CXApp (Nasdaq: CXAI), a platform that helps employees keep a work/life balance, has signed a multi-million dollar deal with Google Cloud.
After the news, the stock is up over 62% in pre-market. The stock had lost 75% of its value in the last year and the deal will help cover some of those losses.
The nature of the deal is two-pronged. First, the partnership will focus on developing and delivering advanced A infrastructure, applications and security. Second, Google Cloud will co-invest with the company to improve the AI-native CXAI platform.
What sets CXApp apart from the competition?
CXApp serves over 20 Fortune 1000 customers. The company has an all-in-one app that offers a user experience that is intuitive, engaging, and full of immersive content. The app also allows multiple integrations that help improve the usability of the platform.
The insights provided by the platform help both employers and employees improve workplace productivity. Employers use AI-powered results to make their workplaces better by directing how their workers can engage in productive activities. It is a win-win scenario for both parties and results in an overall improvement in the workplace.
The effectiveness of these AI insights can be judged from the fact that Google Cloud has now signed up with the platform in a multi-million dollar deal.
We believe that Google Cloud is a strategic partner to us. And we are super excited to work with them and to enable new capabilities on our platform.
CEO Khurram Sheikh.
Promising quarterly report
The company also announced its Q2 results and had $1.91 million worth of bookings in the quarter. This was a 78% increase compared to last year. This is also the first quarter where the comparison makes sense as the company is now fully transforming into an AI-native SaaS model.
These bookings are tied to both the new deals and renewals from existing customers. The company’s annual recurring revenue grew by 120% which will help it generate healthy cash flows and invest in growth without worrying too much about future revenue.
The management has also been able to reduce its operating expenses by 15%, showing how the company is streamlining its operations despite consistently looking for growth opportunities. This is one metric that will investors who want to hold the company for the long term.
The company will now further collaborate with Google Cloud and the coming weeks will be important in terms of the company’s growth. It will do co-pilots with the search giant and access Google’s latest technology. The results of these tests and collaborations will trickle down to the end customers who should be able to see a vast difference in the product in the coming quarters.
After looking at the company’s plans, its management’s seriousness in running the business well, and Google’s interest in the company, it can safely be said that despite the 62% surge in price, the company is still available at a good price.
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