Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- KINS Technology Group Inc (KINZU, Financial) reported its best financial quarter ever with a revenue of $1.9 million and a net retention rate of 106%.
- The company has successfully launched its Sky platform on the AWS marketplace, expanding its cloud partnerships to include Google Cloud and Microsoft Azure.
- KINS Technology Group Inc (KINZU) has developed a strong intellectual property portfolio with 37 filed patents, 17 of which have been issued.
- The company has a global presence with satellite hubs in Toronto and Manila, supporting deployments in over 200 cities across 50 countries.
- The introduction of new products like Sky View and Sky Kiosk has been well-received, with Sky View gaining its first paid customer this quarter.
Negative Points
- Employee engagement remains a significant challenge, with low engagement levels reported globally, impacting productivity.
- Despite revenue growth, the company still faces high operating expenses, with a total operating loss of $3.3 million this quarter.
- The transition to an AI-native model requires substantial investment in R&D, which could strain financial resources.
- The company is not currently exploring opportunities in the government sector, potentially missing out on lucrative contracts.
- There is a need for continuous innovation and adaptation to maintain competitive advantage in the rapidly evolving AI and workplace technology market.
Q & A Highlights
Q: How has new management impacted growth at Sky?
A: Khurram Sheikh, CEO, stated that new management, including the addition of Joy Mbanugo as CFO, has positively impacted growth. The new talent has brought fresh perspectives and strengthened partnerships, particularly with Google Cloud, enhancing the company's strategic direction.
Q: Could you partner with Palantir to implement their AI platform?
A: Khurram Sheikh, CEO, mentioned that while they haven't considered partnering with Palantir, as they are currently focused on commercial customers rather than government contracts, they are open to exploring opportunities in the commercial space.
Q: Can you detail how your partnership with Google Cloud is progressing?
A: Khurram Sheikh, CEO, explained that the partnership with Google Cloud is progressing well, with active collaboration on product innovations and go-to-market strategies. Google Cloud's AI capabilities are being integrated into CXApp's offerings, enhancing their product suite.
Q: What are the financial highlights for Q3 2024?
A: Joy Mbanugo, CFO, highlighted that Q3 2024 was the best financial quarter for CXApp, with revenue reaching $1.9 million, a net retention rate of 106%, and a significant reduction in cash-based losses by 43%. The company is focused on expanding its subscription base and achieving cash flow positivity.
Q: How is CXApp leveraging AI in its product offerings?
A: Khurram Sheikh, CEO, emphasized that CXApp is leveraging AI to enhance employee experiences and productivity. Their Sky platform integrates AI to automate workflows, provide real-time analytics, and improve user engagement, positioning the company as a leader in workplace innovation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
