Shares of CXApp Inc. (NASDAQ: CXAI) experienced a notable rebound on the US stock market after a pivotal strategic decision. During the extended trading session, CXAI’s stock surged by 74.15% to reach $2.56, recovering from a significant decline of -25.76% that saw it close the regular session at $1.47.
Quarterly Financial Results and Business Transformation of CXAI
In its latest financial disclosure, CXApp (CXAI), a leader in global employee workplace experiences technology, reported its Q2 2024 financial results. This quarter marks the first opportunity to evaluate CXAI’s performance as an independent entity following its merger in March 2023.
The transition to an AI-native SaaS model has been met with positive outcomes, evident from a substantial 78% increase in renewal and expansion bookings compared to the previous year. Notably, the company secured its largest “expansion” deal with a prominent enterprise client in the financial sector, which is now scaling its global operations post-pilot phase.
This deal contributed to a remarkable 112% growth in the client’s annual recurring revenue (ARR). The surge in bookings was also supported by renewals and expansions across four other diverse sectors. The company achieved an 85% subscription-to-one-time revenue split for the quarter, up from 79% last year.
Additionally, CXApp’s gross margin improved to 80% from the previous year’s 75%, and the net retention rate (NRR) stood at 105%. Through strategic investments in AI, CXApp has optimized its operational cost structure, resulting in a 15% reduction in operating expenses from Q2’23 to Q2’24.
CXApp formed a Strategic Partnership with Google Cloud
CXApp further bolstered its market position by announcing a multi-year, multi-million dollar strategic agreement with Google Cloud. This partnership focuses on developing advanced AI infrastructure, enhancing security, and delivering innovative application products.
Google Cloud will also co-invest with CXApp in the ongoing deployment, monitoring, and modernization of the AI-native CXAI platform. The collaboration with Google Cloud underscores CXApp’s commitment to integrating AI with customer experience solutions, transforming workplace environments into more intuitive and efficient spaces.
This agreement, alongside the anticipated launch of the AI-based Analytics platform CXAI VU, positions CXApp to fulfill its customer commitments and drive future growth.