Company: CXAI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003841
Chunk: 44

Company: CXApp Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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Driven Innovation: We advanced the development of our Generative AI-based analytics platform, designed to revolutionize the workplace by enabling organizations to analyze large datasets, generate actionable insights, and make data-driven decisions in real time. This strategic initiative positions us to meet the growing demand for AI-native solutions that drive operational efficiency and enhance employee engagement. 

    2.
    Market Expansion and Customer Growth - “Land and Expand”: We continued to deepen our penetration in the Fortune 1000, expanding our customer base across financial services, healthcare, and technology sectors. Our targeted approach emphasizes building long-term relationships with existing clients while strategically pursuing new verticals to drive recurring revenue. 

    3.
    Financial Discipline and Operational Efficiency: In response to broader economic headwinds, we implemented cost optimization initiatives that resulted in a reduction of operating expenses to $4,814 thousand for the three months ended March 31, 2025 compared to $5,078 thousand for the same period in 2024. This focus on financial discipline has strengthened our margins and positioned us for sustainable growth. 

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Looking forward, our leadership team remains committed to balancing innovation with financial discipline, ensuring that CXApp is positioned for long-term profitability and strategic growth. By leveraging our AI-driven platform and expanding our enterprise footprint, we aim to deliver scalable, data-driven solutions that address the evolving needs of hybrid workplaces.

Financial Performance Summary

Revenue Growth and Customer Expansion

    ●
    During the three months ended March 31, 2025, the gross profit was increased from 88% when compared to 82% in March 31, 2024 driven by higher-margin AI-enabled services and a strategic focus on enterprise clients. 

    ●
    Our customer base continues to expand across key industries, including financial services, healthcare, and technology, aligning with our objective to target high-value, recurring revenue clients. 

    ●
    The transition to a recurring revenue model has improved revenue predictability and supports our long-term growth objectives. 

Operational Efficiencies and Cost Management

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    During the three months ended March 31, 2025, operating expenses decreased to $4,819 thousand compared to $5,078 for March 31, 2024 reflecting strategic cost management initiatives that have improved margins. 

    ●
    Strategic workforce realignments have ensured resources are allocated to high-impact growth areas. 

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    We remain focused on optimizing resource allocation, ensuring that investments are targeted toward high-impact areas such as