CXApp Inc (NASDAQ:CXAI) shares are trading significantly higher Tuesday after the company reported second-quarter results and announced an agreement with Alphabet Inc's (NASDAQ:GOOG) Google Cloud.
What To Know: CXApp reported second-quarter revenue of $1.766 million, missing the consensus estimate of $1.8 million. The company reported a quarterly loss of 34 cents per share, missing analyst estimates for a loss of 27 cents per share, according to Benzinga Pro.
CXApp said its subscription to one-time revenue split was 85% in the quarter versus 79% last year. Gross margin came in at 80%, up from 75% in the prior year, and net retention rate was 105% in the quarter. The company saw a 78% increase in renewal and expansion bookings on a year-over-year basis.
"We continue to make great progress in shaping the future of work with our largest expansion deal this quarter. This large enterprise client is seeing high adoption of our platform in their pilot deployments at their headquarters in the U.S. and a second major site," said Khurram Sheikh, chairman and CEO of CXApp.
"We are solving real problems in the work environment for them, and they are now planning to scale up with our AI-native solutions across their enterprise footprint."
Google Cloud Deal: CXApp announced that it signed a multi-year, multi-million dollar strategic agreement with Google Cloud for the development and delivery of advanced AI infrastructure, security and application products. Google Cloud will also co-invest with CXApp in the continuous deployment, monitoring and modernization of the CXAI platform.
"Given the momentum we see in the market with our customers and enhanced upcoming offerings including our AI-based Analytics platform CXAI VU, the Google Cloud agreement positions us to deliver our commitments to our customers," Sheikh said.
"We are super-excited about this partnership as it provides us access to all the latest Google AI innovations that we plan on adapting to revolutionize the workplace market with amazing employee experiences."
