CXApp Inc. Q1 FY2025 earnings call

• Focus on customer success and user engagement, emphasizing gain of user life through product features. - Progress in product features: 3 large Fortune 500 expansion renewals, deployment of CXAI VU analytics for all clients, successful CXAI Kiosk deployment with a large technology company, and CXAI Localization deployment with a large entertainment customer. - Partnerships with cloud providers including Google, Microsoft, and AWS, enabling multi-cloud capabilities for clients. - Agentic AI trials in internal labs with plans for more trials with clients.

Subscription revenue increased to 99% from Q1 2024, showing a shift towards more recurring revenue. Gross margin improved to 88% due to cost structure improvements and partnership with Google Cloud. No specific detailed financial performance breakdown by distinct product segments provided.

• Focus on recurring revenue as a key initiative, driven by customer adoption of repeatable, multiyear contracts. - Aim for continued margin improvement through operational rigor. - Planning for expansion with clients, scaling up from initial deployments to larger enterprise-wide implementations.

• Client confidentiality concerns affecting sharing of client details. - Potential impact of enterprise spending cuts on revenue. - Timing shifts in client renewals affecting revenue recognition, as seen with delays in Q1 renewals pushed to Q4.

Q: What is the current shares outstanding?

A: It's on our balance sheet, it's about $19.8 million.

Q: How much total debt is currently outstanding when including the $4 million draw on Avondale on April 8?

A: I think if we take all of that together with our previous note in our warrants, I think we're at about $10 million, but I'm doing it off the top of my head.

Q: Will you guys ever plan on sharing who our clients are?

A: We've done some case studies in the past, probably prior to me joining and to the extent that we can. But as you can imagine, with some of the return to office Snap and other things going on, some of our clients value their confidentiality. But to the extent we can in the future, we absolutely will.

Q: After soft Q1 revenue results, do you expect total revenue growth or subscription revenue growth year-over-year in '25 versus '24?

A: We're not giving any official guidance.

Q: 3 large customer renewals. Does this include the 6 renewals mentioned in 2024, I'm assuming the question is coming from Q4 of 2024?

A: The answer is no, these are new renewals. When we talk about renewals in any period, we're talking about renewals in that particular period. So no, this is 3 in addition to the 6 that we mentioned last quarter.