CXApp (CXAI) Q3 2024 earnings summary

Executive summary

• Achieved record SaaS metrics and Q3 2024 revenue of $1.9 million, up 7% year-over-year, driven by new enterprise clients and deeper platform integration.

• Transitioned to an AI-native SaaS model, focusing on agentic AI and workplace experience solutions.

• Expanded cloud partnerships, now listed on AWS and Google Marketplaces, enabling multi-cloud deployments.

• Launched new products: CXAI View analytics platform and CXAI Kiosk, both gaining traction with customers.

• Net loss for Q3 2024 was $5.0 million, reflecting higher interest expense and loss on debt extinguishment.

Financial highlights

• Q3 2024 revenue: $1.9 million, up 7% year-over-year; recurring revenue rose to 88% of total.

• Net retention rate reached 106%, a 43% year-over-year increase.

• Non-GAAP operating expenses reduced by 22% to $3.24 million; operating expenses decreased by $0.8 million year-over-year.

• Cash-based loss narrowed by 43% to $1.32 million; operating loss reduced by 21% to $3.3 million.

• Gross margin held steady at 80% in Q3 2024.

Outlook and guidance

• Focus remains on expanding the subscription base, deepening partnerships, and achieving cash flow positivity.

• Management expects continued revenue growth from organic sales and new partnerships, including a go-to-market agreement with Google Cloud.

• Continued investment in AI, R&D, and product innovation to sustain competitive edge.

• Recent funding and cost reductions are expected to support operations and mitigate liquidity risk for at least the next 12 months.

• Expecting further growth from new product launches and cloud marketplace partnerships.