Financial Data and Key Metrics Changes - The subscription-based revenue for Q1 2024 was 87% of total revenue, marking a 6-point increase from the previous quarter, the highest in company history [15][54] - The net retention rate (NRR) reached 108%, driven by the renewal and expansion of seven major Fortune 1000 customers [53] - The gross margin improved to 82%, continuing an upward trend linked to increased subscription revenue and reduced one-time revenue [54][55] - Operating expenses were reduced by over 20% from Q4 2023 to Q1 2024, part of a strategy to scale the business with a lower cost structure [55] Business Line Data and Key Metrics Changes - The company has transitioned to a SaaS platform model, focusing on recurring revenue streams, which positions it for long-term sustainable growth [23][24] - The Sky platform, which integrates various workplace functionalities, has been deployed with numerous customers globally, enhancing employee experience [27][28] Market Data and Key Metrics Changes - CXAI operates in 60 countries and over 200 cities, indicating a strong global presence and market penetration [5][44] - The company has a healthy distribution across five major verticals: Financial Services, Technology, Media and Entertainment, Healthcare, and Consumer [30] Company Strategy and Development Direction - The company aims to lead in AI technology, focusing on transforming employee experiences through its AI-first business model [24][67] - Strategic partnerships, particularly with Google Cloud, are crucial for enhancing product offerings and accelerating innovation [41][48] - The launch of the SkyView platform, an AI-based analytics tool for employee experience, is a significant step in creating a new software category [33][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in increasing annual recurring revenue (ARR) bookings and strong customer acquisition driving sustainable growth [16] - The focus on continuous innovation and delivering value to an expanded customer base is a priority moving forward [16][67] Other Important Information - The company has developed a comprehensive analytics platform that provides actionable insights into employee engagement and workspace utilization [34][36] - The emphasis on security and compliance is a key differentiator, attracting customers from regulated industries [5][66] Q&A Session Summary Question: What are the key objectives for the company moving forward? - The company is focused on growing existing customers and scaling new Fortune 100 customers, which has led to significant growth in net retention rate [25] Question: How does the SkyView platform differentiate from competitors? - The SkyView platform offers spatial intelligence and predictive analytics, providing a comprehensive view of workspace utilization and employee engagement [11][59] Question: What role does AI play in the company's strategy? - AI is central to the company's offerings, enabling automation, enhancing productivity, and driving engagement within the workplace [13][50]

Market Growth and Trends - The digital workplace market size was valued at $27.4 billion in 2022 and is projected to grow to $90.5 billion by 2030, reflecting a significant growth trajectory[46]. - The global virtual events market was valued at $114.12 billion in 2021 and is anticipated to expand at a CAGR of 21.4% from 2022 to 2030, driven by increased use of collaboration tools[47]. - The digital workplace market size in 2020 was valued at $22.7 billion and is projected to grow to $72.2 billion by the end of 2026 at a CAGR of 21.3%[48]. - The occupancy analytics market in the commercial office space was estimated at $2.17 billion in 2019 and is expected to grow to $5.73 billion by 2024, representing a CAGR of 21.5%[49]. - The workplace experience apps market is estimated to be around 15% of the overall occupancy analytics market[49]. Company Technology and Product Offerings - CXApp's platform integrates technologies such as indoor mapping, on-device positioning, and AI-based analytics to enhance workplace experiences[27]. - CXApp aims to connect every workplace experience through its platform, facilitating data-driven decisions that improve productivity[26]. - CXApp's analytics dashboard provides insights into real estate, technology, and employee interactions, enabling organizations to optimize services and unlock savings[33]. - The company is focused on enhancing its product offerings, including augmented reality and 3D mapping, to adapt to technological advancements[32]. - CXApp's workplace experience app is designed to support hybrid work models, addressing employee engagement and operational efficiency[25]. - The CXApp SaaS platform offers a suite of technology solutions targeting the hybrid workplace market, including an enterprise employee application and AI-based analytics[213]. Financial Performance and Projections - CXApp incurred recurring net losses of approximately $53.6 million and $29.2 million for the fiscal years ended 2023 and 2022, respectively[77]. - The company may need additional capital to support operations, which could be satisfied by additional debt or equity financings, potentially diluting existing stockholders[78]. - The company’s ability to increase revenues depends on successfully selling additional products and services to existing customers and acquiring new customers[85]. - Revenue forecasting remains uncertain, with potential adverse effects on profitability if forecasts are not met[130]. - The company has a history of operating losses, and there is no assurance it will achieve profitability in the future[77]. Legal and Compliance Risks - The company may face legal claims related to the use of trade secrets, which could result in substantial costs and distract management[96]. - The company has not registered copyrights on any of the software developed, which may lead to delays in legal actions and constrain damages for infringement[98]. - The company relies on confidentiality agreements to protect its intellectual property, but there is no guarantee that these measures will prevent misappropriation[100]. - The company is subject to evolving data privacy regulations, such as the GDPR and CCPA, which could impose significant compliance costs and affect customer relationships[174]. - Ongoing legal challenges regarding data transfer mechanisms may limit the company's ability to operate internationally and affect its financial results[175]. Operational Challenges and Management - Management identified material weaknesses in internal control over financial reporting, concluding that effective controls were not maintained as of December 31, 2023[133]. - The company plans to implement enhancements to internal controls starting in the second quarter of 2024, but these weaknesses will not be considered remediated until effective controls are established[135]. - The company faces increased costs and distractions from compliance with SEC and Nasdaq regulations, which may affect its operational efficiency[123]. - The company must ensure timely preparation of financial statements that comply with SEC requirements, which may divert management's focus from revenue-generating activities[125]. - The company’s financial condition may be adversely affected if it cannot manage growth effectively and improve operational controls[92]. Competitive Landscape - The company competes with firms such as Eptura and Modo Labs in the workplace experience app market, and MappedIn and Esri in the mapping product sector[58]. - The company operates in a highly competitive market, facing significant price competition that may force price reductions for products and services[152]. - The company has established a technology partner program with over 75 partners, enhancing seamless integration and workflow for employee experience applications[51]. - The company has over 75 partner integrations, creating a robust ecosystem that helps streamline technology stacks and reduce app overload[60]. Market and Economic Factors - The ongoing military conflict between Russia and Ukraine, as well as the Israel-Hamas conflict, may indirectly affect the company's business due to geopolitical tensions and economic sanctions[162]. - Difficult conditions in global capital markets and economic uncertainty are expected to adversely affect customer spending on technology products and services[169]. - Changes in U.S. trade policies, particularly regarding tariffs on imports from China, could impact the company's supply chain and manufacturing capabilities[170]. - The lasting impact of the COVID-19 pandemic and other global economic factors continues to create uncertainty regarding future operational results[161]. - The company faces risks from natural disasters, political uncertainty, and regulatory changes that could disrupt operations and increase costs[168]. Corporate Governance and Stockholder Considerations - The company completed its Initial Public Offering on December 17, 2020, raising gross proceeds of $276 million[69]. - The company does not intend to pay dividends on its common stock, with future earnings expected to be retained for business development and expansion[110]. - Anti-takeover provisions in the company's organizational documents may delay or prevent a change of control, potentially limiting stockholder benefits[118]. - The company may issue additional securities in connection with investments or acquisitions, which could result in dilution for existing stockholders[116]. - A sustained depression in the market price of the company's common stock could lead to impairment losses that negatively affect financial condition and results of operations[117]. Risk Management and Security - The information security program is aligned with ISO 27001 and SOC 2 frameworks, focusing on risk management and compliance[187]. - Annual risk assessments are conducted to identify and mitigate security risks related to corporate operations and services[188]. - The risk management program includes governance, risk identification, analysis, mitigation planning, and tracking to ensure business continuity[192]. - The board of directors actively oversees cybersecurity risk management and evaluates current policies and procedures[196]. - The company is subject to risks from cybersecurity threats and system failures that could disrupt business operations and harm its reputation[138].

CXApp Inc. (NASDAQ:CXAI) Q4 2023 Results Earnings Conference Call April 17, 2024 4:30 PM ET Company Participants Khurram Sheikh - Chairman and Chief Executive Officer Conference Call Participants Operator Greetings. Welcome to the CXApp Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions]. Please note this conference is being recorded. I will now turn the conference over to your host, Khurram Sheikh, Chairman and CEO. You may begin. Khurram S ...

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Key PointsNikola volume is ramping higher as sales of the Tre FCEV gain traction.Plug Power volume is up, but short-sellers are still piling in. CXApp is rising on ramping volume and could double or triple in price soon. 5 stocks we like better than NikolaTrading activity is a sure sign that stock price will move; the question then becomes, which direction will it take? While trading volume is a sign of market interest, it never tells you if the bulls or the bears are active. That knowledge comes from other ...

Workplace experience platform CXApp (NASDAQ:CXAI) — which offers various analytics and application technologies via a Software-as-a-Solution (SaaS) business model — saw its shares soar on Monday. Earlier this morning, the software specialist announced a partnership with Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Specifically, it signed a strategic partnership and development agreement with Google Cloud. In addition, CXAI stock may be benefiting from a short squeeze.According to the company’s press release, Googl ...

The CXApp (NASDAQ: CXAI) stock price went through a major short-squeeze in a high-volume environment as demand for AI companies surged. It jumped to a high of $3.43 on Tuesday, its highest point since September 23rd. At its peak, it was up by 250% from its all-time low.Short squeeze continuedCopy link to sectionCXApp share price surged in a high-volume environment. This surge was notable because it happened in a high-volume environment. Data by Yahoo Finance reveals that the volume stood at over 99 million, ...

Little-known workplace experience platform CXApp (NASDAQ:CXAI) is nearly doubling in value on Tuesday amid broader sector enthusiasm for artificial intelligence (AI). In recent months, the company has pivoted its messaging firmly to AI, helping CXAI stock ride the market segment’s coattails. Still, CXApp remains a highly risky investment that only experienced speculators should consider.Not much explains the dramatic rise in CXAI stock other than speculation around Nvidia (NASDAQ:NVDA) helping to usher in a ...

CXApp Inc. (NASDAQ:CXAI) Q3 2023 Earnings Conference Call November 14, 2023 4:30 PM ET Company Participants Khurram Sheikh - Chairman and CEO Conference Call Participants Operator Good afternoon, and welcome to CXAI Q3 Earnings Conference Call. At this time, all participants are in a listen only mode, and please be advised that this call is being recorded. And now I would like to turn the conference call over to Mr. Khurram Sheikh, Chairman and CEO of CXApp Incorporated. Please go ahead, sir. Khurram Sheikh ...

Accumulated other comprehensive income (loss) Successor CXAPP INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. CXApp Inc. and its subsidiaries ("CXApp" or the "Company") is in the business of delivering intelligent enterprise workplace experiences. The CXApp SaaS platform is anchored on the intersection of customer experience (CX) and artificial intelligence ...