CXApp Inc. (Nasdaq: CXAI) Announces Record ARR Growth for Q4'23 & Full Year 2023 - Seite 2
Financial Performance
Q4 2023
2022 to full year 2023
Between October 1st - December 31st,2023 we had double-digit increase in ARR bookings from the previous quarter which was accomplished primarily by contracting new customers including two large Fortune 1000 clients in the entertainment and finance sector.
Our subscription-based recurring revenue was 81% of the total revenue, a metric which has been trending upward quarter after quarter.
Our gross margin for the quarter was 80% which is an attractive figure that has increased over the last year as our subscription revenues have increased.
CXAI's strategy of ‘land & expand' also continues to be a key contributor to growing subscription revenues with our existing customer base.
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We have optimized the operational cost structure with a net 56% operating expense reduction from Q4'22 to Q4'23.
The key highlight of full year 2023 has been the record growth we accomplished in our new ARR bookings and ARR growth for the year.
New ARR bookings for 2023 increased over 80% from the full year 2022. This has been accomplished by signing new Fortune 1000 clients over the year including category leaders in finance, entertainment, and banking. These are all multi-year recurring revenue deals where we have landed and will expand with these clients with a minimum recurring revenue per year.
The total ARR growth for the year including existing customers and new customer increased by 24% year over year. Our existing customers have expanded their footprint and product offering with us as well as the new clients who have signed up to multi-year recurring contracts are now ready for scaling up.
The overall subscription revenue split for the year was 78% versus 65% last year - all a testament to our focus on recurring revenue versus one-time revenues. As we showed in our Q4'23 results this is already on the trajectory of north of 80% and is creating increased value for us a SaaS business.
We have optimized the operational cost structure with a GAAP Opex reduction of 37% operating expense from 2022 to 2023, which is around $13.2M. We have done all of this while doubling the engineering staff, so this has been a huge transformation of our cost structure and talent.
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