CXApp (CXAI) Q1 2025 Earnings Call May 20, 2025 05:00 PM ET Company Participants Khurram Sheikh - Founder, Chairman & CEOJoy Mbanugo - Chief Financial Officer Operator Greetings. Welcome to the CX App First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. Please note, to ask a question, please click on the Ask Question button on the left side of your player. Type in your question and hit send. Please note, this conference is being recorded. I will now turn ...

Financial Data and Key Metrics Changes - The company is actively recruiting for a pivotal study of Avexatide, with top-line results expected in the first half of next year, potentially supporting commercialization in 2027 [3][18] - The company has cash reserves expected to last through the end of 2026, allowing it to fund ongoing clinical trials and development programs [36] Business Line Data and Key Metrics Changes - Avexatide, the lead asset, has shown significant reductions in level two and level three hypoglycemic events, with a 53% reduction in level two events and a 66% reduction in level three events in previous trials [12] - AMX-35 has demonstrated stabilization or improvement in diabetic outcomes in patients with Wolfram syndrome, with continued improvements observed at the 48-week mark [24][25] Market Data and Key Metrics Changes - There are an estimated 160,000 people in the United States suffering from post-bariatric hypoglycemia (PBH), a condition with no FDA-approved treatments currently available [10][18] - Wolfram syndrome affects approximately 3,000 individuals in the U.S., while progressive supranuclear palsy (PSP) is estimated to impact around 23,000 people [21][29] Company Strategy and Development Direction - The company focuses on diseases with substantial unmet needs, aiming to develop therapies that can effectively address these conditions [38] - The strategic direction includes advancing multiple clinical trials, with a strong emphasis on obtaining positive data to support further investment in promising programs [31][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of Avexatide to meet a significant unmet need in PBH, highlighting the growing population affected by this condition [17][18] - The company is preparing for a Phase III program for AMX-35, with plans to share the design before the end of the year [37] Other Important Information - The company has received FDA breakthrough therapy designation for Avexatide, which underscores the potential significance of this treatment in the market [3] - The company is also working on AMX-114, an antisense oligonucleotide targeting CALPIN-two for ALS, with early cohort data expected by the end of the year [36] Q&A Session Summary Question: What are the upcoming milestones for Avexatide? - The company expects to complete recruitment for the pivotal study by the end of the year and have data in the first half of next year, which could support filing for approval in PBH [37] Question: How is the company addressing the needs in Wolfram syndrome? - The company has reported positive 48-week data for AMX-35 in Wolfram syndrome and is working on finalizing the Phase III design [37] Question: What is the status of the PSP program? - Recruitment for the Phase 2b study in PSP has been completed, with data expected in Q3 of this year [30][37]

Financial Data and Key Metrics Changes - The company currently has USD 157 million available, which is sufficient to complete all ongoing Phase III clinical trials [32] Business Line Data and Key Metrics Changes - The lead candidate, telarabant, is being evaluated in two Phase III trials named Dragon and Dragon II, with the first Dragon trial expected to complete in Q4 2025 [13][18] - The Dragon II trial is currently enrolling patients, with 16 out of a target of 60 patients already enrolled [19] Market Data and Key Metrics Changes - The estimated prevalence of Stargardt disease in the U.S. is between 43,000 and 59,000 patients, indicating a significant market opportunity [12] - The prevalence of Stargardt disease is approximately 1 in 6,500 for populations of European descent and 1 in 11,000 to 12,000 for East Asians [11] Company Strategy and Development Direction - The company aims to expedite the approval process for telarabant, having received breakthrough designation from the FDA based on interim data [15][17] - The company is also exploring opportunities in Japan, with the PMDA showing interest in telarabant's market authorization [21] Management's Comments on Operating Environment and Future Outlook - Management expressed high expectations for the final study data from the Dragon trial, which is anticipated by the end of the year [15] - The management is closely monitoring the regulatory environment and market conditions, particularly in relation to pricing policies [24] Other Important Information - Telarabant's mechanism of action is unique as it addresses vitamin A availability in photoreceptors, which is crucial for treating Stargardt disease [7][9] - The company is aware of competitors in the geographic atrophy space but believes telarabant could be transformative due to its oral administration [31] Q&A Session Summary Question: Does BELIBA currently have sufficient capital to complete all ongoing Phase III trials? - The company confirmed it has USD 157 million available, which is sufficient to complete all clinical trials currently running [32]

Financial Data and Key Metrics Changes - Subscription revenue increased significantly from 87% in Q1 2024 to 99% in Q1 2025, indicating a strong commitment to recurring revenue [63] - Gross margin improved from 82% to 88% year-over-year, reflecting better cost discipline [63] - Earnings per share improved from negative $0.34 to negative $0.08, showing progress in financial performance [64] Business Line Data and Key Metrics Changes - Three large Fortune 500 customers expanded their contracts, pushing annual recurring revenue (ARR) up by 130% of their original contract value [62] - The company successfully deployed the SkyView Analytics platform across all clients, enhancing data insights and analytics capabilities [57] Market Data and Key Metrics Changes - The company is deployed in over 200 cities across 50 countries, indicating a strong global presence [14] - The demand for hybrid work solutions has increased, with many organizations seeking to improve employee engagement and collaboration [5][27] Company Strategy and Development Direction - The company is focused on customer success, deeper AI adoption, and enhancing analytics usage as part of its strategic priorities for 2025 [70] - The introduction of the AgenTeq AI solution aims to provide collaborative AI agents that enhance user experiences and streamline workflows [48][49] - The company is positioning itself as a leader in the employee experience software category, leveraging its technological advancements and partnerships [80] Management's Comments on Operating Environment and Future Outlook - Management noted that the decline in revenue was timing-related due to the shift of two large customer renewals from Q1 to Q4, rather than a structural decline [64] - The management expressed confidence in the company's ability to navigate current economic challenges and emphasized the importance of providing cost-effective solutions to clients [77] Other Important Information - The company has filed for S3 eligibility, enhancing its liquidity position and access to capital [69] - The partnership with Google Cloud is expected to drive further improvements in cost efficiency and scalability [75] Q&A Session Summary Question: What is the current shares outstanding? - The current shares outstanding are approximately 19,800,000 [82] Question: How much total debt is currently outstanding? - The total debt, including the recent $4,000,000 drawn, is about 10,000,000 [82] Question: Will the company share who its clients are? - The company has case studies available on its website, but some clients prefer confidentiality [83][84] Question: After soft Q1 revenue results, do you expect total revenue growth or subscription revenue growth year-over-year in '25 versus '24? - The company is not providing official guidance at the moment but is focused on ARR growth [86][88] Question: Do the three large customer renewals include the six renewals mentioned in 2024? - No, these are three new renewals in addition to the six mentioned previously [92]

Financial Data and Key Metrics Changes - CervoMed's lead asset, Neflumab vimode, is progressing into Phase 3 trials after showing robust clinical activity in dementia with Lewy bodies (DLB) [4][6] - The market opportunity for DLB is estimated to be comfortably over $5 billion, targeting a patient population of approximately 175,000 in the US [10] Business Line Data and Key Metrics Changes - The Phase 2 REWIND DLB study demonstrated a 52% reduction in clinical worsening on the CDR Sum of Boxes scale over 16 weeks, with a 67% reduction in a more precisely defined patient population [20][21] - The study also indicated a clinically significant treatment effect with a p-value of 0.033 on the Clinical Global Impression of Change [22] Market Data and Key Metrics Changes - DLB is the second most common dementia after Alzheimer's, with distinct symptoms that include cognitive deficits and motor components, leading to a significant impact on quality of life [7][8] - The company aims to position Neflumab vimode in a specialty market similar to multiple sclerosis, with pricing expectations in the range of $40,000 to $50,000 per patient annually [48] Company Strategy and Development Direction - CervoMed plans to initiate a Phase 3 trial in mid-2026, contingent on FDA feedback and completion of necessary assays [40][41] - The company is open to partnerships but believes it can self-commercialize the drug, depending on market conditions and strategic considerations [43][45] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory pathway, noting that the Phase 3 trial would likely be sufficient for approval given the high unmet medical need in DLB [27][29] - The company highlighted the unique opportunity in DLB, emphasizing that the drug targets underlying disease processes, which may lead to better outcomes compared to Alzheimer's treatments [51] Other Important Information - The company is preparing for additional FDA interactions to clarify the clinical development path for Neflumab vimode [25][26] - Management noted that the variability in patient responses in previous studies could affect the power of certain endpoints, but overall positive trends were observed [39] Q&A Session Summary Question: What is the expected size of the field sales force for DLB? - Management indicated that the sales force would be similar to that used for multiple sclerosis, focusing on neurologists who manage DLB patients [47] Question: What is the pricing paradigm for Neflumab in DLB? - The expected pricing for Neflumab is in the range of $40,000 to $50,000 annually, which is comparable to other specialty diseases [48]

Evolv (EVLV) Q1 2025 Earnings Call May 20, 2025 04:30 PM ET Company Participants Brian Norris - Senior Vice President of Finance & Investor RelationsJohn Kedzierski - CEO, President & DirectorChris Kutsor - CFOBrett Knoblauch - Managing Director Conference Call Participants Jeremy Hamblin - Senior Research AnalystMike Latimore - Managing Director & Senior Research AnalystEric Martinuzzi - Senior Research Analyst Operator Good afternoon, and welcome to the Evolve Technology First Quarter Earnings Results Con ...

Financial Data and Key Metrics Changes - Keysight reported revenue of $1.3 billion and earnings per share of $1.7, exceeding the high end of guidance, marking the second consecutive quarter of revenue growth [6][19] - Orders grew 8% year over year and 4% sequentially to $1.3 billion, indicating a solid demand environment [6][19] - Gross margin was reported at 65%, with operating margin at 25%, an increase of 100 basis points year over year [19] Business Segment Data and Key Metrics Changes - The Communications Solutions Group (CSG) generated revenue of $913 million, up 9% on both reported and core basis, driven by strong demand in wireline and wireless sectors [21] - The Electronics Industrial Solutions Group (EISG) reported revenue of $393 million, a 5% increase, with growth in semiconductor and general electronics offsetting declines in automotive [21] - Software and services accounted for approximately 36% of total revenue, with annual recurring revenue at 28% [22] Market Data and Key Metrics Changes - Orders in the aerospace, defense, and government sector grew, driven by strength in the U.S. and Europe, with notable contracts awarded [12][61] - The demand environment in China was mixed, with overall orders flat but strengths in certain sectors [96] Company Strategy and Development Direction - The company is focused on long-term investments aligned with technology trends, particularly in AI and digital infrastructure [17][32] - Keysight is maintaining a diversified global supply chain with minimal exposure to China, actively working to mitigate tariff impacts [8][24] - The company is pursuing a balanced return of capital while investing for long-term growth, having returned over $1.7 billion to investors via repurchases over the past twelve quarters [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market leadership and operating model, noting no material adverse effects on demand from tariffs [8][25] - The company raised its full-year growth expectations, now anticipating revenue growth at the midpoint of the 5% to 7% long-term target [25] - Management highlighted a healthy pipeline of opportunities and strong customer engagements entering the second half of the fiscal year [6][25] Other Important Information - The company ended the quarter with $3.12 billion in cash and cash equivalents, generating $484 million in cash flow from operations [22] - Keysight is progressing through regulatory reviews for pending acquisitions, including Spirent and Optical Solutions Group [22][23] Q&A Session Summary Question: Update on AI traction and its significance for the business - Management views AI as a long-term secular trend with a multiyear roadmap, contributing to growth in wireline business [32][33] Question: Incremental view on top-line outlook - The company raised top-line expectations based on strong performance in the first half and a solid pipeline of opportunities [40][42] Question: Clarification on tariff impact - The estimated annual exposure to tariffs is approximately $75 million to $100 million, with efforts underway to mitigate this impact [47][48] Question: Insights on aerospace and defense orders - Orders grew in the aerospace and defense sector, with strong bookings from prime contractors in the U.S. and Europe [61][62] Question: Wireless business performance - The wireless business remains stable, with strength in network infrastructure and ongoing investments in new technologies [71] Question: Growth in Software and Services - The company is focused on growing software and services, which have shown resilience during downturns [73][74] Question: Demand for wireline testing - The wireline business is heavily R&D oriented, benefiting from increased manufacturing activity as the industry ramps up for digital infrastructure [103][104] Question: Competitive landscape for semiconductor testing - The company is well-positioned to address the complexities of semiconductor testing, with ongoing investments in optical and electrical capabilities [108][116]

Financial Data and Key Metrics Changes - Total revenue for Q3 was $2,290,000,000, representing a 15% year-over-year growth, at the high end of the guided range [36] - Product revenue grew by 16%, while total services revenue increased by 15% [36] - Next Generation Security ARR surpassed $5,000,000,000, ending the quarter at $5,090,000,000, a growth of 34% year-over-year [39] - Adjusted free cash flow generated in Q3 was $578,000,000 [44] - Total gross margin was 76%, with product gross margin at 78.4% [42] Business Line Data and Key Metrics Changes - Subscription revenue within total services grew by 18%, while support revenue rose by 10% [36] - Software firewall ARR grew approximately 20% year-over-year, driven by public cloud deployments [26] - SASE ARR grew 36% year-over-year, with 40% of SASE customers being net new to the company [28] - AI ARR reached approximately $400,000,000 in Q3, up over 2.5 times year-over-year [39] Market Data and Key Metrics Changes - The Americas region grew by 12%, EMEA by 20%, and JPEG by 23% [37] - The average duration of new contracts remained at approximately three years, with a slight decrease year-over-year [37] Company Strategy and Development Direction - The company is focused on a platformization strategy, which is resonating with customers and resulting in larger deals [6][8] - The urgency to adopt AI is becoming a strategic imperative for customers, leading to increased investments in technology transformation [10][12] - The company aims to reach a target of $15,000,000,000 in ARR by FY30 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving adjusted free cash flow margin targets over the next few years [9] - The geopolitical environment has caused some uncertainty, but the company has executed well despite challenges [84] - There is strong momentum heading into the fiscal year-end, with expectations for a robust Q4 pipeline [33] Other Important Information - The company announced its intention to acquire Protect.ai for $700,000,000 to enhance its AI security capabilities [45] - The transition to a contract manufacturing facility in Texas is expected to benefit from scale and innovation [42] Q&A Session Questions and Answers Question: How are customers thinking about the upgrade from QRadar on-premise? - Management highlighted a strong partnership with IBM to facilitate the transition from on-premise SOC to cloud-delivered SOC, indicating a significant ARR opportunity [50][51] Question: Can you unpack the details behind the product revenue growth? - Management noted that product revenue growth is driven by both hardware and software, with a notable inflection in the software firewall business due to increased AI adoption [62][66] Question: What does the AI imperative mean for Palo Alto Networks? - Management indicated that securing AI implementations is becoming a priority, leading to faster adoption of cloud firewalls and a shift from hardware to software [76][77] Question: How is the company navigating geopolitical volatility? - Management acknowledged that April was an anomalous month but expressed pride in the team's execution during a challenging quarter [84][85] Question: How does the company plan to evolve its AI product portfolio? - Management emphasized the importance of runtime security in AI and the acquisition of Protect.ai to enhance capabilities in this area [89][95]

Financial Data and Key Metrics Changes - At the end of Q1 2025, the company had over $172 million in cash and short-term investments [23] - A $200 million debt facility was executed with Hercules, providing a cash runway into the second half of 2027 [23] Business Line Data and Key Metrics Changes - The company is focused on a single development program for a rare disease called autoimmune pulmonary alveolar proteinosis (APAP) [2] - The Phase III pivotal clinical trial IMPALA two showed statistically significant improvement in DLCO compared to placebo at week 24, with sustained improvement at week 48 [7][8] - 97% of patients completed the double-blind treatment period, with no withdrawals due to drug-related adverse events [8] Market Data and Key Metrics Changes - The diagnosed prevalence of APAP in the U.S. is estimated at approximately 3,600 patients, with an additional 3,700 likely undiagnosed patients [13][14] - The potential market opportunity in the U.S. is significant, with a total of over 7,000 patients identified [15] Company Strategy and Development Direction - The company aims to establish relationships with pulmonologists and treatment centers to gain visibility into the patient population before the launch of Molbrevi [17] - A U.S. commercial team is being built prior to approval, consisting of 25 to 30 individuals responsible for patient profiling and disease awareness campaigns [22] - The pricing power for Molbrevi is projected between $300,000 and $500,000 per patient per year, aligning with other orphan drug analogues [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of Molbrevi, highlighting the lack of approved medicines for APAP in the U.S. and Europe [4][11] - The company anticipates a potential PDUFA date around November if priority review is granted by the FDA [11] - There is a strong interest from U.S. pulmonologists and payers regarding Molbrevi, with 83% of pulmonologists likely to prescribe it [18][19] Other Important Information - The company launched a free blood antibody test called APAP ClearPath to facilitate quicker diagnosis of APAP [20] - The test has been piloted at an interstitial lung disease clinic, aiming to identify undiagnosed APAP patients [21] Q&A Session Summary Question: What is the current status of the regulatory submission for Molbrevi? - The company completed the submission of the BLA to the FDA and is awaiting feedback within a 60-day window [11] Question: How many patients does the company aim to reach by launch? - The company aims to have line of sight to 1,000 known APAP patients by launch, with a goal to confirm the total of 3,600 patients [15][17] Question: What are the expectations regarding payer coverage for Molbrevi? - 87% of payers indicated they intend to provide coverage with simple pre-authorization criteria, recognizing the disease burden of APAP [19]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $2,290,000,000, representing a 15% year-over-year growth, at the high end of the guided range [34] - Product revenue grew by 16%, while total services revenue increased by 15% [34] - Next Generation Security ARR surpassed $5,000,000,000, ending the quarter at $5,090,000,000, a growth of 34% year-over-year [37] - Adjusted free cash flow generated in Q3 was $578,000,000 [42] Business Line Data and Key Metrics Changes - Subscription revenue within total services grew by 18%, and support revenue rose by 10% [34] - Software firewall ARR grew approximately 20% year-over-year, driven by public cloud deployments [25] - SASE ARR grew 36% year-over-year, with 40% of SASE customers being net new to Palo Alto Networks in Q3 [26] Market Data and Key Metrics Changes - The Americas grew by 12%, EMEA by 20%, and JPEG by 23% [35] - The average duration of new contracts remained at approximately three years, with a slight decrease year-over-year [35] Company Strategy and Development Direction - The company is focused on a platformization strategy, which is resonating with customers and resulting in larger deals [5] - There is a strong emphasis on AI integration, with the urgency for customers to adopt AI becoming a strategic imperative [8] - The company aims to reach a $15,000,000,000 ARR target for FY30 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving adjusted free cash flow margin targets over the next few years [7] - The geopolitical environment has caused some uncertainty, but the company has executed well despite challenges [82] - There is optimism about strong momentum heading into Q4, driven by continued transformation and a robust pipeline [32] Other Important Information - The company announced its intention to acquire Protect.ai for $700,000,000 to enhance its AI security capabilities [43] - The company is transitioning to a contract manufacturing facility in Texas to benefit from scale and mitigate tariffs [40] Q&A Session Summary Question: How are customers thinking about upgrading from QRadar on-premise? - Management highlighted the significant ARR uplift from transitioning customers from on-premise SOC to cloud-delivered SOC, emphasizing the potential for large deals [49][50] Question: Can you unpack the details behind product revenue growth? - Management noted that product revenue growth is driven by both hardware and software, with a notable inflection in the software firewall business due to increased AI adoption [60][66] Question: What does the AI opportunity mean for Palo Alto Networks? - Management indicated that securing AI implementations is becoming a priority for customers, leading to faster adoption of cloud firewalls and a shift from hardware to software [72][76] Question: How is the company navigating geopolitical volatility? - Management acknowledged that April was an anomalous month due to geopolitical tensions but expressed pride in the team's execution during that period [82] Question: How does the company plan to evolve its AI product portfolio? - Management discussed the importance of runtime security in AI and the acquisition of Protect.ai to enhance capabilities in this area [88][94]