CXApp (CXAI) Stock Surges Over 150% on AI Deal with Google Cloud

The Google Cloud deal provided CXApp stock with a much needed boost following the company's Q2 earnings, where it missed on revenue and EPS.

Ryan Troup August 13, 2024Last Updated: August 15, 2024

2 minutes read

Source: CXApp

CXApp (NASDAQ: CXAI) announced a multi-year, multi-million dollar strategic AI agreement with Alphabet’s (NASDAQ: GOOG) Google Cloud, leading CXAI stock to rise today by as much as 156%. The Google Cloud partnership, which focuses on developing and delivering advanced AI infrastructure, security, and application products, marks a significant step in CXApp’s transformation into an AI-native Software-as-a-Service (SaaS) provider.

Over the past year, CXApp’s stock had suffered a 75% decline, but the recent deal with Google Cloud has provided a much-needed boost, rekindling investor confidence. The agreement not only aims to enhance the AI-native CXAI platform but also includes Google Cloud’s co-investment in the continuous deployment, monitoring, and modernization of the platform. This partnership is expected to propel CXApp’s technological capabilities and broaden its market reach.

CXApp’s CEO, Khurram Sheikh, expressed optimism about the future, stating:

“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.”

CXApp Q2 2024 Earnings

The deal is particularly timely for CXApp, which has just reported its second-quarter earnings. Despite missing revenue and earnings estimates, the company has shown impressive growth in key SaaS metrics. The company recorded a 78% increase in renewal and expansion bookings compared to the previous year, a sign of strong customer retention and satisfaction. Additionally, CXApp’s gross margin improved to 80%, up from 75% in the previous year, and its net retention rate reached 105%.

Google Cloud Deal

The company’s strategic focus on AI-driven workplace solutions has already begun to pay off, with the signing of its largest expansion deal to date with a major enterprise client in the financial sector. After successful pilot deployments, this client is now scaling its use of the CXAI platform across its global operations. The expansion contributed to a 112% increase in the customer’s annual recurring revenue, further solidifying CXApp’s position as a leader in the workplace experience market.

CXApp’s transformation into an AI-native SaaS model has been met with positive feedback from its customer base, which includes over 20 Fortune 1000 companies. The company’s all-in-one app, designed to enhance employee productivity and engagement, offers an intuitive and immersive user experience with multiple integrations, making it a standout in the competitive landscape.

CXApp Outlook

As CXApp continues to refine its offerings and capitalize on its partnership with Google Cloud, the company is well-positioned for future growth.

Sheikh emphasized:

“We are mission-focused on defining a new category in enterprise software: Employee Experiences. Our partnership with Google Cloud is setting new standards for workplace innovation.”

With the momentum from the Google Cloud partnership and the company’s ongoing commitment to technological innovation, CXApp is poised to deliver enhanced value to its customers and stakeholders in the coming quarters. The next steps for CXApp will likely involve leveraging Google’s AI capabilities to further refine and expand its product offerings, setting the stage for continued success in the rapidly evolving workplace technology sector.