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CXApp (CXAI)
NASDAQ:CXAI
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CXApp
(NASDAQ:CXAI)
49Neutral
Positive Factors
Cloud Partnerships
CXAI signed agreements with all three major cloud providers, indicating strong cloud partnerships.
Growth Potential
Strong growth is anticipated for the company in the future.
Negative Factors
Revenue Forecast
Sales cycles have been slower than anticipated, leading to a push back in the ARR forecast by one year and lower 2025 estimates.
Sales Cycles
The price target is lowered due to slower sales cycles.
CXApp (CXAI) vs. S&P 500 (SPY)
Market Cap
$21.79M
Dividend YieldN/A
Average Volume (3M)4.17M
Price to Earnings (P/E)―
Beta (1Y)1.26
Revenue Growth-3.04%
EPS Growth65.43%
CountryUS
Employees41
SectorTechnology
Sector Strength44
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.23
Shares Outstanding19,805,784
10 Day Avg. Volume11,890,621
30 Day Avg. Volume4,173,583
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.18
Price to Cash Flow (P/CF)-1.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
CXApp Business Overview & Revenue Model
Company DescriptionCXApp (CXAI) is a technology company specializing in customer experience management solutions. The company focuses on sectors such as enterprise software and digital engagement, providing innovative applications that enhance user interaction and optimize operational workflows. Its core products and services include mobile apps, analytics tools, and engagement platforms designed to improve communication and collaboration within organizations.
How the Company Makes MoneyCXApp generates revenue through a subscription-based model, offering its software-as-a-service (SaaS) products to businesses on a recurring basis. Key revenue streams include subscription fees for access to its applications, licensing fees for its software, and service charges for custom integrations and support. The company may also benefit from strategic partnerships with other technology providers, which can enhance its product offerings and broaden its customer base. Additionally, CXApp may engage in enterprise contracts with large organizations, providing tailored solutions that meet specific business needs, thus contributing significantly to its earnings.
CXApp Financial Statement Overview
Summary
CXApp faces substantial financial challenges with declining revenues, negative net profit margins, and severe cash flow issues. While the company maintains a manageable debt level, its poor profitability and reliance on financing activities indicate significant financial risks.Income Statement
CXApp's income statement reflects significant financial challenges. The company has seen declining revenues over the past two years, with a revenue growth rate of -3.04% from 2023 to 2024. Gross profit margin is relatively healthy at 81.98% for 2024, yet the net profit margin remains highly negative at -271.73%, indicating substantial net losses. EBIT and EBITDA margins are also negative, showcasing operational inefficiencies and high costs relative to revenue.40
Negative
Balance Sheet
The balance sheet shows a stable but weak financial position. The debt-to-equity ratio is 0.32 for 2024, indicating a manageable level of debt relative to equity. However, the return on equity is significantly negative at -124.49%, reflecting poor profitability. The equity ratio stands at 49.03%, suggesting a moderate level of equity financing relative to total assets, but the overall financial health is undermined by consistent losses.50
Neutral
Cash Flow
CXApp's cash flow statement indicates severe cash flow issues. The free cash flow growth rate is negative, and both the operating cash flow to net income ratio and the free cash flow to net income ratio are negative, highlighting that the company is not generating sufficient cash from operations to support its losses. The high reliance on financing activities for cash inflows underscores sustainability concerns.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.14M | 7.37M | 8.47M | 0.00 | 0.00 |
| Gross Profit | ||||
| 5.86M | 5.62M | 2.52M | 0.00 | 0.00 |
| EBIT | ||||
| -13.74M | -52.59M | -2.95M | -1.50M | -252.78K |
| EBITDA | ||||
| -13.74M | -53.58M | -19.46M | 0.00 | 0.00 |
| Net Income Common Stockholders | ||||
| -19.41M | -53.62M | 17.63M | 9.21M | -4.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.88M | 6.28M | 224.49K | 406.13K | 1.02M |
| Total Assets | ||||
| 31.80M | 36.58M | 4.15M | 279.37M | 280.24M |
| Total Debt | ||||
| 4.99M | 3.56M | 347.96K | 0.00 | 0.00 |
| Net Debt | ||||
| 105.00K | -2.72M | 123.47K | -406.13K | -1.02M |
| Total Liabilities | ||||
| 16.21M | 11.18M | 3.95M | 21.70M | 9.87M |
| Stockholders Equity | ||||
| 15.59M | 25.40M | 198.88K | 257.67M | 270.37M |
| Cash Flow | Free Cash Flow | |||
| -7.36M | -17.98M | -1.24M | -595.32K | -514.70K |
| Operating Cash Flow | ||||
| -7.33M | -17.91M | -761.10K | -595.32K | -514.70K |
| Investing Cash Flow | ||||
| -30.00K | 9.89M | 275.33M | 0.00 | -278.76M |
| Financing Cash Flow | ||||
| 5.98M | 16.51M | -274.75M | -17.58K | 280.29M |
CXApp Technical Analysis
Neutral
1.07
Price Trends
1.13
Negative
1.44
Negative
1.65
Negative
Market Momentum
<0.01
Negative
51.50
Neutral
67.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXAI, the sentiment is Neutral. The current price of 1.07 is above the 20-day moving average (MA) of 1.00, below the 50-day MA of 1.13, and below the 200-day MA of 1.65, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.50 is Neutral, neither overbought nor oversold. The STOCH value of 67.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CXAI.
CXApp Risk Analysis
CXApp disclosed 55 risk factors in its most recent earnings report. CXApp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CXApp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $9.82B | 10.00 | -6.63% | 3.09% | 7.49% | -11.58% | |
55 Neutral | $27.54M | 39.37 | -2.43% | ― | 9.28% | 60.89% | |
49 Neutral | $21.79M | ― | -94.70% | ― | -3.04% | 65.43% | |
48 Neutral | $25.45M | 31.71 | 2.02% | ― | -47.08% | -59.18% | |
43 Neutral | $24.93M | ― | 40.01% | ― | ― | ― | |
38 Underperform | $23.79M | ― | 544.07% | ― | 6.89% | 6.39% | |
28 Underperform | $22.64M | ― | -108.59% | ― | ― | -85.24% |
* Technology Sector Average
Performance Comparison
CXAI
CXApp
1.07
-2.45
-69.60%
NTWK
Netsol Technologies
2.36
-0.39
-14.18%
MTC
MMTec
0.99
-16.93
-94.48%
HKIT
Hitek Global
1.19
-0.14
-10.53%
CNTM
ConnectM Technology Solutions
0.64
-10.59
-94.30%
AIXI
Xiao-I Corp. ADR
3.44
-8.89
-72.10%
CXApp Earnings Call Summary
Earnings Call Date: Apr 3, 2025 | % Change Since: 32.10% | Next Earnings Date: May 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in product development, strategic hirings, and financial metrics such as ARR growth and operating expense reduction. However, challenges remain with a slight revenue decline and unchanged loss from operations. The sentiment is generally positive with strong future outlooks and strategic investments in AI.Highlights
Agentic AI Platform Development
CXAI has completed the product transformation to a single code base and is investing in Agentic AI to reshape the market for employee experiences.
Expansion of Engineering Team
The company doubled its engineering staff in Silicon Valley and appointed Terry Blanchard as SVP of Engineering to lead the development of Agentic AI solutions.
Strong Intellectual Property Portfolio
CXAI has filed 37 patents with 17 granted, establishing itself as a technological front runner in the industry.
Double-Digit ARR Growth
Achieved double-digit ARR growth supported by six major logo renewals in Q4 and total subscription revenue accounting for 87% of total revenue.
Improvement in Operating Expenses
Significantly reduced total operating expenses from $58 million in fiscal year 2023 to $19.6 million in fiscal year 2024, a 66% improvement.
CXAI Kiosk Deployment
Secured first paid deployment of CXAI Kiosk with a large technology company in Silicon Valley.
Localization and Global Reach
Implemented localization solutions in eight languages for a large entertainment client, enhancing global customer experiences.
Gross Margin Improvement
Achieved a gross margin of 82%, up from 78% last year due to a shift towards subscription revenue.
Lowlights
Revenue Decline
Year-over-year revenue slightly declined, despite the growth in subscription revenue.
Loss from Operations
Q4 loss from operations was $3.18 million, flat versus the same quarter last year, despite efforts to reduce expenses.
Delayed 10-K Filing
The company has filed an extension for its 10-K and plans to file before the extension deadline.
Company Guidance
During the CXAI Fourth Quarter and Annual 2024 Earnings Call, the company provided several key metrics highlighting its progress and future outlook. The subscription revenue rose to $6.2 million, representing a 10% year-over-year increase and now accounts for 87% of the total revenue, up from 78% in 2023. The gross margin improved to 82% from 78% last year, while the net retention rate reached 100%, up from 73% in 2023. Operating expenses were significantly reduced from $58 million in 2023 to $19.6 million in 2024, a 66% improvement. The company also noted a 30% improvement in EBITDA year-over-year and highlighted an ARR growth supported by six major logo renewals in Q4. The firm maintains a strong balance sheet with additional funding, ensuring at least a year of financial runway. Looking into 2025, CXAI is focused on enhancing AI capabilities, expanding its product offerings, and continuing to drive sustainable growth.CXApp Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
CXApp Reports Record 2024 Performance with AI Focus
Positive
Apr 7, 2025
CXApp Inc. reported record business performance for 2024, driven by its transformation into an AI-centric subscription application business. The company successfully deployed new products like CXAI Kiosk and CXAI VU, and achieved significant improvements in financial metrics, including double-digit ARR growth and a shift towards a subscription-based revenue model. The company also completed major deployments with large enterprise clients and strengthened its strategic partnership with Google Cloud, positioning itself as a leader in the employee experience market. Looking ahead, CXApp anticipates continued growth and expansion in 2025, leveraging its innovative AI capabilities to meet the evolving needs of its clients.
Spark’s Take on CXAI Stock
According to Spark, TipRanks’ AI Analyst, CXAI is a Neutral.
CXApp’s overall score reflects a company facing significant financial headwinds, with declining revenues, high net losses, and cash flow issues. While technical analysis provides some neutral signals, and the earnings call reports progress through strategic partnerships and cost reductions, these are overshadowed by ongoing challenges in profitability and valuation.
To see Spark’s full report on CXAI stock, click here.
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
CXApp Appoints New SVP of Engineering
Neutral
Mar 31, 2025
On March 31, 2025, CXApp Inc. announced the appointment of Terry Blanchard as Senior Vice President of Engineering. With over 30 years of experience at companies like Apple and NVIDIA, Blanchard will lead the company’s global engineering efforts and AI technology development, expected to significantly advance CXApp’s product roadmap. Additionally, the company rescheduled its Fourth Quarter 2024 and Annual 2024 Financial Results and Business Update Conference Call to April 3, 2025, where it will discuss financial results and provide updates on its AI-native CXAI Platform.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.