Earnings Call Transcript - CXAI Q4 2023

Khurram Sheikh, Chairman and CEO

Thank you, operator, and thanks to everyone for joining the quarterly earnings call for CXAI. Today, I will discuss our financial results for the fourth quarter and the full year of 2023, along with an overall business update on our progress in shaping the future of work and creating transformative employee experiences. I appreciate your understanding regarding the issues we faced with our webcast system, which was unrelated to our company. It was down due to our webcast provider, but we felt it was essential to proceed with this important call. I hope you all have access to our earnings press release that was just distributed; you can also find this information on our website. I will now move to the next two slides for you to review at your convenience, which include our disclosure statements. Today is an exciting day for us as we announce our strategic rebranding from CXApp to CXAI, pronounced Sky. It has been a little over a year since we went public on March 14, 2023, and we have made significant advancements in redefining the future of work. I would like to share a brief video showcasing the transformation our team is leading. At the core of CXAI lies the belief that prioritizing employees will drive everything else. It's about the people who do the work, the places they come together, and their needs for success. CXAI reimagines work and life, offering a unique proposition for both employers and employees. For employers, it provides a streamlined, integrated SuperApp that simplifies daily operations for a modern mobile-first workforce while enhancing efficiency and innovation. For employees, CXAI assures a transformative workday experience where tools, tasks, and interactions are personalized and facilitated by an intuitive single platform. We’re redefining workplaces to mirror the dynamic and remarkable nature of their inhabitants, focusing not only on operational enhancement but also on fostering an engaging culture. Our platform is centered on 37 filed patents, with 17 granted, establishing our position as a technological leader. We've collaborated with leading AI firms and are excited about our partnership with Google Cloud as we scale our business. We're pleased to report a 24% increase in annual recurring revenue from 2022 to 2023, driven by major customer wins, including two deals with Fortune 1000 companies in the last quarter. We’re proud to engage with some of the largest businesses globally, with over 20 companies scaling with us through new deployments every day. A distinctive advantage of our business is our strong security compliance credentials, attracting many regulated industry clients who trust us with their data. The culture at CXAI is focused on innovation, grounded in our core values of purpose, passion, and positivity. We’re dedicated to tackling significant issues related to the future of work and digital transformation, emphasizing employee experiences. Over the past year, we've expanded our reach to 59 countries and 218 cities, marking an incredible milestone as we scale every aspect of our business. Looking ahead, we recognize a paradigm shift in the market affecting productivity, engagement, and job fulfillment. The future of work is independent of location, blending technology with personal engagement, placing employees at the core of this transformation. Our platform is built around four pillars: AI experiential analytics for employee engagement insights, a work SuperApp unifying workplace functionalities, spatial intelligence for optimizing physical spaces, and Generative AI enabling efficient and personalized task completion. These elements together transform the employee and employer experience. Our customers span various sectors, and we are primarily a SaaS platform offering annual subscriptions that enhance corporate campuses by facilitating processes like desk booking, collaboration, navigation, and internal communication. Our main clients are in financial services, technology, media and entertainment, healthcare, and consumer sectors, with many sophisticated buyers recognizing our value. Since acquiring the predecessor business, we shifted from custom design services to an AI-driven, subscription-based SaaS model enabling a unified workplace experience. This transition positioned us for long-term growth and is beneficial for both CXAI and our clients, providing scalability and enhanced user experiences. In 2023, our ARR growth was remarkable, achieving an 80% increase in new bookings for our SuperApp product. Despite a decline in total revenue due to our shift to multi-year subscription agreements, our annual recurring revenue showed 24% growth, emphasizing resilience in our existing customer base. We onboarded significant clients like NBC Universal and a prominent investment management firm, affirming the market demand for our solutions. Looking forward to 2024, our strategy focuses on expanding existing customer deployments, enhancing product innovations based on client requests, and leveraging AI technologies. We aim to continue evolving our CXAI platform to streamline workflows and optimize workplace effectiveness, providing businesses with actionable insights. Our partnership with Google Cloud is pivotal for our growth, enhancing our capabilities and expanding our reach to their extensive customer base. This collaboration will boost product development, market awareness, and joint problem-solving initiatives. In summary, CXAI represents a transformational solution rooted in customer experience and AI, supported by a strong customer base and global distribution. We are excited about shaping the future of employee experiences and invite you to stay updated as we progress. Thank you all for being a part of this journey.

Operator, Operator

Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.