CXApp Inc. (NASDAQ:CXAI) Announces Q3 2023 Financial Results: Record Growth & Industry Momentum for CXAI Platform
Double Digit RPO Growth
Signed Largest Fortune 100 Deal To-Date
CXAI Platform to Launch in December
We are pleased to announce the following financial results and business updates as we make progress on our journey to shape the future of work:
1. |
Financial Performance |
a. |
A key highlight of the third quarter has been the record growth we accomplished in our Remaining Performance Obligation (RPO). We demonstrated record growth in our backlog as we grew RPO double digits sequentially through a combination of expansions with existing customers as well as contracting new customers. |
b. |
We have optimized the operational cost structure with a net 56% operating expense reduction year over year. |
c. |
Our subscription-based recurring revenue was 80% of the total revenue, up from 25% of total from last year. |
d. |
Our gross margin for the quarter was 80% (up from 75% last quarter), which is an attractive figure that will potentially increase as our subscription revenues increase. |
e. |
CXAI's strategy of ‘land & expand' also continues to be a key contributor to growing subscription revenues with our existing customer base and we have seen a double digit increase in ARR since the end of lastyear. |
2. |
Largest Customer Addition |
a. |
A key highlight of Q3 was being selected by one of the world's largest media organizations for a seven-figure agreement. After a rigorous due diligence process (where the customer evaluated multiple vendors), we were ultimately awarded a large subscription-based contract for an initial three-year term. There is also attractive growth potential through expansions and value-based applications as we launch the first deployment. This builds upon our momentum of large customer wins in Q2 and I believe this demonstrates that despite our small size, large companies are excited about our current solution and path to AI and are partnering with us at an increasing pace. |
3. |
AI (Artificial Intelligence) Platform Update |
a. |
Our state-of-the-art technology platform is based on 37 filed patents, with 17 of them already granted. This substantial intellectual property not only establishes our company as a technological frontrunner but also secures our position as a pioneer in the industry. |
b. |
Our AI tools and models are being built on the strong foundation of our full stack software solution that provides contextual awareness using indoor mapping and on-device positioning technology as well as the data collection of millions of data points from our enterprise app. This new area of spatial intelligence creates the opportunity to personalize the workplace experience at the same time as redefine the workplace environment. |
c. |
CXAI Platform |
d. |
Generative AI |
e. |
Experiential Analytics |
f. |
CXAI Platform Launch: |
Our focus has always been on delivering cutting-edge solutions to empower our users, and I'm excited to see how the CXAI platform and exciting new AI applications will transform employee experiences.
This press release is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy, any securities, nor shall there be any sale, issuance or transfer or securities in any jurisdiction in contravention of applicable law.
About
CXApp's customers include major Fortune 500 Global Companies in the technology, financial services, consumer, healthcare, and media entertainment verticals.
CONTACT:
www.cxapp.com
marketing@cxapp.com
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the Company may differ from its actual results and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," or the negative or other variations thereof and similar expressions are intended to identify such forward looking statements. These forward-looking statements include, without limitation, expectations with respect to future performance of the Company, including projected financial information (which is not audited or reviewed by the Company's auditors), and the future plans, operations and opportunities for the Company and other statements that are not historical facts. These statements are based on the current expectations of the Company's management and are not predictions of actual performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Factors that may cause such differences include, but are not limited to: the impact of the COVID-19 pandemic on our business, operations, results of operations and financial condition, including liquidity for the foreseeable future; the demand for the Company's services together with the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors or changes in the business environment in which the Company operates; changes in consumer preferences or the market for the Company's services; changes in applicable laws or regulations; the availability or competition for opportunities for expansion of the Company's business; difficulties of managing growth profitably; the loss of one or more members of the Company's management team; loss of a major customer and other risks and uncertainties included from time to time in the Company's reports (including all amendments to those reports) filed with the
SOURCE:
accesswire.com
https://www.accesswire.com/803454/cxapp-inc-nasdaqcxai-announces-q3-2023-financial-results-record-growth-industry-momentum-for-cxai-platform