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Cxapp Inc. (CXAI)
:CXAI
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CXApp
(NASDAQ:CXAI)
48Neutral
Positive Factors
Expansion and Growth
CXAI signed a record expansion deal, increasing from 2 sites to over 25 with a large financial services customer.
Financial Performance
CXAI reported a 7% increase in total revenue and an 18% rise in recurring software revenue, both surpassing estimates.
Strategic Partnerships
CXAI signed a formal multi-year, multi-million dollar agreement with Google Cloud to develop AI infrastructure and security.
Negative Factors
Cash Reserves
CXAI ended 3Q24 with cash of $5.1M, believed to be sufficient for at least the next 12 months, indicating limited liquidity.
Dependency on Recurring Revenue
The transition to a long-term recurring software revenue model suggests reliance on consistent performance in this area.
EBITDA Loss
Despite improved results, CXAI reported an adjusted EBITDA loss of ($1.7M), highlighting ongoing profitability challenges.
CXApp (CXAI) vs. S&P 500 (SPY)
Market Cap
$17.69M
Dividend YieldN/A
Average Volume (3M)481.78K
Price to Earnings (P/E)―
Beta (1Y)3.33
Revenue Growth27.50%
EPS Growth-43.59%
CountryUS
Employees46
SectorTechnology
Sector Strength45
IndustrySoftware
Share Statistics
EPS (TTM)-3.54
Shares Outstanding18,641,170
10 Day Avg. Volume390,714
30 Day Avg. Volume481,777
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.17
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 Covering0
CXApp Business Overview & Revenue Model
Company DescriptionCXApp (CXAI) is a company that operates in the technology sector, specifically focusing on customer experience solutions. It provides advanced digital platforms designed to enhance customer interactions through AI-driven insights and analytics. The company's core services include customer engagement tools, analytics software, and AI-powered solutions that help businesses optimize their customer experience strategies.
How the Company Makes MoneyCXApp (CXAI) generates revenue primarily through the sale of its software solutions and platforms. The company offers subscription-based services where clients pay recurring fees to access its digital tools and analytics software. Additionally, CXApp may earn income from consulting services, providing clients with tailored solutions and strategic insights to improve their customer experience efforts. Partnerships with other technology providers and businesses seeking to integrate AI-driven customer engagement solutions into their operations can also be a significant source of revenue.
CXApp Financial Statement Overview
Summary
CXApp faces significant financial challenges with declining revenue, substantial net losses, and negative cash flows. While the company has manageable leverage, profitability, and cash flow constraints pose substantial risks. Improvements in revenue growth and cost management are essential to enhance financial stability and shareholder value.Income Statement
CXApp's income statement shows significant challenges in profitability with negative net income and declining revenue. The Gross Profit Margin for TTM is approximately 62.08%, which is reasonable for the software industry. However, the Net Profit Margin is significantly negative due to substantial net losses, indicating poor cost management or high operating expenses. The EBIT and EBITDA margins are also negative, further highlighting the company's struggle to achieve profitability. Revenue growth is negative year-over-year, indicating a downward trend in sales which poses a risk to future financial stability.40
Negative
Balance Sheet
CXApp's balance sheet indicates a moderate financial position with a Debt-to-Equity Ratio of approximately 0.29 for the TTM, showing manageable leverage. The Return on Equity is negative due to net losses, indicating inefficiencies in generating returns for shareholders. The Equity Ratio stands at 45.20%, suggesting a balanced capital structure but with room for improvement. Overall, the balance sheet reflects a mixed financial position with some strengths in leverage but weaknesses in profitability and equity returns.55
Neutral
Cash Flow
CXApp's cash flow statement reveals significant challenges with negative Free Cash Flow and Operating Cash Flow over the TTM, indicating cash constraints and potential liquidity issues. The Free Cash Flow to Net Income Ratio is distorted by negative values, rendering traditional analysis difficult. Despite these challenges, the company managed to reduce its operating cash outflows compared to the prior year, suggesting initial steps toward cash flow stabilization. However, substantial improvements are necessary for sustainable operations.35
Negative
| Breakdown | ||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.20M | 7.37M | 8.47M | 0.00 | 0.00 | Gross Profit |
| 4.47M | 5.62M | 2.52M | 0.00 | 0.00 | EBIT |
| -13.97M | -52.59M | -2.95M | -1.50M | -252.78K | EBITDA |
| -46.70M | -53.58M | -19.46M | 0.00 | 0.00 | Net Income Common Stockholders |
| -54.14M | -53.62M | 17.63M | 9.21M | -4.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 778.49K | 6.28M | 224.49K | 406.13K | 1.02M | Total Assets |
| 280.02M | 36.58M | 4.15M | 279.37M | 280.24M | Total Debt |
| 0.00 | 3.56M | 347.96K | 0.00 | 0.00 | Net Debt |
| -778.49K | -2.72M | 123.47K | -406.13K | -1.02M | Total Liabilities |
| 25.66M | 11.18M | 3.95M | 21.70M | 9.87M | Stockholders Equity |
| 254.37M | 25.40M | 198.88K | 257.67M | 270.37M |
| Cash Flow | Free Cash Flow | |||
| -6.93M | -17.98M | -1.24M | -595.32K | -514.70K | Operating Cash Flow |
| -6.88M | -17.91M | -761.10K | -595.32K | -514.70K | Investing Cash Flow |
| -15.00K | 9.89M | 275.33M | 0.00 | -278.76M | Financing Cash Flow |
| 6.43M | 16.51M | -274.75M | -17.58K | 280.29M |
CXApp Technical Analysis
Negative
0.95
Price Trends
1.57
Negative
1.58
Negative
1.85
Negative
Market Momentum
-0.17
Positive
29.56
Positive
15.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXAI, the sentiment is Negative. The current price of 0.95 is below the 20-day moving average (MA) of 1.27, below the 50-day MA of 1.57, and below the 200-day MA of 1.85, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 29.56 is Positive, neither overbought nor oversold. The STOCH value of 15.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.83T | 30.64 | 34.29% | 0.83% | 15.04% | 12.38% | |
79 Outperform | $162.08B | 56.97 | 17.43% | 0.66% | 13.73% | 9.93% | |
75 Outperform | $188.60B | 35.35 | 36.31% | ― | 11.02% | 4.96% | |
75 Outperform | $266.25B | 43.54 | 10.26% | 0.58% | 8.72% | 51.47% | |
67 Neutral | $64.62B | 124.12 | 6.15% | ― | 17.04% | -62.24% | |
58 Neutral | $21.35B | 9.96 | -19.72% | 2.38% | 5.03% | -22.83% | |
48 Neutral | $17.69M | ― | -138.53% | ― | 27.50% | -43.59% |
* Technology Sector Average
Performance Comparison
CXAI
CXApp
0.99
-2.25
-69.44%
ADBE
Adobe
438.60
-134.95
-23.53%
INTU
Intuit
591.14
-59.93
-9.20%
MSFT
Microsoft
383.27
-28.68
-6.96%
CRM
Salesforce
284.58
-18.80
-6.20%
WDAY
Workday
241.67
-28.06
-10.40%
CXApp Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: -45.40% | Next Earnings Date: May 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant financial achievements, product launches, and partnerships, particularly with cloud providers, signaling strong growth and operational improvements. However, challenges in employee engagement and maintaining cash flow positivity remain areas of concern.Highlights
Best Financial Quarter Ever
CXAI reported its highest SaaS metrics with revenue reaching $1.9 million, a net retention rate greater than 106%, and an 18% growth in recurring revenue.
AWS Marketplace Launch
CXAI announced its collaboration with Amazon Web Services, allowing the company to scale its business and be available on the AWS Marketplace, following a similar achievement with Google Cloud in the previous quarter.
Successful New Product Launches
Introduced new products including CXAI VU, which gained traction with its first paid customer, and CXAI Kiosks, showing significant customer interest.
Reduction in Operating Expenses
Achieved a 22% reduction in non-GAAP operating expenses, attributed to cost-cutting measures, including workforce optimization and a more focused marketing strategy.
Agentic AI and Generative AI Developments
Advancements in Agentic AI capabilities and Generative AI applications were highlighted, showing CXAI's leadership in AI-driven workplace transformation.
Lowlights
Employee Engagement Challenges
Despite technological advancements, employee engagement remains low, with a significant portion of employees being not engaged or actively disengaged.
Cash-Based Losses
Although narrowed by 43%, the company still reported a cash-based loss of $1.324 million in Q3 2024.
High Operating Expenses
Total operating expenses remain high, particularly in G&A, with $900,000 of non-cash stock-based compensation contributing to this figure.
Company Guidance
During the CXAI Q3 2024 earnings call, CEO Khurram Sheikh highlighted the company's notable financial achievements and strategic advancements. CXAI, described as an AI-first company, reported its highest SaaS metrics to date, with revenue reaching $1.9 million, representing a 7% increase from the previous year. The company boasts a robust net retention rate of over 106% and an impressive subscription to onetime revenue ratio of 88%. The gross margin was maintained at 80%, while recurring revenue grew by 18%. Operational efficiencies led to a 22% reduction in non-GAAP operating expenses, contributing to a 43% decrease in cash-based losses. Additionally, CXAI's strategic partnerships, including its recent collaboration with Amazon Web Services for cloud deployment, position the company for further growth and scalability. The call also underscored CXAI's commitment to transforming workplace experiences through its innovative platform, with a focus on employee engagement and productivity, supported by its proprietary technologies and AI-driven solutions.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.