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Xiao-I Corporation Issues Revenue Guidance of $73 Million for Fiscal Year 2024

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Xiao-I (NASDAQ: AIXI), a leading AI company, has issued revenue guidance of $73 million for fiscal year 2024, projecting a 25% increase from the $59 million reported in FY 2023. The company attributes this growth to successful refinement and market deployment of its AI technologies. Xiao-I also anticipates a decline in R&D expenses as it focuses on achieving profitability. CEO Hui Yuan stated that their AI systems have reached a high level of maturity, allowing for decreased R&D spending. This strategy aims to improve margins and enhance overall financial performance, contributing to improved profit margins and continued reduction in losses.

Xiao-I (NASDAQ: AIXI), un'azienda leader nel settore dell'IA, ha fornito una guida sui ricavi di 73 milioni di dollari per l'anno fiscale 2024, prevedendo un aumento del 25% rispetto ai 59 milioni di dollari riportati nell'anno fiscale 2023. L'azienda attribuisce questa crescita al raffinamento e alla distribuzione di successo delle sue tecnologie AI. Xiao-I prevede anche una riduzione delle spese in R&D mentre si concentra sul raggiungimento della redditività. Il CEO Hui Yuan ha dichiarato che i loro sistemi IA hanno raggiunto un elevato livello di maturità, consentendo una diminuzione della spesa in R&D. Questa strategia mira a migliorare i margini e migliorare le performance finanziarie complessive, contribuendo a migliorare i margini di profitto e a continuare la riduzione delle perdite.

Xiao-I (NASDAQ: AIXI), una empresa líder en IA, ha emitido una guía de ingresos de 73 millones de dólares para el año fiscal 2024, proyectando un incremento del 25% respecto a los 59 millones de dólares reportados en el año fiscal 2023. La compañía atribuye este crecimiento al exitoso perfeccionamiento y despliegue en el mercado de sus tecnologías de IA. Xiao-I también anticipa una disminución en los gastos de I+D a medida que se enfoca en lograr rentabilidad. El CEO Hui Yuan declaró que sus sistemas de IA han alcanzado un alto nivel de madurez, lo que permite reducir el gasto en I+D. Esta estrategia tiene como objetivo mejorar los márgenes y potenciar el rendimiento financiero general, contribuyendo a mejorar los márgenes de beneficios y continuar la reducción de pérdidas.

Xiao-I (NASDAQ: AIXI), AI 업계의 선두주자인 이 회사는 2024 회계연도에 7,300만 달러의 수익 가이던스를 발표하며 2023 회계연도에 보고된 5,900만 달러에서 25% 증가할 것으로 예상하고 있습니다. 회사는 AI 기술의 성공적인 개선 및 시장 배포 덕분에 이러한 성장을 설명합니다. Xiao-I는 또한 수익성 달성에 집중하면서 R&D 비용 감소를 예상하고 있습니다. CEO Hui Yuan은 자사의 AI 시스템이 높은 수준의 성숙도에 도달했으며, 이에 따라 R&D 지출이 감소할 수 있다고 밝혔습니다. 이 전략은 마진 개선과 전반적인 재무 성과 향상을 목표로 하여 이익 마진을 개선하고 손실을 지속적으로 줄이는 데 기여할 것입니다.

Xiao-I (NASDAQ: AIXI), une entreprise leader en IA, a annoncé une prévision de revenus de 73 millions de dollars pour l'exercice 2024, projetant une augmentation de 25% par rapport aux 59 millions de dollars déclarés pour l'exercice 2023. L'entreprise attribue cette croissance à l'affinage et au déploiement réussi de ses technologies IA sur le marché. Xiao-I prévoit également une baisse des dépenses en R&D alors qu'elle se concentre sur l'atteinte de la rentabilité. Le PDG Hui Yuan a déclaré que leurs systèmes IA avaient atteint un niveau de maturité élevé, permettant de réduire les dépenses en R&D. Cette stratégie vise à améliorer les marges et à renforcer la performance financière globale, contribuant à l'amélioration des marges bénéficiaires et à la réduction continue des pertes.

Xiao-I (NASDAQ: AIXI), ein führendes KI-Unternehmen, hat eine Umsatzprognose von 73 Millionen US-Dollar für das Geschäftsjahr 2024 herausgegeben und erwartet einen 25%igen Anstieg gegenüber den 59 Millionen US-Dollar, die im Geschäftsjahr 2023 berichtet wurden. Das Unternehmen führt dieses Wachstum auf die erfolgreiche Verfeinerung und Markteinführung seiner KI-Technologien zurück. Xiao-I rechnet auch mit einem Rückgang der F&E-Ausgaben, während es sich darauf konzentriert, Rentabilität zu erreichen. CEO Hui Yuan erklärte, dass ihre KI-Systeme ein hohes Reifegradniveau erreicht haben, was geringere F&E-Ausgaben ermöglicht. Diese Strategie zielt darauf ab, die Margen zu verbessern und die Gesamtfinanzleistung zu steigern, was zu verbesserten Gewinnmargen und einer weiterhin reduzierten Verlustentwicklung beiträgt.

Positive
  • Projected 25% revenue increase for FY 2024, reaching $73 million
  • Anticipated decline in R&D expenses
  • Expected improvement in profit margins
  • Continued reduction in losses
Negative
  • Company still operating at a loss

Insights

Xiao-I's projected $73 million revenue for FY2024 represents a substantial 25% year-over-year growth, signaling strong market traction for their AI technologies. The anticipated reduction in R&D expenses, coupled with revenue growth, points towards improving profit margins and a path to profitability. However, investors should note that the company is still operating at a loss, albeit a diminishing one.

The shift from heavy R&D investment to market deployment suggests Xiao-I is transitioning from a growth-at-all-costs model to a more balanced approach focused on profitability. This strategy could potentially accelerate their journey to positive earnings, a critical milestone for tech companies. The projected revenue of $73 million also implies significant market validation of their AI solutions, which could position them favorably in the competitive AI landscape.

Xiao-I's announcement of reduced R&D spending coupled with revenue growth indicates their AI systems have likely reached a significant level of technological maturity. This transition from heavy development to optimization and market deployment is a important phase in the lifecycle of AI companies. It suggests their core technologies are now sufficiently advanced to meet current market demands without requiring substantial further investment.

However, the AI field is rapidly evolving and maintaining a competitive edge with reduced R&D could be challenging. Xiao-I will need to balance cost-cutting with continued innovation to stay relevant. The 25% projected revenue growth implies strong market acceptance of their AI solutions, but sustained growth will depend on their ability to adapt to emerging AI trends and customer needs without the cushion of high R&D spending.

SHANGHAI, Sept. 5, 2024 /PRNewswire/ -- Xiao-I Corporation ("Xiao-I" or the "Company") (NASDAQ: AIXI), a leading artificial intelligence company today announced its projection of a 25% increase in revenue for the fiscal year ended December 31, 2024, expecting a revenue of approximately $73 million for the company's fiscal year ended December 31, 2024 comparing to revenue of $59 million which was reported for fiscal year ended December 31, 2023. This projected growth is attributed to the successful refinement and market deployment of its AI technologies. Additionally, the company anticipates a decline in research and development (R&D) expenses as it strategically focuses on achieving profitability.

CEO Mr. Hui Yuan commented, "Our AI systems have reached a high level of maturity and are now fully optimized for the market. This allows us to decrease our R&D spending, which aligns with our strategy to improve margins and enhance our overall financial performance."

The reduction in R&D expenses is expected to contribute to improved profit margins and a continued reduction in losses, underscoring Xiao-I Corporation's commitment to profitability while delivering innovative AI solutions.

"Our focus remains on leveraging our refined AI technologies to drive sustainable growth and create long-term value for our shareholders," Mr. Hui Yuan added.

About Xiao-I Corporation

Xiao-I Corporation is a leading cognitive intelligence enterprise in China that offers a diverse range of business solutions and services in artificial intelligence, covering natural language processing, voice and image recognition, machine learning, and affective computing. Since its inception in 2001, the Company has developed an extensive portfolio of cognitive intelligence technologies that are highly suitable and have been applied to a wide variety of business cases. Xiao-I powers its cognitive intelligence products and services with its cutting-edge, proprietary AI technologies to enable and promote industrial digitization, intelligent upgrading, and transformation. For more information, please visit: www.xiaoi.com.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's ability to achieve its goals and strategies, the Company's future business development and plans for future business development, including its financial conditions and results of operations, product and service demand and acceptance, reputation and brand, the impact of competition and pricing, changes in technology, government regulations, fluctuations in general economic and business conditions in China, and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission ("SEC"). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, including under the section entitled "Risk Factors" in its annual report on Form 20-F filed with the SEC on April 30, 2024, as well as its current reports on Form 6-K and other filings, all of which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.


For investor and media inquiries, please contact:

Ms. Berry Xia
Email: ir@xiaoi.com

Cision View original content:https://www.prnewswire.com/news-releases/xiao-i-corporation-issues-revenue-guidance-of-73-million-for-fiscal-year-2024-302239496.html

SOURCE Xiao-I Corporation

FAQ

What is Xiao-I 's revenue guidance for fiscal year 2024?

Xiao-I (NASDAQ: AIXI) has issued revenue guidance of $73 million for fiscal year 2024, representing a 25% increase from the previous year.

How much revenue did Xiao-I report for fiscal year 2023?

Xiao-I reported revenue of $59 million for the fiscal year ended December 31, 2023.

What changes in R&D expenses does Xiao-I anticipate?

Xiao-I anticipates a decline in research and development (R&D) expenses as it strategically focuses on achieving profitability.

How does Xiao-I plan to improve its financial performance?

Xiao-I plans to improve its financial performance by decreasing R&D spending, improving profit margins, and focusing on leveraging its refined AI technologies to drive sustainable growth.

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