Company: CXAI
Filing Date: 2025-03-07
Form Type: 424B3
Source: 0001829126-25-001566
Chunk: 52

Company: CXApp Inc.
Filing Date: 2025-03-07
Form: 424B3
Chunk 52
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 1,525 |   |     |            |              1,412 |   |
| Operating expenses                                   |                |            |             (4,851 | ) |     |            |             (5,641 | ) |
| Loss from operations                                 |                |            |             (3,326 | ) |     |            |             (4,229 | ) |
| Other income (expense), net                          |                |            |             (1,825 | ) |     |            |              5,253 |   |
| Income tax benefit                                   |                |            |                147 |   |     |            |                417 |   |
| Net income (loss)                                    |                | $          |             (5,004 | ) |     | $          |              1,441 |   |

Revenues

Revenues for the three months ended September 30, 2024, increased to $1,897 thousand, reflecting a 7% quarter-over-quarter growth, driven by the successful onboarding of new enterprise clients and deeper integration of our platform solutions with existing customers. This sustained revenue increase highlights the growing demand for our hybrid workplace solutions, particularly with our strategic partnerships, such as our collaboration with Google Cloud Marketplace, which we anticipate will significantly accelerate adoption and customer retention. Looking ahead, we expect this momentum to continue as we expand our presence in key markets and leverage our unique AI-based workplace experience technologies.

Our subscription-based revenue was 87% of the total revenue for the three months ended September 30, 2024 (Successor) and 80% for the three months ended September 30, 2023 (Successor), which is a 7% increase in the revenue mix because the Company has moved to a full SaaS model versus one-time professional fees.

Gross Margin

Cost of revenues includes the direct costs to deliver the services including labor and overhead. Cost of revenues were $372 thousand for the three months ended September 30, 2024 (Successor), compared to $358 thousand for the three months ended September 30, 2023 (Successor). The gross profit margin was 80% for the three months ended September 30, 2024 (Successor), compared to 80% for the three months ended September 30, 2023 (Successor).

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Operating Expenses

Operating expenses consist primarily of research and development costs, sales and marketing costs, and general and administrative costs