CXApp Inc. (Nasdaq: CXAI) Announces Largest “Expansion” Deal & Strategic Multi-Year Agreement with Google Cloud
CXApp Inc. (Nasdaq: CXAI) announced its Q2 2024 financial results, marking significant progress in its transformation to an AI-native SaaS model. The company reported a 78% increase in renewal and expansion bookings compared to the same period last year, including its largest 'expansion' deal with a major financial sector customer. Key metrics improved, with subscription revenue reaching 85% of total revenue, gross margin increasing to 80%, and a net retention rate of 105%.
CXApp also announced a multi-year, multi-million dollar strategic agreement with Google Cloud for the development and delivery of advanced AI infrastructure, security, and application products. This partnership aims to enhance the CXAI platform, which integrates customer experience with AI to transform workplace efficiency and employee productivity.
CXApp Inc. (Nasdaq: CXAI) ha annunciato i risultati finanziari del Q2 2024, segnando progressi significativi nella sua trasformazione verso un modello SaaS nativo per l'IA. L'azienda ha riportato un aumento del 78% nelle prenotazioni di rinnovo ed espansione rispetto allo stesso periodo dell'anno scorso, inclusa la sua più grande operazione di 'espansione' con un importante cliente del settore finanziario. Le metriche chiave sono migliorate, con un fatturato da abbonamenti pari all'85% del fatturato totale, un margine lordo aumentato all'80% e un tasso di ritenzione netta del 105%.
CXApp ha anche annunciato un accordo strategico pluriennale da diversi milioni di dollari con Google Cloud per lo sviluppo e la fornitura di infrastrutture avanzate per l'IA, prodotti di sicurezza e applicazioni. Questa partnership ha l'obiettivo di migliorare la piattaforma CXAI, che integra l'esperienza del cliente con l'IA per trasformare l'efficienza lavorativa e la produttività dei dipendenti.
CXApp Inc. (Nasdaq: CXAI) anunció sus resultados financieros del segundo trimestre de 2024, marcando un progreso significativo en su transformación hacia un modelo SaaS nativo de IA. La compañía reportó un aumento del 78% en las reservas de renovación y expansión en comparación con el mismo periodo del año pasado, incluyendo su mayor acuerdo de 'expansión' con un importante cliente del sector financiero. Las métricas clave mejoraron, con los ingresos por suscripciones alcanzando el 85% de los ingresos totales, un margen bruto aumentando al 80%, y una tasa de retención neta del 105%.
CXApp también anunció un acuerdo estratégico de varios años y por varios millones de dólares con Google Cloud para el desarrollo y la entrega de infraestructura avanzada de IA, seguridad y productos de aplicaciones. Esta asociación tiene como objetivo mejorar la plataforma CXAI, que integra la experiencia del cliente con la IA para transformar la eficiencia laboral y la productividad de los empleados.
CXApp Inc. (Nasdaq: CXAI)는 2024년 2분기 재무 결과를 발표하며 AI 기반 SaaS 모델로의 변혁에서 상당한 진전을 이루었다고 밝혔다. 해당 회사는 지난해 같은 기간에 비해 갱신 및 확장 예약이 78% 증가했다고 보고했으며, 주요 금융_sector 고객과의 최대 '확장' 계약도 포함되어 있다. 주요 지표가 개선되었으며, 구독 수익이 총 수익의 85%에 도달하고, 총 이익률이 80%으로 증가했으며, 순 유지율이 105%에 달하고 있다.
CXApp은 또한 Google Cloud와의 여러 해에 걸친 수백만 달러 규모의 전략적 계약을 발표하여 고급 AI 인프라, 보안 및 애플리케이션 제품을 개발하고 제공한다. 이 파트너십은 고객 경험과 AI를 통합하여 작업 효율과 직원 생산성을 변환하는 CXAI 플랫폼을 향상시키는 것을 목표로 한다.
CXApp Inc. (Nasdaq: CXAI) a annoncé ses résultats financiers du deuxième trimestre 2024, marquant des progrès significatifs dans sa transformation vers un modèle SaaS natif d'IA. L'entreprise a enregistré une augmentation de 78% des réservations de renouvellement et d'expansion par rapport à la même période de l'année dernière, y compris son plus gros contrat 'd'expansion' avec un client majeur du secteur financier. Les indicateurs clés se sont améliorés, avec les revenus par abonnement atteignant 85% du chiffre d'affaires total, une marge brute augmentant à 80%, et un taux de fidélisation nette de 105%.
CXApp a également annoncé un accord stratégique pluriannuel de plusieurs millions de dollars avec Google Cloud pour le développement et la livraison d'infrastructures avancées en IA, de produits de sécurité et d'applications. Ce partenariat vise à améliorer la plateforme CXAI, qui intègre l'expérience client avec l'IA pour transformer l'efficacité au travail et la productivité des employés.
CXApp Inc. (Nasdaq: CXAI) hat seine Finanzzahlen für das 2. Quartal 2024 veröffentlicht, die bedeutende Fortschritte bei der Transformation in ein KI-natives SaaS-Modell zeigen. Das Unternehmen verzeichnete eine Steigerung von 78% bei den Erneuerungs- und Erweiterungsbuchungen im Vergleich zum gleichen Zeitraum des Vorjahres, einschließlich des größten 'Expansion'-Deals mit einem bedeutenden Kunden aus dem Finanzsektor. Die wichtigen Kennzahlen verbesserten sich, mit Abonnementeinnahmen, die 85% des Gesamtumsatzes erreichen, einer Bruttomarge von 80% und einer Nettorückhaltequote von 105%.
CXApp gab zudem eine mehrjährige, mehrere Millionen Dollar umfassende strategische Vereinbarung mit Google Cloud bekannt, um fortschrittliche KI-Infrastruktur, Sicherheit und Anwendungsprodukte zu entwickeln und bereitzustellen. Diese Partnerschaft zielt darauf ab, die CXAI-Plattform zu verbessern, die Kundenerfahrungen mit KI integriert, um die Effizienz am Arbeitsplatz und die Produktivität der Mitarbeiter zu transformieren.
- 78% increase in renewal and expansion bookings year-over-year
- Largest 'expansion' deal secured with a major financial sector customer, growing their ARR by 112%
- Subscription revenue increased to 85% of total revenue from 79% last year
- Gross margin improved to 80% from 75% last year
- Net retention rate (NRR) of 105%
- 15% reduction in operating expenses from Q2'23 to Q2'24
- Multi-year, multi-million dollar strategic agreement signed with Google Cloud
- None.
Insights
CXApp's Q2 2024 results show promising growth in key SaaS metrics. The 78% increase in renewal and expansion bookings and the 112% ARR growth from a major financial sector customer are significant positives. The improved subscription revenue split (85% vs 79%) and gross margin (80% vs 75%) indicate a strengthening business model. The 105% net retention rate suggests good customer satisfaction and upselling success. However, the lack of specific revenue and profit figures is a concern. The 15% reduction in operating expenses is positive for profitability, but without absolute numbers, it's hard to gauge overall financial health. The Google Cloud partnership could be a game-changer, potentially accelerating growth and innovation, but financial terms aren't disclosed. While the trends are positive, investors should seek more concrete financial data to make informed decisions.
CXApp's pivot to an AI-native SaaS model is strategically sound in the current tech landscape. The CXAI platform's focus on integrating customer experience with AI for workplace innovation aligns well with market trends. The multi-year agreement with Google Cloud is a significant technological boost, providing access to advanced AI infrastructure and potentially accelerating CXApp's innovation cycle. The development of CXAI VU, an AI-based analytics platform, could be a differentiator in the competitive workplace experience market. However, the true technological edge of CXApp's solutions over competitors remains unclear. The "land and expand" strategy seems to be working, as evidenced by the large expansion deal, but the scalability and uniqueness of the technology need further proof. Overall, while the direction is promising, more details on the specific AI capabilities and their measurable impact on client operations would be needed to fully assess the technology's potential.
CXApp's focus on the employee workplace experience market is timely, given the ongoing shifts in work paradigms post-pandemic. The company's largest "expansion" deal and high customer retention rate suggest strong product-market fit. The diversified customer base across major sectors provides resilience and growth potential. However, the workplace innovation market is increasingly competitive, with major tech players also vying for dominance. CXApp's partnership with Google Cloud could provide a competitive edge, but the extent of this advantage isn't clear without more details. The company's aim to define a new category in enterprise software - "Employee Experiences" - is ambitious and could pay off if successful. The positive trending in SaaS metrics is encouraging, but without comparative market share data or competitor analysis, it's challenging to gauge CXApp's true market position. Investors should watch for concrete evidence of market leadership and differentiation in future reports.
Business Transformation to AI-Native SaaS Model
Signed Multi-Year Agreement with Google Cloud
PALO ALTO, CA / ACCESSWIRE / August 12, 2024 / CXApp Inc. (Nasdaq:CXAI), the global technology leader in employee workplace experiences announced its Q2 2024 financial results. This quarter represents the first quarter that the Company financials can be compared as a standalone entity after the business combination in March 2023 to the comparable quarter from the previous year.
CXApp Inc. has completed a major business transformation to an AI-native SaaS model with continued positive trending of key SaaS metrics. This quarter saw a massive increase of
The Company has continued to optimize the operational cost structure leveraging investments in AI resulting in a net
The Company also announced today the signing of a multi-year multi-million dollar strategic agreement with Google Cloud. This agreement entails mutual commitment on the development and delivery of advanced AI infrastructure, security and application products. Google Cloud will also co-invest with CXApp Inc. in the continuous deployment, monitoring and modernization of the AI-native CXAI platform.
The CXAI technology platform represents a shift towards an AI-centric approach in workplace innovation. CXAI seamlessly integrates customer experience (CX) with artificial intelligence (AI) focused around the employee to deliver solutions that transform the way work happens, making workspaces more intuitive and efficient leading to happier and more productive employees.
Khurram Sheikh, Chairman and CEO of CXApp Inc., expressed confidence in the Company's performance and prospects:
"Q2 was a great quarter in cementing our business model and demonstrating the execution of our "land and expand" strategy. We continue to make great progress in shaping the future of work with our largest expansion deal this quarter. This large enterprise client is seeing high adoption of our platform in their pilot deployments at their headquarters in the US and a second major site. We are solving real problems in the work environment for them, and they are now planning to scale up with our AI-native solutions across their enterprise footprint.
Our customers have reposed confidence in the CXAI technology platform and roadmap and their continued commitments with renewals is a testament to our ground-breaking technology and innovative team.
Given the momentum we see in the market with our customers and enhanced upcoming offerings including our AI-based Analytics platform CXAI VU, the Google Cloud agreement positions us to deliver our commitments to our customers. We are super-excited about this partnership as it provides us access to all the latest Google AI innovations that we plan on adapting to revolutionize the workplace market with amazing employee experiences."
Khurram Sheikh concluded "I am very proud of the business transformation our team has achieved and the continued positive trending of all key SaaS metrics. We are also well-positioned for future growth with our CXAI platform including CXAI VU analytics products that are now in pilots with key strategic customers.
AI is transformative to all markets, and we are extremely optimistic on the transformation in the workplace experience market using our leading-edge AI platform. We are mission-focused on defining a new category in enterprise software: Employee Experiences. We have an amazing customer base diversified globally and across all major sectors ready for massive scale-up with our next generation CXAI platform."
We invite stakeholders, potential clients, and the media to join us on this exciting journey into the future of work. Sign up for our email list to stay updated on CXAI announcements and discover how our partnership with Google Cloud is setting new standards for workplace innovation. For more information on how to engage with CXAI, including upcoming events, webinars, or demonstrations, please visit our website www.cxapp.com
The release is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy, any securities, nor shall there be any sale, issuance or transfer or securities in any jurisdiction in contravention of applicable law.
About CXApp Inc.
CXApp Inc., is the global technology leader in employee workplace experiences. The Company is headquartered in the SF Bay Area and operates the CXAI SaaS platform that is anchored on the intersection of customer experience (CX) and artificial intelligence (AI) providing digital transformation for the workplace for enhanced experiences across people, places and things.
CXApp's customers include major Fortune 1000 Global Companies in the technology, financial services, consumer, healthcare, and media entertainment verticals.
CXApp Inc.: marketing@cxapp.com
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the Company may differ from its actual results and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," or the negative or other variations thereof and similar expressions are intended to identify such forward looking statements. These forward-looking statements include, without limitation, expectations with respect to future performance of the Company, including projected financial information (which is not audited or reviewed by the Company's auditors), and the future plans, operations and opportunities for the Company and other statements that are not historical facts. These statements are based on the current expectations of the Company's management and are not predictions of actual performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Factors that may cause such differences include, but are not limited to: the impact of the COVID-19 pandemic on our business, operations, results of operations and financial condition, including liquidity for the foreseeable future; the demand for the Company's services together with the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors or changes in the business environment in which the Company operates; changes in consumer preferences or the market for the Company's services; changes in applicable laws or regulations; the availability or competition for opportunities for expansion of the Company's business; difficulties of managing growth profitably; the loss of one or more members of the Company's management team; loss of a major customer and other risks and uncertainties included from time to time in the Company's reports (including all amendments to those reports) filed with the SEC. The Company cautions that the foregoing list of factors is not exclusive. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent to the date of this communication.
SOURCE: CXApp Inc.
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