CXApp Inc. (NASDAQ:CXAI) Q4 2023 Earnings Call Transcript April 16, 2024
CXApp Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Greetings. Welcome to the CXApp Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions]. Please note this conference is being recorded. I will now turn the conference over to your host, Khurram Sheikh, Chairman and CEO. You may begin.
Khurram Sheikh: Thank you, operator. Thank you, everyone, for joining the quarterly earnings call for CXAI. I plan to discuss CXAI’s financial results for the fourth quarter of 2023 and for the full year 2023 as well. I will also provide an overall business update on our progress in shaping the future work and creating transformative employee experiences. I want to first start off by thanking everybody for joining the call. I know that unfortunately, yesterday, there was a hiccup with our webcast system, which has nothing to do with the company, but the webcast provider we were working with, unfortunately, the system was down. And because this was such an important call, sharing the results for Q4, as well as the full year, and some really exciting announcements we want to make, we decided to do it today.
And we really appreciate your patience in that. By now, everyone should have access to our earnings PR announcement that went out on the wire a few minutes ago. This information will also be found on our website, www.cxapp.com. So now I’m going to move to the next two slides which you can review at your leisure. This is the disclosure statements or disclaimer statements. Okay. Well, dear shareholders, today is an exciting day for our company as we announce the strategic rebranding from CXApp to CXAI, pronounced Sky. It has been just over a year that we went public on Pi Day, March 14, 2023. And we have made incredible progress in shaping the future of work. I want to share a short video that describes this amazing transformation that our team is leading.
Listen in. [Video Presentation] Well, that was exciting. At the heart of CXAI, or what we like to call CXAI, lies a simple yet powerful belief. Put the employee first and everything else will follow. It’s not just about the work, it’s about the people who do it, the places where they come together, and the things they need to succeed. CXAI redefines how we think about work, life, and the seamless interplay between the two. CXAI offers a unique proposition for both employers and employees. For employers, it offers a streamlined, integrated work SuperApp that caters to the needs of a modern mobile-first workforce, simplifying daily operations while amplifying efficiency and innovation. For employees, CXAI promises a workday transformation, envisioning a scenario where every tool, every task, and every interaction is tailored to individual preferences, facilitated by a single user-friendly platform.
CXAI is more than a SuperApp. It’s a platform to create in workplaces that are as dynamic, versatile, and remarkable as the people who inhabit them. We’re not just enhancing how work gets done. We’re reimagining it for a brighter, more connected world. With CXAI, you don’t just build a workforce, you cultivate a culture. You shape a community, and you create an architect of future. Because at the end of the day, without the employee, there is no work, no office, no culture. Let’s put the employee first together and watch everything else fall into place. So who is CXAI today and the evolution of our company? So I want to give everybody a snapshot of where we are today, where we were a year ago. We are headquartered in the San Francisco Bay Area with regional tech hubs globally.
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The global presence and diversity of experiences gives us a leading edge as we shape the future of work everywhere. We have a development team in Toronto, and we also have a development team in Manila, and we have resources globally supporting us as we scale our architecture. Of the 75 team members at CXAI, more than two-thirds are engineers, and we have double the engineering staff over the course of the last year, at the same time as reducing overall expenses significantly, as you’ll see in the financial information we’ll share. We believe the employees are the center of this multi-billion-dollar growing workplace experiences market, and we’re creating a new category in software, employee experiences. That’s who we are. The CXAI 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. This platform has been developed in collaboration with leading AI companies in the tech ecosystem in Silicon Valley, and we’re excited to partner with Google Cloud as we scale our business to the next level. We’re excited to report a 24% increase in annual recurring revenue from 2022 to 2023. This has been fueled through our major customer wins this last year, especially those two Fortune 1000 wins this last quarter. We’re proud to have some of the largest logos of the world as our customers and our partners that are at the leading edge of the workplace transformation. More than 20 of them are Fortune 1000 companies who are scaling with us with new deployments globally every day.
A key differentiator for our business is that we have strong security and compliance credentials globally. And that is the reason you see so many logos from regulated industries. They use CXAI because they know they can trust us with their data and with their enterprise security and compliance. Finally, I’d like to say the culture of CXAI, the company that we have now, is innovation focused with three core values – purpose, passion, and positivity. We are passionate about solving the big problems in the future of work using AI, and we are super positive about creating a new paradigm for digital transformation of the enterprise focused on employee experiences. As I look over the last year, it’s amazing to see how we’ve been deployed in our 59 countries and 218 cities.
That’s an amazing accomplishment for the team as you’ve grown the business across all dimensions. We will share you more the technology and the financial results in a little bit, but just at a high level, super proud of the team and thank them for doing an amazing job in 2023. So let me talk about what’s happening in the market and what I see in terms of where we are at. So when we think about the CXAI solution, it really creates this affinity flywheel. And what’s happening in the market is there’s a paradigm shift that’s underway and it’s impacting the modern day workforce. Society as a whole is redefining what it means to be productive, engaged and fulfilled professionally. The future of work is not place dependent. It’s happening in a space of endless possibilities where technology is enabling work and life to be blended, integrated seamlessly and augmented with intelligent personalization.
And employees are at the center of this universe. The future is now and it’s being led by CXAI platform focused on transformational employee experiences. As we said earlier, CXAI isn’t just a SuperApp, it’s a catalyst for transformation. Businesses that embrace CXAI unlock the potential for more efficient, collaborative and engaged workforce. In doing so, they set the stage for a future where work truly knows no bounds. We have architected our solution as a platform that solves problems for both employees and employers as they navigate their work lives. And we have built a grounds up anchored on artificial intelligence, AI. AI has transformed into the future of work, creating massively scalable offerings that create the flywheel effect of automating the workflows, driving engagement, enabling collaboration and productivity leading to immense affinity in the employer-employee relationship.
We’ve been strong believers in this technology and now proud to be the first in our industry to offer solutions to our customers. So what is our solution? What do we have and what have we developed over the last year? The four pillars of our employee experiences solution are, the first is AI experiential analytics. The use of AI to derive insights into employee engagement and workspace utilization is a core component of CXAI, emphasizing the value of data in making decisions as well as measuring productivity. The second pillar is the work SuperApp and you see a version of that, the latest one on the screen here. It’s a central platform that integrates various workplace functionalities, reflecting CXAI’s emphasis on a unified, mobile first approach to workplace technology.
The third pillar is spatial intelligence. It’s a key part of CXAI’s technology stack, focusing on optimizing physical spaces and enhancing interactions within the workplace through location-based technologies. And we have a lot of IP on that, as you all know. But finally, the most killer app for us is the Generative AI. Generative AI in CXAI boosts efficiency and productivity by enabling voice and text-activated tasks, like scheduling meetings with a simple command and features like search and discovery. This streamlines administrative duties, driving efficiency and convenience for employees, as well as personalization for on-demand knowledge augmentation. So as we look at the life in the day of an employee or the life in the day of an employer, we’re powering your data through CXAI with this great employee experience solution that impacts them globally and all the things you do at work and beyond.
