CXApp Inc. reported a significant shift in its financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $7.1 million, a decrease of approximately 3% from $7.4 million in the previous year. The company attributed this decline primarily to a reduction in professional services revenue, which includes integration work and other customer-requested services. However, the transition to a recurring revenue model has strengthened revenue predictability, with 87% of total revenue now derived from subscriptions, up from 78% in 2023. Despite the revenue decline, CXApp's gross profit margin improved to 82%, compared to 76% in the prior year, reflecting enhanced operational efficiencies.
The company also reported a substantial reduction in operating expenses, which fell to $19.6 million from $58.2 million in 2023. This decrease was largely due to cost optimization initiatives and a significant goodwill impairment charge of $36.1 million recorded in the previous year. As a result, CXApp's net loss narrowed to $19.4 million in 2024, a 64% improvement compared to the $53.6 million loss reported in 2023. The company’s cash and cash equivalents stood at $4.9 million at year-end, bolstered by a Securities Purchase Agreement that provides access to an additional $3.5 million, along with a $20 million equity line of credit secured in March 2025.
Strategically, CXApp has focused on expanding its AI-driven capabilities and enhancing its market position within the Fortune 1000. The company aims to leverage its AI-native platform to provide actionable insights and improve workplace efficiency. CXApp's customer base has continued to grow across key industries, including financial services, healthcare, and technology, with deployments in over 50 countries. The company has also emphasized operational excellence, aiming to optimize cost structures and improve customer retention.
Looking ahead, CXApp is optimistic about its growth prospects, with the global employee experience market projected to grow at a compound annual growth rate (CAGR) of 20%. The company plans to continue investing in product innovation, targeting new verticals, and strengthening its partnerships with major cloud providers. Despite macroeconomic uncertainties, CXApp believes that the demand for hybrid workplace solutions remains strong, positioning the company for continued momentum in the evolving landscape of employee experience technology.
About CXApp Inc.
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