Xiao-I Corporation Announces Strong 2024 Results: Revenue Up 19% with Path to Profitability in 2025
PR Newswire
SHANGHAI, May 15, 2025
Profitability Roadmap: Efficiency and Discipline
SHANGHAI, May 15, 2025 /PRNewswire/ -- Xiao-I Corporation ("Xiao-I" or the "Company") $(AIXI)$, a global leader in artificial intelligence solutions, today announced selected audited financial results for the year 2024, highlighting approximately $70.31 million in revenue, representing a 18.8% year-over-year growth, a gross profit margin $(GPM)$ improvement of 2 percentage points, and a significant narrowing of net loss to $14.55 million. These results position the Company to achieve profitability in 2025.
Key Financial Highlights
- Revenue Growth: revenue for 2024 reached approximately $70.31 million, up 18.8% year-over-year, driven by surging demand for its Hua Zang LLM - powered Model-as-a-Service (MaaS) solutions and breakthrough AI hardware sales.
- Gross Profit: Gross profit increased from $39,423,570 in 2023 to $48,049,547 in 2024, representing a growth rate of approximately 21.9%.
- Margin Expansion: Gross profit margin improved to 68.3%, compared to 66.6% in 2023, reflecting operational leverage from MaaS commercialization and cost-optimized deployment.
- R&D Expenses: Research and development expenses totaled $34.66 million, down from $52.39 million in 2023. The 33.8% reduction reflects improved efficiency and the productization of core technologies.
- Net Loss Reduction: Net loss narrowed significantly to $14.55 million in 2024, down 46.1% from $27.01 million in 2023, underscoring disciplined cost management and revenue scalability.
Material Unfinished Matters
During the fiscal year 2024, Xiao-I Corporation pursued legal proceedings against Apple Inc. regarding alleged patent infringement. Key developments in the case include:
-- July 31, 2024: The trial phase of the lawsuit concluded.
-- September 24, 2024: The Shanghai High People's Court held a hearing
session, attended by legal representatives from both parties.
-- November 1, 2024: The Shanghai High People's Court held a second hearing
session.
As of the date of this release, all legal processes have been completed, with all parties awaiting the court's final ruling.
Management Comment
"2024 marks our evolution into a mature AI-driven growth company, powered by the Hua Zang LLM foundation. Going forward, while advancing profitability through hardware innovations like AI Glasses and tAIkbox, we confront material risks requiring vigilant management. Geopolitical fragmentation--particularly US-China technology decoupling--impacts hardware procurement cycles and cross-border service deployments. Also, multi-tier supply chain resilience remains critical for AI hardware scaling, with regional conflicts posing potential component shortages. With 90% domestic operational anchoring, MaaS model's tariff-agnostic nature provides partial insulation, while AI-driven G&A optimization below 15% of revenue enhances risk absorption capacity. Management remains committed to disciplined execution across these vectors to achieve 2025 profitability targets."
About Xiao-I Corporation
Xiao-I Corporation is a leading cognitive intelligence enterprise in China that offers a diverse range of business solutions and services in artificial intelligence, covering natural language processing, voice and image recognition, machine learning, and affective computing. Since its inception in 2001, the Company has developed an extensive portfolio of cognitive intelligence technologies that are highly suitable and have been applied to a wide variety of business cases. Xiao-I powers its cognitive intelligence products and services with its cutting-edge, proprietary AI technologies to enable and promote industrial digitization, intelligent upgrading, and transformation. For more information, please visit: www.xiaoi.com.
Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's ability to achieve its goals and strategies, the Company's future business development and plans for future business development, including its financial conditions and results of operations, product and service demand and acceptance, reputation and brand, the impact of competition and pricing, changes in technology, government regulations, fluctuations in general economic and business conditions in China, and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission ("SEC"). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, including under the section entitled "Risk Factors" in its annual report on Form 20-F filed with the SEC on May 15, 2025, as well as its current reports on Form 6-K and other filings, all of which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For investor and media inquiries, please contact:
Ms. Berry Xia
Email: ir@xiaoi.com
XIAO-I CORPORATION CONSOLIDATED BALANCE SHEETS (In U.S. dollars,
except for share and per share data, or otherwise noted)
As of December 31,
------------------------------
2023 2024
-------------- --------------
Assets
Current assets:
Cash and cash equivalents $ 1,564,542 $ 846,593
Restricted cash 20,676 -
Accounts receivable, net 28,326,985 55,543,017
Amounts due from related parties,
current - 13,587,536
Inventories 67,826 14,362
Contract costs 1,691,293 2,502,678
Advance to suppliers 1,149,642 3,205,098
Prepaid expenses and other
current assets, net 5,233,553 792,732
------------- -------------
Total current assets 38,054,517 76,492,016
------------- -------------
Non-current assets:
Property and equipment, net 2,125,629 1,867,736
Intangible assets, net 212,445 143,370
Long-term investments 2,650,458 2,497,594
Right of use assets 2,431,475 833,030
Prepaid expenses and other
non-current assets 7,000,357 3,677,728
Amount due from related parties,
non-current 13,859,350 -
------------- -------------
Total non-current assets 28,279,714 9,019,458
------------- -------------
TOTAL ASSETS $ 66,334,231 $ 85,511,474
============= =============
Liabilities
Current liabilities:
Short-term borrowings $ 26,760,940 $ 32,879,865
Accounts payable 13,674,339 27,131,439
Amount due to related parties,
current 704,947 217,068
Deferred revenue 1,654,145 2,385,228
Convertible loans - 216,756
Accrued expenses and other
current liabilities 13,938,253 23,289,453
Lease liabilities, current 929,755 483,658
------------- -------------
Total current liabilities 57,662,379 86,603,467
------------- -------------
Non-current liabilities:
Amount due to related parties,
non-current 7,905,290 7,336,833
Accrued liabilities, non-current 7,759,474 7,043,185
Lease liabilities, non-current 1,473,950 295,962
------------- -------------
Total non-current liabilities 17,138,714 14,675,980
------------- -------------
TOTAL LIABILITIES 74,801,093 101,279,447
============= =============
Commitments and Contingencies - -
Shareholders' deficit Ordinary
shares (par value of $0.00005 per
share; 1,000,000,000 shares and
1,000,000,000 shares authorized
as of December 31, 2023 and
2024, respectively; 24,015,592
shares and 31,949,038 shares
issued and outstanding as of
December 31, 2023 and 2024,
respectively) $ 1,201 $ 1,598
Preferred shares (par value of
$0.00005 per share; 3,700,000
preferred shares authorized as
of December 31, 2023 and 2024,
respectively; 3,700,000
preferred shares issued and
outstanding as of December 31,
2023 and 2024, respectively) 185 185
Additional paid-in capital 108,729,047 115,745,140
Statutory reserve 237,486 237,486
Accumulated deficit (110,833,045) (125,338,509)
Accumulated other comprehensive
loss (2,998,562) (2,848,314)
------------- -------------
XIAO-I CORPORATION shareholders'
deficit (4,863,688) (12,202,414)
Non-controlling interests (3,603,174) (3,565,559)
------------- -------------
Total shareholders' deficit (8,466,862) (15,767,973)
------------- -------------
TOTAL LIABILITIES AND
SHAREHOLDERS' DEFICIT $ 66,334,231 $ 85,511,474
============= =============
XIAO-I CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS (In U.S. dollars, except for share and per share
data, or otherwise noted)
For the years ended December 31,
-------------------------------------------
2022 2023 2024
------------- ------------- -------------
Sale of software
products $ 3,547,113 $ 1,566,455 $ 1,516,169
Sale of hardware
products 46,295 75,363 1,395,345
Technology
development
service 16,419,889 7,839,700 24,105,644
M&S service 2,429,526 2,676,185 2,419,901
Sale of cloud
platform products 25,742,135 47,007,556 40,877,256
------------ ------------ ------------
Net revenues 48,184,958 59,165,259 70,314,315
Cost of sale of
software products (888,220) (834,570) (98,442)
Cost of sale of
hardware products (25,141) (51,201) (583,939)
Cost of technology
development
service (12,194,044) (6,059,330) (10,444,827)
Cost of M&S service (1,255,973) (971,417) (781,258)
Cost of sale of
cloud platform
products (3,015,766) (11,825,171) (10,356,302)
------------ ------------ ------------
Cost of revenues (17,379,144) (19,741,689) (22,264,768)
------------ ------------ ------------
Gross profit 30,805,814 39,423,570 48,049,547
------------ ------------ ------------
Operating expenses:
Selling expenses (3,911,818) (4,550,997) (3,320,886)
General and
administrative
expenses (6,028,637) (4,407,215) (22,940,916)
Research and
development
expenses (24,001,138) (52,387,540) (34,658,779)
------------ ------------ ------------
Total operating
expenses (33,941,593) (61,345,752) (60,920,581)
------------ ------------ ------------
Loss from operations (3,135,779) (21,922,182) (12,871,034)
------------ ------------ ------------
Other
income/(expenses):
Investment
(loss)/income (143,181) 75,542 (81,618)
Interest expenses,
net (2,440,815) (2,323,341) (2,319,820)
Foreign currency
exchange
(loss)/gain (68,902) 2,789 3,864
Other income, net 444,018 949,116 717,280
------------ ------------ ------------
Total other expenses (2,208,880) (1,295,894) (1,680,294)
------------ ------------ ------------
Loss before income
tax expense (5,344,659) (23,218,076) (14,551,328)
Income tax expense (660,655) (3,787,692) -
------------ ------------ ------------
Net loss $ (6,005,314) $(27,005,768) $(14,551,328)
------------ ------------ ------------
Net loss
attributable to
non-controlling
interests (106,779) (543,961) (45,864)
------------ ------------ ------------
Net loss
attributable to
XIAO-I CORPORATION
shareholders (5,898,535) (26,461,807) (14,505,464)
Other comprehensive
income
Foreign currency
translation
change, net of nil
income taxes 403,816 303,114 233,727
------------ ------------ ------------
Total other
comprehensive
income 403,816 303,114 233,727
------------ ------------ ------------
Total comprehensive
loss $ (5,601,498) $(26,702,654) $(14,317,601)
============ ============ ============
Total comprehensive
income/(loss)
attributable to
non- controlling
interests 95,280 (504,951) 37,615
Total comprehensive
loss attributable
to XIAO-I
CORPORATION
shareholders (5,696,778) (26,197,703) (14,355,216)
Loss per ordinary
share attributable
to XIAO-I
CORPORATION
shareholders
Basic (0.27) (1.12) (0.56)
Diluted (0.27) (1.12) (0.56)
Weighted average
number of ordinary
shares outstanding
Basic 22,115,592 23,646,003 25,760,207
Diluted 22,115,592 23,646,003 25,760,207
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SOURCE Xiao I Corporation
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