Release Date: August 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- KINS Technology Group Inc (KINZU, Financial) signed its largest expansion deal ever with a major financial services customer, expanding from two sites to 25-plus sites globally.
- The company reported a 78% increase in renewal and expansion bookings compared to the same period last year.
- KINS Technology Group Inc (KINZU) achieved a 120% growth in annual recurring revenue as a result of the expansion deal.
- The company has entered a multiyear, multimillion-dollar agreement with Google Cloud, enhancing its AI infrastructure and security capabilities.
- The company's subscription revenue reached 85% of total revenue, showing a positive trend towards a recurring revenue model.
Negative Points
- The hybrid work model presents challenges such as the 'hybrid coordination tax,' which requires significant time and effort to manage.
- Return-to-office mandates have not been effective for many employees, leading to issues like 'coffee badging' and 'hushed hybrid' practices.
- The coordination required for hybrid work is taking up 37% of employees' time, leading to significant cost implications for companies.
- Despite the positive trends, the company is still transitioning from a one-time revenue model to a SaaS model, which may present short-term financial challenges.
- Security remains a critical concern, especially as the company scales its operations and manages sensitive enterprise data.
Q & A Highlights
Q: Is the business with Google set for big growth or slow growth?
A: Khurram Sheikh, Chairman & CEO, stated that the partnership with Google Cloud is set for growth. They are working closely with Google and have another initiative in the pipeline that will drive growth on the go-to-market side.
Q: Can you clarify the S-1 filing that was done on Friday?
A: Khurram Sheikh explained that the shares announced for selling shareholders were a refiling of the initial S-1 due to a delay in their 10-K. Additionally, shares were assigned for potential conversion related to a debt equity deal made in May. This is not new but a necessary refiling.
Q: Could CXAI app partner with Palantir in the future?
A: Khurram Sheikh mentioned that they have not talked to Palantir but are open to engaging with them as potential customers. Currently, CXAI is focused on enterprises and not the government sector.
Q: Why should investors consider CXAI?
A: Khurram Sheikh highlighted that CXAI is shaping the future of work with advanced technology, defining a new category in enterprise software. They have a strong customer base across various verticals and are experiencing significant growth. The company is innovation-driven with a strong management team and strategic partners like Google Cloud.
Q: What are the key achievements this quarter?
A: Khurram Sheikh noted the signing of their largest expansion deal with a major financial services customer, significant bookings growth driven by renewals and expansions, and a multiyear agreement with Google Cloud. They also launched a new CXAI platform and are conducting pilots with existing customers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
