Q1 2025 CXApp Inc Earnings Call and Business Update

Greetings.

Operator: Welcome to the CX App first quarter 2025 earnings time all participants are in a listen-only mode. Please note to ask a question please click on the ask question button on the left side of your Type in your question and hit... Require operator assistance during the conference, please press star zero on your telephone.

Welcome to the CX up first quarter 2025 earnings call.

At this time all participants are in a listen only mode. Please note to ask a question. Please click on the ask a question button on the left side of your player.

And your question and hits and if anyone should require operator assistance during the conference. Please press star zero on your telephone keypad. Please.

Operator: Please note, this conference is being recorded.

Speaker Change: Please note. This conference is being recorded I will now turn the conference over to your host Gram Shake Chairman and CEO you may begin.

Operator: We'll now turn the conference over to your host, Khurram Sheikh.

Khurram Sheikh: Chairman and CEO, you may begin. Thank you, operator. Good afternoon, everybody. I'm joined by our CFO, Joy Mbanugo, as well on this call, and we are both excited to share with you our earnings for the first quarter of 2025. We will also provide an overall business update on our progress in shaping the future work and creating transformative employee experiences with our state-of-the-art CXAI, it's pronounced Sky, platform. By now, everyone should have access to our earnings PR announcement, as well as the 10Q that we are filing with the SEC. This information will also be found on our website, www.cxapp.com or www.cxai.ai.

Speaker Change: Thank you operator, good afternoon, everybody I'm joined by our CFO Joy illegal as well on this call and we are both excited to share with you our earnings for the first quarter of 2025.

Speaker Change: We will also provide an overall business update on our progress in shaping the future of work and creating transformative employee experiences with our state of the art.

Speaker Change: Cri pronounced sky platform.

By now everyone should have access to our earnings PR announcement as well as the 10-Q, we are filing.

Speaker Change: Filing with the SEC.

Speaker Change: This information will also be found on our website www dot <unk> dot com or www dot CX AI data AI.

Khurram Sheikh: I'm going to go to the next couple of slides, which are the disclaimer slides, which you can read at your own leisure. Dear shareholders, the Sky platform, anchored on Customer Experience CX and Artificially Intelligent AI, is the most advanced technology solution transforming people, places, and things in the workplace. We are solving the biggest problems in our industry post-pandemic. The return to office, RTO, and employee engagement. And as we've been saying since the start of the company, post-IPO, that we are shaping the future world. The start of 2025 has been. Technology giants like Amazon, Salesforce and Dell have called all employees of specific teams back to the office five days a week, which has reignited conversation about how and where people can best do their work.

Speaker Change: I'm going to go through the next couple of slides, we showed the disclaimer slides, which.

Speaker Change: You can read at your own leisure.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Dear shareholders, the Sky platform anchored on customer experience CX and I'll, let Julie intelligence AI is the most advanced technology solution transforming people places and things in the workplace.

Speaker Change: We are solving the biggest problems in our industry post depend on the return to office Akio and employee engagement.

Speaker Change: And as we've been saying since the start of <unk>.

Speaker Change: The company post IPO that we are shaping the future work.

Speaker Change: <unk> 2025 has been very interesting technology Giants like Amazon Salesforce and Dell have called all employees are specific teams back to the office five days a week, we didn't reignited conversation about how and where people can best do their work.

Khurram Sheikh: Even companies that don't have a five-day RTO plan see their leadership wanting employees to spend more time together. Sergio Ben, co-founder of Google, said the company could lead the industry in artificial general intelligence when machines match or become smarter than humans if employees just worked harder. He said in a memo that was viewed by the New York Times, I recommend being in the office at least every weekday. He added that 60 hours a week is the sweet spot of productivity in the measure to employees who work on Gemini, Google's lineup of AI models and applications.

Speaker Change: Even the companies that don't have a five yards.

Speaker Change: Plants, either leadership wanting employee can spend more time together.

Google co-founder: Would you again co founder of Google said, the company could lead the industry and artificial general intelligence wouldn't machines natural become smarter than humans is employees just worked hard.

Speaker Change: He said Mel.

Speaker Change: That was muted by the New York Times I recommend being in the office at least every week.

Speaker Change: A few hours a week is the sweet spot of productivity in the ledger to employees, who work on Gemini Google's lineup of AI models and applications.

Khurram Sheikh: As leaders, we see firsthand that the workplace is undergoing one of the most significant transformations in decades. Hybrid work isn't a trend, it's the new operating model, and the stakes are really high. And yet, many organizations are still trying to manage it with legacy and disconnected systems. The reality is clear, mandates alone won't bring employees back, spaces alone won't foster collaboration, amenities alone won't guarantee engagement. The organizations that will thrive are those that rethink the workplace experience fundamentally and holistically to meet new expectations and business needs. Business leaders like Amazon CEO Andy Jassy say that in-office work offers a level of energy, collaboration, and speed that is missing when employees work from home.

Speaker Change: As leaders, we see firsthand that the workplace is undergoing one of the most significant transformations in decades hybrid work isn't a trend is the new operating model and the stakes are really high.

Speaker Change: And yet many organizations are still trying to manage it with legacy and disconnected systems.

Speaker Change: The reality is clear.

Speaker Change: <unk> engaged alone won't bring employees back spaces alone will foster collaboration and mainly the loan guarantee engagement.

Speaker Change: The organizations that will try with those that we think the workplace experience fundamentally and holistically.

Speaker Change: New expectations and business needs.

Andy Jackie: This is the needles like Amazon CEO, Andy Jackie.

Andy Jackie: If it's work offer the level of energy collaboration and speed that is missing when employees work from home.

Khurram Sheikh: Executives at Dell echoed this in a memo calling all sales staff back to the office full-time stating, all data shows that sales teams are more productive when on-site. Similarly, although leadership at Microsoft and Google have ruled out five-day RTO mandates anytime soon, the productivity caveat is hard to ignore. In a hybrid world, yesterday's solutions create today's gap. Conference rooms sit empty while desk neighborhoods overflow and no one knows why. Underutilized spaces. Leaders lack real-time visibility into how people work, collaborate, and engage. Disconnected leadership. Without intuitive, seamless experiences, employees feel friction, leading to disengagement, quiet quitting, or attrition, employee frustration.

Andy Jackie: The Delta Echo just sent a memo, calling all feels Scott back to the office full time stadium audio shows that sales teams are more productive went on site.

Andy Jackie: Similarly, although leadership and Microsoft and Google have ruled out five DRP youll mandates anytime soon.

Andy Jackie: The activity caveat is hard to ignore.

Andy Jackie: In a hybrid world yesterday solutions create today's gaps.

Andy Jackie: For his room stood empty, while desk neighborhoods or Florida, nobody knows why underutilized spaces.

Andy Jackie: You just lag real time visibility into how people work collaborating and engage disconnected leadership.

Andy Jackie: Not intuitive seamless experiences employees feel friction.

Disengagement quite quitting or attrition employee frustration.

Khurram Sheikh: And the root of it is a lack of actionable insight. We can't measure what we can't see. Leaders need systems that don't just connect devices, they need to connect people to meaningful experiences using intelligent insights to optimize space based on real users patterns, personalize the employee journey in real time, anticipate needs instead of reacting to frustration. And that's what Sky does, and we do it with Agente KI. So we are Sky. We're shaping the future of work, and we're excited to share with you the progress we made in our journey.

Andy Jackie: And the root of it is a lack of actionable insights we can manage what we can see.

Andy Jackie: You didn't need systems that don't just connect devices, they need to connect people to meaningful experiences using intelligent insights to optimize space based on real usage patterns personalize the employee journey in real time anticipated needs instead of reacting to frustrations.

Andy Jackie: And Thats, what <unk> does and we do it with a <unk>. So we are sky, we're shaping the future work and we're excited to share with you the progress we've made.

Khurram Sheikh: So I'll go to the next slide to talk about the company. I do that every quarter because I want to make sure we give you updates that allow you to see what progress we're making. And there are a lot of common things still. We are still headquartered in San Francisco Bay Area. We're regional tech hubs globally. The global presence and diversity of experience gives us a leading edge as we shape the future of work everywhere. Of the 70 plus team members at SC&I, more than 70% are engineers and we have double the staff in Silicon Valley focused on building agentic AI solutions and maintaining our technology and product leadership.

Andy Jackie: Ernie.

Andy Jackie: So I'll go to the next slide to talk about the company I do that every quarter because I wanted to make sure. We give you updates that allow you to see what the progress we're making and there are a lot of common things still we are still headquartered in San Francisco Bay area, where regional tech hubs globally, the global presence and diversity of experience gives us or do you think guys.

Andy Jackie: As we shape the future work everywhere.

Andy Jackie: 70, plus team member the sky more than 70% of our engineers.

Andy Jackie: <unk> doubled the staff in Silicon Valley is focused on building agenda solutions, and maintaining our technology and product leadership.

Khurram Sheikh: We believe the employees are the center of this multi-billion dollar growing workplace experiences market, and we are creating a new category in software employee experience. Skype platform is based on 39 filed patents, with 17 of them already granted. This substantial intellectual property not only establishes our company as a technological front-runner, but also secures our position as a pioneer in the industry. We have two new patents published this quarter. Both are tied to spatial intelligence, which we'll talk about later. As we're investing in that technology, we're proud to have some of the largest logos of the world as our customers that are at the leading edge of the employee experience transformation.

Andy Jackie: We believe the employees at the center of this multibillion dollar growing workplace experiences market and we are creating a new category and software employee experiences.

Andy Jackie: The Sky platform is based on 39 filed patents with 17 of them already granted this substantial intellectual property not only establishes our company the technological front runner, but also secures our position as the pioneer in the industry. We have two new patents published this quarter, both are tied to specialty telling.

Andy Jackie: <unk>, which we'll talk about later.

Andy Jackie: We're seeing that technology, we're proud to have some of the largest logos of the world as our customers.

Andy Jackie: Leading edge of the employee experience transformation and our focus is the technology. The technology is the transformation factor.

Khurram Sheikh: And our focus is the technology. The technology is the transformation factor. One of the key differentiators of our business is that we have strong security and compliance credentials globally. We have both ISO 27001 and SOC 2 compliance certifications. And that is the reason why you see so many logos from regulated industries. They use Sky because they know they can trust us with their data and their enterprise security goals. As I mentioned earlier, we have a global team. The team is located in the Bay Area, in Canada, Toronto, and in Manila, with other contracted workers globally.

Andy Jackie: One of the key Differentiators of our businesses that we have strong security and compliance credentials globally. We are both ISO 27001 in Sac to compliance certifications and that is the reason why you see so many logos from regulated industries. They use sky because they know they can trust us with their data and the enterprise security goals.

Andy Jackie: As I mentioned earlier, we have a global team. The team is located in the Bay area in Canada, Toronto and in Manila with other contracted workers globally and the reason for that is also to leverage. The fact that we are deploying right now even with the small scale, whereas in 200 plus cities in 50, plus countries and five continents.

Khurram Sheikh: And the reason for that is also to leverage the fact that we are deployed right now, even with the small scale we're at, in 200-plus cities, in 50-plus countries, in five continents. That gives us the diversity of experiences, relationships, as well as users. And the users is a key part of this equation as we move forward. We also in the last year built a culture of sky that innovation focused with three core values, purpose, passion and positivity. We are passionate about solving the big problem in the future work using AI. And we are super positive about creating a new paradigm of digital transformation of the enterprise focused on employee experience.

Andy Jackie: <unk> was the diversity of experiences and relationships as well as users and they use it as a key part of this equation as we move forward.

Andy Jackie: We are also in the last year, both the culture of Sky. The innovation focus with key core values purpose passion and positivity, we are passionate about solving a big problem in the future of work using AI and we are super positive about creating a new paradigm of digital transformation.

Speaker Change: Enterprise focused on employee experiences.

Khurram Sheikh: Our large enterprise customers are mainly divided into the following top five verticals, financial services, technology, media and entertainment, healthcare and consumer. We are proud to have some of the largest logos on the world as our customers that are the leading edge of workplace transformation. And when you talk to our clients, they're all at the C-level. They're CIOs, they're Head of Workplace Experiences, they're CHROs, and some of them are actually the CEOs of these companies. They've taken upon themselves to drive this transformation. So we're super excited to work with them. And these customers are sophisticated buyers of technology solutions and do not compromise on quality, performance, security, reliability, scalability, and actually the technology roadmap.

Speaker Change: Our large enterprise customers are mainly devoted to the following top five verticals financial services technology, and media and entertainment healthcare and consumer.

Speaker Change: We are proud to have some of the largest logan on the world as our customers that are the leading edge.

Chris: Chris transformation.

Speaker Change: And when you talk to our clients, they're all at the C level there.

Chris: Hello, workplace experiences that Sears gyros.

Chris: Some of them are actually the Ceos of these companies they have taken it upon themselves to drive this transformation. So we're super excited to work with them.

Chris: And this being a.

Chris: Customers are sophisticated buyers of technology solutions, and do not compromise on quality performance security reliability scalability and actually the technology roadmap.

Khurram Sheikh: So as I think about 2025 and we, the management team and the board start, you know, to build our 2025 plan, we said, what are the top three priorities for 2025? And you know, we've got a lot on our plate, a lot of things we can do better. But the one most important thing is customer success. And customer success is not just about getting customer contracts, but really about user engagement and adoption. We see that we are focused on the day in the life of a user at these large clients and how those user experiences will make them more productive, save time, and engage with their fellow employees.

Chris: So as I think about 2025 and we.

Chris: The amendment team and the board.

Chris: You know to build our 2025 plan, we said what are the top three priorities for 2025.

Chris: And you know we've got a lot on our plate lot of things, we can do better but the one most important thing is customer success.

Chris: Customer success is not just about getting customer contracts, but really about user engagement and adoption. We see that we are focused on the deemed a life of user at these large clients and how those experiences will make them more productive save time and engage with their fellow employees. So for US we're working on great feature that.

Khurram Sheikh: So for us, we're working on great features that are must-have features. We already have a lot of them in place, but we're constantly evolving that technology roadmap. And more importantly, we're getting this immersive engagement with these employees who want to use Sky every day, all the time, on all the things that matter for their work.

Chris: Our muster features we already have a lot of them in place, where we're causing any walgreen goes that technology roadmap and more importantly, we're getting this immersive engagement with these employees from <unk>.

Chris: One are you Scott every day all the time on all the things that matter for their work.

Khurram Sheikh: Now, how do you make that all happen? Well, there's a lot of solutions out there in the marketplace that have not been successful and mentioned at the start about the disconnected systems, but we're building an agentic AI solution. The agentic AI is going to be the way humans interact and collaborate with AI. It's a dramatic leap forward with agentic AI. The agentic AI system understands what the goal or vision of the user is and the context of the problem they are trying to solve, and then it takes actions to solve the problem, which is just a system.

Chris: But how do you make that all happen well theres a lot of solutions out there in the marketplace. They have not been successful in mentioned at the start but the disconnected systems, where we're building an agenda AI solution the agenda.

Chris: B the way humans interact and collaborate with AI is a dramatic leap forward with Egencia Guy <unk>.

Chris: <unk> system understands what the goal of bringing them to use.

Chris: In the context of the problem, they're trying to solve and then it kicks access to solve the problem wasn't just a systems design.

Khurram Sheikh: Design thinking into the journey of a user or drive the day in the life of a user into actionable outcomes. So that's what we're doing. We're building automated workflows. You'll see some examples that I'll show today of some of the progress we've made. We saw it in the last quarter when I showed you the GenTech booking example. And more importantly, we're trying to build a platform that becomes a trusted advisor for our customers. And our customers are not just our large enterprise, it is the end user, the employees at these large companies. And last but not least, the big differentiation that we provide is spatial intelligence, providing those contextual insights using our 2D and 3D technologies, as well as our AI-based application platform to allow for AI-powered actions and predictable outcomes.

Chris: Design thinking into the journey of the user will drag the game delightful user into actionable outcomes. So that's what we're doing we're building automated workflows, you'll see some examples that are short today of some of the progress you've made.

Chris: And the last quarter when I showed you the agenda booking example, and more importantly, we're trying to build a platform that becomes a trusted adviser for our customers and our customers are not just for large enterprise and use of the employees at these large companies.

Chris: And last but not least the big differentiation that we right, especially intelligence, providing those contextual insights using our <unk> and <unk> technologies as well as our AI based apps.

Chris: Application platform to allow for AI powered actions and predictable outcomes, So where do you focus on the analytics that will provide more value to the end user so from a big picture. When we think about 2025, we focused the engineering team on driving these key initiatives well interference and ultimately our sales and customer success team a draw.

Khurram Sheikh: It's really focused on analytics that will provide more value to the end user. So from a big picture, when we think about 2025, we focus the engineering team on driving these key initiatives, technology initiatives, and ultimately our sales and customer success team are driving that user adoption and user engagement, which we think is going to make this product so sticky that will be indispensable for the employees.

Chris: Giving the user adoption and user engagement, which we think is going to make this product so sticky that will be indispensable for the employees.

Khurram Sheikh: So let me talk about what are those employee experiences and what makes it really distinguished. So when we think about employee experiences. The first thing that comes to mind is, you know, what is the platform that you built and how you built it, right? And the Sky platform, as we've talked about, is AI-native, is the first mobile and cloud-based technology platform in the space. We've thought about it from the end user as not just an application but a platform. And we think about the three different pillars that make up the Sky platform. One pillar is the SkyApps.

Chris: So let me talk about what are those employee experiences and what makes it really distinguished.

Chris: So when we think about employee experiences.

Chris: The first thing that comes to mind is you know what.

What is the platform that you build and how you built it right.

Chris: And desired platform as we've talked about is AI native is the first mobile and cloud based technology platform in this space. We've thought about it from the end user is not just an application, but a platform and we think about the three different pillars that make up the sky platform.

Chris: One pillar is the sky ops the sky.

Khurram Sheikh: The SkyApps are based on Android, iOS, and web applications, but we're building them to be not only multi-OS, but also multi-device, all the way from your watch to your smartphone, to your laptop, to your desktop, and also to kiosks and larger devices. And we've got that now in place with a lot of our clients. Now, in order to make this application intelligent and smart, we've got to have a rule engine. We've got to have something that provides content and provides access control and decision. That's the brains of our system. That's the SkyBTS. And then coming out of this are all the great insights and analytics and recommendations.

Chris: Based on Android, our U S and web applications, but we're building them to be not only multi U S. But also multi device all the way from your watch.

Chris: Art phone to your laptop.

Chris: Desktop and ultimately to kiosks and larger devices and we've got now in place with a lot of our clients.

Chris: To make this application intelligent and smart you got to have a rule engine. We got to have something that <unk> content and provides access control and decision. That's the brain Gaba system. That's the Sky Bts and then coming out of this are all of the great insights and analytics and recommendations that sky view, our analytics platform. So dish.

Khurram Sheikh: That's SkyView, our analytics platform. So this trifecta creates that end-to-end platform that provides the best-in-class employee experiences. And with our partnership with our cloud providers, as you know, we've had a great relationship with Google for a number of years. We are a strategic partner at Google, but we have signed agreements with both Microsoft and Azure platform, which we've deployed, and with AWS. We're planning to work with them on a deployment. But we are multi-cloud, and we are enabling the capability from the device to the cloud for our clients. So our clients use us as the, you could call it the Intel Insight for their application, or you could call it the Apple Outsight.

Chris: Trifecta creates that end to end platform the prize for best in class employee experiences.

Chris: And with our partnership with our cloud providers as you know we had a great relationship with Google for a number of years, we have strategic partner, Google, where we have signed agreements with both Microsoft and Azure platform, which you've deployed and with AWS, where we're planning to work with them on their deployment.

Chris: But we are multi cloud and we are enabling capability from the device to the cloud for our clients. So our clients use us.

Chris: The you can call it the Intel inside for their application or you could call. It the apple outside but we are providing the end to end.

Khurram Sheikh: But we are providing the end-to-end application that our clients use, but they're using their own branding, their own content to drive it. But we're inside, prying the brains behind the solution.

Chris: Application that that.

Chris: Our clients use but they're using their own branding their own.

Chris: No content to drive it but with inside the brains behind the solution.

Khurram Sheikh: So with that platform in mind, you can say, well, you've got a great technology. What problem are you solving?

Chris: So with that platform why you can say well you got a great technology what problem you're solving.

Khurram Sheikh: And so I'm gonna share a slide that our friends at Gartner put together. They did an assessment of what is the motivation to return to office? And, you know, return to office is one of the biggest issues of our century, I would say. Every single enterprise globally is looking to find solutions for the digital workplace and workforce. Both leaders of enterprises and employees are navigating unchartered waters related to hybrid work in the post-pandemic and encountering significant challenges. Companies C-suite want employees back in the office to be more productive, engage in the corporate environment, and better utilize the workspace.

Chris: And so I'm going to share a slide that often the Gardner put together.

Chris: He did an assessment of.

Chris: What is the motivation of the return to office.

Chris: And you know return to office.

Chris: Is one of the biggest issues of our century I would say every single enterprise globally is looking to find solutions for the digital workplace and workforce.

Chris: Both leaders of enterprises and employees are navigating unchartered waters related to hybrid work in the post pandemic.

Chris: And then counting significant challenges.

Chris: Company C suite, one employees back in the office to be more productive and engaged in the corporate environment and better utilize the workspace employees on the other hand, one flexibility to work from their home or your office and have a high expectation when it comes to having easy access to their workplace tools, finding information and ability to collaborate with peers from anywhere.

Khurram Sheikh: Employees, on the other hand, want flexibility to work from their home or the office and have a high expectation when it comes to having easy access to their workplace tools, finding information, and ability to collaborate with peers from anywhere. So if you look at this chart, it's kind of obvious that employees, why do employees want to come back? They're not just coming back because it's a mandate, they're coming back because they want to reconnect with their and collaborate with their fellow employees, they want to have face time with their senior leaders, they want to be able to connect with their environment and their colleagues.

Chris: Look at this chart and it's kind of obvious don't employ why do we can players want to come back, but not just coming back to the mandate coming back because they want to reconnect with there and collaborate with their fellow employees. We want to have face time with the senior leaders the wanted to be able to connect with their environment and their colleague that is the real reason why we win.

Khurram Sheikh: That is the real reason why they want to come back or they have a desire to come back. And we need a solution to that. And that is where we have built this end-to-end platform.

Chris: To come back or they have a desire to come back and we need a solution to that and that is where we have built this end to end platform. When they give you a little bit more detail on it on the left you'll see the immersive you are that we have that has one click away to make an action.

Khurram Sheikh: I'm going to give you a little bit more detail on it. On the left, you'll see the immersive UI that we have that has one click away to make an action. You have a very immersive mapping technology capability that allows you to connect inside the building to any place, any location, navigate, as well as click on to book things and drive engagement. But end-to-end, we provide this full solution. The key part of the application is all these integrations that we do with the enterprise tools and services into one application platform, allowing employees one seamless experience to connect anything that they do in their work.

Chris: Have a very immersive mapping technology capability that allows you to connect inside the building to any place in any location aggregate as well as click onto book things in and drive engagement, but end to end we provide the full solution. The key part of the obligation is all these integrations that we do with the enterprise tools and services into one.

Chris: Application platform, allowing employees, one seamless experience to connect anything they do in their workplace.

Khurram Sheikh: We also do that with 2D and 3D mapping technologies enhanced by AI to provide intelligent interactions with space and things. And like I mentioned, the SkyView is the experiential analytics that provides you insights about what needs to get done and how and how would you make it happen. So, and then finally, to top it off is AgendaGuide, automating all these workflows to provide, you know, with natural language commands, a trustful domain, so you can provide any question you have, you get an answer, any action you want, you get it done. Any meeting you want to change, any booking you want to redo, anything you want to connect with multiple folks from outside, inside the organization, we're going to do that with AgendaGuide.

Chris: We also do that with <unk> mapping technology enhanced by our.

Chris: Intelligent interactions with spacing and things and like I mentioned, the Sky view is the experiential analytics that provide you insight, but what needs to get done and how and how would you make it happen. So and then finally to top it off agenda card automating all of these workflows to provide you now with natural language commands.

Chris: Trustful domain. So you can provide any question you have you get an answer any action you want you can get it done any meeting you wanted to change any bookings you want to redo anything you want to connect with multiple folks from outside inside the organization, we're going to do that with the agenda.

Khurram Sheikh: The first three pillars are deployed with global customers today. I'm proud to say we are the best in class, but I'm more excited about AgendaGuide because that's going to be groundbreaking and transformational to the whole workflow.

Chris: The first key pillars are deployed with global customers today I'm proud to say we are the best in class, but I'm more excited about it agenda here out because that's gonna be groundbreaking in transformational to the whole workplace.

Khurram Sheikh: So let me talk about, you know, what do people do when they come back to the office? What are the main things they like doing? And this is another Gartner chart, so it's not just from what we see. We'll show you what we see, but. This is what Gartner collected the data from lots of different vendors in the space and as well as clients. And, you know, the biggest issue when you want to come back to the office is, can I find a space where I can sit? Can I get a desk? Can I get a meeting room?

Chris: So let me talk about you know what do people do when they come back to the office what are the main things like doing and this is another Gartner chart. So it's not just from what we see will show you what we see but.

Chris: This is what Gardner collected the data from lots of different vendors in this space and as well as clients.

Chris: And you know the biggest issue when you want to come back to your offices can now find its place where I can say can I get it does can I get a meeting room can I connect with all the people that are in the office can I do any coordination collaboration and with it can I have a virtual assistant that can actually help me get my stuff's done all those things have an increase.

Khurram Sheikh: Can I connect with all the people that are in the office? Can I do any coordination, collaboration? And with AI, can I have a virtual assistant that can actually help me get my stuff done? All those things have an increased demand. And as I said earlier, with the start of 2025, there has been a renewed interest because there are mandates that are driving it. But also, I think there's interest among the younger generation to be more social, to be more connected with it.

Chris: Demand and as I said earlier with the start of 2025, there has been any renewed interest because there are mandates that are driving it but also I think there is interest among the younger generation can be more social to be more connected with their workplace.

Khurram Sheikh: So, I'm going to show you, so what do we see at Sky? You know, we've been working with all these clients. We have, you know, more than a million plus users globally out there that use our product.

Scott: So I want to show you. So what do we see that Scott we've been working with all of these clients we have.

Scott: You know more than a million plus users globally out there they use our product and when you think about Ikea.

Khurram Sheikh: And when you think about, you know, actually I skipped a slide early. Let me go back to slide 12 here that talks about space utilization analytics. The biggest problem is space, right, initially in these markets, because you've got to think about how you're going to utilize the space. So, this example shows you desk bookings. We can show you how desks were booked, whether they were booked in advance, how far in advance were they booked, and what is the booking ratio, and what is the cancellation ratio, a lot of interesting statistics, and then the insights that come out of it.

Scott: Skip to slide earlier, let me go back to slide 12 here that talks about space utilization analytics. The biggest problem is pretty straight initially in these markets because you got to think about how long we can utilize the space or this example shows your desk bookings. We can show you how desperate booked whether they were booked in advance how far in advance.

Scott: Book and what is the booking ratio and what is the cancellation ratio a lot of interesting statistics and then the interest they come out of it. So what are your obvious people are coming mostly on Tuesday Wednesday Thursday.

Khurram Sheikh: It's very obvious people are coming mostly on Tuesdays, Wednesdays, and Thursdays. Mondays is kind of coming back a little bit, but mostly Tuesday, Wednesday, Thursday, and it drops off very quickly on a Friday. But then it's interesting to see that even with this planning capability, there's a lot of just-in-time booking, like people are booking within the hour to get a desk or a room, and we're being able to connect with their fellow employees or with a set of meetings. So, just having that mobile connectivity, and this is why our Sky Kiosk, having at the front of your office, you can walk in, click one button, and get a desk.

Scott: Monday is is kind of coming back a little bit, but most of you Tuesday, Wednesday, Thursday, and it drops off very quickly on a Friday.

Scott: But then it's interesting to see that even with this planning capabilities. There's a lot of just in time bookings like people are booking within the hour to get a desk or a room and we're being able to connect with their fellow employees or with instead of meeting so just having that mobile connectivity and this is where it all sky T are having at the front of your.

Scott: The office that you can walk in click one button and get a desk click a button and get a room and click a button and know where your colleagues that is immensely useful and this is where a lot of people are starting to use that technology and capability as they build these return to office initiative because without that technology people have lost people don't know what to do and people will get disorganized.

Khurram Sheikh: Click a button, get a room, and click a button and know where your colleagues at. It's immensely useful, and this is where a lot of people are starting to use that technology and capability as their abilities return to Office Initiative, because without that technology, people are lost, people don't know what to do, and people get disorganized. So, this is super interesting, and as you can see the data here, there's a lot of activity happening, a lot of usage happening with application, because people do need spaces, and spaces is the primary factor for this market initially.

Scott: So this is super interesting and as you can see the data here.

Scott: There's a lot of activity happening a lot of usage, how nimble application because people do need spaces and spaces is the primary factor for this market condition.

Khurram Sheikh: But as people get used to being in the space, working with the space, they also need to connect with their fellow employees, also need to connect with their internal systems and be able to be able to make, be productive. So one of the key features, this is a chart showing The next week but our job is to provide the tool kit and capability, and we find that different use cases useful for different places. So this one, I want to give you a flavor of the progress we're making in terms of having the technology available but also the insights now and collecting the data has been super useful for us because this drives our product roadmap, this drives our innovation cycle and this drives actually our engagement with our clients.

Scott: But as people get used to being in the space working with this space. They also need to connect with their fellow employees also when they connect with their internal system going to be able to do.

Scott: <unk> be able to make may be productive.

Scott: So one of the key features this is a charged scoring.

Scott: The usage of our product they're different days different applications, where do they go on the App, you'll see a small purple inaugural showing colleague booking which has become immensely useful because you find them in the office next week on Tuesday, It would be great. Then my friend jacket, there and my my other mentor.

Scott: You know John is going to be there as well and so I will actually try to be there. So a colleague booking and visibility has become a key feature that we've been able across our client base and Super successful Super useful you got out of enable your privacy, but a lot of people enable that allow you to see their their calendar and where they're at so those kind of features or draw.

Scott: <unk> more app utilization and usage analytics, you'll also shows behavior and we'd get your behavior avid interaction not only on a daily basis, but only hourly basis. In every single interaction you do begin documentary we can sure the data light user as they progress through their work life. We can also show you location based as you can show in the lower chart.

Scott: People in one part of the World are really active with other hardware not after one year there may be reasons, because they need desk booking more or they don't have a need for desk booking or they don't have a need for the app itself, but our job is to provide the tool kit and the capability and we find a different use cases are useful for different places.

Scott: So this was I wanted to give you a flavor of the progress we're making in terms of having the technology available, but also the insights now and collecting that data has been super useful for us because this drives our product roadmap disk drives our innovation cycle and this drives actually our engagement with our clients. They love. The fact that we have these data sources and confusion.

Khurram Sheikh: They love the fact that we have these data sources and fusion of the data of what they're seeing from the employees but also from the things and the places. It provides really amazing insights.

Scott: The data or what are you seeing from the employees, but also from the things in the places it prices really amazing and says and I'll show you. An example, what do we can do with the <unk> with that so good.

Khurram Sheikh: I'll show you an example of what we can do with AI now with that. The next one, this is all great charts, great data, but what could I do more with this, with the AI? What could I put inside that would be, you know, mind-boggling?

Your next one this is all Great chart, great data, but what could I do more with this with the or what could I, probably inside there would be no mindboggling well I'm going to give you. An example here.

Khurram Sheikh: Well, I'm going to give you an example here. of our Skyview Smart Expert. And it's going to show you that, as an example, I don't want to go through 500 charts. I would like to ask a question. I'm the person responsible for return to office. I want to see the booking counts before and after the four-day RTO policy. or I am a space operator person. I want to know how many desks we utilize and which desks we utilize more than others over the past few months. And if I'm the HR person, I want to see how frequently people are using the app or doing what kind of sessions they're doing, what kind of things they're interested in.

Scott: Of our Sky view smart expert.

Scott: And it's going to show you that as example, I want to I don't want to go through 500 charts I would like to ask a question I'm a <unk>.

I'm the person responsible for return to office.

Scott: Don't see the booking costs before and after the 40 or to your policy came in or I am especially of in person I wanted to know how many deaths were utilized in which definitely utilize more than others or the past few months and if I'm. The HR person I wanted to see how frequently people are using the app or doing what concessions there.

Scott: Doing what kind of things they're interested in.

Khurram Sheikh: And then if I'm figuring out what office space needs to be in different locations, I want to see what the patterns are. So a lot of questions in my mind, right? And I don't want to go through a big BI tool that spend hours going through data sets and then figuring out what it is. I want to ask a question. So we're going to show you some of you ask a question, get an answer. I purposely made it slow so that we can move, we can show the results. So here you'll see a chart that shows bookings.

Scott: And then if I'm.

Scott: You know stringing out what office space needs to be in different locations I wanted to see what the patterns are so a lot of question in my mind, right and I don't want to go through a big B I tool that spend hours going through datasets and then figure out what it is I'm going to ask a question. So we're going to show you. Some time you ask a question you can answer.

Okay.

Scott: I, probably made a slow so that we can move we can show the results.

Scott: So here, you'll see a chart that shows bookings it looks flat across the hall.

Khurram Sheikh: It looks flat across the whole time frame, but the insights are inside it. The insights are, what is changing? Well, in this case, desk bookings were significantly higher than room bookings, and parking reservations were even higher, so it shows a strong preference for individual workspaces. Similarly, what desks are more utilized than others? And then, you know, can you show me some regional preferences, location preferences? We can show you a heat map. Show a heat map that shows that people would like to be near sunlight or would like to be in a quiet zone or where they would think that amenities are close by.

Scott: Timeframe, but insights or insider. The insights are what is changing well in this case that bookings were similar behind their room bookings and parking reservations were even higher so it shows a strong preference for individual workspaces Similarly, what desk or more utilize another and then you know can you show me some reason.

Speaker Change: Preferences location preferences, we usually heat map your heat map that shows that people would like to be near or satellite or we'd like to be in a quite zone or where they would think that amenities that are close by so those are special insights with our technology and our capability and our application platform. We can provide those insights and thats what gets people were excited.

Khurram Sheikh: So those are spatial insights. With our technology and our capability and our application platform, we can provide those insights. And that's what gets people very excited.

Khurram Sheikh: example is the four-day RTO policy influencing booking patterns. Well, we can figure out what days bookings were higher and where days of people were coming in or not. What are the peak days? As I mentioned earlier, we see, you know, Tuesday, Wednesday, Thursday is the highest, but then there's more insights underneath that. But more importantly, once you have all this data and you you see all these interesting insights, you can also then do forecasting and start providing regular updates and regular models to do predictive analytics. That's the Holy Grail, if you feel, because with these data sets, you can actually organize not only your organization, but your culture.

An example is the 40 or to your policy.

Speaker Change: Fluids in booking patents well, we can figure out what days bookings were higher than where it is with people who are coming in or not what are the peak days as I mentioned early we see TD ranked the highest again, there's more insights underneath that but more importantly, once you have all this data and do you see all these interesting insights you can also.

Speaker Change: Then.

Speaker Change: Do forecasting and start trading regular updates and regular models to do predictive analytics, that's the Holy Grail. If you feel because with these data sets you can actually organized not only your organization with your culture, and that's where we're really excited about using this capability to enhance.

Khurram Sheikh: And that's where we're really excited about using this capability to enhance the user experience.

Speaker Change: The user experience.

Khurram Sheikh: So let me talk about Agentic AI. And as we said earlier, Agentic is being our focus from the start. We're not about providing AI just for the sake of AI, but really collaborative AI agents that allow you to take multiple workflows and provide really amazing insights.

Speaker Change: So let me talk about <unk> and <unk>.

Speaker Change: He said earlier agenda has been our focus from the start we are not about providing E or just for the sake of AI, but really collaborate via our agents that allow you to take multiple workflows and provide really amazing insight. So.

Khurram Sheikh: So, This is a Gartner show, by the way. That shows how agentic AI is progressing. As you know it used to be AI assistants and copilots, but now we're talking about collaborative AI agents that take multiple workflows and allow them to come together to provide actionable outcomes. So to provide this level of autonomous decision-making and action, Agendic AI relies on a complex ensemble of different machine learning, natural language processing, and automation technologies. And, you know, Agendic AI focuses on completing actions and outcomes versus just assistance, like a trusted advisor that is proactive, insightful, and acts to solve problems. So I'm gonna show you an example.

Speaker Change: To achieve this as a gardener show by the way there shows how agenda is progressing as you know it used to be area assistance co pilot, but now we're talking about collaborative EIA just to take multiple workflows allowed them to come together provide actionable outcomes.

Speaker Change: So to provide this level of autonomous decision, making and action agenda here relies on a complex and sample of different machine learning natural language processing and automation technologies.

Speaker Change: And.

Speaker Change: <unk> focused on completing actions and outcomes versus just assistance electric trusted adviser that is proactive insightful and access all problem. So I'm going to show. An example last quarter I showed you the agenda booking we'd been working on lots of different use cases I'm going to show you. An example of.

Khurram Sheikh: Last quarter, I showed you the Agendic booking. We've been working on lots of different use cases. I'm gonna show you an example of a genetic workshop. You know, a lot of our clients are talking about having to set up events or workshops within their community or their office environment, and they have to do a lot of coordination. They like to, you know, not only be able to book a place, find the right people to come, but also invite visitors, as well as regular employees, and then also order food. You know, how can you do that?

Speaker Change: Agenda workshop, you know a lot of our clients are talking about having do set of events or workshops within their community or they're in their office environment and they have to do a lot of coordination we'd like to.

Speaker Change: Not only be able to book a please find the right people to come but also invite visitors as well as regular employees and then also order food and know how can you do that and I'm going to show you. How we can do that in a new York minute here.

Khurram Sheikh: And I'm gonna show you how we can do that in a New York minute.

Khurram Sheikh: Thank you for your time. So as you can see, in a very short period of time, you could do multiple workflows coming together. This means that multiple agents are collaborating together, but more importantly, you got what you wanted. You wanted a meeting set up with your CEO. You didn't have to give your name. You could find who the CEO is, could find who the right contacts who would be invited to the meeting. And then you wanted to not only host them, find a room that accommodated them, but also order refreshments and make sure that it's tied to their preferences.

Speaker Change: April.

April: I don't know.

April: Okay.

April: Okay.

April: So as you can see in a very short period of time, you could do multiple workflows coming together. This means that multiple agents are collaborating together, but more importantly, you got what you wanted you wanted a meeting set up where you see your you didn't have to give you a name could find who the CEO is to find who the right contacts who would be.

April: And why do the meeting and then you wanted to not only close friend of room there.

April: The communist them, but also order refreshments and make sure they're just tied to their preferences. So you could look at their profiles and look at what footprint that they have and then provide the necessary arrangements and be all done within a minute and they will all get notifications on their email calendar and even if they want navigation, we could provide that.

Khurram Sheikh: So you could look at their profiles and look at what food preferences they have and then provide the necessary arrangements and be all done within a minute. And they will all get notifications on their email and their calendar. And even if they want navigation, we could provide that. I didn't want to add too many workflows, but the idea is we make complex things very simple. And these things happen every day at every enterprise where I go and meet customers. They can't get meetings done on schedule. They can't get things organized. Takes a lot of time and effort and there's a lot of frustration.

April: I want to add too many workflows, but the idea is we make complex and great simple in this thing. These things happen every day at every enterprise, where I go and meet customers. They can't get meetings done on schedule. They can't get things organized takes a lot of time and effort and there's a lot of frustration with this agenda solution, we're going to minimize that we're going to make it seamless.

Khurram Sheikh: With this agendic solution, we're going to minimize that. We're going to make it seamless and easy to do. We do it well today with our apps, but we're now going to make it even even super easy and super productive with these agendic solutions.

April: Isn't easy to do we do well today with our with our ops, but we're now going to make it even even super easy and Super productive with the genetic solutions.

Khurram Sheikh: So now I'm going to talk about our Our Q1 product and customer highlights, and then we'll have Joy walk us through the financials. So Q1, the start of 2025 has been an interesting one, as I said earlier. RTO is a big team with a lot of former clients, as well as a lot of new clients that we're working with. But we hit all our business objectives for the Q1. We had three large Fortune 500 expansion renewals. Expansion renewal means they actually, you know, signed up for more than the last year's renewal and are expanding not only in campuses, but more importantly, in new features and capabilities.

April: So now I'm going to talk about R. R.

April: Our Q1 product and customer highlights and then we'll have joy walk us through the financials. So Q1. The startup train 25 has been an interesting one as I said earlier <unk> is a big theme with water for our clients as well as a lot of new clients that were working with but we hit all all our business objectives for the Q1, we have three large.

April: Fortune 500 expansion renewals, especially on the old means they actually you know signed up for more than the last year's renewal and are expanding not only in campuses, but more importantly in new features and capabilities and lot of those new features and capabilities are the things I talked about engagement community getting more collaboration.

Khurram Sheikh: And a lot of those new features and capabilities are the things I talked about, engagement, community, getting more collaboration, or finding mission-critical things like emerging notifications, or critical notifications, we call them. There's a lot of new capabilities that people are signing up to and they're seeing the adoption uses. That's why they expanded. So we're excited about that expansion this quarter. We also talked about last quarter the 1.5 platform that was deployed with a large financial customer. That customer has actually now deployed this with the full suite of products including SkyView and SkyBTS and also has done a renewal.

April: War fighting mission critical things like emergency notification critical notifications, we call them. So.

April: There's a lot of new capabilities that people are signing up to and Youre seeing the adoption users that's where the experience. So we're excited about that expansion this quarter.

April: We also talked about last quarter, the $1 five platform that was deployed with a large financial customer that customer is actually now deployed this with the full suite of products, including Sky viewing Sky Bts and also has done a renewal. So we're excited that they have like two technology platform deployed in the first market and are launching multiple markets.

Khurram Sheikh: So we're excited that they have liked the technology platform, deployed in the first market and are launching multiple markets with new capabilities. Last quarter, I had mentioned about collectively, and on a one participants basis and then having concerts to apply, discuss, collaborate with people, and ask for feedback, have disc видитеs, share input. That's kind of basic, in a way. Thank you for the question.

April: New nuclear Burns.

April: Last quarter I had mentioned about.

April: The single code based Sky, one dog that is now available to all our clients, but more importantly, this quarter. We are now employed we have implemented sky analytics for all of those clients. So all the data sets I assure you. This district every single client.

April: Cable-ready now in all of their campuses. So thats a big accomplished from the engineering team and also from our customer success team that's working closely with those clients.

Khurram Sheikh: Coming to the website, let me just mention that, again, because this shrimp migrate project did not necessarily go through an ecological process for this project. Sky Kiosk is a game changer. As I mentioned earlier, we had our first deployment. in Silicon Valley with a large technology company that really wanted to implement an RTO policy. And they said, hey, in order to get employees engaged in using the tools and capabilities, let's put it in the front office, front lobby. They walk in the door, they can see where rooms are available, where desks are available, where people are available, and one click away from an action and get it on their mobile app.

April: Sky Trc was a game changer.

April: As I mentioned earlier, we had our first deployment.

April: In Silicon Valley with a large technology company that really wanted to implement in order to your policy and they said hey in order to get to.

April: Lawyers engaged in and.

April: And using the tools and capabilities, let's put it in the front office.

Robbie they walk in the door, they can see where rooms are available where desktop available where people are available and one click away from an action and get it on their mobile App, we've done that very elegantly with a solution that web based that can be connected any touchscreen device.

Khurram Sheikh: We've done that very elegantly with a solution that's web-based that can be connected to any touchscreen device. And now, after that first successful deployment, we're getting multiple engagement from all our clients globally. And so this is going to be a big expansion opportunity as we roll out SkyKiosk. And I also mentioned last quarter about Sky Localization, which was really using a partnership with Google to do translation for our apps, as well as other localization features. And we deployed that with a large entertainment customer. And now we're planning to deploy it again with Sky 1.0 with all our existing clients.

April: And now after the first successful deployment, we're getting multiple engagement from all our clients globally and so this is gonna be a big expansion opportunity as we rollout Scott kiosk.

April: And I also mentioned last quarter by Sky localization, which was really using our partnership with Google to do translation for our apps as well as other localization features and we deploy there with a large entertainment customer and know where we're planning to do it again with sky wound Aldo with all our existing clients I think this is a grid.

Khurram Sheikh: I think this is a great feature because everybody wants localized information, localized insights. And so that's been super successful too.

April: Feature because everybody wants localized information.

April: Localized insights and so that's been super successful too.

Khurram Sheikh: So all in all, I would say from a product customer, we are making a lot of great progress. And the Agentic AI is in trials with the first internally. We're trialing it ourselves in our labs here in San Ramon and Palo Alto. And then we're going to be doing more and more trials with our clients moving forward.

April: So all in all I would say from a product customer we are making a lot of great progress in the agenda here is in trials with the first internally we're trialing it ourselves in our labs here in San Ramon and Palo Alto and then we're gonna be doing more and more trials with our clients are moving forward.

Khurram Sheikh: So with that, I'm gonna move to the slide, the results for 2025.

Joy Illegal: So with that I'm going to move to the slide the results were trained 25, I'm going to ask our CFO joy to.

Joy Mbanugo: I'm gonna ask our CFO, Joy, to take over and share with us the results. Over to you, Joy. Thank you, Khurram. If we could go to the next slide. I'll walk us through our Q1 results, starting with headline metrics, then dive into operational details, dive into our income statement, and conclude with our overall liquidity position, which is pretty strong. We're happy to report. While we have seen some expected pressures, the underlying improvements in our margins and continued cost discipline are driving meaningful progress. So, Khurram, as you mentioned in the previous slide, we did have three large logos that increased their expansion and pushed ARR up 130% of their original contract value, which is clear validation of our platform stickiness and our team's focus on customer success.

Kick over and I'm sure, whether the result or new Joy.

Joy Illegal: Thank you.

Joy Illegal: Let's go to the next slide a lot that still our Q1 results starting with the headline metrics then dive into the operational detail that the entire income statement and conclude with our overall liquidity position, which is pretty strong we're happy to report.

Joy Illegal: While we have seen some expected pressures the underlying improvement and our margin and continued cost discipline are driving meaningful progress.

Speaker Change: So currently as you mentioned in the previous slide we did have very large logos.

Speaker Change: That increased their expansion and pushed Arab 130% of the original contract value, which is clear validation of our platform stickiness and our team's focus on customer success.

Joy Mbanugo: These include Fortune 500 customers in financial services and tech verticals who have expanded their footprint with this and continue to expand their footprint. Subscription revenue, a huge increase here from Q1 2024, where we're at 87% up to 99%, which shows our overall commitment to recurring revenue.

Speaker Change: These included a fortune 500 customers.

Speaker Change: Customers in financial services, and Tech verticals, who have expanded their footprint with us and continue to expand their footprint with that.

Speaker Change: Subscription revenue.

Speaker Change: A huge increase here from.

Speaker Change: Q1, 'twenty 'twenty four we were at 87% up to 99%, which shows our overall commitment to our recurring revenue are not certain that all the time every quarter, but we do we do expect you can see like we did in previous quarters, a continuing increase in subscription revenue.

Joy Mbanugo: Not certain that it'll be this high every quarter, but we do expect to concede, like we did in previous quarters, a continued increase in subscription revenue compared to one-time revenue. Again, gross margin, an increase in gross margin and just our overall discipline and cost, an increase up to 88% from 82% from Q1 2024. Cash OPEX, we did reduce cash operating expenses by $300,000 over a year, despite absorbing one-time costs, which we'll go into into the next slide. And then we're happy to report our earnings per share has increased from negative $0.34 up to negative $0.08 from Q1 2024.

Speaker Change: Compared to a one time revenue.

Speaker Change: And again, our gross margin and increasing gross margin and just our overall discipline in cost.

Speaker Change: An increase up to 88% from 82% from Q1 'twenty 'twenty four.

Speaker Change: Cash Opex we.

Speaker Change: Reduced cash operating expenses by 300 K he over a year. Despite absorbing a one time costs that go into it to the next slide and then we're happy to report our.

Speaker Change: Our earnings per share has increased.

Speaker Change: From.

Speaker Change: Negative 34 cents up to negative eight cents from Q1 2024, so over all.

Joy Mbanugo: So overall. just great highlights for Q1 2025.

Speaker Change: Great highlights for Q1 2025.

Joy Mbanugo: And we can move to the next slide and dive into a little bit more detail in our income statement. So we did have a decline in revenue, which we want to talk about because I know that, you know, we may get some questions on this. The decline mainly came from two of our large customers who traditionally would have been Q1 renewals, but we pushed them to Q4 renewals. So if you remember, we had a pretty steady, steady state and solid Q4. And so those two, that increase of that solidness that you saw in Q4 were from those two clients that renewed in Q4 instead of Q1.

Speaker Change: And we can move to the next slide in that until a little bit more detail on our income statement.

Speaker Change: So we did have a decline in revenue, which.

Speaker Change: Which we wanted to talk about because they know the you know we may get some questions on it did decline mainly came from two of our large customers, who traditionally would have been Q1 renewals slightly pushed them to Q4 and also if you remember we had a pretty steady steady state and solid Q4.

Speaker Change: And so those two that that increase of that solid net that you saw in Q4 were from those two clients that.

Speaker Change: <unk> renewed in Q4 instead of Q1.

Joy Mbanugo: So, this is a timing shift, not a decline, necessarily, in any. We are seeing resilience and gross profit, despite lower revenue, we continue to have 88% margins. As we discussed, our partnership with Google Cloud, we've been looking to reduce our cloud costs, and we saved $177K year-over-year. And again, the subscription-based revenue increased our margins. Overall, operating expenses increased a little bit, and we'll dive into that. So research and development declined slightly. Marketing year-over-year had a steep decline, some of that sales and marketing, sorry, and personnel and other spend as we continue to focus on R&D.

Speaker Change: So this is a timing shift.

Speaker Change: Not a not a decline necessarily than anything else.

Speaker Change: We are seeing resiliency and growth gross profit.

Speaker Change: Despite lower revenue and continue to have 80% margin.

Speaker Change: As we've discussed our partnership with cloud Google cloud he's been looking to reduce our cloud cost and we saved 177 K year over year and again, our subscription based revenue increase their margins.

Speaker Change: Overall operating expenses increased a little bit and we'll dive into that so research and development.

Speaker Change: Decline slightly marketing year over year had a steep decline some of that.

Speaker Change: And marketing science personnel and other spend and we continue to focus on R&D.

Joy Mbanugo: in just developing the product in Identik AI. We did have an increase in GNA year over year, but that was related to one-time costs for professional services fees and new hires. Our operating loss continues to narrow, it widened a little bit, but remember this is without 600k revenue, so this just shows our cost structure is holding firm during this transition.

Speaker Change: And just developing the product and it didn't take AI.

Speaker Change: We did have an increase in G&A year over year, but that was related to one time costs or professional services fees and new hires.

Speaker Change: Our operating loss continues to narrow and wide and widening a little bit but remember this is without them 600 K revenues. So this just shows our cost structure holding firm during this transition.

Joy Mbanugo: So let's move to the next slide, where we'll talk a little bit about our liquidity and our overall cash position, because I know those questions that came up in our last earnings call. So overall net cash used in operating expenses decreased from 979K from 2.7 million in Q4 2024, and this just reflects our tighter control on working capital and our discipline as we lower overall cash burn. Secondly, I'd like to discuss liquidity. Our cash balance, as you'll see, because our queue was just released, so you can go have a look. Our cash balance, we ended the quarter at $3.98 million.

Speaker Change: So let's move to the next slide where I would talk a little bit about our liquidity and our overall cash position because I know that's the questions that came up in our last earnings call.

Speaker Change: So overall net cash used in operating expenses decreased 979, K from $2 7 million in Q4, 2024, and it just reflects that tighter and tighter control on working capital on a.

Speaker Change: Disciplined athlete lower overall cash burn.

Speaker Change: Secondly, like to discuss liquidity, our cash balance as youll see because the <unk>.

Speaker Change: It was just really thinking go have a look at our cash balance we ended the quarter I think $98 million, but what you'll see in the subsequent events is that lead you. One we entered into a new note a new convertible note, where we have access to $20 million and on April eight we do down about.

Joy Mbanugo: But what you'll see in the subsequent events is that we drew on, we entered into a new note, a new convertible note, where we have access to $20 million. And on April 8th, we drew down about $4 million of that $20 million. And so with just that in place in the previous convertible note that we entered into last year, we have $20 million, access to $20 million. And so we have more than 18 months of liquidity at our current operating run, at least 18 months, if not more. So we also, with our filing today and our filing of the K, have become S3 eligible.

Speaker Change: For a million of that $20 million and so with that in place in the previous convertible note that we entered into last year.

Speaker Change: We have.

Speaker Change: $20 million.

Speaker Change: Access to $20 million and so we have more than 18 months of liquidity.

Speaker Change: Our current operating right at least 18 months if not more.

Speaker Change: So we also with our filing today in our filing of the K have become S. Three eligible.

Joy Mbanugo: So overall, these results reflect our focus on three strategic priorities that Khurram laid out earlier, our customer success, deeper AI adoption and analytics usage, and just the stickiness of some of our product capabilities and new features and new offerings like our kiosk. Every renewal, every cost decision, and every platform investment is mapped to these goals.

Speaker Change: So overall these results reflect our focus on three strategic priorities that Carl laid out earlier.

Speaker Change: Customer access deeper AI adoption in analytics do you said and just the stickiness of our product capabilities and new features and new offerings like our kiosks.

Speaker Change: Every renewal every cost decision and every platform investment is mapped to the east coal to tie. It all together one revenue decline was timing related and are structural or margin hit high records to operational rigor, which will continue throughout the year, we continue to keep costs under control.

Joy Mbanugo: To tie it all together, one, revenue decline was timing-related and not structural. Our margins hit high records through operational rigor, which will continue throughout the year. We continue to keep costs under control despite one-time expense hits, and our cash position is and we have multiple levers to pull to continue growth.

Speaker Change: One time expenses and our cash position is strong and we have multiple levers to pull to continue growth.

Khurram Sheikh: So, with that, I'll turn it over to Khurram, and if there are any questions, just put them in the chat and we'll answer them. Thank you, Joy. Yeah, thank you, Joy.

Speaker Change: That I will turn it over to Kurt.

Speaker Change: And if there are any questions just put them, India put them in the attack and will answer.

Speaker Change: Sure.

Speaker Change: Yes, Thanks Joy, so, let's just summarize why why Sky and I think the first pieces I'll talk about the.

Khurram Sheikh: So let's just summarize why Sky. And I think the first piece is I'll talk about the financial performance, too, because I think we have hit a corner here where we're now moving from the traditional old model to the new model. But first of all, I want to be clear with everybody.

Speaker Change: The financial performance too because I think we have hit a corner here, where we are now moving from the traditional all model to the new model, but first of all I want to be clear with everybody Sky is more than enough. It's a platform to create workplaces that are as dynamic worst Italian remarkable as the people and the habit them.

Khurram Sheikh: Sky is more than an app. It's a platform to create workplaces that are as dynamic, versatile, and remarkable as the people who inhabit them. We're not just enhancing how work gets done. We're reimagining it for a brighter, more connected world. With Sky, you just don't build a workforce. You cultivate a culture, shape a community, and architect the future. Because at the end of the day, with all the employees, there is no work, no office, no culture. Let's put the employee first together and watch everything else fall into place. That's been our focus. And now with our Sky platform solution anchored in AI, we're poised to provide that capability to all our clients.

Speaker Change: We're not just enhancing how work gets done we re imagining it for a brighter more connected world with Sky you just don't build to work for you cultivate a culture shape of community and architect the future because at the end of the day with all the employee there's no work no office no culture, let's put the employee first together and watch everything else fall into.

Speaker Change: A place that's been our focus and now with with our you know Sky platform solution anchored we're poised to provide that capability to all our clients.

Khurram Sheikh: Now, when you think about our business, I think it's amazing that we've gone from, I think at some point we were like, when we first acquired the business, it was 70% or less recurring revenue. This quarter, we hit 99%, which is kind of amazing. We weren't targeting to be 99, but it's just the fact that both of our, you know, customer success teams, as well as our engineering team have done a great job of creating the products that are more recurring revenue. And our customers have adopted them instead of getting one-time professional fees. They're like, yeah, we'll take that feature because we want it every year and we want to be providing you advanced capabilities on that.

Speaker Change: Now when you think about our business I think it's amazing that we've gone from I think at some point, we will like wouldn't be flows acquired the business. It was 70% or less recurring revenue. This quarter, we had 99% which is kind of amazing.

Speaker Change: We weren't targeting to be 99, but it just the fact that both of our.

Speaker Change: For success teams as well as our engaging they've done a great job of creating the products that are more recurring revenue and our customers have adopted them instead of getting one time professional fees are like yes. It will take that feature because we wanted every year and we want to be providing you advanced capabilities on that so I think that's a real positive and then as Joey mentioned with the <unk>.

Khurram Sheikh: So I think that's a real positive. And then, as Joy mentioned, with the cost structure improvement, it's because of our partnership with Google Cloud, where we can scale very profitably on this. Because as we go with AI, we go with more data sets and others, we need a low cost solution that scales. And this is where you've seen the benefit of that, you know, gross margins going from, I think, 78 at some point a year and a half ago, now all the way to 88%. And along with that, we have great clients that love working with us.

Speaker Change: Cost structure improvement is because of our partnership with Google Cloud, where we can scale very profitably on this because as we go with AI, we go with more datasets and others, we need a low cost solution that scales and this is where you're seeing the benefit of that gross margin growing from I think 78 at some point a year and a half ago now all the way to 88%.

Speaker Change: And along with that we have great clients that love working with us and we're working with <unk> at all of these companies as well as the head of workplace experiences and they're looking to move the needle in a direction, where AI becomes the key enabler for all these different opportunities. So we're excited working with our clients I think were design thinking.

Khurram Sheikh: And we're working with CIOs at all these companies, as well as the head of workplace experiences. And they're looking to move the needle in a direction where AI becomes the key enabler for all these different opportunities. So we're excited working with our clients.

Khurram Sheikh: I think we're design thinking with them on all these new applications, and you're going to see a lot of new applications coming out in the coming months.

Speaker Change: With them on all these new applications that youre going to see a lot of new applications coming out in the coming months.

Khurram Sheikh: and you know our business is global. Although we sell only in the U.S., we're deployed globally. We have no impact to tariffs or other issues, but we are deployed globally. So I want to rest assured that we're not impacted by any of this situation that's happening in the financial markets right now, but we are naturally cognizant of the fact that enterprises are looking to cut their span and be more productive and we enable that. We enable an ROI that lets them provide a solution that is cost-effective but more importantly impactful across the whole organization. So that's why there's not a demand pull here in terms of people are looking for solutions there.

Speaker Change: And you know our business is global although we sell only the U S. We are deployed globally, we have no impact too.

Speaker Change: Tariffs or other issues, but we are deployed globally and so I wanted to rest assure that we're not we're not impacted by any of the situation that's happening in the financial markets right now, but we are naturally cognizant of the fact that enterprises are looking to cut their spend and be more productive and we enable that we enable and rois.

Speaker Change: <unk>.

Speaker Change: For wireless solution that is cost effective, but more importantly, impactful impactful across the whole organization. So that's why there's not a demand pull here in terms of you know people are.

Speaker Change: Looking for solutions there.

Khurram Sheikh: Today we had our annual shareholder meeting.

Speaker Change: Today, we had our annual shareholder meeting I am excited to announce that two of our directors Camilo Martina and shrunk the pre yoga reelected we're really blessed to have a really strong board that has been supporting this effort for the last couple of years.

Khurram Sheikh: I'm excited to announce that two of our directors, Camilo Martino and Shanthi Priya, got reelected. We're really blessed to have a really strong board that has been supporting this effort for the last couple of years, and they come together as innovators, as pioneers, but also more importantly as mentors to help me and the management team scale the company. So we're really excited about having that camaraderie and having that push and pull of innovation.

And they come together is as innovators as pioneers, but also more importantly, as mentors to help me and the amendment team scale. The company. So we're really excited about having that camaraderie and having that push and pull of innovation and that's what all of these were in Silicon Valley, we're working with.

Khurram Sheikh: And last but not least, we're in Silicon Valley. We're working with the biggest disruptors in the market. We have told you about our Google partnership. It not only enables us on the cost side for our cloud management, but also in terms of innovation side in getting access to the latest tools and technologies. I mentioned to you guys earlier that we are a strategic partner level, and I know today Google announced a number of new AI tools in Gemini and other capabilities. We have access to all those tools. We're first in line to get access to those.

Biggest disruptors in the market. We have told you about our Google partnership is not only enables us on the cost side for a cloud management, but also in terms of innovation side and getting access to the latest tools and technologies.

Speaker Change: I mentioned to you guys earlier that we are a strategic partner level and I know today, Google knows a number of new AI tools and Gemini and other capabilities. We have access to all of those tools. We're first in line to get access to those and so we're partnering with them. When you think about Sky view when you think about <unk>.

Khurram Sheikh: And so we're partnering with them. When you think about Skyview, when you think about Agenda GI, we are definitely partnering with Google and their capabilities. We're not building everything from scratch, but we are building something that's different and unique that we believe nobody else in the market has. And that's called employee experiences. We're creating a new software category. We're really excited.

Speaker Change: We are definitely partnering with Google and their capabilities were not building everything from scratch, but we are building something that differentiate unique that we believe nobody else in the market has and thats called employee experiences, we're creating a new software category, we're really excited.

Khurram Sheikh: And with that, I'd open up to any questions you have. But I want to just end by saying we are really destined for a lot of success here because the opportunity is huge. There's a lot of fragmented competitors out there, and we have a singular vision to create the best employee experience for all employees. So, Joy, do we have any questions from the webcast or?

Speaker Change: And with that.

Speaker Change: I'd open up to any questions you have but I wanted to just end by saying, we're really destined for large success here because the opportunity is huge there's a lot of fragmented competitors out there and we have a singular vision to create the best employee experience for all employees.

Speaker Change: So enjoy do we have any questions from the webcast or Oh.

Joy Mbanugo: We do, and I'll take a couple of them.

Speaker Change: We do and I'll I'll take a couple of others. So why some of these can be.

Joy Mbanugo: So, one, some of the answers to these questions can be found in the 10K, sorry, the Q, but what is the current shares outstanding? It's on our balance sheet. It's about 19.8 million.

The answer to <unk> questions can be found in that.

Speaker Change: 10-K, sorry, the Q, but what is the current shares outstanding it's on our balance sheets about $19 8 million.

Joy Mbanugo: There's a question, how much total debt is currently outstanding when including the $4 million draw on Avondale on April 8th? I think if we take all of that together with our previous note and our warrants, I think we're at about 10 million, but I'm doing that off the top of my head.

Speaker Change: There's a question how much total debt currently outstanding when including the $4 million drawn Avondale on April eight.

Speaker Change: I think if we take all of that together with our previous snow in our warrants I think we had about 10 million, but I'm doing that off the top of my head.

Speaker Change: Ah Theres. Another question will you guys ever plan only.

Joy Mbanugo: There's another question, will you guys ever plan on, I think the question is, will we share who our clients are? I think we've done some case studies in the past, probably prior to me joining, and to the extent that we can, but as you can imagine with some of the return to office naps and other things going on, some of our clients value their confidentiality, but to the extent we can in the future, we absolutely will.

Speaker Change: I think the question is will we hear who our clients are and I think we've done some case studies in the past probably prior to me joining and to the extent that we can but as you can imagine with some of the return to office NAFTA and other things going on some of our clients value their.

Speaker Change: Confidentiality, but to the extent we can in the future we absolutely will.

Khurram Sheikh: Joy, I want to jump in there, actually on cxapp.com, you can see those clients. So, if you go on there, I'm proud of all of them, so I don't want to, you know, take one's name or the other, but most of our clients are on the website, and you can easily look at them up, but they're in five categories that we talk about in technology, in entertainment, in financial services, in healthcare, and in consumer. We have some of the biggest logos in the world, they're all on our website, and, you know, and we're collaborating with them, so, but some of them, as Joy said, are careful about what we share about what they're doing for obvious reasons, but they're all excited to be using the skyplot.

Speaker Change: Jewelry I want to jump in there actually are.

Speaker Change: Georgia for jumping their own CX other call, but you can see those clients. So if you go on there I'm proud of all of them. So I don't want to you know.

Speaker Change: One thing or the other but most of our clients are on the website.

Speaker Change: And you can easily look at them up but they are in five categories that we talked about in technology.

Entertainment and financial services, and health care and in consumer we have some of the biggest logos in the world. They're all on our website and you know and we're collaborating with them. So.

Speaker Change: But some of them as George says are careful about what would be sure about what theyre doing for obvious reasons, but they're all excited to be using sky platform.

Joy Mbanugo: Thanks Khurram.

Speaker Change: Thanks, Karen.

Joy Mbanugo: One more, we have two more questions. One I'll answer and then one I'll give over to you Khurram. After, after, from Maxim, after soft Q1 revenue results, do you expect total revenue growth or subscription revenue growth year over year in 25 versus 24?

Speaker Change: One more and we have two more questions. One I'll answer and then I have one.

Speaker Change: Oh, Yeah I.

Chris: Give over to you Chris.

Speaker Change: After after.

Chris: After a soft Q1 revenue, resulting expect total revenue growth or subscription revenue growth year over year and 25 versus 24.

Khurram Sheikh: As you know, we're not giving any official guidance, so that that's the aim, but don't want to give any, any official, official guidance. And then our last question is… Yeah, the only thing I would add to that, Joy, is just to add to that is that we are driven by ARR growth, right? That's our main initiative, and that's why you've seen the focus on recurring, repeatable, multi-year contracts. Our strategy is working out. There is some short-term revenue disruption to that, but I do think that that is the right thing to do for a SaaS AI-based company because it provides that stickiness that Joy mentioned.

Chris: No, we're not giving any official guidance. So that that's the aim but don't really give any any official official guidance at the moment.

Chris: And then yes.

Chris: Congrats Joy is just just to add to that is that we are driven by ear our growth rate. That's our main in Australia, and that's why you've seen the focus on recurring repeatable multiyear contracts. Our strategy is working out there is some short term revenue disruption to that but I do think that that is the right thing.

Chris: Due for a SaaS based company because it provides a stickiness to join mentioned it provides the.

Khurram Sheikh: It provides the roadmap, and these customers do not want to go change out every month. They want to have a long-term plan for scale-up, right? And the experiment for us with a couple of sites, we've seen a lot of them come to us after they go to a competitor and find out, hey, it's not exactly what you told me, but we are retaining large clients who believe in the vision of employee experiences globally and finding those a GenTech AI solution. I think those are the customers that I'm most proud of. I don't want to be involved with customers who are just looking for a point solution.

Chris: The roadmap and these customers do not want to go change out every month. They wanted to have a long term plan for scale up right and the experiment close with a couple of site and we've seen a lot of them come to us after they go to a competitor and finding out hey, it's not exactly what you told me so, but we are retaining large clients who believe.

Chris: The vision of employee experiences globally, and finding those agenda figure out a solution I think those are the customers that I'm most proud of I D.

Chris: Don't want to be involved with customers who are just looking for a point solution. We're not a point solution company. We're a platform company and so I think that's the differentiation we have and as we move forward recurring revenue is our focus so as you see the growth our growth with recurring revenue actually there will be revenue recognition around that but.

Joy Mbanugo: We're not a point solution company. We're a platform company, and so I think that's the differentiation we have, and as we move forward, recurring revenue is our focus. So, as you see the growth, our growth is recurring revenue. Naturally, there will be revenue recognition around that, but we can't assume that we're not motivated by just getting one-time revenue. We're motivated by getting recurring, repeatable revenue. Yes, and we have one more question. I think you answered the second half of the question, but three large customer renewals, does this include the six renewals mentioned in 2024? I'm assuming the question is coming from Q4 of 2024, and the answer is no, these are new, these are new renewals.

You know, we we can't assume that we're not motivated by just getting one time revenue been motivated by getting recurring repeatable revenue.

Speaker Change: Yeah, and we have one more question I think you answered the second half of the question but.

Speaker Change: Any large customer renewal does this include the six renewals mentioned in 2024 I'm assuming the question is coming from Q4 of 'twenty 'twenty four and the answer is no. These are new these are new renewals can you talk about renewals in any period, we're talking about renewals in that particular period. So no.

Khurram Sheikh: So when we talk about renewals in any period, we're talking about renewals in that particular period. So no, this is three in addition to the six that we mentioned last quarter. And then the question on subscription revenue, if Khurram already answered that question. Yeah, no. So just to be clear, as Joy mentioned, some of those clients that, you know, renewed in, you know, Q4, in 2024, they actually were delayed in their renewal. So that's why we had to book them in Q1. This year, they were on schedule, and they got it done in Q4. So those six renewals happening Q4, these are three additional renewals that were scheduled for Q1 and are done on schedule, right?

Speaker Change: This is three in addition to the six that we mentioned last quarter and then the question on subscription revenue.

At current might answer that question.

Yeah, no. So just to be clear are you joined mentioned.

Speaker Change: Some of those clients guard.

Speaker Change: You know renewed in.

Speaker Change: No Q4 in 2024, they actually were delayed in the renewals. So that's why we had to book them in Q1. This year they were on schedule and they got it done in Q4. So those six renewals happened in Q4, you've got three additional renewals that were scheduled for Q1 and are done on schedule right.

Khurram Sheikh: And as we said, they've also been expanding. And so they're excited about expanding with us. So yeah, these are independent. And as you can see, with budget cycles, a lot of these companies have, you know, fiscal quarter, some have end of the year quarter. So we have to deal with large enterprises that naturally want to work with us, but they have to work with their policies. So that's why this gap that you see in the revenue is really because of the timing of the renewal, nothing to do with revenue shortfall for us. But I think that as we move forward, we are going to get a regular stream as they scale up.

Speaker Change: And as we said, they're also being expanding and so they're excited about expanding with us. So yes. These are independent and as you can see with budget cycles. A lot of these companies have you know fiscal quarter somewhat higher end of the year quarter. So we have to deal with large enterprises that unless you want to work with us, but they have to work with there Paula.

Speaker Change: So that's why this gap that you see in the revenue is really because of the timing of the renewal nothing to do with it.

Speaker Change: The revenue shortfall for us.

Speaker Change: I think that as you move forward, you're going to get a regular stream as they scale up and our goal is to really scale them up to the next level in terms of expansion and then repeat ability and I think this is ware.

Khurram Sheikh: And our goal is to really scale them up to the next level in terms of expansion, and then repeatability.

Speaker Change: As we get the first appointment out they want to go from two sides to 100 sites and for a large company like any of these enterprises going to understate the huge endeavor and for US also is a huge endeavor. So we're planning them now so that we can do renewal hopefully in one quarter. So we don't have really moved the multiple quarters and then we can really get this thing scaled up.

Speaker Change: So we have repeat ability and then we can add new features as they renew so I think this is the this is the change out from the old mortgages in your model.

Khurram Sheikh: So I think this is the change out from the old model to the new model.

Khurram Sheikh: All right, any more questions, Joy, or do you think this is enough for us? No, that's enough. Okay, great.

Speaker Change: So there are other questions any more questions or you think this is this is enough for us.

Speaker Change: That's enough yeah.

Speaker Change: Okay great.

Khurram Sheikh: Well, I want to close by saying thank you, everybody, who's voted for us for the annual shareholder meeting. We really appreciate it. We got all of the resolutions done, which is a good testament of the confidence the investors have in us, and the board has the management team here to deliver. We're excited about the opportunity. I will repeat that we are transforming this industry, and in transformation, disruption happens. So we're ready for disruption, we're ready to make it happen, and we're super excited that our customers are believing in us, and I'm more excited that our employees are really delivering on all four cylinders and all these targets.

Speaker Change: I want to close by saying, Thank you everybody who's a wooded for us for the annual shareholder meeting will be appreciated we got all of the resolutions done which is a good testament of the corporate investors have in us and the board hasn't the management team here to deliver we're excited about the opportunity I will repeat that we are transfer.

Speaker Change: Forming this industry and in transformation disruption happens so we're ready for disruption, we're ready to make it happen and we're super excited that our customers are believing in us and I'm more excited that our employees are really delivering on all four cylinders and all these targets to look forward to sharing with you the next quarter.

Operator: So look forward to sharing with you the next quarter results. In the meantime, you will be hearing from us as we make advancements in our product development. Thank you so much. Have a great evening. Thank you.

Speaker Change: Results in the meantime, you'll be hearing from us as we make advancements in our product development. Thank you. So much have a great evening.

Speaker Change: Thank you. This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.

Operator: This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.