Company: CXAI
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003841
Chunk: 46

Company: CXApp Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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.

    (In thousands)
     
    Three months Ended March 31, 2025

    Three Months Ended March 31, 2024

    (unaudited)

    (unaudited)

    Condensed Consolidated Statements of Operations Data

    Revenues
     
    $
    1,224

    $
    1,818

    Cost of revenues

    150

    327

    Gross profit

    1,074

    1,491

    Operating expenses

    4,819

    5,078

    Loss from operations

    (3,745
    )

    (3,587
    )
  
    Other income (expense), net

    2,129

    (1,790
    )
  
    Income tax benefit

    -

    207

    Net income (loss)
     
    $
    (1,616
    )
     
    $
    (5,170
    )

34

Revenues

The Company derives revenue from subscription software as a service (SaaS), design, deployment and implementation services for its enterprise apps business. Revenue was $1,224 thousand for the three months ended March 31, 2025, compared to $1,818 thousand for the three months ended March 31, 2024. The decrease in revenue of $594 thousand, for the comparative quarters ended March 31, 2025 and March 31, 2024 was due to a decline in Professional Services revenue. Professional services are related to integration works and other services that may be requested by the customer and as such the decline in revenue is attributable to the professional services revenue because the Company has moved to a full SaaS model versus one-time professional fees.

Our subscription-based revenue represented 99% of the total revenue for the three months ended March 31, 2025 and 87% for the three months ended March 31, 2024 which is a 12% increase in the revenue mix.

Gross Margin

Cost of revenues includes the direct costs to deliver the services including labor and overhead. Cost of revenues were $150 thousand for the three months ended March 31, 2025 compared to $372 thousand for the three months ended March 31, 2024. The gross profit margin was 88% for the three months ended March 31, 2025 compared to 82% for the three months ended March 31, 2024.