CXApp Inc. Q2 FY2025 earnings call

Company Overview - The CXAI platform is AI-first with a mobile and cloud-first architecture, enabling unified employee experiences by integrating over 100 enterprise tools. It features spatial intelligence, experiential analytics, and Agentic AI. - The company has a global presence with over 65 team members, over 70% of whom are engineers. It holds 39 filed patents, including one granted this quarter related to multidimensional mapping and object orientation. - It has ISO 27001 and SOC 2 compliance certifications, appealing to regulated industries. ### Q2 2025 Highlights - Two large Fortune 1000 customers renewed and accelerated adoption of CXAI products, with a leading Fortune 50 client seeing over 150% usage growth. - A new client launched major iconic campuses across the U.S. and first orders were received for the CXAI Kiosk. - The Google partnership is advancing rapidly, leveraging Gemini for automation of booking requests, spatial intelligence integration, and enhanced security. - A new patent on 3D mapping and augmented reality was awarded, and the CXAI VU analytics platform was rolled out, including a prediction model for booking cancellations. - CXAI BTS provides unified access, space, and content management, with plans to launch Gemini-powered NLP commands across clients.

Revenue for Q2 2025 was $1.2 million, holding steady despite macroeconomic headwinds. Subscription revenue accounted for 96% of total revenue, up from 87% in the prior year, indicating progress toward a higher margin recurring model. Cost of revenue increased slightly due to hardware purchased for a client, but gross margin reached 86%, an improvement from 80% the previous year.

Forward-Looking Statements - The company is strategically investing in R&D and innovation to capture growing share of the employee experiences market, which is underpenetrated (5% to 20% according to Gartner). - There is a path to profitability based on recurring revenue from existing clients, with plans to scale expansion with these clients. - Continued investment in technology partnerships and product development is expected to drive future growth.

Q: How is CXAI differentiating itself from larger AI competitors in the enterprise engagement space?

A: CXAI differentiates by delivering enterprise-scale AI solutions validated in complex workplace environments, having a continuous loop of customer engagement to prioritize valuable features, localizing experiences with the OneMap feature, integrating various components, and having a great team that provides excellent service.

Q: Are there any strategic partnerships or integrations in the pipeline that could meaningfully accelerate market penetration over the next 12 months?

A: There are partnerships in the pipeline with design build firms (incorporating solutions into workplace projects at planning stage), business process automation providers (embedding capabilities into existing client workflows), global real estate firms (acting as referrals), technology ecosystem partners with engagement platforms, and continuing work with cloud providers like Google.