployments at the U.S. Air Force, U.S. Space Force, and the Missile Defense Agency. During the last quarter, its public sector business grew 33%. It expects this sector to continue to increase substantially in the last two quarters of the current fiscal. Earlier this week, it announced that it had won a new five-year agreement with the U.S. Department of Defense for $500 million. The agreement allows for any DoD agency to acquire its AI products and services for modelling and simulation.

Within its partner ecosystem, it has seen strong results from its new strategic partnership with Google Cloud. The two players are making significant progress on joint product roadmaps and joint sales pipelines. The Google Cloud partnership has helped them identify $58 million in business for the second half of the year. It is seeing strong traction from its partnership with Microsoft as well. Till date, it has closed over $220 million of business with Microsoft, and expects another $140 million in business through Microsoft in the second half of its fiscal.

C3.ai believes that the total installed base of CRM will exceed $1 trillion. It is seeing substantial interest from larger CRM systems integrators in leveraging C3 AI CRM as a complementary tool to their customers’ existing installed CRM systems. They are leveraging C3.ai for enhancements such as AI revenue forecasting, AI product forecasting, AI-enabled customer retention, and AI-based predictive maintenance. This offers a big growth opportunity for C3.ai. It is hoping to address this market through the launch of new products.

Earlier this quarter, it released C3 AI Data Vision, a solution that transforms the traditional forms and table-based analytics solution to a visual, interactive, dynamic, knowledge graph offering. It also introduced two new applications focused on the county tax assessors – AI Residential Property Appraisal and C3 AI Commercial Property Appraisal, which will be aimed at state and local governments and counties, as well as financial services institutions engaged in mortgage lending and related services. The solution provides a defensible property appraisal with a complete evidence package to support that appraisal.

C3.ai’s stock is currently trading at $31.54 with a market capitalization of $3.31 billion. It touched a 52-week high of $183.90 in December last year. The stock had fallen to a 52-week low of $27.52 in November.