CXApp Inc. Q3 FY2024 earnings call

• Q3 2024 was the best financial quarter ever with highest SaaS metrics, net retention rate >106%, subscription to one-time revenue ratio 88%, 80% gross margin, and 18% growth in recurring revenue.
• Launched on the AWS Marketplace, building on the previous milestone of being on the Google Marketplace.
• Successfully delivered the first end-to-end AI-based Sky pilot platform to a leading financial services customer.
• Skyview gained traction with the first paid customer and is generally available to all clients.
• Introduced Sky Kiosk, an interactive digital signage for employees to book spaces and get real-time info, with support for accessible mode.

In Q3 2024, CXAI achieved its best financial quarter ever. Revenue was $1.9 million. The net retention rate was greater than 106%, the subscription to one-time revenue ratio was the highest ever at 88%, and gross margin was maintained at a healthy 80%. Recurring revenue saw an 18% growth. The revenue contribution from different segments wasn't explicitly broken down beyond these overall metrics.

• Focus on expanding the subscription base and deepening partnerships.
• Continued commitment to achieving cash flow positivity through disciplined cost control and strategic investments.
• Leverage cloud partnerships (AWS, Google Cloud, Microsoft Azure) to scale business, enhance scalability, security, and cost efficiency.
• Anticipate continued innovation in AI-based solutions and product features powered by cloud capabilities.

Q: How has new management impacted growth at SKY?

A: New management, including Joy Mbanugo joining, has been beneficial. Joy's background with Google Cloud has been instrumental. New talent has also come into the company, contributing to growth.

Q: Could you partner with Palantir to implement AIP?

A: It's a great suggestion. While currently focused on the commercial segment, CXAI will reach out to explore opportunities, but core focus remains on commercial customers and delivering value through great UI, insights, and AI solutions for employee experience.

Q: Can you detail your how your partnership with Google Cloud is progressing?

A: There have been great working sessions and meetings with the Google team. They are helping with go-to-market efforts, including inviting to Google Cloud conferences. On the product side, innovations powered by Google Cloud AI capabilities are coming, with Skyview implemented with Google Cloud partnership. There's close collaboration with Google Cloud representatives in the offices, and opportunities to leverage Google Cloud commits for clients.