Loading...
01/11 16:02
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary highlights strong financial performance, including improved subscription revenue and gross margins, a significant increase in ARR, and reduced operating expenses. Despite a revenue decline due to timing shifts, the company's cash position is solid with access to additional funds. The Q&A session reveals management's confidence in future growth, although they avoided giving specific guidance. Considering these factors, along with a focus on customer success and product development, the overall sentiment is positive, suggesting a likely stock price increase in the short term.
Annual Recurring Revenue (ARR) Up 130% of original contract value due to three large Fortune 500 customer expansions.
Subscription Revenue Increased from 87% in Q1 2024 to 99% in Q1 2025, reflecting a strong commitment to recurring revenue.
Gross Margin Increased from 82% in Q1 2024 to 88% in Q1 2025, attributed to improved cost discipline and increased subscription revenue.
Cash Operating Expenses Reduced by $300,000 year-over-year despite absorbing one-time costs.
Earnings Per Share (EPS) Improved from negative $0.34 in Q1 2024 to negative $0.08 in Q1 2025.
Revenue Declined due to timing shift of two large customer renewals from Q1 to Q4, not a structural decline.
Net Cash Used in Operating Expenses Decreased from $2.7 million in Q4 2024 to $979,000, reflecting tighter control on working capital.
Cash Balance Ended the quarter at $3,980,000, with access to an additional $20 million from a new convertible note.
New Patents: Two new patents published this quarter tied to spatial intelligence.
Sky Kiosk: First deployment in Silicon Valley with a large technology company to facilitate return to office (RTO) initiatives.
Sky Localization: Partnership with Google for translation and localization features deployed with a large entertainment customer.
AgenTeq AI: In trials with internal labs and planned trials with clients.
Global Deployment: Currently deployed in 200+ cities across 50+ countries on five continents.
Customer Expansion: Three large Fortune 500 customers expanded their contracts, increasing ARR by 130%.
Employee Engagement: Focus on user engagement and adoption as a key priority for 2025.
Cost Management: Reduced cash operating expenses by $300K year over year.
Gross Margin: Increased gross margin to 88% from 82% year over year.
Shift to Recurring Revenue: Achieved 99% recurring revenue, up from 70% previously.
Focus on Customer Success: Prioritizing customer success and user engagement as key strategic goals.
Competitive Pressures: The company faces competitive pressures from technology giants like Amazon, Salesforce, and Dell, which have mandated employees return to the office, influencing workplace dynamics and employee engagement.
Regulatory Issues: The company operates in regulated industries and emphasizes strong security and compliance credentials, including ISO 27,001 and SOC 2 certifications, which are critical for maintaining trust with clients.
Supply Chain Challenges: The company is navigating a complex landscape of hybrid work, where legacy systems are inadequate, leading to underutilized spaces and a lack of real-time visibility into employee engagement.
Economic Factors: Economic pressures are influencing enterprises to cut spending and seek more productive solutions, which could impact demand for the company's services.
Employee Engagement Risks: There is a risk of employee disengagement, quiet quitting, or attrition due to a lack of actionable insights and intuitive experiences in the workplace.
Technology Adoption Risks: The company is focused on user engagement and adoption of its technology, which is critical for success, but there is a risk if users do not fully embrace the platform.
Market Demand Fluctuations: The company is aware of potential fluctuations in market demand as enterprises adjust their strategies in response to changing workplace dynamics post-pandemic.
Customer Success Focus: The management team identified customer success as the top priority for 2025, emphasizing user engagement and adoption of the Sky platform.
AgenTeq AI Development: The company is focused on developing AgenTeq AI, which aims to enhance user interaction and collaboration with AI, providing actionable outcomes.
Expansion of Sky Kiosk: The Sky Kiosk has been successfully deployed in Silicon Valley and is expected to expand globally, enhancing user engagement in return-to-office initiatives.
Global Deployment: Sky is currently deployed in over 200 cities across 50 countries, leveraging a diverse user base to enhance product development.
Patents and Intellectual Property: The company holds 39 filed patents, with 17 granted, focusing on spatial intelligence and employee experience technology.
Subscription Revenue Growth: Subscription revenue increased from 87% to 99% year-over-year, indicating a strong commitment to recurring revenue.
Gross Margin Improvement: Gross margins improved to 88% from 82% year-over-year, reflecting operational efficiency and cost discipline.
Cash Position: The company ended the quarter with a cash balance of $3,980,000 and has access to an additional $20,000,000 through a convertible note.
Revenue Timing Shift: A decline in revenue was attributed to the timing of renewals, with two large customers shifting their renewals from Q1 to Q4.
Future Revenue Expectations: While no official guidance was provided, the management expressed confidence in achieving revenue growth driven by ARR and customer expansion.
Shares Outstanding: Approximately 19,800,000 shares.
Total Debt: Total debt is approximately $10,000,000, including a $4,000,000 draw on a new convertible note.
Convertible Note: Access to $20,000,000, with $4,000,000 drawn down.
CXAI's earnings call shows strong financial performance with improved gross margins and EPS, along with high customer retention and expansion plans. The Q&A section reveals positive adoption and interest in their kiosk product, despite some lack of specifics. The strategic plan highlights partnerships and product enhancements, likely boosting sentiment. While competitive pressures and economic uncertainties exist, the overall sentiment is positive due to solid financials, strategic growth, and customer confidence. The lack of market cap data suggests a neutral to positive reaction, but not extreme, thus predicting a 'Positive' stock movement.
The earnings call highlighted strong financial metrics with improved gross margins and a shift towards higher-margin subscription revenue. The company has successfully renewed contracts with major clients, indicating trust and stability. Product development and strategic partnerships are emphasized, particularly with Google Cloud, which could enhance market penetration. While risks exist, such as market conditions and economic uncertainties, the overall sentiment is positive due to strategic investments, client renewals, and financial improvements. The Q&A section did not reveal any major concerns, further supporting a positive outlook.
The earnings call presents a mixed outlook. While the company is focusing on strategic initiatives like workplace transformation and AI platform development, competitive pressures and lack of revenue guidance are concerns. The Q&A reveals management's reluctance to provide revenue growth expectations, which may worry investors. Despite a focus on customer success and a solid patent portfolio, the EPS of -0.24 and revenue decline due to delayed renewals offset positive elements. Without a clear market cap, the stock is likely to see a neutral reaction, ranging between -2% and 2%.
The earnings call summary highlights strong financial performance, including improved subscription revenue and gross margins, a significant increase in ARR, and reduced operating expenses. Despite a revenue decline due to timing shifts, the company's cash position is solid with access to additional funds. The Q&A session reveals management's confidence in future growth, although they avoided giving specific guidance. Considering these factors, along with a focus on customer success and product development, the overall sentiment is positive, suggesting a likely stock price increase in the short term.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
