CXApp Inc. (CXAI) Earnings Call Transcript & Summary

All right. Welcome, everybody, to Wall Street Reporter's "NEXT SUPER STOCK" live stream where we bring you those stocks, which have that 10x to 100x upside potential. Companies going after massive multibillion-dollar market opportunities that are at a key inflection point and with multiple catalysts in place. And we have a -- we have a debut today with CXAI and the CEO, Khurram Sheikh. Khurram, welcome to the program.

Thank you, Jack. Great to be with you.

So Khurram, from what I understand, essentially, CXAI is really kind of driving the AI transformation of the workplace. I went on your website, you got some major, major clients like Warner Bros., Comcast, T. Rowe Price, Adobe. So it looks like, obviously, you got traction in the Fortune 500. But for the audience, just for anybody that's new to the story, can you tell us exactly what is your business model? What exactly do you do for your customers?

Great. No, that's a great question. And I like to say, being in Silicon Valley here, we're about transformation. And when you want to build a multibillion-dollar company, the biggest thing is you got to be solving a multibillion-dollar problem. So we are solving a $100 billion-plus problem. Probably some people even say it's a $1 trillion problem. But here's the problem, right? Since the pandemic, we understood that half the people were -- more than half the people were working hybrid and remote became the norm, right? Now as the COVID has gone by and people are back to normal and see there's a huge push for return to office, right? So what we do is we solve the problem for all these clients that employees can work not only in the office smartly, but also remotely. We are the tool that enables that capability, be it space booking or booking their room or office or their desk especially if you think about if you're living in -- I mean, I know a lot of your clients are in -- on the East Coast, a lot of our clients are on the East Coast. And if you're in New York and you've got to book a desk in Midtown Manhattan, you come from New Jersey on the train, you don't want to show up at the office and find out there's no desk. I'm sorry, enable that capability that you can now book a desk, book a room, make arrangement yourself. But not just that, we can also order lunch, order food. You can also connect with your fellow employees. You can do a podcast. You can do everything you want to do in your workplace using your tools with one single mobile app, right? You don't have to go 5 apps, right? You don't have to go, I got to order food. Oh, I got to book a desk. Oh, I have to book a locker. I got to get a parking spot. Everything is done in one app that is simple and easy, and it is integrated into your enterprise. So it is secure. It is not something on the web. It is something that is in the enterprise. So that is the big differentiation. This is something that is an extension of the enterprise. So when we work with clients, the Visas, the Adobe, they think of us as their app, right, because it's called -- it's actually branded like that. So Adobe is Adobe Life, Visa's Office Hub. Warner Bros. is Red Copper Club. So this is really of their enterprise for their employees. So that's how we work. We sell to the enterprise, but we're solving the problem. What's in for the employer, right? Besides the fact that employees can navigate their enterprise and do all the functions I mentioned, they can also see how are the employees doing? What is the employee engagement? How well are they connected with their enterprise, right? How much are they interacting with the fellow employees. So think about it, I can tell people, when you're at a big company with 30,000 people, how many people do you know? 20, 30, whatever, what about the 29,990 people that are in the other places, right? How do you connect with them? So with our app, you are connected with all the campuses globally. When we go to scale, we can have access to all the data about where the other employees are, what their interests are and you can connect with them through the app. So that is where this thing is going, starting from space reservation and bookings to collaboration engagement and ultimately productivity. And that's the journey we're on right now.

Okay. But also -- so here's -- it's a lot more -- I think a lot of people like might be thinking, oh, it's just an app to book a desk. It's much more involved. So it actually builds community, it builds a whole productivity. So essentially -- and again, your client base, these are large companies, right? Like essentially, the sweet spot, you're going after companies with how many employees? Like what's the size of your typical user?

Well, normally, our typical employees are more than 20,000 employees. They have more than 50 to 100 sites globally. They're normally in the Fortune 1000. They're mostly headquarter in the U.S. So we're really focused on U.S. companies. But because of the fact they're global companies we're deployed in 50-plus countries and 200-plus cities. So when one deploys L.A., they deploy Singapore, they deploy Bangalore, they deploy London, they deploy all over, right? And that's the scale we get because of these clients because they can now deploy and they want the attributes of that application. And again, to your point, it's really not an application, it's a platform, right? The application is one part of it, right, which is really the iOS and Android and web app that they have as end users. But there's also a platform that is the content management system, the rules engine, we call it BTS. Behind The Scenes, which is actually the brains behind the system to make sure everything gets coordinated. And finally, the third pillar is CXAI VU which is analytics, the data. We're collecting all this data. We're seeing what all these users are doing. We're seeing what is working, what is not, where the frustration points are, where the friction is and more importantly, where they're actually finding uses. And what we call is we want to find those must haves, right? These are all nice to have with apps, but why would somebody go and use CXAI every morning, right? Why would I do that? And the reason is because they can get a desk and they can check in and they make sure that when they get to the office, they have a desk or if they want to connect with the fellow employee and make sure they make that interaction, they know the right people to connect to or if they're visiting an office and wanting to meet somebody right there, they can just click on a button and they can see who's there or they want to navigate. You go to one of these big campuses. You go to the Edwards campus in Orange County. You got 14 buildings, you get there, you're lost. You can navigate with this app. This will give you turn-by-turn directions, just like Google does, right, but inside buildings and enterprise where coverage is bad. So it gives you that certainty that you're going to get your stuff done. So the way I look at it, our success is when we have must-haves and we have must-haves in every single campus of our clients. And secondly, the transaction times are low, meaning I want my access to my desk and get it done in less than a minute. I don't need to take 30 minutes to go schedule or desk or schedule a room or whatever. Or if I want to get an answer to a question, ask a question, and my agent will tell me what it is. So where we've already accomplished that all-in-one kind of app that does all this stuff with the infrastructure in the back. And by the way, we're hosted in the cloud. We hosted -- we're mostly on Google -- yes.

Okay. So you get these major companies, right? They're paying -- and the program, right, your service, it's not cheap. It's in the 7 figures, right? What's in the frame like why are they bought? Are they getting cost savings, productivity increase? Like what's the -- what is the -- I know you've put out -- what's the hot button that makes them buy and keep -- keep going with the service? What's the...

Well, the first piece that was very important from an ROI was space, right? Space management is super important. As you know, with the pandemic, all of these places were empty, right? And so now they want to get to the fit to say, what is the right space needed, right? And as you know, for any CFO, that's a big number, right? So we do the space optimization. Based on our app, we can tell you how many square footage you need, how many desks you need, what the usage is. So that becomes a real important. And some of our clients have saved hundreds of millions of dollars because of the app. They've told me that, Khurram, like a because of your app, we know now that how many -- what's the ratio, right, of how many people are in the building and how many people spaces we need. And some people have a 2:1 ratio. Some people have a 3:1 ratio. Some people have a 1:1 ratio just because they've got assigned desk. But then -- so that's one piece of the puzzle is the space occupied...

I mean that's a huge deal. I think a lot of people -- I think a lot of your shareholders they may not realize it, but like anybody who's ever had to like lease space, right? Or I mean, today, it's a whole -- now things are completely different now even with tech it's much more complex. But you want to know like how much space do you actually need -- by the way, office space is becoming -- it's very expensive. Like if you go to New York, Google, Face Meta, they're paying $100 a square foot for space, right? So I mean these are -- I think it wasn't like -- because now what's happening is these big companies they're going after like the Class A buildings. They're not going for the cheap spend. They go for Class A buildings. These places like $100 a square foot. Like -- it's a like San Francisco everywhere, in the Valley, in L.A., and they want to know like how do they maximize usage? And also I think one thing is because the device tracks where the users are, where the employees are and how they're kind of moving around it kind of like it figures out, like what is the best layout for productivity and collaboration. And what's interesting, I know like some of your clients are basically in the creative space. You've got Warner Brothers, was it Comcast, I think you got...

NBC. NBC, Adobe. Yes, we have a lot of creative guys.

Those Businesses are based on real human -- like what is the best play out of the office so that people actually interact whatever that -- and there's a whole -- there's a lot of thinking that goes into this. These things can make a massive, massive impact. So okay how big...

So Jack, just on the -- just going back, let me give you some more finer view on the spacing, right? So we've got a lot of deployments in New York City, right? We've got Park Avenue, Hudson Yards, one of our clients right now had four...

Most expensive space. By the way you talked about like -- Hudson Yards I think it's $200 a square foot plus.

But I'll tell you one thing interestingly, one of our clients was in Park Avenue, okay? They had 4 floors, okay? And they were finding that they were optimizing it, are maximizing it with the app, but with our app and our CXAI VU, they realize that they need more space, okay? They're not able to handle because not only were they getting. New York is a busy area, right? Not only getting employees, you're getting visitor, you're getting clients and the VP is saying, "Hey, I'm bringing a client. I need an office. I need a desk. I need a space to do a meeting. And so because of that, they actually have now leased this space in Hudson Yards, which is more expensive, but they got better optimization. They know exactly what they're spending and they're showing the ROI to their management to say, "Yes, we can justify that, right?" Otherwise, CEO is saying, why do you need all the space, especially with half the people are not coming in now with RTO commands coming in to say, you got to do 4 days now in the office, right? It puts more pressure on these guys, right? So for a real estate person, it's super important to know what is the optimization I can do and we give them predictions now. We can tell them exactly what we can show them in terms of what is the space layout you're saying, the reimagination of the space. Like you may find out we go to some of those spaces, and it's funny in New York. You'll see some person, one guy sitting in a conference room that's made for 12 people, and he's hogging that space, right? And so one of the things and then you look at the data, say, okay, in the whole week, you have like five meetings, and these four other meetings could not happen because this person was taking the whole room. Well, why do we need a 12-person conference room? Maybe we should make it into 2 conference rooms or 3 conference rooms, right? So a lot of the data is also leading to not only just giving the first layout, but reimagining the space to your point, right? We should have smaller conference rooms or we should have offices or when we do the analysis, we find what we call areas of Siberia. Siberia, meaning nobody is there. Nobody is using that space. It's a bad location. Sun is coming in, the developers don't want to be there. So let's make that a closet or something, right? Use it for something else. So there's a lot of capability and data that we get. And this is real data, right? It's not somebody's projection. It is actually real data that we showcase.

I think it's really important because look, you -- again, you're dealing -- primarily your customers are really in these kind of like, let's just use the word creative industries, right, where people need to be productive and happy and creative like you're talking about like in the entertainment and media business, but also in program, like you're dealing with engineers, all these people. They're human beings? We want to keep them happy and in an environment where they're engaged, right? If they're unhappy, they're not going to come in office, it's a dark room or whatever. There's a whole science about this. Companies spend billions of dollars on this. But -- so Khurram, here's what I'd like to know. So it's a snapshot. Like so our audience, what we're looking for, right, the key is we're looking for stocks that are at the inflection point now and stocking 10x within 6 to 9 months, right? Revenues will have to scale. There is a transformation happening in the business where big things are about to happen. So that -- so that's the question, is CXAI in that spot. So give us kind of like a snapshot of like what's been the history of the company and why now? Why is now the moment where there's a potential for that 10x upside in the valuation?

That's a great point. So look, I look at fundamentals. I'm a technologist and entrepreneur, and when I look at a business, I look at it like what are the fundamentals of the business, right? So when we acquired the business, we had good clients. We had good customers, but our business was really more a services business, right? We had these services contracts, more onetime revenue. So we've been on the last 1.5 years, we've been on this focus of making it a full SaaS platform and transforming the product to a single code base, right? So one code base that all of these customers can use. So the -- and so that transformation is done. We have, like I said, 15 Fortune 500 clients. They're amazing clients. they all are at different stages of their journey. Some just started. Some are a year or 2 years old or more. And so the ones that are 2 years old have already got 50 campuses going to maximum number of employees, fully connected, everything else is there, right? So they're on that path. Others are getting there. But the point I was trying to make is we're -- if you look at the metrics today and based on last quarter's earnings call, you saw there were around the $5 million-ish revenue number, right? But 95% to 96% of that is recurring revenue, right? It's not onetime revenue. So that's annual recurring revenue. These are multiyear contracts with these guys. Then you look at, okay, besides that, you've got -- what's your margin? Well, we're at 89% margin last quarter, right? That's pretty amazing for even a SaaS business, right? And then you look at the NRR and others, and we're hovering in the 98% to 100%. We wish we were a little higher. But we're kind of making sure that we keep clients happy and the ones that scale with us, we want to keep. There's some clients that are not probably suited for this business because they are more services business. So we're kind of going to more of that recurring revenue. And then you look at those metrics and you can look at any SaaS multiple of private companies out there. When you have those kind of metrics, you're trading at -- your valuation is in the 10x to 12x of that, right? So we should be just on that basis, $60 million or so, right? We're not there, as you know, in the public market today. So I think we're under -- so we think we're undervalued just on the fundamental metrics. But then to your point, it's all about the future. What's the growth, right? And what we've been doing in parallel is if you look at the existing business, what I call it the CXAI 1.0 that is getting to a point of stability, repeatability, it's there, it's available. These customers are happy. But now what's the growth? The growth is Agentic AI and we've been working on that for the last year. We're going to be launching that product here in Q1 in terms of our customer trials and pilots with the clients. But all the existing clients are waiting for like, hey, Khurram, well we want that strategy. That's why they're with us, right? Why are they not with a Microsoft or ServiceNow or somebody else, right? They're with CXAI because they believe not only in the product that we have today, but they believe that what we're building is transformational, right? That's the Agentic AI platform. So all these clients are going to be ready to scale up Agentic AI. And the new clients, it will open up a new set of not only the Fortune 1000, but all the mid-market clients because what we're going to do with Agentic AI and make it very easy to use, easily deployable, automated and put all the insights and value add things that you see today with ChatGPT or you see with Cloud or other tools that you see for the consumer market, but when you talk about enterprise AI, they want something that's secure. They want something that they have control over. And they have something that is actually actionable to them, meaning like we started the discussion. You talk about your local stuff, your spaces, your employees. That is not world wide web. That is only in your enterprise. So we are inside the enterprise, creating this great opportunity for scale, right? And so to me, that is not even considered in the discussion right now because I think that is something that we are building, and we are going to showcase that. We've demonstrated some demos to the market, but everybody loves what we're building. We just now need to execute it and the customers will deploy it.

Okay. So by the way, we're going to get -- we have some good audience questions coming up. We're going to get to the audience reactions in a little bit. We're talking about Agentic AI. The one thing I would just mention is, so you've got right now, the company has been around for a couple of years. You've gotten up to about $5 million in revenues. You got massive margins. And again, in the space you're in, like, again, just Silicon Valley as a private company, the valuations for this type of SaaS business are usually 10x revenues or at least 5x. Stock is trading at, I don't know, $12 million market cap, which means you're basically trading at like a 75% discount where it would be as a private company and you're sitting on I think, $10 million in cash, roughly $10 million in cash. So basically, the stock is free. This is one of the things we look for -- so bad news for you is good news for the investors. Really because they're getting this thing for free. They're getting a bargain. Anybody who gets into the stock right now is this is the thing you want to get in. I call this what I call a built-in profit. If you can buy a stock, which is trading at 75% discount, 80% discount to the peer group, it's a question of time before that valuation gap closes. Especially if you have cash it's like almost -- I don't want to say a sure thing. Again, we don't give buy-sell advise. But it's like this is -- it's what I would call -- it's an asymmetric bet. It's like you're basically risking I don't know, $2. By the way, I think you have -- you have analyst coverage where you have a buy recommendation. I think it's like a $2...

Maximum we had a $2 buy.

And if you look at the -- it's a really -- and I think the stock would be a lot harder, but we'll get to that later on, we'll talk about the stock. But, okay. How fast can you scale? Because I think with the market, what's going to move -- what gets investors excited is, okay, the velocity, the revenue velocity, how fast can you go multiple $5 million. Can you get to $100 million, $1 billion of revenues? How far -- how long would it take -- like what kind of velocity can we see?

Yes. Look, this is a great question. And we have been building the technology platform, where we're also building the business partnerships, right? So when I think of this business, our business today is direct, right? We have direct MSAs with all these major clients. You can imagine big companies that are $100 billion plus are working with us in creating MSAs and hire hundreds of sales people here. What we are doing is we're partnering with all the major cloud providers, specifically GCP, Google Cloud, we have a big partnership with them. And as we get this more scalable, easy to deploy Agentic AI system, right, they're the perfect partner to scale with us, right? They have Google Marketplace. They have their partnership with all of these Fortune 1000 clients and more beyond that with them. They're investing with us as well in the Agentic AI platform. They're giving us access to the technology. I know we have daily meetings with those guys. We're working using their platform for our infrastructure. So there is business for them to in this. And so we have that strong partnership. We also have signed partnership with Azure, as well as with AWS. So we will scale with the cloud providers as one strategy, right? And the other part of our business, honestly, we get -- we win because our clients love our product. And so when we've got NBC and we've got Warner Brothers, guess who's calling us, guess who's talking to us, right? Super obvious, right? It's a herd mentality in that space because enterprise CIOs want to see validation that this stuff is real and it's secure and it's scalable, right? And we've demonstrated that. So I think we're at that inflection point where we can scale. We need to have the Agentic AI system because I think that is the transformational product, right, compared to the existing apps that are out there. So I think from a timing perspective, like I said, my goal is to get to $100 million, right? That's my first goal. That's any goal for any SaaS company to get there. And we have line of sight for that based on the clients we have and scaling with them, but also with this Agentic platform, and you've seen the market research report where the TAM on this thing is north of $200 billion, right? So we're talking about a much, much higher TAM in the market. And we're just getting started, I would say, right? You could say it's been a couple of years, but it takes a couple of years to get the product and technology working, get the right product market fit. And the dynamics in the market are super obvious, every single CEO that I talk to is looking for a solution to RTO, is worried about space, is worried about employee engagement. Employee engagement numbers are lower than before pandemic. So people are really worried about how am I going to keep my employees engaged, for them to be flexible meaning hybrid, but at the same time, collaborate, that's a huge problem, right? So we started off with the real estate people. We're working with the CIOs. Now we're discussing with the CHROs, the HR folks and the CEOs of these company, right? That transformation has happened in terms of the market, in terms of go to market. I think it's got to be with partners and we're working with different partners in different markets that will help us scale.

Okay. So Khurram, you mentioned you have in your words, a line of sight to $100 million revenues. What does that mean? You can get to you have a pipeline that can get you to $100 million in sales by when? How fast can that happen?

Well, I think look, it's hard to give guidance. I'm not giving guidance. I think what I'm saying is that there is a strategy and a plan around the fact that with these initial customers we have, there is a lot of other customers that are just like them, and we -- in our sales pipeline. In our sales pipeline, we have probably 30 to 50 targets already identified engage. But the more important piece is that their pathway to scale because this thing is needed by every single client that we talk to, right? I mean they're just wanting to know that some people are more conservative, some people are more aggressive [Technical Difficulty]. There's been a lot of experiments in this space. A lot of them have failed. And now we have Agentic AI to solve the problem, right? So when I talk about the must-haves, we're finding must-haves with all our clients that gives me the validation that what we're trying to solve is a real problem. I mean we started the conversation saying, we have to be solving the real problem -- nice to have. It's not going to be growing. Now just the other market valuation, Gartner had a market guide report. Actually, they're working on our Magic Quadrant. And as you know, Gartner is always the one that's showing the technology hype and now they're saying this is coming to reality. So that market -- Magic Quadrant will be coming out in Q1. So -- that these markets are real markets. They're not -- so a combination of these things give me the confidence. And then like I mentioned in my earnings call, this is a fragmented space. There's a lot of players out there. There'll be a few winners, there'll be a lot of people that will give up or go away. And I think there's an opportunity for consolidation as well, right? So to get to the $100 million, it's a combination of the organic growth, but there's also inorganic opportunities to scale up because ultimately, some of the clients that we have talked to said, "Hey, we're not happy -- we want to move on to this thing. And at the same time, there's a cost of doing business. And so I think we're looking at both options to scale to $100 million.

Okay. So M&A. So M&A is in the -- on the table for growing the business. Let's get to a couple of audience questions, because I think it's very relevant to what you were saying. So TheChartist is asking, as Agentic AI transforms hybrid workplace into $160 billion battleground, what is CXApp's North Star for market share aiming for 5% to 10% dominance by 2030 through CXAI VU insights or bolder?

Yes, that's a great question. Look, the North Star is, like I mentioned, we -- there will be -- this is clearing a new category, right? They have a category called employee experiences, right? And it's a technology category. It's a software technology category. We believe, and this is where you'll see the Magic Quadrant coming out from Gartner. There will be two or three winners here, right? And they will dominate the market. But if it's a $100 billion-plus market, as we've said, it's a huge opportunity for us. And our North Stars to be the leader in that. We've already been the leader. We're the mobile-first, cloud-first app out there. Now we're going to be the agentic AI leader, right? Ahead of everybody else. We continue to see that our clients are saying your road map is the most advanced and robust. We will execute on the road map. And I think, yes, the dominance should be north of the 10% that the question is, right? I think we can be much higher than that. Absolutely.

So the market -- I mean, the space here, it's kind of a new -- it's a relatively new -- it's a relatively new space, right? I mean the...

Well, it's a new space in the sense of that the pandemic kind of accelerated the adoption of this kind of capability. I think there were a lot of companies doing space booking and some, what I would call, antiquated technology stuff that was more services-based. Now what we're building is an Agentic AI platform that impacts the whole enterprise, right? And I think it's combining the space, the people, places and things. We talked about transformation 3 vectors, people, places, things. People is super important because all these employees need to be engaged, places is the space we mentioned and things is the technology. Now we connect all the sensors, all the IoT devices, anything that else in the enterprise is connected. So I think this is a big opportunity. It's transforming the whole -- and we're a software play. We've got no hardware, right? A lot of these people in the space have built -- hardware is getting commoditized. Software is not eating the world, but now AI is going to take over everything, right? So it's super transformative and the good thing is we have access to data. I think that's what the caller was also seeing on CXAI VU. We're going to have access to a lot of the data. It's the data of the clients, right? We protect it for them, but it gives insights that helps them create better experiences for their employees. But for us also, it creates the recipe for the new client to say, if you want to, to your point earlier, if you want to open up a building in Manhattan and have 500 employees, who's going to give you the answer, how are you going to architect that building? We can give you the answer, not the design of the architecture, but the architecture of the deployment. What are the spaces you need to collaborate, what are the things that people like [Technical Difficulty].

The audio went out for just a second. I don't know maybe from the thing. Yes, okay.

Can you hear me?

Yes, it was breaking up. I think it might be like a -- maybe the WiFi? The wireless.

Maybe the WiFi. The headset? Can you hear me now?

Yes, yes, yes.

Okay. Sorry. So I was going to say is I'll give you another example that is very powerful, right? When we think about food, right? I mean, employees after the booking stuff, food is the most important thing. And for our employees, they want to make sure they get the food at the right time. So just an example, we have a client where you can only order food through the app, right? So somebody in Bangalore, India orders a mango lassi at 11 a.m. their time. It's midnight my time, right? They better get it delivered. If it doesn't get delivered, we get caught. So we've built a 24/7 operation system now that manages that experience. Make sure that everybody gets what they want on the time they want. That seems like a simple thing, but nobody else can do that today, except us, okay? We're the ones leading that effort. And combining all of the things that you want to do, whether it's ordering food, booking a locker, booking a parking space, getting an event managed. All of the things are super critical for those employees and for the companies there. So localization of that information and then the data I was mentioning when we got cut off. The data is super important. CXAI VU is creating all the data insights and outcomes for them so they can predict what's going to happen next week at their office, right? What do they have to plan for? If there is a lot of -- think about it, if somebody is asking for a lot of rooms next week, what's the real estate guy going to do? Well, he can go find alternative space. He can go -- he can act on it, right, in advance, right? That's where we become the prediction engine, we become the -- what we call the operating system of the enterprise. That's where we want to be. And I think the more and more we get the data, the insights, the engagement, more and more stronger it becomes, and it becomes a must-have. So I'm pretty bullish on the clients we have. I think to your question earlier, to scale up, we're going to scale up with partners.

Okay. And you mentioned M&A opportunities like what -- what kind of like -- is it like a sort of a synergistic area? Like what type of companies like what space would they be? And like what kind of -- give us kind of like a hint as to what this could be potential.

Look, I mean, at the end of the day, we have a great application [Technical Difficulty] that come in the spaces in terms of if you thought about growth, if it's in the...

Khurram, the audio broke up again as you were answering. So I don't know if it's...

Okay. Can you hear me now?

Yes, yes.

Maybe the WiFi. Let me make sure i am on the right WiFi here. Okay. Can you hear me now?

Yes. so we were talking about the...

Look, there's a lot of tangential opportunities. Like I said, it's a fragmented market. There are lots of companies in the space that are selling into our spaces. So what I would say is focus would be things that are tangential versus things that are exactly like us. And the opportunity is naturally in terms of the spaces that we operate in to find people that are already operating the spaces so we can co-sell or actually leverage the relationship right because it's a long sales cycle in terms of getting those markets, right? And similarly, like I said, the mid-market enterprise offices, buildings, other places where we can find people that are -- I'll give you another example, right, behind me is the kiosk. This is a new product that we launched. And this is like every enterprise is asking like when you walk in the building, there's no [Technical Difficulty] to do it. So the kiosk does it. We just launched our first client in Silicon Valley. They put it in all their offices. And basically, you walk up to the kiosk and you can easily ask a question and get an answer right away. Oh, where is Jack? Okay, Jack is sitting over there. I want to navigate -- let you navigate to Jack. You'll be -- I just walked in with a sales client, and I want to get a room. I can get a room right away. So it's just-in-time booking. And that's a new product. Now we don't sell the hardware. We're selling the software. So you can imagine that, that's another opportunity for us to because we're not going to be building hardware, but we're going to leverage other people's hardware. We're building a very simple, easy web app application that runs on this. So that's an example of potential partnership and consolidation for us, right? Because we are in those offices, we are in these buildings, right?

Khurram, can you tell our audience a little bit about your background?

Yes, I've been in Silicon Valley for the last 30 years, and I started off right out of colleagues at Stanford coming to Sprint and working on a new project called mobile broadband. This is 1996. At that time, wireless was just getting started. And we have the vision that we want to build broadband wireless, which a lot of people said doesn't -- it's not going to be possible. And you look back and say, wireless proband was probably the biggest innovation in mobile ever, which we call 4G. I built the world's first 4G network at Sprint. And because of that, you can see how Uber and Waze and Netflix and all these things perform because you have mobile broadband. So I was part of the mobile revolution, and then after Sprint, I was the CTO there. I was hired to be employee #1 at Time Warner Cable and Media company. And now you can see that probably one of the biggest things at Comcast today, right, if you look at their business, mobile is one the biggest businesses at Comcast because we built this offload to Wi-Fi. So we were the first to build WiFi systems, WiFi hotspots you see out there were build by my team. And now the benefits are coming to both Comcast and Charter. And so I was in a largeco for a long time as CTO and technology leader. And then progressively, I've been at the business level at both private and public company in cloud innovation, SaaS innovation, silicon. One of the more interesting one deals I did was with Lattice Semiconductor, where I was -- we acquired Silicon Image where I was the Chief Strategy and Technology Officer [Technical Difficulty].

Is it from the Bluetooth? Maybe...

Now. Is it better?

Yes. I think it's yes, I think so, yes. We're just talking about Lattice.

Yes, we were talking about Lattice. So Lattice I became the Chief Strategy and Technology Officer of the company. And when we merged at that time, the stock was around $4. You can see today, it's $78. It's probably the highest grossing semiconductor stock ever. So that was a big transformation in edge AI that we did that Lattice was #3 in terms of silicon providers for FPGAs and now they are found a niche, and we really focus on that AGI. So look, I've been part of transformations in technology. And then when I did the SPAC that merged with this with CXApp at that time, the strategy was clear from day 1 that we're going to be on AI, and that was the ticker symbol CXAI from day 1. So we've been ahead in terms of the technology transformation that have been out there. My Board is the same board that we had with KINS and they are all experts in technology and have a great background. And we built a great team here, the team that's in Silicon Valley with our CFO, with our VP of Engineering and our team here in terms of the engineering team in Silicon Valley is all best-in-class. And we're really focused on that technology transformation. So I think we've done it before. We're really focused on believing that this is a real market opportunity. Like I said, there's a lot of AI companies out there with our revenue, we have revenue, we have customers. We have the technology capability. So we have the platform built. Now it's about scaling it to the next level. And the next level is the $100 million. And then even beyond that, like Jack, like I mentioned, that the market opportunity is really huge. And that's why consolidation could be another opportunity for us besides the organic growth.

Okay. So the 100 -- I think that's the magic note. To get to the $100 million revenues, like, I mean, I'm trying to pin down like when can we get to a sort of on a trajectory towards there? Like when -- is it -- can we get to $20 million within the next 12 months? Like what's the -- what's going to be the path to get there? So that...

Look, like I said, it's -- you mentioned earlier, we have these 15 clients, all of them are at different levels of their journey. And then we've got new clients coming on board pretty quickly in the coming quarters. I think the goal would be to get all of them to be multimillion dollar clients, right? I mean, like you said, we're getting close to one of them there. The rest are on the path there. So I think that line of sight should be there, Jack, just from the fact that we have those clients. They want to build the Agentic AI system, they're going to get access to CXAI VU. And as things progress, they're all going to be multimillion dollar clients. And so you can do the math very clearly that that's going to be there.

Okay. Another question from TheChartist, building on Noro telepresence collab for Q1 2026, CXApp eyeing next as a powerhouse partner like Google Cloud for AI scale, Cisco for IoT muscle or Microsoft Code perhaps to dominate the Agentic AI workplace surge.

It's a very interesting question, a loaded question with a lot of different things. So let's start with Noro, right? So we announced the Noro telepresence because once -- I knew the CEO very well, he's a good friend of mine, and we've been collaborating in the past. So Tommaso has been really building this life-like telepresence capability. It's pretty unique, and it creates this image that wherever you are, you feel like you're sitting right next to the person, right? And it's doing it at very transformational cost structure. So the idea would be is -- we're going to put them in motion with some of our clients. But the idea would be with that telepresence technology, you would be powered by CXAI, the CXAI would be the app running it, right? So it gives that hardware capability that gives you the life like presence, but connects us, right? So now you can feel like if you've got a meeting happening from New York to San Francisco, you feel like the guys right next to you, right, and you're interacting with him. So it's super interesting. So I think that is a vector we're going to pursue because we have common opportunities to go partner. And as Tommaso is scaling his business, we're going to be the software partner for him for the CXAI platform because he also believes in Agentic AI and how that's transformational. Now in terms of all the big hyperscalers that the question was asked about whether it is Google, whether it's Microsoft or Cisco we can partner with any of them because they're all partnership opportunities, meaning the hyperscalers, naturally with cloud, we're partnering with them, with Cisco or with HP or others, they probably the WiFi and the IoT network. And we do partner with them in terms of taking their technology and integrating into our app. So you can now manage the WiFi access point or look at the Bluetooth sensors and all that stuff, all the data can be in our app, right? So we do those integrations today. But I would say -- my bet is more on the hyperscalers just because -- and with Microsoft, too, honestly, we believe that we are on Azure with them. We have one client that's using them, that's using them -- working with us on them. So we're not opposed to any one of them. I think we are in this space, we're like the ammunition that can be sold anywhere. So I don't think we have a bias towards anybody. At the same time, the clients tell us, hey, we want to work with we have a hyperscaler we can work with anybody. But to answer the question directly, I think I would say all of the above. But right now, with Google, we have a very strong partnership. As you know, they just launched a new model and they're ahead of everybody else now. So I think from an Agentic perspective, we're the right partner, with Gemini 3 they're ahead of everybody else. They've got a really great platform. We're end-to-end with them that gives us the reliability, the quality that our clients need. So I think that's a huge opportunity to just work with them first. But then absolutely, we will work with other partners, too.

Okay. Khurram, let's kind of wrap up a couple of more fine questions. What's your vision for CXAI 3 years out. For those investors that are more long-term oriented, we've got a lot of short-term oriented people that want everything to go up in a week. But usually, it takes a while to build something really massive. So what -- if everything -- assume again, this is -- I don't know if you can even answer but assuming everything goes right, like -- what will does business look like 3 years out in terms of I don't know if revenues like what will the company look like?

So I want to start with strategic positioning. CXAI is building the intelligent autonomous workplace platform that enterprise need today, a system that unifies people, places and operations, a system built around real-time spatial intelligence, a system powered by Agentic AI that can automate complex workflows. This is not just incremental technology. This is full transformation. It's a re-architecture of how enterprise operate. So our goal is to be that operating system of that physical footprint inside buildings, inside enterprises. That's our strategic positioning. That's our goal. And I think it's a lofty goal, but I do think that there's a pathway to it because of the fact that we're already there with the initial applications. And there's just so much more that these customers need. We talk to CIOs at these companies. We're not talking to project managers, right? And the CIOs are giving us the strategy, the vision and they're liking the vision that we have. They want us to execute and deliver, and that's the plan I'm focused on is really delivering that because that is that incremental step that will get us to the next level when Agentic AI is deployed at these customer sites. But we already got a foot in the door. So it's just mainly about us executing and our customers adopting it. And I think there's a challenge, but there's a huge opportunity, right? And overall, I would say the workplace is undergoing one of the biggest technology transformations of the decade. So this is not a 1-, 2-year thing. This is a decade opportunity, and AI is at the heart of it. So I really believe that we're building something that is super transformational that's going to create massive value for our enterprise clients and massive value for our investors. I mean -- and my other belief is this category is happening. So there's going to be 2 or 3 companies that are going to be at the top of this. We're going to be one of them. That's our focus, right? I mean this is a category-defining moment. And the big guys are also looking at it. I mean you've got -- we have competition from big boys, right, which is a good thing because that validates that's something there. ServiceNow is an offering. Microsoft Places is an offering. Our clients have looked at that and they decided to stay with us, right, and go with us. So that's another validation of the market. I actually want competition. I think competition is great. It validates that there's a real market. So I do think there's a real market opportunity here. I think we're leading the pack from a technology and from a vision, and we've got the revenue initially from these clients. But this is just a starting point. I think a lot of these clients tell me, if you actually deliver on your road map and deliver on the products that you're showing us, you've got huge opportunities for scale.

Okay. We've got a couple of more questions and comments from the audience. So Manish is asking -- or it seems like CXAI is building the benchmark for Agentic AI. What against which everyone else will be compared? Okay. So very bullish.

Well, look, I mean, we're building something that is, I think, from an application standpoint, very unique and differentiated, right? It's leveraging the foundational models that are out there in the market. So we're not rebuilding the Agentic AI stack per se, like we're not building foundational LLMs. We're not -- that would need hundreds of billions of dollars of investment, right? The good news is OpenAI, Claude, Gemini, all these guys are investing and creating these great foundational models. We're adapting those models to our application and providing a really best-in-class solution. And then we're building our Agentic platform. Our architecture is built around the use cases of these clients. And we think it's super differentiated. I think it's solving the problems that they need, and that's why we think we're very bullish on it. Yes, I agree with the question. We definitely are building something very unique.

I guess he's going a follow-up. Okay. So Manish is saying, so even more the Noro CXAI is the kind of partnership that shifts the entire Agentic AI landscape massive implications ahead.

Look, I think I mentioned about Noro. I think that's -- we're starting the trials in Q1. And I think it's a great product. It's very transformational. There's a lot of great -- there's actually a Professor Stanford's Nick Bloom, who's kind of like the leader of -- a thought leader in the hybrid and remote space, and he is an active adviser and investor in that company as well. And so this company has come with a lot of great pedigree. And Tommaso and I have been talking about it for a while, and we're going to do some proof pilots in Q1 here with some clients. I think there's a huge opportunity for this, absolutely.

Okay. So [ Commodore ] guy is saying, do you have any patent protection for your IP?

Absolutely. We have 37 patents filed. I think 18 are already issued. So we have really great technology. We're going to be filing more patents, especially with the Agentic AI stuff. But yes, absolutely, we've been protected, and we've actually focused on that IP and make sure -- and that IP goes to both the application and there's some augmented reality technology that we have as well as some localization sensor technologies. So all those things are -- they are issued patents, both U.S. and global, and we take that very seriously. We have Pillsbury as our lawyer supporting us on it. So yes, absolutely, we are building the IP platform for it and protecting it. But I would say the other part of this is we've also got a lot of trade secrets given the product we're building. And sometimes patents are good to have for certain things, but sometimes they're not because you ultimately have to share some of that. So we are keeping a lot of stuff, especially our Agentic AI platform architecture is super secret to us.

Okay. Crag is asking, do you feel like your company will need more financing to obtain growth goals?

No, that's a good question. Look, as a public company, one of the advantages of us is that we have access to capital through our investor base. So we definitely have an ATM in place that we are leveraging, and we also have equity financing. I think we've been very careful not to overextend ourselves. I think as you see in our numbers, our cost structure has been very -- from the time we merged in 2023, I think our OpEx has gone down more than 60%, 70%. So we have really reduced that overall burn. We are still investing in the AI, and that's why we need the investment, and that's the focus. But if you look at a stand-alone basis, the existing business is actually cash neutral or positive. It's just that we are now investing in AI, and that takes the technology team and the resources to do that and the partnership with our cloud partners. So yes, so I think I would say the answer is yes, we would need more financing, but it would be tied to performance, right, to say that we are achieving these goals. And then from there on, we would move forward for a scale up. But like I said, I'm not hiring 100 salespeople here to go grow the company, right? I'm not -- I mean, the investment is really in the technology space and then the scale-up will happen through partners, which I think will be very cost efficient moving forward.

Okay. Last two questions. What kind of milestones do you have coming up like in terms of news flow, like what kind of milestones can investors could look forward to over the next, let's call it, 90 days?

That's a great question. Look, behind me, you see the CXAI kiosk, and we've got a bunch of deployments happening. This is a busy quarter, Q4 because most of our clients renewals are happening. So it's been super busy. You'll see some announcements on some case studies of these clients successes and the fact that they're renewing for us. So I think those are happening. There are some product announcements that we can look forward to with our partners. There's some new exciting features on the Agentic AI that will be launched here. I think you'll see that. And then as we make progress with our inorganic strategy, I think there will be some announcements on that as well. So I think it's going to be a busy December. It's going to be much more busier in January, I would say. Lots of things happening. And like we mentioned, the Noro announcement, we're going to deploy the Noro system as well in Q1. So -- so yes, so I think it's going to be super busy. And as you can see behind me, there -- the whole team is here and where we've been doing a lot of work on planning and stuff for 2026. But beyond that, we've got -- it's always interesting that the end of the year is where all our clients, the enterprises are coming to make their plans for 2026. So we've got a lot of customer visits happening here today and tomorrow as well. So we're going to be super busy with that. But yes, I'm looking forward to the next 30, 60, 90 days to be very active, and we'll be sharing with the market those opportunities and those successes here.

Okay. All of a sudden we've got a bunch of questions.

More questions? Okay, all right.

We're going to try to wrap up in a minute. Okay. Manuel is asking, how is CXAI planning to integrate predictive behavioral modeling into its Agentic AI platform?

Yes. That's a great question. Part of the thing that our value is we have a lot of great data that's real data, meaning this is truthful. This is not somebody -- these are real people in real enterprises doing their jobs, right? So they're not faking it. They're not making stuff up. We're looking at actually what people behave, how we behave. So to answer your question, we are collecting those data sets, and we're creating those behavior models inside. Now all of this is anonymized data. We don't go to personal. We don't do PI or anything else, but we are tracking how people are actually behaving. I mean if somebody says, I want to spend all my time or 50% of my time working with other folks, are you actually doing that? Or are you just basically on Zoom all day long, right? We can track that. We can see from their activity and what they're doing. So absolutely, we are -- that's one of the value points we have because then we can share people what are the success stories. What has happened? Actually, I'll leave you the last thing is we just did a study for a client in Silicon Valley. They wanted to know -- they just announced an RTO where they said, "Hey, from flexible, we're going to do 3 days, okay?" And they wanted to see the delta. What happened before September, whatever, 15 and what happened after, right? And we've got some great data that shows to them, hey, this is what's going on, right? Here's what...

Audio just went out. Can you hear me? Khurram, we can't hear you.

Can you hear me now? I am back.

Yes.

So what I was going to say is that the case study was, and we're going to show more details on it is that before RTO what happened and after and it's amazing that after they did the RTO, the number of sessions went up dramatically, number of bookings went up 30%, 40%, more people coming into the office, they're following the RTO and the ones that are not. So there are really good data sets to show and some campuses are more versus others. If you look at India versus U.S. versus Japan. So we've got a really great data that shows actual behavior of the people, right? It's a truth teller, right? I mean people can say what they want to service, but once you actually show actions and show what actually happened it gives the truth, right? So I think to answer the question, we are definitely creating those behavioral models, and we're going to be true tellers to our clients to say what is actually happening and what are the true insights in those offices, right?

Okay. We've got a few more questions. I mean, I want to wrap up. We got few more questions. Okay. So one from Manish again. Manish, a great answer on the other one, the CXAI VU also use predictive model and to forecast market trends as part of its analytics?

Well, we're going to work on that. I think that's a bigger question overall. But like as we start sharing more case studies with the market, we will be sharing those insights because I think they're very valuable for people to see. But I think the insights will be very much localized as well, like what's happening in New York, what's happening in L.A.? What are the things that people see as issues and problems. So the more and more data we get, the more and more clients we get, the more better those trends will be and those predictions will be. Yes.

Okay. I'm not sure if I -- okay. So John, I'm not sure if I understand the question. With the recurring revenue growth and how tech companies are valued, especially AI, what is the consensus why the current share price? I'm not sure is he asking why is the stock price low? Okay. So while he comes up -- we got one more here. So we got Jayden, what's the key message you want the broader market to take away. This is getting -- this guy is asking my last question. This is what I usually ask at the end, which is, Khurram, so one of the things I always like to ask at the end for all our CEOs is, okay, in your opinion, what are the top 3 reasons why investors should consider the stock today.

Well, I break it down to 3 things: technology, market, and people, right? And so for us, number one, this is -- the Agentic AI is the biggest technology transformation of this decade, maybe for the next 20, 30 years. So we're working on something that is completely transformational. So that's one. Second, this is a huge market. It's north of $200 billion, lots of people playing in this space, lots of activity. This is going to happen, right? This is not like it may happen. It is happening, right? And thirdly, the team. We've got a great team. We've got a track record. We've been working on technology for a long time. We've seen the trends. We've seen the transformations, and we have built a really strong technology team here that has all the right capabilities and has the right partnerships with the right -- the people that are actually making those investments. So I think we -- those 3 things are must-haves for any company to be successful, and we have them. So I'm super excited about it. I think technology is always -- products and technology are always the winner when you look at the history of the stock market or others, which companies are leading it today, right? They're all technology platforms, right? And so we're one of those new technology platforms that you got to give a bet on. So there is a bet, but the bet is a strong bet based on technology and market opportunity and a team that is hungry and willing to scale up with this, right?

Yes. No, it's interesting. Like we got -- based on the last couple of questions, I mean, like it seems like you have a shareholder base. I mean, I don't know -- we haven't seen these people on live streams before. So I'm assuming they're shareholders of CXAI. So it seems like there's people -- it seems like you have some people who understand the stock, but maybe the broader market doesn't -- I guess the question is why is the stock price low? Why is the opportunity? It's a real question, right? Why is it an opportunity? Because it seems it's very undervalued. I'm looking at it, okay, these guys are doing $5 million, it should be worth at least 5x, 10x just based on comps in the space. That's $25 million to $50 million valuation plus cash. And the market cap is only $14 million. So you're getting this thing for like for nothing basically. So is the question that the market doesn't quite understand the space that you're in? Like that's -- I guess, it seems to be like the broader market. Like is that -- what do you think the investors are missing? Maybe that's my question.

I think it's a combination of things, but I do agree that maybe we need to do more clear messaging and market understanding of what we have and what we're building. And secondly, I think overall, microcaps have had some challenges, and there's a lot of volatility in the space. We have been at a higher price before. We've had a lot of volume in our -- I mean I think there was one day we were traded at 175 million shares 1.5 years ago or so. So there has been interest, but I think that maybe there needs to be better market education and performance overall to showcase what we're doing. And I think we're going to be -- moving forward, we're going to be more aggressive in our approach in our market education and driving it. And hopefully, that will help us. But I do think that sometimes things get lost, especially in the microcap world, right? People don't realize and we get bundled up with other companies that don't really have the technology or the business model that we have, right? So I think that's what I would say. But I would say for any investor, this is a strong buy. It's a big buying opportunity. That's what I would say. And I'm focused on the fundamentals. I'm focused on getting the company to cash flow positive. I'm focused on getting the recurring revenue to be higher. If you look at the metrics, they've all been trending in the right direction from a SaaS perspective. That's what I worry about. And I also worry about whatever is in my control is the customers, the revenue, the opportunity, the technology platform, we're focused on that. We hope the results will be delivered, and that will be great for the investors. But yes, for an investor that's a smart investor, this is a strong opportunity.

Excellent. Listen, I would agree. But okay, Khurram, thank you for joining us. Thank you, everybody. We had some great questions. We'll catch up with you maybe in a week. We'll do this regularly every couple of weeks.

We'll do some demos next time. We'll do some demos next time, so you can see the kiosk. You can see some of the Agentic AI system in motion. You can see some of the other products. I think that will also be helpful to showcase what we actually have, right?

Yes, that would be great. Fantastic. Okay, Khurram. Thank you. Thanks everybody for joining. We will see you on the next call.

Thank you. Thank you, Jack. Take care.