04:35 PM EST, 11/04/2024 (MT Newswires) -- Coveo Solutions ( CVOSF ) , up 14% in Monday trading, after hours reported a narrower fiscal second-quarter loss on higher revenue.

The artificial intelligence company said it lost US$5.4 million, or US$0.05 per share, in the quarter ended Sept.30, narrowing from a loss of US$6.5 million, or US$0.06, last year. The consensus estimate among analysts polled by Capital IQ expected a loss of US$0.06 per share.

Revenue rose 5% to US$32.7 million from US$31.2 million in the prior year period. Analysts surveyed by Capital IQ expected US$32.31 million. The company also said that SaaS subscription revenue climbed to US$31.2 million from US$29.4 million a year ago.

"After a period of thorough evaluation and education, we continue to witness a shift among enterprises towards the adoption of AI solutions that deliver proven results and strong ROI. Our second quarter further validated this trend, with robust demand from new and existing customers," chief executive Louis Tetu said in a release.

For the fiscal third quarter, the company expects total revenue of US$33.4 to US$33.9 million, software as a service (SaaS) subscription revenue of US$31.8 to US$32.3 million, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of less than $1 million.

For fiscal year 2025, Coveo projects total revenue of US$133 to US$138 million, SaaS subscription revenue of US$126 million to US$130, and adjusted EBITDA of less than $4 million.

The company added that for the full year, it expects to stay within its previously set guidance ranges, aiming for the lower to middle part of those ranges. It also anticipates generating about $10 million in positive cash flow from operations for fiscal 2025.

Coveo shares closed up $0.73 to $5.95 on the Toronto Stock Exchange.