By Kelly Cloonan
CXApp's climbed after the company said it recorded annual revenue and that it expects significantly higher demand for its agentic artificial intelligence this year.
Shares rose 61% to $1.30 in after-hours trading Thursday. The stock has plunged 84% through the market's close in the past year, and the stock fell to a 52-week low of 76 cents per share on March 31.
The workplace experience solutions provider said it posted double-digit growth in recurring revenue in 2024 compared with the prior year, driven by higher subscription revenue.
CXApp's subscription business accounted for 87% of overall revenue, up from 78% in 2023. The company also said it has completed a change to its platform enabling a single code-base for all existing customers, CXAI 1.0, to accelerate feature upgrades.
The company said it is now focused on investing in agentic AI. Its partnership with Google Cloud allows early access to AI models and tools to speed up the development and deployment of its new products, including its agentic AI offerings planned for this year.
"Our team has completed the product transformation to a single code base and streamlined our cost structure resulting in a profitable CXAI 1.0 application business and now we are investing in Agentic AI for the massive opportunity to reshape the whole market for employee experiences," Chief Executive Khurram Sheikh said.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
April 03, 2025 18:49 ET (22:49 GMT)
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