CXApp Inc. Q1 FY2024 earnings call

• Focus on AI-first technology and business model to revolutionize employee experience. - Growing existing customers and acquiring new Fortune 100 customers, with significant progress in net retention rate. - Launching the CXAI platform to key customers, with first new Fortune 1000 deployments planned for summer. - Announcing the AI-based analytics product CXAI VU (Skyview) in beta, with plans for general availability in Q2. - Partnership with Google Cloud to scale business, leveraging Google's AI infrastructure for security, compliance, and innovation. - Operational cost optimization resulting in a net 20%+ operating expense reduction from Q4 '23 to Q1 '24.

In Q1 2024, CXAI achieved a record net retention rate (NRR) of 108% by renewing and expanding 7 of its largest Fortune 1000 customers. Subscription-based revenue was 87% of total revenue, the highest ever, up 6 points from the previous quarter. Gross margin was 82%, inching up due to increased subscription revenue and reduced onetime revenue. Operating expenses were reduced by over 20% from Q4 '23 to Q1 '24 through headcount rationalization and operational cost optimization.

• Confidence in sustainable growth driven by increasing ARR bookings, strong customer acquisition, and focus on recurring revenue. - Plan to ramp up product expansions with the new CXAI VU analytics product to increase ARR, NRR, and gross margin. - CXAI VU to be launched in beta with general availability in Q2, providing AI-based analytics for employee experience to drive efficiency and productivity.