(Reuters) - C3.ai (AI) missed quarterly subscription revenue estimates on Wednesday, as enterprises tightened spending amid economic uncertainties, sending its shares down by 17% in after-hours trading.

A cautious approach to new software investments by enterprises grappling with high interest rates and an volatile business has impacted demand for C3.ai's products.

The company offers solutions using generative AI technologies to provide advanced capabilities for enterprises across various industries, including manufacturing, defense, aerospace, and pharmaceuticals.

The Redwood City, California-based company posted subscription revenue of $73.5 million for the first quarter ended July 31, missing LSEG estimates of $79.1 million. Total revenue came in at $87.2 million, beating expectations of $86.9 million.

C3.ai, which counts the U.S. Department of Defense and Dolce & Gabbana among its clients, maintained its fiscal year 2025 revenue forecast between $370 million and $395 million, the midpoint of which is below analysts' estimate of $383.4 million, according to LSEG data.

For the second quarter, C3.ai expects revenue to be in the range of $88.6 million to $93.6 million, with the midpoint being in line with estimates of $91.1 million.

(Reporting by Juby Babu in Mexico City; Editing by Tasim Zahid)