CXApp Inc. Q3 FY2025 earnings call

• Sky's Business Definition: Sky defines the intelligent experience layer for modern enterprises, blending AgenTeq AI autonomous context over agents and spatial intelligence to transform workplaces into adaptive environments, operating in over 200 cities across 50 countries with over a million users.
• Global Presence and Team: Operates in multiple offices globally with around 65 Willow Sky employees, over 70% in R&D.
• Market Trends: AI in the workplace is a board-level imperative, and Sky solves the execution gap by unifying workflows, analytics, and human experience.
• Partnerships: Collaborated with Noro to merge Sky's autonomous AI engine with Noro's life-size presence portals; partnered with Google Cloud.
• Product Innovation: Sky's Edge enhanced by 1050%, improving colleague visibility and UI; beta trials of full AI plug-in for natural language content creation.
• Customer Deployments: Live at 30 Rock with 6,000 users on day one, launched four sites across the country, and a global client used enhanced booking engine to reduce scheduling conflicts by 40%.
• Sky Digital Assistant: Context-aware, proactive, and human-centered, allowing natural language booking, planning, and actions.

ARR Expansion: Closed the quarter with two large logo renewals in the enterprise segment, subscription revenue mix reached 99% (up from 88% in Q3 last year). Gross Margin: Delivered an 89% increase compared to Q3 last year, reflecting disciplined cloud cost management and efficient infrastructure scaling. Cash OpEx: Held steady at $3,200,000 flat compared to prior periods, reflecting focus on operational efficiency. Profitability and EPS: Improved earnings per share to negative $0.13 from negative $0.34 in Q3 last year. Revenue: Q3 revenue was $1,100,000, a modest decline from Q2's $1,200,000 due to shift in revenue mix with lower hardware-related sales.

• Priorities include expanding within current customer base, accelerating ecosystem integrations (e.g., partnerships like Noro and Google Cloud), and maintaining cost discipline while investing in AI leadership.
• Focus on multiplying ARR potential through expansions into analytics, content management, and digital assistant for Fortune 500 clients.
• Extending Sky's reach beyond traditional workplace apps into immersive and agentic experiences via partnerships.

Q: Give me one second. He wants the kiosk update customer feedback, and usage set, how many units deployed today versus pipeline growth, and expansion progress with largest existing customers status of testing before expanding deployments to all locations, It's a couple of our clients and just the status of testing before expanding to large deployments and maybe more information on the thirty rock deployment and how he did that.

A: On kiosk, launched with one client in Silicon Valley, deployed in San Jose, with three more clients in pilot. For thirty Rock deployment, it was a high-profile place with 6,000 users on day one, and the system worked well. The success was due to efforts from the client and Sky, with dining being the number one feature, and outcomes measured by adoption and interactions