CXAI

Good afternoon, everyone, and thank you for joining us for our Q2 earnings call investor forum. I want to start a little differently today. Q2 fundamentally changed the trajectory of SKY. For the last several years, we have been building and improving our technology inside some of the world's most demanding enterprises. We built trust, we built proprietary workplace intelligence, and we built the foundation of agentic AI platform. Now we're entering this scaling phase. This is where I want to do things a little different this quarter. I want to also tell you, as investors, the three things I want to take out of today's meeting. Number one, EngineRoom transforms our scale and gives us something strategically critical, mid-market distribution. Secondly, SKY 2.0 has moved from strategy into production.

And third, we now see a much clearer operating model for translating growth into operating leverage and ultimately profitable growth. To do that, I have a very extensive agenda for today. I'm excited to have our leadership team join us. I'm Khuram Sheikh, I'm the Chairman, CEO of CXAI. With me today, I'll have Chris Wiegand, who's our General Manager of North America, talking about our enterprise business and the scale we're getting there. Our newest leader, Adam Laurie, who's the General Manager of Australia, previously the Managing Director of EngineRoom, will be with us as well. My new partner, Melissa Podruzny, who stepped up to be the Interim CFO after the transaction. She was leading the finance function at EngineRoom. Melissa, welcome. Last but not least, we'll have an industry expert guest, Zoe Chen.

Zoe's very well respected in the industry and would love to hear her views on the human experience in AI. With that, let me show you the agenda for today. We're going to first have the Q2 earnings call. Melissa and I will take that. We'll run you through the financials. We'll run you through what were the wins, what happened this quarter, what is our outlook for the quarter and for the future. Then we'll adjourn around 5:30. We'll take an intermission. We won't actually adjourn, but we'll just take a little break. If we end early or we'll transition directly into our investor forum. The investor forum will really focus on, number one, from my perspective, the vision and what do I think about SKY 2.0 and the agentic enterprise, what's the market, what's the opportunity, where we're at, and where we're going.

Then I'm going over to Chris to talk about North America, the customers, the product, and the growth, and then go in more detail on the product side there. Adam will talk about the Australasian opportunity that he sees, the mid-market scale, what he's been winning and continues to win as we speak this quarter, and what his future path is. Then we'll round up with a fireside chat with Zoe, which I'm hoping you're going to enjoy her perspective. We'll close. It's going to be a packed agenda. I know a lot of you have been sending some questions. We'll take some questions in the Q&A section as well. I appreciate that. With that, let's get going with the business. Let's talk about our Q2 earnings.

As I said earlier, the three themes, number one, EngineRoom is transformative. Number two, SKY 2.0 is real and is available. Third, we are now seeing a clear operating model for translating growth into operating leverage and ultimately profitable growth. We at SKY are building the agentic AI operating layer. Before we go into the business numbers, let me talk to you guys about the Just make sure you have the disclaimer slide on what are the forward-looking statements. Make sure you read that, the safe harbor. Please review the safe harbor and non-GAAP disclosures in today's presentation and our SEC filings for the applicable risk assumptions and reconciliations. We will be filing the 10-Q tomorrow, so you can read that when you get that. Let me talk about the company we have today. The company we have today is pretty amazing.

We are deployed globally around 200-plus cities with more than 60-plus customers now, supporting a large installed base of users. We operate inside demanding enterprise environments where security, privacy, reliability, integration are not optional. They are necessary. This matters because our AI strategy starts from something valuable, enterprise trust, and real operating context. Context is very important. We are not beginning by building an AI application and trying to figure out where it fits. We already operate inside the enterprise. We understand people, places, workflows, and enterprise systems. SKY 2.0 is about making that context increasingly intelligent and actionable. We are headquartered in San Francisco Bay Area. As you know, we have teams in Toronto and Manila. Now we are excited to welcome the Australian team, which is headquartered out of Melbourne, but they are all across Australia as well as New Zealand.

We are excited to have them on board, and this gives us the global coverage. We have around 70 team members now globally, and they are all working hard making AI successful in the enterprise market that we are in. Before we get to the numbers, let me just give you context of where we have been and where we are going. SKY 1.0 established the enterprise foundation. It showed us that we have great software, workplace software that has people and place intelligence. We have Fortune 500 customers. We have high trust, high complexity deployments. This remains an important part of the business. We made some significant strides in the last two quarters. Chris is going to talk about those customer case studies and stuff, but it has been amazing there. SKY 2.0 really expands that opportunity.

We are moving primarily from understanding places, which is really the Flow product, which is where and how people work, to person, which is what we are calling Beat, what an individual and team need to accomplish, and what should happen next in your life as a worker. Now we are moving with EngineRoom into business, how companies acquire customers, convert demand, and grow. That business context is significantly strengthened by EngineRoom, as you know. Underneath those experiences is the same SKY agentic platform. The strategy for me here is very straightforward. Proven enterprise technology, mid-market distribution, prioritized AI, and scale recurring revenue. We are going to run that flywheel cycle because we have got now an agentic platform that we can leverage across multiple verticals. More importantly, we now have a new distribution mechanism through EngineRoom. This is the transformation I am talking about.

This is what we're executing on, and we're super excited about this opportunity. Let me go into the business for this quarter and what happened this quarter. This is a pretty exciting time for CXAI or SKY. As you can see on our highlights for the quarter, there's six main highlights. But the biggest one is the EngineRoom transaction. It is transformative. I'm going to talk more about it in detail. But it really did change the revenue trajectory for the company. More importantly, quarter-over-quarter increase of approximately 79% revenue growth from $950,000 in Q1 to approximately $1.7 million in Q2. The more important thing is what sits underneath that growth. Enterprise retention remains strong. Two major Fortune 500 customers renewed their relationship with SKY. In enterprise software, renewals matter enormously because they validate the product after the initial sale.

Customers have continued to choose SKY. We also added a significant new win in the financial services sector. This is a three-year multimillion-dollar recurring revenue deal. It went through a very competitive RFP. We're super excited to have that customer on board, and they're scaling with us. They're beginning this quarter, and it's a really important win for the team, and it's one for two reasons. First, it demonstrates continued demand from highly sophisticated regulated customers. Secondly, these are the types of customers where SKY 2.0 can expand over time across additional modules, users, and AI capabilities. The other big achievement for this quarter is we moved SKY 2.0 into deployment, and that's a big win for us. And the progression is win, deploy, adopt, expand, exactly what we want to replicate.

With 2.0, really what we get is an agentic AI platform that allows a user to navigate their workplace, navigate their work, and navigate their experiences across the whole enterprise, and that's very exciting. And our customers, the reason why they're selecting us is because we have SKY 2.0. That's the wins we got, that's the renewals we got, are all because of SKY 2.0. As you know, during the quarter, we completed the EngineRoom transaction. For Q2, we only have one month, because it was the month of June, that EngineRoom is part of the revenue. And it's been an amazing one month because they've continued to get new clients. They've got double-digit growth. They're going through this annuals process where they've got commitments from existing clients. It's been really good.

All of these six factors combined really have been super successful for the company. I want to congratulate the team on a job well done. And it builds the momentum, it strengthens the foundation for SKY 2.0 and our scale growth moving forward. Let me tell you a little bit about EngineRoom, and what better than just to roll a video? Operator, if you can roll the video. All right. Cool. That's pretty exciting. When I talk about EngineRoom, I talk about it as being transformative. As you can see from the video, it's pretty exciting stuff they do, and they've been at it for 13 years, and they've made amazing progress in getting clients and making sure that they have really solid footing. Let me tell you why this is transformative. EngineRoom does not simply add revenue.

It changes the starting point for SKY. EngineRoom brings more than $8 million of revenue, approximately $1.6 million of adjusted EBITDA, a highly recurring revenue profile, and more than 50 mid-market customer relationships. Strategically, three things matter even more for me. Number one, distribution. SKY historically sold into large enterprises through an enterprise sales process. EngineRoom gives a structured relationship with dozens of mid-market businesses. That gives us a much faster proving ground and future distribution channel for SKY AI products. Number two, business context. As I said earlier, SKY already understands workplace and employee context, and that is one of our moats in differentiation. EngineRoom brings customer acquisition, performance, marketing, and growth data. That allows CXAI 2.0 to expand from understanding how people work to understanding how businesses grow. Number three, cross-sell.

We can introduce SKY capabilities into EngineRoom's customer base, and we can introduce EngineRoom's growth capabilities into SKY enterprise products. So the combined company has an enterprise anchor, a mid-market growth engine, and a shared agentic AI platform. The combination moves SKY to more than $12 million of analyzed revenue scale. This acquisition created scale. Our job now is to turn that scale into operating leverage. I am super excited about this. I think this is the right move for the company. It positions us ready for the growth engine that we have been talking about, the double-digit growth. It gives us that flexibility in terms of having the ability to innovate in a very interesting market, Australia. I will talk more about that in the investor forum.

We will go more deeper into it, but I just want to share the story with you, and share with you that this has been an amazing transaction for us. With that, I want to move on to the financials for Q2. I am going to turn it over to Melissa to walk through the quarter in more detail. As you listen to the financial results, I would focus on one important relationship, how rapidly the revenue base is changing relative to the cost structure. Melissa, all yours.

Thanks, Khuram. The quarter-over-quarter comparisons demonstrate that steps change is taking place in the business. Between Q1 and Q2, revenue has increased approximately $950,000 in Q1 to $1.7 million in Q2, representing, as Khuram previously mentioned, a 79% sequential growth. Our annual recurring revenue has increased from $3.6 million to $11.5 million. One second. We have jumped. Let me just find that slide again. Sorry about that. Net revenue retention has increased from approximately 98% to 99.3%, continuing to demonstrate our strong retention across installed bases. Total assets increased from approximately $33 million to $36 million, and our cash EBITDA improved from approximately negative $3 million in quarter one to negative $2.68 million in quarter two. EPS was approximately negative $0.10, compared with negative $0.09 in Q1. The key takeaway quarter over quarter is that revenue base increased substantially, while cash EBITDA improved modestly.

We are still investing in integration and development of the combined businesses, but the operating model is beginning to show greater scale. The year-over-year comparison also shows meaningful progress. Revenue increased approximately 42%, from $1.2 million in Q2 of 2025 to $1.7 million this quarter. ARR increases from $4.5 million to, again, the $11.5 million, an increase of approximately 156%. Net revenue retention increased by more than 5 percentage points to approximately 99.3%. Assets also increased 22%, from $29.6 million to approximately $36 million. Cash EBITDA was approximately negative $2.7 million, which is a neutral position compared to a year ago. EPS has improved from approximately negative $0.16 to negative $0.10 between the 2 years. The most significant change in the financial profile is therefore the scale of the recurring revenue base while we continue to manage investments required to support integration and future growth.

Now let me put this cost structure into perspective. Total operating expenses increased approximately $275,000 quarter-over-quarter, or 5.6%. However, we do need to compare that with the approximately 79% sequential revenue growth. The increase in operating costs was driven primarily by the EngineRoom acquisition and associated operating activity. Importantly, these Q2 numbers do not yet reflect the benefit of the operating synergies we are implementing as we integrate the businesses. Our focus moving forward is straightforward: grow revenue faster than expenses. We expect to accomplish that through shared functions, tighter operating discipline, productized implementation, increasing automation, and a higher recurring software contribution. That operating leverage is central to the financial strategy for the combined company. I will turn it back to Khuram now.

Khuram, you are muted.

Thank you, Melissa. I apologize, I was on mute. This was a really great quarter. As you can see, we are finally showing the value of our technology platform, but also the EngineRoom acquisition. I want to put in perspective on what I see the value of this company as we move forward. This is the valuation is based on numbers that we get from KeyBank, which does a monthly survey on software benchmarks and looks at all the recurring revenue-based businesses and software businesses. As I think of our business now, it is an AI-powered software business that is at much larger scale. The scale, as you know, last quarter, we were $1 million a quarter. This quarter, we are now $1.7 million a quarter.

With the full EngineRoom integration, we will be hitting $3 million a quarter or $12 million Analyze by next quarter. That shows real growth as well as shows real momentum and scale. Based on that, when you think about that business and you think about that software business with the metrics we have, just on a conservative basis, it is a 9.7x multiple. That is more on next 12 months revenue. I am just saying that revenue we have now, we will have now by Q3. To me, we are at a very attractive stock price right now, given where we are at in terms of the valuation that we should command. I do believe that we will continue to perform, and given our double-digit growth strategy, we believe by the second half of 2027, we will be growing and getting to the break-even point.

That is where our focus is. Our focus is really to get to that level. You can see the metrics based on that. This is all illustrative, by the way. This is not a valuation guidance. I am just taking industry benchmarks and showing you what the value of this company is and the fact that we have now built that agentic AI platform, that R&D expense has been done, and now it is about growth and distribution. This is where we did the EngineRoom transaction, and this is where we feel very strongly about the growth and scale of the business. Can we sustain this growth? Can we increase software mix? Can we translate into greater revenue scale? Absolutely. That is where the two businesses have been complementary, but we are going to help each other scale up faster.

Now let me talk about probably one of the most important charts in the slide deck here, is about the path to break even. Again, this is a directional operating framework, not specific financial guidance. The EngineRoom acquisition gives us a combined revenue of more than $12 million. From here, there are several identifiable levers. First, organic growth. Continue expanding the SKY enterprise business and EngineRoom's customer base. That is obvious. Second is cross-sell. Introduce additional SKY modules into existing enterprise customers. Chris is going to talk a lot about that today. Number 2 is introduce SKY agentic AI products into the EngineRoom's mid-market customer relationships. That is the second cross-sell that we think is very important. Thirdly, increase software monetization.

We will talk about Flow, we will talk about Analyze, Events, and our emerging personal execution capabilities called Beat, all increase our opportunity to generate recurring software revenue from the same platform. Fourth, prioritize that mid-market motion. For mid-market customers, we do not want to recreate a long enterprise implementation. Our objective is to standardize the products, standardize the connectors, faster provisioning, and lower cost to serve. Fifth, operating leverage. We now have opportunities to share infrastructure, technology, corporate functions, and delivery capabilities across a much larger revenue base. That is the synergy that Melissa talked about. The operating model we are working towards is characterized by, number 1, double-digit revenue growth, which is part of our strategy as well as what EngineRoom is already on. Number 2, recurring revenue more than 95%, gross margin above 70%, software mix above 95%, increasing revenue per customer.

We're already at $150,000-$200,000 per client per year, which is really great, and a disciplined expense growth, which now we can do with the larger scale. If we execute against those levers, we believe there's a credible path towards break even in the second half of 2027, followed by profitable growth. I want to now close with why SKY? Why do you want to continue to invest and be part of this journey? Why is this moment different for SKY? Reason number one, EngineRoom is transformative. It immediately increases our revenue scale. It gives us profitable operating capability, and perhaps more importantly, it gives SKY a mid-market distribution engine that we did not previously have. Reason number two, SKY 2.0 is now in production. This is no longer simply a roadmap or an AI narrative. We are ready now to deploy this across our clients.

We've been successful in the demonstrations and prototypes and getting it through our clients. They're going through a lot of validation, but now it is launching. It is launching live with a new client. It's also launching live with existing clients. Now we have these new enterprise logos signing multi-year agreements. They would not be signing multi-year agreements with us unless they knew that the roadmap and the product we have is going to be long-lasting and for the future. We are expanding the platform from workplace intelligence to personal execution, which is the CXAI Beat, as well as the growth intelligence, which is EngineRoom. Reason number three, the financial model is becoming more scalable. Q2 revenue increased approximately 79% sequentially, while operating expense increased approximately 5.6%.

That does not mean the work is finished, far from it, but it demonstrates the opportunity for operating leverage as we integrate the businesses, grow recurring revenue, and prioritize more of what we offer. With that, I'm going to look into some questions that have come in. Let me see. Okay. Question number one, good question. How much cash do you have? What are your liabilities after the purchase of EngineRoom? I'm going to have Melissa take that. Mel?

Thanks, Khuram. Our cash as of 30 June 2026 is $11.7 million. Most importantly, the acquisition costs related to EngineRoom have been largely paid, and any subsequent funds owing on the acquisition of EngineRoom are tied to an earn-out model. I don't

No, that is good. I think just to be clear, the EngineRoom acquisition was 65% cash and the rest was in earn-out. The team is focused on, it is a 2-year earn-out with growth factors in revenue specifically. That is going to earn out itself. We have no other liabilities on EngineRoom except the earn-out. Overall, as you can see, the asset base has increased and it has been a very successful integration up to now. Okay. Next question I see is how quickly should shareholders expect the EngineRoom acquisition to be reflected in SKY's reported revenue? Melissa, you want to take that?

Yep. We have actually already captured 1 month of combined revenue, so that being the month of June. We will be able to demonstrate next quarter, so Q3, the full combined impact over the 3 months of that acquisition and the combined revenue.

Yep. Okay. I think the next question was 1 more question, what do you think of the revenue growth over the next 12 months? Look, I gave you some illustrative graph on our potential. As you know, we are focused on double-digit growth. We really believe that the scale we are getting with EngineRoom, the wins we have with our existing enterprise business and new logos coming in that are multi-year, multimillion-dollar contract, we are pretty positive on that. We are also positive on EngineRoom because they have increased their revenue profile, the number of clients, and their annual process has been super successful. Anyway, we are pretty positive on that. I think our goal is, like I said, is to have breakeven by second half of 2027. If we execute our plans that we have and the growth vectors that we are working on, I am pretty confident in that.

We are also focused on expense management. With agentic AI, we are leveraging AI across our enterprise. All our functions are using AI. We are seeing a lot of efficiency there. As you can see in terms of our team members, we are very cost-efficient. I am pretty positive that in the next 12 months, we will achieve much higher growth, and we will get to the breakeven target that we have. Okay, we are running to the end of the call here. Thank you, everybody. I appreciate it. We are going to take a brief pause, and we will join you back in 60 seconds or so for the investor forum. Thank you. All right. It is 2:30 P.M. Pacific, 5:30 P.M. Eastern. Welcome to the investor forum. Thank you for people who joined the earnings call a few minutes ago.

We're going to be more strategic here, more product-focused, really talk to you about the products, the business, the customers, the things underneath the hood that we're working on, and show you the path that we believe is going to be super successful for SKY. I think we shared the agenda before. I'm going to start off with the strategic view of the business and more strategy thinking about where we're at, where we're going. Then the team is going to tell you how we're doing, what we're doing, what we plan to do next. Then we'll end up with a very interesting fireside chat. Thank you for being here. We wish to do this next time live in person, but we're going to do our best to do these demonstrations and these discussions on the webcast.

Number one, I want to start with something I believe very strongly. I've been involved in lots of technology transitions. I was involved in the first mobile phone, I was involved in the first 4G network, I was involved in the first Wi-Fi systems. Then I was involved in 5G and cloud and all these interesting technology developments that have happened. I believe we are at the beginning of another major technology transition in enterprise software. What I mean by that is, SKY started by solving a very real problem, how people interact with the workplace. That happened after the pandemic, as you know. COVID kind of created this hybrid environment. What we have built underneath that experience is becoming much bigger than a workplace application.

We have enterprise integrations, we have proprietary contacts, we have AI orchestration, we have data, and we have security and trust. Now we're bringing all these assets together into CXAI 2.0, our agentic AI operating layer. Our strategy has three priorities. Number one, reposition SKY around this agentic operating layer, which I talked about as the context layer. Second, use EngineRoom to give us immediate scale, mid-market distribution, and a much larger customer base. Thirdly, is prioritize what we learn into repeatable vertical AI solutions. This is not simply an evolution of our product. I believe it can be an evolution of the company. We're going to talk about that. We're going to go through some real strategic focus on why we're doing this. Let me explain why the timing is important in the industry right now. Enterprise software is evolving as we speak.

The first generation of enterprise software created systems of record. Then SaaS and analytics gave us applications, dashboards, and visibility. But visibility is no longer enough. The next generation of enterprise software is about action, about getting stuff done, basically. AI agents will increasingly understand context, make recommendations, coordinate workflows, and actually complete outcomes. That is the layer I want SKY to own. Not another chatbot, not another dashboard, not another AI feature added onto an application. The operating layer between the enterprise systems, its data, its people, and the actions that need to happen next. Employees want fewer applications, executives want decisions rather than more dashboards, and mid-market businesses want practical AI that produces value today without having to assemble teams of AI engineers to build it themselves. This is the opportunity that we are designing SKY around.

We're building the agentic AI layer for enterprises to work and grow, and that is our focus. Let me put it into a little bit more detail and show you what I mean by that. This slide shows me where we came from and where we're going. We started with place. Sky Flow understands where and how people work. Workplaces, spaces, resources, presence, and experiences, and maps, and locations. Now we are moving into person with Beat. Beat is about personal and team execution. What do I need to accomplish? What has changed? What matters most right now? What should happen next? How am I going to become more productive? Eventually, what can the platform safely do for me? In an enterprise, you want to be in a secure environment. You want to be able to get your stuff done. Now we're adding business through Engine Room.

How does a company find customers? How does it convert demand? Where is the marketing working? Where is it not working? What is the revenue being lost? All those questions need to get answered, and what actions should happen next to grow the business? Think about what we are assembling. Place gives us workplace context. Beat gives us personal and team context. Engine Room gives us customer and growth context. Underneath all these three is one shared SKY platform. It senses, it prioritizes, it acts, it verifies, and critically, it learns. Also it gets it done. We're about the outcome business. We're about context should not just another insight. Context should lead to an outcome. This is what we're focused on in really creating those amazing outcomes for our clients. Next, I'm going to talk about the market.

This study is taken from one of the vendors, Grand View Research, and you look at the market surrounding this amazing. We're participating in three large categories that are all growing. Digital workplace platforms, enterprise agentic AI, and now marketing automation and growth intelligence. The individual market growths shown here are significant, but the bigger number is the compounding effect. It's a 75X plus compounding effect of growth over the next couple of years into 2030. It is not claimed that our addressable market sometimes becomes 75%, but the opportunity for us is 75X. We're not exposed to only one category now, we're exposed to three categories. We sit in the intersection of workplace intelligence, agentic AI, and business growth intelligence. My conviction is that the intersection matters, because enterprises don't ultimately buy AI because AI is interesting.

They buy it to make employees more productive, make better decisions, reduce cost, and grow revenue. These are precisely the outcomes that these three businesses allow us to attack together. Let me talk about what are we building, right? We spent a lot of energy and time with our Silicon Valley team, and as we integrate our folks in Australia, they've also been thinking about it. The reality is, all great minds think together, and we've had a great interaction with our teams. This gets to the heart of what we're building. Across the top, you see the context domains, the work intelligence, the place and person, the growth intelligence, the business, and the future verticals that we can add over time. I want you to focus on what's underneath. This is the SKY agentic platform. The philosophy is simple.

Understand the context, recommend the action, get the right approval, complete the outcome. As I mentioned in previous events, BOND is our agentic engine. BOND is a multimodal, multi-agent orchestration system that provides the agentic execution capability. CORTEX provides intelligence, context, knowledge graphs, personalization analytics, and we surround that with the requirements enterprise actually care about. They care about identity. They care about auditability. They care about human control. They care about connectors. They care about governance. They care about all the things that are important to make an enterprise successful. That's why we have designed this for the enterprise. We've designed it with all those controls. We've also integrated with all our partners, all our cloud partners. As you know, we have a strong relationship with Google Cloud, also partnered with AWS, and we have also one of our clients using Azure. So we are multi-cloud.

We have access to all their models, all their information, and we're using the best-in-class technology to deliver this agentic operating layer. The most important part of that discussion is we're not betting on SKY on one foundational AI model. Models will change. Models will get cheaper. Models will become more powerful. Our value is the enterprise context, orchestration, permissions, actions, and outcomes layer from these models. That's why I call it the operating layer. The model can provide intelligence. SKY makes that intelligence useful inside the enterprise. We are the outcomes, we are the actions, and that's what we're focused on. Another key part of this, as we looked at EngineRoom and other opportunities to partner with folks, is that this architecture that we built gives us tremendous leverage. We don't have to build a completely different technology stack every time we enter a new use case.

The same orchestration layer can support workplace agents, can support growth agents, analytics agents, automation agents, and eventually industry-specific agents. A meeting agent and an attribution agent may solve very different customer problems, but underneath, they need many of the same capabilities. They need the data. They need the context. They need the permissions. They need the workflow orchestration. They need the auditability. The ability to complete work in the system where that work belongs. That is where I believe the leverage comes from. One platform, many specialized agents, real business outcomes. The more repeatable those agents become, the more efficiently we can take them to the mid-market. That's where we're really focused on is we've built a really strong technology architecture, and now we're looking for, with that amazing product, we're looking for the distribution model.

This is where our new friends at EngineRoom come in. As I think about EngineRoom, I think I mentioned in the earnings call, but I want to reiterate, it is strategically super important for us. It is simply not an acquisition that added revenue. EngineRoom changes how we can take SKY to market. SKY gives us the enterprise anchor, technology proven in complex environments. EngineRoom gives us a mid-market customer base, recurring revenue, commercial data, and people who understand how to drive measurable business outcomes. Australia gives us an excellent launchpad. We can launch, learn, and scale. We can work directly with businesses in trades and field services, construction, automotive, healthcare, professional services, and manufacturing. These are incredibly important parts of the real economy. A plumber doesn't need another chatbot. A construction company doesn't need another AI demonstration.

A healthcare operator doesn't need another dashboard. They're very practical folks. They need more customers. They need faster response. They need better scheduling. They need lower acquisition cost. They need higher employee productivity. They need better visibility in what is driving revenue. This is where practical vertical AI becomes incredibly powerful. EngineRoom gives us more than 50 customer relationships and a recurring revenue foundation. Our objective is to identify the workflows and repeatedly create value, prioritize them on the SKY platform, and distribute them more broadly. Services help us discover the problem. Software gives us the scale. This is why I'm super excited about EngineRoom. It's getting us a head start into the mid-market strategy that we've had. We're working closely with them this quarter to start identifying customers.

They've already been a lot of great interest, and as we get Flow and Beat and Events and other products that Chris is going to go through, there's a huge opportunity to leverage that channel. All right. Next, let me talk about a little bit more detail about the combined platform. All of these strategies and these product visions ultimately have to translate into economics, and I'm going to go a little bit more deeper. I know I went a little bit on the earnings call. The acquisition gave us the scale, it gave us that $12 million revenue. Now, SKY True Auto has to give us operating leverage. Today, we have that combined revenue north of $12 million. We have enterprise customers on the SKY side. We're growing those customers. We have those 50 mid-market relationships through EngineRoom.

We have recurring revenue, we have data, we have distribution. The next phase is about pulling four levers. Number 1 lever is grow and expand existing businesses, and both businesses are working really well. The enterprise business is expanding, and EngineRoom customer growth is happening. Secondly, cross-sell and distribute across the combined customer base. That's job 1, and we're doing that right now as we speak. Third is the exciting part of prioritizing the AI and new modules, increasing the software component of our revenue, which is already 95%, but now growing it in the new AI economy. And fourth, creating that operating leverage as the company scales. And we talked about it's already starting to show the signs in Q2 here. Ultimately means that revenue should grow faster than the infrastructure required to support it. Our ambition is very clear.

Higher recurring revenue, higher software mix, higher gross margins, more revenue per customer, and a path towards breakeven and then profitable growth. The acquisition created the scale. The platform has to create the leverage, and that's what we're focused on executing, and I'm pretty excited that this is a path that we're on. As I said on the earnings call, we have all those metrics. We're diligently working on them as part of the integration. I'm showing some directional synergy targets that the team has. We're already realizing some of those synergy targets in the second half of this year. Next year, we believe there could be more, not only on cost synergy, but also revenue synergy. And then finally, the flywheel effect with the SKY True Auto product will really implement much higher growth factors here.

All of this is great plans, but none of it really happens unless I have a great team to execute. I am super excited to introduce some of the team members here. We are working on a very lean operating model. Chris is running enterprise business in North America for us. Adam Laurie is taking on Australasia as well as the EngineRoom business, and then Melissa Podruzny has stepped up as being our interim CFO. We are also proud to have a global CTO team that brings together technical leadership across Silicon Valley, Canada, Australia, and Southeast Asia, and that is important. AI innovation is global. Our customers are global. Our engineering capability should be global as well. This structure is designed around speed, accountability, and execution. We do not want any unnecessary organizational layers. We want talented people close to the customers globally, close to technology, and close to the results.

That is where we believe we have a huge opportunity, and anyway, I am super excited to introduce the team. I am going to transition now to Chris, who is going to talk about the North American enterprise business. Chris, go ahead.

Well, thank you, Khuram Sheikh, and welcome all. I am Chris Wiegand, and I am General Manager, North America. I will let you know, I am an entrepreneur at heart, and I could not tell you how excited I am about this whole AI transformation. It is truly changing things as I am sure you have in your personal life, but especially in the workplaces. What is also exciting, just on the tail of that, we have had the best year we have ever had. We have signed the largest deals I am going to take you through. We have got our 2.0 product deployed and working. We have got a new module I want to tell you about in our Events, and then Khuram Sheikh also told you a little bit about the new product, CXAI Beat. Khuram Sheikh has been telling you all about strategy, and what our vision is.

What I want to do for the next 20 minutes, I am going to tell you through what is happening on the ground. How are we doing our business? What are the customers all about? Most importantly, we have got some live videos that we have recorded to show you the product itself, and then we are going to go through and talk about what the rest of the year look and how are we going to do it. Okay. What I really want to emphasize here is, there is not names on the page, but these are the largest and biggest companies in the world. Some of them, they are leaders in their space. I will tell you this, they have gone through super diligent we will call it. These are some of the toughest RFPs and diligence processes you can go through, and that is how it should be, right?

We're working with very secure, complex environments. By these customers doing this, they've really gone out to market. They have the resources. They can choose whoever they want to, and by sandbox trials, by many, many questions and answers and meetings, we've come out on top. That's the pattern I really want you to know is that we keep winning in the regulated environments, the enterprise environments, and these are, again, some of the toughest places to get your products deployed. I'll take you through from left to right here. One of our biggest wins this year is a top financial institution. They are actually global. They've got dozens of sites around the world, thousands of users that are going to be coming online. This is actually more than a 12-month pursuit. Again, they went out to market, and SKY came out on top.

Next we have a global asset manager, so we're closing this right now. They're starting at the end of this year, so there's going to be a quick turn on our implementation. Again, five-figure number of users. Very similar use cases in terms of what they're doing. Again, they're starting with an entire population that we're going to go live with. Next is a leading U.S. insurer, and I'm going to spend a little bit more time on this because it's going to tell you about how we deploy. This is an interesting customer for many reasons. One, it's really our bridge to the mid-market, so it's a few thousand users. We're still in an enterprise environment, but this is how we really took our product and learned how are we going to productize this so we're configuring, not making custom code.

I'm going to talk more about that. They're going to go live in September. They've got a brand new headquarters, and we're in deployment testing for that right now. Let's not forget our amazing install base. We've got enterprise customers today that are choosing to stay with us. Same rigorous environments. We had one of our largest financial services customers renew. We had our largest media and entertainment company, they renewed and expanded. Where is this all going? This is all leading to more revenue. That's the goal. Not giving you guidance, but directionally, the new customers that are coming online, the things that we're not even seeing yet in terms of revenue, it's about a third uplift. That's pretty significant when you think about it, and in addition to the other things I'm going to talk you through here.

All right. Validation is really the key here. You can go win these deals, but you have to deliver them. That's really what our customers are expecting is exactly what we're doing. This is the company I'm going to take you through sort of a quick timeline of how we're delivering for this leading U.S. insurer. Again, it's a brand new headquarters for them. It starts out, we have an enterprise agreement. This is a very detailed scope of work. We understand exactly what we're delivering, how we're going to do it, and then we go and build it. With that, we have integrations into their core systems.

Remember, the pull value of what we do here in Flow, SKY, is we're taking disparate systems, and we're putting it all into one cohesive system that an employee can just get what they need quickly and easily, and you're going to see that in the demo. Now we're in testing. We deployed 2.0 to them. We've got most of the integrations done with a brand new headquarters. As you can imagine, there's things that are staged. Right in the next 30 days, we've got really important next steps in terms of finalizing testing. But I can tell you the client is extremely happy. We're right on schedule. Then we're going to scale. That goes live to the population. There's a few really important points I want you to remember here. This is our point that we've really transitioned from custom code.

This is not custom development for a customer. This is configuration, which means it goes faster, okay? This is how we're going to deploy to the mid-market as well. If you've been on our earnings calls before, we've talked about how we're moving away from the big one-time upfront fees and campus fees to per-user software. The market is demanding value-based pricing, and value comes from people using the product. When we deploy it, we expand it through utilization and through people actually adopting the product. We've got a common goal with our customers to get everybody using it so they realize value, we realize revenue.

Again, a key message here is that we've taken what we've learned in the enterprise, the really complicated environments, and we're taking that into more deployment and into a repeatable, scalable model that I'll talk you through a little bit further here. Okay. What I want to also, as I'm going to introduce you to the products, and Khuram Sheikh has already, I want to highlight a point that we've proven ourselves in the enterprise, and that's revenue. That's great. But what it's also doing is it's giving us the ability to productize what we've done and go down market. I'm going to work through the product that is out there today, Flow, the ones that our customers are using, to book spaces, to wayfind, to interact, to get news. This is what's out there.

That's what's Flow, and we've got this transition, now that we've built 2.0, to transition those customers and new customers onto that. All the data that they're creating goes into SkyView. SkyView is our analytics platform. This is what's not just dashboards, and this is going to be one of the demos as well. You're going to see it's taking that operational data and turning it into insights. That's really exciting. Next, Events module. This is a brand-new product. It's coming out in just a few weeks. We'll be GA in September. We've solved a major industry problem, and I bet you everybody who works in enterprise is going to recognize this right away. I'm not going to talk about it now because I've got a couple minutes. I'm going to just go into more detail on that.

Khurram had also told you about new product Beat coming. Beat is really this tool that keeps everything on track, starting with the personal level. This is a productivity tool. I will tell you that people working in companies today are overwhelmed with the number of messages they are getting. They have got systems for Jira, Slack, Teams. They have got things coming at them. There is duplication all over the place. It becomes anxiety. They do not know what to do next. We have created a system that keeps everything moving, keeps you prioritized on what is most important next, and also prepares or does the work for you to keep the team moving. Stand by for that one. That is coming in Q4, and we will certainly tell you all about that as soon as it is live.

What I also want to make sure that we recognize is that we have got the same agentic platform driving all of this. Underneath all of this is a SKY agentic platform. This is the thing that is going to really, as you can see here, sense, like what is the proximity, what is happening, what is the priority? Act, meaning do something for you. That is what agentic means. It is not just giving you a message and reminding you, it is actually, in a lot of cases, executing on something, and then verifying. It may give you a plan, and you can approve that plan. What we are going to do now, we are going to go into two videos. They are live demos of both Flow, we will call this the know me scenario. This is an employee's view of how they are going to go with their day.

You are going to hear me talking conversationally with the platform to do several use cases. That is about 2 or 3 minutes, and then we are going to transition to the next video, which is View, our SkyView analytics, and this is from the manager's perspective. They are going to be there asking the strategic and insights that they want to get out of the data that they have. With that, David, if you would not mind, let us go to the videos, and I will see you all back in about 5 minutes.

Okay. I am so glad everybody got to see that. I get excited every time I get to demo that. It certainly feels like we have got the hotcakes. I say that because this is how people want to work. They do not want the friction of having to dive into stuff. Even if you make something super easy and user-friendly, you would rather ask it through a conversation. We will parking lot that, and I am going to move on to Events. This is our newest module, and what we see on the screen here looks like chaos because it is. This is what people are living in the enterprise environments when they are talking about managing events. I am not really referring to thousands of people at a large public event. Yeah, those are confusing too, but that is not what we are doing here.

What we are doing is we are helping people manage events that are happening at the workplace. They happen every single day in all of our customers, both mid-level and in the enterprise. They are going to be all-hands calls. They are going to be sales kickoffs. They are going to be training events. This is really managing the part that you need a room that you cannot request yourself. It is not a reservable space. For the people that manage this on the other side, the admins, they are dealing with everything you see on the screen. They are going to get a calendar invite or request. They are going to get an email. They are going to have to open up a ticket in the catering system, or even just send an email. They are going to have to send an email or a ticket to security and AV, and all of these things.

Not to mention, this is not just one room in one place. This is happening potentially around the world in 10 or more places, and they have specific requirements for every location. What happens is that the event changes, things keep on piling up, and there is somebody there, and when we talk to them, they are literally in tears almost because it is so stressful. We are working with somebody that we are going to launch right now, and their quote was, "I am the integration layer. Sigh." There is no system that brings it all together, which is great news for us because we have done that now. I believe that nobody has done this before because they do not understand corporate workspace like we do. We have got robust rules. We already have the user interface. We have already got the integration, so we are so far ahead of that.

What we leave people with in this current state is high risk. You have got things that have to happen on time. It is like a wedding, right? There has to be food. There has to be a room. There are executives involved. There are maybe external customers. It is really high-stakes, high-risk stuff. What we have done to answer that, and we have got it all into one workflow. This is all one orchestration. You start with the user requesting everything they need. They can see what is available. They can request what they want in terms of space, catering, AV. It does not mean they are going to get it. It has to be approved. There is an approval workflow, which is the real key here. It is going to send automatic workflows for approval to the various departments that need to approve it.

At the end of the day, you have got one system here that is wrapping all that up. This is super exciting for us because it is an add-on, not just for our customers we have today. We are going to market with this as a standalone as well. We have got campaigns that are starting right now, full demand campaigns. We are also leveraging the EngineRoom platform that will help us even further promote this. I will talk more about that in just a second, but as you can tell, I am very excited. If there is a slide here or a message that I want you to take away today, it is really this. It is the enterprise market for us has proven our model. It has proven our technology. We know we have product-market fit. We know we can operate in very complex environments.

It's now the mid-market that scales. I want to be really clear about something. We're not leaving the enterprise market. We've got great customers, and we're going to continue. I'm sure we're the best in the world when they go looking for it. As I described, it's a grueling process. It takes a while, but when you win, you win big. So what we've done here is we're taking everything we've learned in enterprise, we've productized it, and we're going to now take this to market and deploy it in a rapid provisioning. This means that the connectors, as Kerm described, they're pre-configured. They don't have to be built out. They're going to be drop, plug and play, basically. Then we have opportunities we've never had before. This is truly different. We have EngineRoom as their customer base.

They've got growth-minded customers that this would apply to as well, the products that we're talking about. Not only that, we've got their technology to super promote from a lead generation perspective that we've never had before. We've got resellers that are signed up and ready to go for this, and we've got our marketplace partners where somebody's going to be able to go into the marketplace where they're already buying software, AWS or Google, buy it, start using it. The time to value is extremely fast, which of course is going to result in scale. An important point about this is that we're not just recreating what we did in the enterprise and doing it down market. That would mean, hey, we're just doing smaller deals and more of them in the same hard way. It's not that. We have productized what we're doing.

We can do it fast, we can do it easy, and that's what's going to allow us to scale up. What I wake up and think about every day, here's our operating principles. The same goes for Adam, who's running Australia. We now have one P&L. We've got the same set of metrics for the board and for all of you as shareholders. EBITDA, growth, bookings, revenue, growth, scale. The way we do that, and the way that we're going to do that in our business here is we got to deploy. We are mid-flight. We've got huge projects going. They're getting deployed flawlessly. We're getting them out there. That's the number one goal. All those customers I mentioned to you, they're going to get out there. What does that mean?

That means we're going to start generating recurring revenue as soon as they're up and being used. We've got adoption. I mentioned to you events. Literally everybody we talk to, they have this problem, and it's a burning problem. We believe that we're going to do a lot of upsells with our existing customers. We're also going to do, as I mentioned, a standalone product. Some of our customers, most of our customers are still on our previous platform, and it represents a great opportunity to enrich their experience, but also for upsells and add-ons. Things like agentic AI and other modules like the events and other things that may not have today, those represent opportunities to increase revenue at the base. Then we're talking about major expansion. This is what I get really excited about. We have everything I just talked about.

We've got pipeline deals for our enterprise. We've got add-ons, but we've got this new productivity tool at the employee level that will go up and down market. This is something that's going to apply the product Beat for enterprise customers. It's going to apply for mid-market. It's going to help people do their jobs better and teams deliver, which is going to really result in expansion for us. All of that combined, by Q4, we're going to have a new cohort of revenue. These are customers that we don't have today that will be generating new recurring revenue, and that's the goal here. All right, to wrap things up for me, two Engine has just become one, and I think that's really what Khuram has been talking about today is that we are one company, and we are way better for it.

What we've learned in the enterprise, we're now taking into the mid-market. I mentioned to you that EngineRoom already has customers today that are going to be great candidates for us. We're going to use their tools to grow. Really, the whole second part of the flywheel here is EngineRoom. I think a really important message we also want to get through to everybody today is that we now have a common backbone. The SKY agentic AI platform, although servicing very different use cases and workflows, we are leveraging a low-cost model through BOND and CORTEX that allow us to deliver maximum value to our customers. I'm going to turn it over to Adam here in just a second, and this is great news for us as a company. It's such a lift because Adam already has scale.

He's already got profitable growth, and he's got a great product. I'm excited to turn it over to Adam. Adam?

Thanks, Chris. I appreciate that. A big hello from Australia to everyone joining us from around the world. My name's Adam Laurie, and I'm the co-founder of EngineRoom and now General Manager of SKY's Australian operations. Speaking personally, EngineRoom has been such a major part of my life for more than 13 years, so I'm really excited today to have the opportunity to introduce it to all SKY shareholders and people who are on this call for the first time. The purpose of today, I want to bring you into the world of EngineRoom, show you what we've built, why it works, give you an understanding of what SKY's acquired, and most importantly, to showcase the opportunity we have to build something collectively bigger together. Okay, what's our purpose, and what are we here to achieve as a business?

We use data digital and AI effectively to enable smarter decisions and unlock greater growth potential for our clients. That is what we do. We are revenue generators, profitable revenue generators for our clients, and that is why they utilize what we provide. We are an established business, and we have a very strong proven track record. We are Australian based. We serve businesses across the Australasian marketplace at this point in time. We have 13-year history. We were first established back in 2013. We are multi award-winning across multiple facets, including performance, innovation, and most importantly for any business, our people. What we do as a business, we are fully integrated growth marketing solutions designed to capture high intent demand and drive sustainable profitable growth for our clients. We have three major divisions. We have our MarTech platform, which we will go through shortly, fractional CMO, and then marketing as a service.

What problem do we solve? Everything that we do always comes back to the genesis of what is our purpose and what problem are we solving for a business. Why do they want to spend with us? A business these days has difficulty building a cost-effective and scalable customer acquisition engine. Without customers, businesses obviously struggle with growth. They have difficulty measuring marketing ROI and demonstrating commercial impact. They have disconnected business, customer, and digital data that do not communicate and do not speak. They have a failure to convert knowledge, data, and AI into a commercial advantage. That is the problem that we solve. We create growth marketing solutions that transform these strategies into measurable, scalable, and profitable outcomes. We build cost-effective acquisition engines for our clients. We deliver clear, measurable ROI and commercial performance insights.

We uniform data strategy and execution into a single source of truth, and we transform the knowledge and data into a sustained commercial and competitive advantage for them. The key is also what we do and just as importantly, what we do not do. In the world of digital execution, there are two primary markets. There is awareness and there is intent. Awareness is obviously when I am not aware or I am not thinking about making a transaction or purchasing a transaction, but I might be induced by a commercial or something to think about it. We do not focus on that market. We focus on the intent market for our clients, and those are people who are actively already out there looking for a product and service that our client provides. We do that because that is the most profitable part of a market that a customer can access.

They are high-intent customers, they are not necessarily discount-orientated, and they are high converting. That is the market that we focus on for our customers. It is also very measurable because it is towards the end of their journey. Why the customers choose us? We have proven results in delivering for over 13 years now. We have cutting-edge technology that powers smarter data-driven decisions. We have solutions that achieve substantial and measurable ROI. We have a fully integrated end-to-end solution profile, and we have unmatched in-house expertise and support. If we look at the MarTech platform that I touched on personally, which forms the foundation of everything that we do and so critical to our success. Our technology is designed to empower marketers, owners, and advisors to make data-driven decisions that optimize growth and drives success. We effectively have three main parts to our platform.

We have Strategize, Analyze, and Optimize, and they are all meant to be interlinked to form a cohesive end-to-end solution. The purpose of Strategize, where are we going? What is the purpose of what we are doing here? We have context, set the direction, define objectives. Analyze, how are we performing? Measure and understand performance, maximize opportunities, identify risks. Then optimize, what should we do next? What are the actions that will drive improvement and gain me a commercial advantage? Those three parts are all important because ultimately, if you do not have all three parts, then you are going to be missing out on a key part of growth. Each module that we then build within the platform has a specific application within those sectors.

We have a whole host of different modules, we will not go into detail today, but they have very specific applications that we can call and draw on as required when we are engaging with our clients or the clients who are working through the platform. What is important to understand about how we utilize AI and how our technology gains a commercial advantage, LLMs understand language. We all know that. The key with the EngineRoom platform is it teaches AI to understand the business, and that is the key difference. To do that, we really have to base our AI in a strong foundation. What we do is we bring in core parts of data of a business. We bring in their business aspects, so what their goals and objectives are, what their brand identity is.

We bring in their customers, understand their target market, understand how they are trying to engage with them, understand their commercial advantages. We bring in information in relation to their competitors, what the market is doing, and then we bring in obviously information in relation to their individual performance. That forms that framework for us, and then when we are driving through AI, it gives us the foundation to effectively produce stronger outcomes and stronger recommendations. You would know that when you are using a lot of tools out in the marketplace that maybe use AI, very generic in nature, and they will basically say, "These two businesses, because they are in the same sector, want the same things." They really do not because they are all individual businesses who have different needs, different competitors, different sectors, different profit margins, et cetera.

Without that context, it is going to be lower quality insights and lower quality information. Us grounding it in this real core knowledge database enables our customers to gain a significant commercial advantage. The other thing important is that when we are using AI, it is a continuous learning application. We store all this data, and every month that we are storing this data for our clients, we are improving the functionality and the output of what it can deliver. So it is a living, breathing, learning tool that enables us to continuously move forward with our clients. That is a really important part, both the knowledge center and the time aspect, to continuously gain that commercial advantage for our clients. That is where you get back to ultimately, a prompt and answer versus knowledge and action.

Traditional AI, give it a prompt, and then it will be like, "Here's the answer that we recommend." It is a very generic prompt and a generic answer because it is done in the context of everything and everyone. Whereas at EngineRoom, we have that specific knowledge, and we have that specific reasoning from learning, and that enables us to do a very high-quality action specific to that client's needs. Today, we are going to show you an example of the platform. I am actually going to go through a few modules. The client I am going to show you is a smaller client, but they have kindly enabled us to showcase their data. It does not matter whether it is a smaller or larger client, the same principles apply.

I am going to give you an example into just some of the modules in how we apply them and how we discuss them when we talk with our client. David, if you would like to press play. Thanks. I hope everyone enjoyed that. Okay. Why EngineRoom and SKY? We are looking to be CXAI's Australasian growth engine. Khuram Sheikh already touched on that before. We are a business that has grown substantially year on year, that has generated ongoing growth strategies. We target customers who are in that 5 to 500 historical customer range. Average client yield is around AUD 200,000 per annum. We have 93% recurring revenue, and the average client extends beyond 4 years in life. Our customers are across diversified industry sectors, professional services, home services, manufacturing, industrial, et cetera.

We have a strong, diversified mix, which is a great foundation for the next stage of our growth. We have a proven track record of scalable growth year on year. As you can see, over the last 5 years, we have consistently grown, and that is profitable growth we consistently move forward with. Importantly for any company, we have a proven team, and we have leadership who are staying on board. We have an award-winning culture, which has been recognized, I think, for the last 5 years, an experienced leadership, and we have a very strong specialist capability, a capacity that who are being retained across technology, AI, data engineering, and growth marketing expertise. What does it mean for the future? There is enormous growth opportunity, even in the Australasian marketplace.

We are fortunate to be in a sector that has high growth in all capacity, whether it be MarTech, the fractional CMO, or marketing as a service. Even in the context of Australia, even though we turnover AUD 8 million, the context is that the growth opportunities in Australia are so significant. That is one of the things that is exciting about CXAI and Australia coming on board, is that it will enable us to hopefully unlock so much of that growth opportunity that we know is available. What are the next steps from here and the pathway forward? Accelerating EngineRoom with SKY, combining EngineRoom's expertise in customer relationships with SKY's agentic AI capabilities.

We can look to improve, we already do a semblance of AI, but we know that SKY has strong agentic capabilities, and we have the capability or capacity to look where that can be integrated and improve what we do as a business. We will be looking to accelerate our product development, once again, leveraging off SKY's expertise, and expand our data and intelligence capabilities. To that end, EngineRoom business knowledge plus SKY agentic AI, we are looking to improve the intelligence, the reasoning, and the action outcomes. To give you some context from a development architecture. At the moment, we have done a lot in the data, the source of truth, and the business knowledge, which I touched on before. We have started with the reasoning and the decision engine.

What we look for in the future roadmap is to strengthen the reasoning and decision intelligence, but then also look at taking the next step, and this is where SKY's capabilities come into play, is with agents and autonomous business execution, which we see as a big opportunity for the next steps forward. The commercial opportunities, we are strategically positioned to capitalize on key market opportunities that will drive future growth and value creation. We look to expand into new verticals. Growth through strategic partnerships and channel expansion. Technology innovation to increase customer value, retention, and lifetime value. Look to use AI to drive efficiencies and scalability and profitability. Strengthen the competitive differentiation between us and other people out there in the industry. As I touched on before, the capacity for growth is just enormous, as long as we execute to that high level.

I just want to say thank you. Lovely to meet everyone today. Lovely introduce the EngineRoom story. We are very excited about it, and we are very excited about the next steps. I will hand it over next to Zoe, who we are going to be doing a fireside chat with.

Hi, everyone. My name is Zoe Chen. I am a workplace strategist at Veldhoen + Company, and I spend most of my time inside companies while they are in the middle of changing how they work. Not the strategy deck version, the actual version. It is the part where somebody has to tell 300 people that they are losing their assigned seats, and will be sharing desks in the future. What is really interesting in this particular moment is that everybody in the building is talking about AI, even when the project is about building out the physical space. I want to give you three things I think are true right now. They are not predictions, they are just what I keep running into, and then I will invite Chris, Adam, and Corin to ask me some questions.

The first one, here's what I would have told you 10 years ago, and I would have been right. Automation starts at the bottom and works its way up. That's the pattern. The assembly line, the ATM, self-checkout, the scanners in a warehouse. Machines were good at doing the same physical thing over and over, and bad at basically everything else. The safe advice was get more education, get further from the repetitive stuff, and you'll stay ahead of it. That was the real deal for about 40 years, and then this technology showed up and completely ignored it. Because it turns out the things that took us the longest to learn, writing, analyzing, summarizing, coding, those are cheap ones to replicate now.

The thing that a kid can do without thinking, like walking into an unfamiliar room and picking up an oddly shaped object, those are still incredibly difficult. There's good data on this now, not just anecdotes. Anthropic has been publishing something called the Anthropic Economic Index, where they analyze millions of real conversations with their AI to see what people are actually using it for, mapped against the government's occupational database. What comes out is pretty clear. The heaviest users, clusters in mid to high-wage occupations. Both very low-paying and very high-paying jobs show low AI use because those tend to be the ones involving a lot of manual dexterity. Their example is shampooers and obstetricians, which tells you something about how little these two have in common, except that both require hands. It landed on information work, the desk jobs, and it's not creeping in slowly.

About half of all jobs have already seen at least a quarter of their tasks touched by AI. The flip side is that there is a large part of the workforce sitting in a near zero exposure zone. Electricians, plumbers, HVAC technicians, mechanics. If the job requires you to physically be somewhere and put your hands on something, this wave mostly isn't coming for you. But being protected isn't the same as being unconstrained. Think about the three-truck plumbing company. What's actually stopping that from becoming a 10-truck business? It's not the plumbing. They're great at plumbing. It's everything that happens away from the job site. Whether the quote went out the same day or four days later, whether somebody followed up on the estimate from two weeks ago, whether the reviews are getting answered, whether there is a next job lined up when this one is done.

There's a whole back office of a small business, and it's the part that the owner is least equipped for and probably least interested in. That's the frustrating bit. There's no shortage of software for them. There's a tool for the quoting, a tool for the scheduling, a tool for the reviews, a tool for the follow-up. But that's the problem. Every one of those needs to be set up, connected to others, and babysat by somebody. Nobody started an HVAC business because they wanted to become a CRM administrator. The choice they've been offered for 20 years has basically been stay small or spend your evenings learning the software. That's what this feels different to me about this wave of tech innovation. The promise isn't another tool to master. It's the outcome without the operating burden.

If that lands, the small operators really can get a back office that used to require real scale to afford. Second thing. Everyone on this call probably already used personalized intelligence at least 3 times before breakfast and didn't even notice once. Your phone sorted your emails before you looked at it. Your news app put out top 3 stories that you actually care about on the very top. Your grocery apps already know that you were low on coffee, and your maps app routed you around something before you even knew that it was there. None of it felt like technology. It just feels like things are working. We've gotten completely used to systems that know us, and when you walk into the office, it all kind of stops. When every app is doing its own thing, nothing knows you, nothing talks to anything else.

As Chris said earlier, you are the integration layer. You are the one holding it together. I want to be fair here. AI has already changed a huge amount about how we handle information. Notes, emails, transcripts, catching up on a meeting you missed. That part is real, and people feel it every day. What it hasn't done yet is meet people where they actually are, in the building, in the physical space. The building doesn't know you're in it. The room booking system doesn't know your whole team came in today. Your calendar doesn't know you're on the other side of campus with 8 minutes to get to your next meeting. This is a part I push back on when people talk about workplace productivity. The exhausting part of the day usually isn't the hard problem that you signed up for at your job.

It's everything around it. Finding a room, doing the time zone math, figuring out who's actually in today, working out where to sit when half of your team is scattered across 3 floors. So every one of these takes 15 seconds, and none of them are your job. But you do 40 of them, and by 3:00 P.M., you've burned real mental energy on decisions that should've been made for you. Think about what GPS actually does for you, right? It's not that you wanted a better map. You never wanted a map. You wanted to arrive. You wanted to stop thinking about the path. That's what people want out of their workday, not more tools, but fewer decisions. None of this is new, really. Work always lags behind life. It did with the phones in your pockets, and it did with video calls.

It did with every tool that felt normal at home for years before it felt normal at the office. So people improvise. They find a workaround. They'll use AI on their phones, on tools nobody bought them because it makes their workday a little better. Nobody made them do that. There was no rollout, no training, no email from IT. They found something that helped, and they kept using it, which is usually how you know what's coming. What people do on their own eventually becomes what they expect at work. Right now, there's a real gap between the tool. The last one. There's some research that's been getting passed around about how AI pilots don't show a measurable return, and people have taken that to mean that the technology doesn't work. I think it's worth knowing what that study measured. It was an MIT report.

It looked at whether a pilot moved the P&L within about 6 months. A lot of what it looked at was sales and marketing, where 6 months is still mid-cycle, so they were essentially measuring before the thing finished happening. A new hire doesn't move P&L in 6 months either, so it's not a damning finding. It really is just a short window. Within that same study, there's a second number that almost got no attention. When companies brought in a specialist to deploy, it reached production about two-thirds of the time. When they built it themselves, about a third. So we're looking at twice the success rate here, and here's why it's interesting. It's not a technology gap. Everybody has access to the same models. You can buy the same capability on a credit card. The gap is entirely in the execution.

A few reasons for it, and none of them are exotic. The specialist has done it before. They solve the integration problem, the permissions problem, the governance problem 100 times. The internal team is solving each one for the first time while also doing 17 other things. The tools that work great for you individually often stall inside a company because they're flexible, but they don't learn the specific workflow you dropped them into. Internal projects almost always underestimate the boring half, the plumbing, the data access, the edge cases. Demos run on clean examples. Real companies are nothing but edge cases. That's how you end up in pilot purgatory for a year and a half. There's also a control thing. Building it yourself feels like control. In practice, it usually means fewer people, slower iteration, and a pile of technical debt.

The reason I find this encouraging rather than discouraging is that none of those are technology problems. Every single one is solvable by a team that's done it before. Nobody's waiting on a breakthrough. The capability is here. The practice is just catching up. I'll say one honest thing, though, because I don't think it helps anyone if I only give you the tidy version of the story. Buy first isn't universal. If you got proprietary data a general model can't touch or a genuinely unusual workflow or you're in a regulated, high-risk situation, building can be the right call. It's just not the default anymore. So three things. The pressure landed on information work, not physical work, which means the businesses that were hardest to grow might be the ones this helps first.

The second, we all got personalized intelligence everywhere in our lives except the place we spent 40 hours a week. That gap is the opportunity. Lastly, the technology is proven. What's still being worked out is how you put it in, and that's the variable that decides whether any of this pays off. Happy to get into any of it.

Yeah. Thank you, Zoe. That is great table setting for us and the context, and we are really lucky. Zoe is flying around probably the world, but I will say at least the U.S., going to different customers, and she is really seeing what is happening out there. I think you mentioned that these are not just trends that you are reading about. You are actually seeing them. I was really taken away by a lot of that. What we are going to do now, just to make this more interactive, we are each going to ask you a question. We have a bit of a conversation, so this is the fireside chat part of things, and we are just going to kind of build on everything you just talked about. Why do not we go in the order that you started from?

Adam, you are the expert on trades and with your business, so go ahead.

I think you guys call it home services over there. Zoe, thanks for the chat, and I look forward to you taking the short flight over to Australia at some point. My question is, trades and home service businesses generate enormous amounts of operational and customer data every day. Where do you see the biggest opportunity for AI to turn that data into better decisions and ultimately better business outcomes?

Yeah, that is a great question. I think the thing is the data is all there. That is a thing. Every job a trades business does throws off information, right? What broke, what it took to fix, how to actually get customers, what venues actually work. It is scattered. It is in a scheduling tool, in a text thread, in a stack of invoices, in somebody's Post-it notes. A fair amount of it is just in somebody's head. That is also the person who has to pull all of that together and make sense of it usually is the owner, who might be on a roof all day, and if it happens at 9:00 at night or if it happens at all, it is not really analysis at that point. It is whoever is still awake trying to remember whether the job was done successfully.

I think that's the gap is that the data exists, but nobody in the business had the bandwidth or the training sometimes to really sit with it and find the pattern. The patterns are also right there, which jobs are actually making money once you count the drive time, callbacks, and things like that. Which estimates are consistently wrong, and by how much, and what kind of work you should be taking more of, and which you keep saying yes to out of habit. I think that's the opportunity. It's maybe less fancy or exotic than it sounds. It's just showing a business what it already knows but has never been able to see in one place, and turning that into something they can really act on on Monday morning.

For this to be not something that just relies on the owner, but as the business grows in scale, it could become shared understanding that the team can mobilize together on.

Yep.

Thanks, Zoe. Appreciate that.

Sorry, I jumped in. I'm excited. As a person that's been spending the last 20 years on maps, indoor maps, you struck a chord with me. Not just indoors, when I'm driving, nobody really cares about how to get there. Remember when we had the MapQuest, and you had to really figure out I just want to arrive. You got the blue dot, and you're the center of the universe. It's so easy now. It's actually at a point that we don't have to think, and you were building on what I was talking about, the person being the integration layer, and then you started to quantify what that coordination tax, that overhead of the things that we don't even think about. Yeah, it's easy. I can just look, and I can find a place to go. I can navigate things.

But we have talked a lot about the neuroscience behind that, and you were really getting at it.

Right.

This is actually impacting productivity.

Yeah.

We also know that it is like a screeching slide into sandpaper. You are coming to work, you have got all these great tools like Waze and everything that helps you navigate seamlessly, and then you get in the building, you are like, "Where did it go?" Now I am back to the manual stuff. If we can get to a place where the building truly knows me as well as my phone and my personal tools, and we can get over that overhead tax of people having to figure those things out. What are you seeing in the research as to what would that mean? I am sure there is business outcomes. What is the extent of it on the human experience and maybe the business outcome?

Yeah. I think the top thing that is jumping out for me is decision capacity, right? Human beings, as just a normal, typical human being, there is a finite amount of just the good decisions that I have on a daily basis. Right now, I think a lot of that bandwidth is kind of wasted on the minute details that just had to surround the actual job itself. Being able to gain back that cognitive reserve to focus on the things that are more important, that are more critical, synthesizing, really understanding patterns, creating. That is, I think, what is really out there. I would add another really important aspect that is just starting to surface, is also the mental space for people to focus on what makes us human, which is building connections and relationships with other people.

I think hybrid work and digital-first ways of working has been fantastic, and with all of the technologies, making sure that people can still get the work done no matter where they are. But when people are in person with each other in a physical building, what you really want people to have, not only the time, but also the mental capacity to do, is have a real conversation with somebody and actually start to build that connection, build a community, builds an environment that's helping each other to learn. I think those are all really critical moments that in an ideal world where AI frees us from the minute details that I have to decide, then I can just really focus on experiencing the present and all of the connections.

Yeah, you just made me think about something, actually. When you sort of adding this all up as a thought experiment. You said earlier, maybe it's 10 minutes a day, maybe it's 20 minutes. I do not know what the exact number is for the coordination tax. But what if I traded those minutes exactly for high-value moments, like some of the customers call them moments that matter, right. If I was not spending 10 minutes doing all this mundane friction tasks of booking meetings or whatever, and I had a meaningful conversation with you. And maybe we found out that we love the same food or something like maybe we found out that, talked about something about a project. I think that's an interesting idea just to go, if I could trade minute for minute for something that's high value, strategic, culture, connection. It's very subjective, I get that.

But there could be some pretty interesting outcomes. All right. We'll parking lot that one, and Khuram, I'll turn it over to you.

Yeah, it's a fascinating conversation. Thank you, Zoe, for joining us. I think your last trend was on the deployment. I do not want to throw a curve ball, but I want to put the context in terms of the next generation, younger, my kids or others who are just coming into the workforce who have been coding for half their life. They're 18, but they've been coding for more than half their life. They're also already experts of AI. They already know how to code it. When you think about deployment, every one of them is their own white coder, is their own developer, thinks they're the best than anybody else. How do you see this evolving in terms of with, we see new models coming every day, we see new tools coming every day. Everything changes so fast, right?

How do you see this to be a scalable motion from a deployment? How does it get scale, not with millions of different things, but a motion that you feel like it is going to get deployed at scale for the enterprise?

Yeah. I will answer that part based on what I can see from inside companies, which is more on the adoption side rather than the distribution side.

Yep.

Here is where mid-market is becoming really interesting, right? Because it is the segment that moves the fastest. They may not be the most resourced, but they are the fastest. They might not have an AI center of excellence. They do not have a 2-year roadmap, right? But that turns out to be an advantage because there are fewer people that you need to agree to make a move on something.

Yeah.

So what they do not have is someone whose job is to make this work, right? In a big enterprise, you all have that experience. In a big enterprise, there is a team. In a 200-person company, it is somebody's fourth priority, right? So the thing that has to be true for mass deployment is that it cannot require an owner or a champion, a project plan, all of the complicated stuff. It does not scale into that segment. What it has to do is it has to spread the way things actually spread in a smaller company. I love the example that you mentioned with the younger generation that are essentially AI natives, right? How do they know which app is the trendiest to want to use? How do they know which video editing app is the best? Somebody uses it, and it is visible, right?

It visibly saves them time or it visibly delivers better results. The person next will go ask them, "Oh, what is that thing that you used?" That's the whole mechanism. Not necessarily orchestrated rollout or training session, but just one person's day getting noticeably better in front of other people. I think that would be, I think from a behavioral perspective, what would really help with adoption.

No, that's interesting, and I agree with you. I think we see that in our enterprise business where we get referrals, but I think this is a more viral set of referrals that happen just because somebody uses it and finds it amazing, and then the next person sees the same thing. Cool. Great.

I think, Khuram, on that note also, this is where I was talking about value-based selling. The whole market has shifted. We are in 30-day or less commitments in a lot of cases on the products that are coming out. People have to see value. In mid-market, I think the threshold is that much higher. It's like, "Yeah, this is working for me. Nobody's forcing me to use this. I'm going to use it. I'm going to love it. I'm going to tell people." I think the onus is on companies like us, the ones that are deploying it. We have to make it, first, easy to deploy. There's no patience for these giant integrations at smaller companies. People have to love it. That's the whole thing. It has to stay fresh and being used all the time. So yeah.

Anyways, there's so much more we could talk about.

I want to close off with Adam, because when I first met Adam, he and I have a joint background of working at a large telco. You were at Telstra, I was at Sprint. Then progressively through our careers, we've gone to the mid-market. Maybe, Adam, you want to close off to say what is your experience with the mid-market and how do you see this evolving?

Look, I love the mid-market because they make decisions rapidly.

Yep

They're very much focused on outcome. As long as everything you do is related back to an outcome, not a metric, it's an actual business outcome.

Then they don't have to sit there and go, "Well, it's not in this year's budget," or whatever. It's like, "Well, that makes sense. If I spend $2, I make $10. Go." Right?

Yeah.

I could have happily built something for enterprise, but I was like, "No, mid-market is where the acceleration is. Mid-market is where the adoption is. Mid-market is where the speed is." But you are right, Zoe, in that part of it is recognizing that they don't have that support layer internally. For us, we're either dealing with the owner or one level down, perhaps, right, who indirectly deals with the owner, or directly deals with the owner. That's why the model that we do in mid-market, you have to basically be that capacity to enable them to do it, and you just have to accept that, and that's built into the model.

All right.

Great.

Well, thank you so much, Zoe. We could talk for hours, and I'm sure we will. Great conversation, great insights, and I'm sure we'll have you back as a guest again. Thank you very much. I think we're going to now-

Thank you for having me.

move to Khuram has some closing words, and we have some more Q&A, so Adam and I will stick around.

Yep. I've got a couple questions that came in, so I'm going to get you guys' help on that. One question came in, and I'll start off with it, and then Chris, you can double down. "Has the Google partnership helped at all, and how?" It's a very good question, and we've been using Google on both sides, helping us with the cloud infrastructure and helping with getting all our clients are on, most of them are on Google Cloud, which is great, and getting them the advanced products and access. We've also, as Chris mentioned, working on the Google Marketplace to launch to mid-market, which we think is a huge opportunity. We work regularly with the Google team.

I'll tell you one thing that happened, I think Chris was showing you the Events module, and I'm proud to say our engineering team working with the Google team got that product done literally in, Chris knows the exact numbers, but I think it's within a quarter or less. It is an amazing ground zero to now production. Maybe, Chris, you want to expand how Google helped you there.

Yeah, so I also want to make something clear, that it didn't go so fast because it's easy. It went so fast, A, we've got a lot of IP around this. I mentioned in my presentation over the last number of years is highly sophisticated, highly proprietary, and what is why we win these complex deals. We understand how things are managed in the workspace. We had all of these parts and pieces. Don't forget, we also have integrations with these customers that already into their core systems, their ticketing systems, their directory systems. The Google team, working with our partners and our internal team, we glued it all together and created what is a seamless, orchestrated workflow. Yes, it went fast and it's new, but it's really a combination of our features and modules that's very specific to how our customers do business.

Now, where does Google come in next? It is a hyperscaler, right? First of all, we are working in secure environments. We have ultra-high security on our own platforms and for our customers. Next, we are going to be in the marketplace. Part of the whole buying cycle is going through contracting and going through all those motions and then delivering. That is all now going to be through the marketplace, so that somebody can just sign up, buy it, do a click-through EULA, pay for it, get the product. There might be a couple of integrations afterwards, but the time to value is super important. For all those reasons, this is really where we go from small quantity to prime time scale.

Yeah. That is great. Okay, next question I have is, what are the major synergies between legacy bills, and what do you expect the go-forward OpEx levels to be quarterly? I will start then I will hand it off to Adam to give his input as well. I can tell you right now, and Adam can tell his philosophy of how he runs his OpEx models, right? I would tell you right now is that there is a huge opportunity for synergy. As we combine the businesses, we have the common infrastructure, the cloud infrastructure we talked about. Adam also, by the way, uses Google ecosystem extensively, not only for the services, but also for Google Ads and other things he does with his clients. So there is an expanded relationship there. So there is a synergy factor there in terms of a relationship.

All in all, when we think about our business, we are going to leverage Adam's distribution channel, he is going to leverage our enterprise access and channel. So there is going to be lots of synergies there on core infrastructure and locations. He is based in Manila, we are in Manila as well. There are synergies there. As we think about growing the teams, it is one team under the SKY umbrella, and leveraging all the shared infrastructure costs, we think there is significant opportunity there. So those realizations, as I mentioned in my chart, are going to happen over the next 6-12 months. Some actually are happening this quarter, as you can see some of the impact, but they are going to start happening very quickly in Q3 and Q4, and early next year as well. So I am excited about that.

Maybe, Adam, you want to talk about your OpEx strategy, how you are managing your OpEx?

Yeah, sure. I think the important thing is our business model has always been about profitability, sustainability moving forward. We last took capital on board, I think, 7 or 8 years ago from memory. We have always focused on, from an OpEx point of view, that we would be significantly below the revenue side, so we can invest in a sustainable way. Look, I think the key is what Khuram touched on before, and this is the pathway that we're going through at the moment. What's the operational cost that can be reduced as a percentage that we cross over? I think that's really the process that we're going through at the moment, because there's a lot of aspects of that. I'm sure we'll be reporting on those in the future as we succeed in that area.

Okay, last question. I'll give it to Chris. Chris, question is, you announced a lot of great new products. You've got the Flow and Beat and Events and stuff. What is your competitive moat? For a small company like CXAI, how are you creating the competitive moat? Because a lot of people vying for those kind of products. What is the SKY moat?

Yeah. Well, we've got a number of different things here, and I touched on it earlier, and one of them is just IP. I'll start with, and I'm not relying on this, but we've got-

Yeah

enterprise customers with proven technology. We have been deployed in some of the world's toughest, most complex environments at scale. This is not just a demo happening. We're talking about thousands and thousands of users at these organizations and reliably delivering that. Beyond that, when I really think about today's market, it's all about our ability to differentiate. How do we do that? Well, one of them is just even on the cost side. When we talked about our agentic AI, BOND and CORTEX is truly different in the market. We are able to do LLM at a fraction of the cost. Something that somebody's doing in one of the main LLMs is costing a cent and not tens of dollars. That's a huge moat. We've got the IP around context and spatial awareness. Okay? This is something that other companies do not have.

We understand what's going on in space. We've got all these integrations, which is giving us connectivity, and it's enhancing the user experience. It's also creating all that data. So when you saw me demoing about asking these questions by conversation and getting highly analytical or insightful answers, that's coming through all of those integrations. We're really at the center of this. The company grew up bringing together Events, maps, workplace. When this became CXAI, it was based on delivering agentic AI. So I think we're leaps and bounds ahead of understanding how to deliver agentic AI, and you said it right at the beginning of the presentation. This is not another chatbot or an assistant. This is an agentic solution that does things for you. That's what people want.

We don't want the overhead of having to answer everything manually or set up a meeting manually. It's going to do it for us. At the end of the day, if you ask me, I think it's user experience, and we talked about it all through this. People are loving the product, and they tell people about it, and it becomes viral within those organizations, and of course, all the referrals that we get because people are super happy with the products.

Yeah. Great. Well, thank you, gents. Really appreciate it. We're going to head to my last slide or last two slides, and I know we're at the top of the hour, but we'll go a few more minutes here. Thanks, Chris. Thanks, Adam. Let me leave you all with this. I spent my career around major technology transitions, and I believe agentic AI will be one of the most consequential, and I don't mean that lightly. I don't believe the winners will simply be the companies with the biggest models. I believe enormous value will be created by companies that understand context and turn that context into action. That is the company we are building. That is what CXAI is about. We started with the workplace. Now we're expanding from place to person to business. These are the three forms of context.

Place, through our Flow product, which tells you where and how people work. Person, through Beat, what an individual and team need to accomplish and what should happen next. Business, how companies acquire customers, convert demand, and grow. That business context is significantly strengthened by EngineRoom, as we talked today. We are building the agentic operating layer for how companies work and grow, full stop, and we're focused on it. We're really excited about it, as you can see. I want to leave you with three things. I stated at the start of the call, and I thank you for your patience to be with us for nearly 2 hours here. But if you remember only three things from today's call, I want them to be these. Number one, we have changed the scale of CXAI, SKY.

We have moved from roughly a $4 million analyzed revenue company at the beginning of this year to a combined platform with more than $12 million of analyzed revenue scale. Now we serve both enterprise and mid-market customers. Number 2, SKY 2.0 is moving from vision to commercial execution. The platform is in production. We have customer deployments starting. We have major renewals. We have new multi-year enterprise wins. Now we have EngineRoom's customer base as an additional channel through which to prove and distribute our new AI products. 3, we have a clear operating priority, profitable growth. The next phase is not simply about adding revenue. It is about combined double-digit growth with increasing recurring revenue, stronger software mix, operating leverage, and disciplined execution. Our directional objective is to move toward breakeven in the second half of 2027 and profitable growth beyond that point.

I would categorize Q2 this way. Q2 2026 is the quarter in which SKY began moving from a workplace software company with an agentic AI vision into a scale agentic AI platform with enterprise proof, mid-market distribution, and a credible path to profitable growth. The acquisition created scale. SKY 2.0 creates the opportunity for operating leverage. Execution from here determines the value we create. Thank you to our customers, our employees, our partners, and shareholders for your continued support. We look forward to updating you on our progress next quarter. We plan to do that in November. Then we are also looking at another investor session in the end of the year or start of the year of 2027. We are excited about SKY.

Greetings. Welcome to the CXAI first quarter 2026 earnings call. I will now turn the conference over to your host, Khurram Sheikh, Chairman and CEO. You may begin.

Thank you, John. Good afternoon, everyone, and thank you for joining CXAI's Q1 2026 earnings call. I'm also joined on the call by our CFO, Joy Mbanugo. This quarter represents an important step forward for SKY or CXAI. We're not simply building workplace software. We are building an AI-driven orchestration layer for the modern enterprise. The enterprise workplace is changing quickly. Companies are looking for platforms that can connect employees, spaces, assets, services, workflows, and data into one intelligent system. This is exactly where SKY is positioned. Our message today is clear. Enterprise demand is increasing, our product roadmap is accelerating, our monetization model is expanding, and we believe SKY is positioned to convert that demand into recurring margin-protected revenue growth. With that, I'm gonna start going through the disclaimer slides. You know, please, I wanna remind everybody that today's presentation includes forward-looking statements.

These statements are based on current expectation and assumptions and are subject to risks and uncertainties. Please review our SEC filings for a complete discussion on those risks. Next one. We will also reference certain financial information, including non-GAAP measures and market data. We believe these metrics help investors understand our operating performance and the direction of the business, they should be reviewed together with our GAAP results and public filings. By the way, we have also filed our 10-Q for Q1, you should be able to see that, you know, in parallel to this presentation. Let me start with the scale of Sky or CXAI today. We are deployed across more than 200 cities, over 50 countries, and 5 continents, reaching more than a million users.

We have a global operating footprint, a strong IP foundation, and a team that remains heavily focused on product and engineering, with more than 70% of our team in R&D. That is important because enterprise AI is not just about launching an assistant. It requires secure deployment, trusted integrations, global scalability, support infrastructure, and domain-specific intelligence. Our installed base and global platform footprint create a foundation for future expansion. We believe growth can come from new enterprise wins, renewals, user expansion, analytic modules, integration, AI consumption, and the launch of Sky, our flagship agentic AI solution. You're gonna hear about that today, I just wanna recap that we are still doing really well with all our customers. We're growing, and it's been a really exciting quarter. Let me forward to the next slide where we talk about our mission.

Our mission is really to power the AI orchestration layer for the modern enterprise. As you know, we've been talking about people, places, and things for a while, and I know that the team has seen a lot of growth in the way our customers are responding to our vision. Our mission becomes more and more important every day as we work with our clients. Today I wanna launch this new mission, which is really at the heart of where our agentic AI solution drives. SKY connects people, places, assets, workflows, and enterprise context into one intelligent platform. That means the workplace is no longer just a static environment. It becomes a system that can understand, decide, and act. This is the evolution from workplace experience to workplace intelligence.

We've seen that now with Gartner recognizing us as one of the leaders in in workplace in-industry and calling us the workplace visionary leader. I think that's testament to the team's strategy and vision, but now also the execution. We believe the future of enterprise work will be shaped by platforms that can connect context with action. SKY is being built for that future. As we become more deeply embedded into enterprise workflows, we believe our revenue opportunity expands beyond software licensing into workflow automation, AI usage, analytics, and recurring integrations. Let me show you a video that describes the user experience and why we think SKY is gonna be that operating layer for the enterprise. Okay, great. Hopefully the people on the webcast could hear this.

Then the folks on the phone, you're gonna get the video as part of the recording when we get out there. You know, as you can see, Sky is all about the user experience. You know, we really focus on that. The workplace experience needs to become more intelligent, more personalized, and more automated. That's our mission. Employees wanna know where to work, who is nearby, what resources are available, and how to get things done quickly. Sky brings that together through one intelligent interface. What matters most is what happens behind the scenes. Identity, maps, reservations, wayfinding, services, analytics, integrations, and now agentic AI. We do all of that. We do all that heavy lifting to make the user experience simple and contextual. This is why we believe Sky will become an operating layer for the enterprise work. That's our focus.

The more workflows we connect, the more value we deliver, and the more opportunities that we have to expand revenue per customer over time with this strategy. Let me talk about the market. You know, we believe the timing is right right now. Sky sits at the convergence of two major growth markets. Number 1, the digital workplace platforms, and secondly, the enterprise AI assistants and agents. Digital workplace platforms are projected to grow significantly through 2030, and enterprise AI assistants and agents are projected to grow even faster. Sky plays across both markets. We play at the intersection of these. On one side, we support workplace orchestration, platform adoption, mobile and web experiences, maps and reservations. On the other side, we are building embedded AI task agents, workflow automation, and the Sky agentic layer. This convergence is what creates the opportunity.

We're not trying to be a generic AI company. We are applying AI to a specific enterprise problem, making the workplace intelligent, automated, and operationally efficient. That market convergence supports a large revenue opportunity for Sky, from enterprise SaaS today to AI-native licensing, analytics, consumption, and platform expansion over time. This, I believe, is a compounded 30x plus opportunity for us. Not happening 10 years from now, happening in the next couple of years. We're super excited about this space, and this has been validated through our work with Gartner and all the other analysts who are watching this industry and now are really calling it a, you know, a new Magic Quadrant for this market, which is a validation of the space frame and a huge market opportunity for all of us. Let's talk about Q1. What happened in Q1?

It was a very breakout quarter for us. We had a lot of great wins. I wanna highlight the key highlights from this. Number one, we delivered on $1.4 million in bookings, which included two large renewals of existing clients and one new client has also been onboarded. This represents, you know, an increase from last year, also it's the starting point of the strategy that we articulated in our last earnings call. More importantly, we have added more than $5 million in new deals, full contract value across three enterprise deals. These are three-year term deals with large enterprises in financial services markets that are really at the leading edge of innovation, they have selected us for a multi-year contract. This is super exciting.

I know that we talked about this in our last earnings call, that we've been working really hard in different RFPs and different pipeline opportunities. Those pipelines have become real, and real meaning that they're being deployed now. In terms of why we won these things, we won it because we had our agentic AI solution. I'm gonna talk more about that in detail. The Sky Sandbox is what our clients have been testing with, which includes our agentic AI platform, as well as our Sky 1.0 platform. Those deployments are happening with not only the existing clients, but more importantly, the new clients, as well as the pipeline of clients.

Those 3 clients came in, they did their RFPs, they had our responses, they did the product across vendors, across the ecosystem, and they tried Sky Sandbox, and they've said, "We love it. We think it's the best thing out there." Now they're onboarded with us and working with us to scale up their systems. I think that's been a significant win for us, and I applaud our sales team and our product team and our engineering teams who are really working hard to make it happen. I'm super proud of them, and I think this is a testament of the capability of the team as well as the capability of the product. Next, we can talk about SkyView.

As you know, and we'll talk a little bit more about our partnership with Google Cloud, but we have built it as a platform that will allow for analytics to be agentified, and that means that you ask a question, you get a result and an answer pretty quickly. Google has also appreciated the partnership with us. We made a press release on that. I'm gonna talk more about how we're actually engaging with Google to make it successful, but we are one of the leading vendors working with Google in making this happen using their Looker platform. Lastly, we were recognized by Gartner, as I mentioned, as a visionary in the Magic Quadrant for Workplace Experience Applications. This is a new Magic Quadrant that has been officially launched by Gartner.

It was the first one out there, and we've been working with the analysts for the last couple of years on our vision and our strategy of how we think agentic AI is so critical to this market. I think it's a testament of the recognition, but also it just shows that we are really driving the innovation in the industry, and we're super proud of that recognition. The key point in all of this is the enterprise demand we have been discussing is now showing up in real customer activity. Renewals, new wins, multi-year commitments, AI pilots, and analytic opportunities. Bookings and TCV are important leading indicators. Revenue recognition follows deployment, implementation, user adoption, expansion. While Q1 revenue reflects timing, the forward-looking opportunity is increasingly supported by enterprise commitments. Well, the next question is: Why did they choose us?

You know, why did they choose Sky? In my view, we bring five capabilities together. First, agentic AI. Our platform is designed to understand workplace context and automate intelligent actions. Second, any workspace native. We work across the tools employees already use, whether it's Microsoft 365, Google Workspace. We are compliant to all of them. We connect with all of them, and we make it so easy to connect with all the bookings and calendars and maps and wayfinding in one experience. Third, one platform, every surface. We deliver a consistent experience across mobile, web, kiosk, and signage. No matter where you're at, you will see similar kind of experience with Sky. Fourth, spatial intelligence. Our mapping and wayfinding capabilities create a real-world context for the enterprise.

Our One Map Experience and all the immersive spatial layer of access we have provides that contextual awareness, provides that intelligence, provides that mode for the agentic solution that makes it super different and super unique to anything else out there. Finally, and most importantly, we are enterprise-ready. We're built with security, compliance, support, and global deployment. For these large enterprises to select us is not only a testament of our product, but our stability and our reliability of our solution and the fact that we meet the difficult requirements that large enterprises have. It's not easy, and this is where when we look at the competition, we are heads and shoulders above of them because of all these five things together. This is why these customers choose Sky. We're not offering a single-point solution.

We are offering integrated platform that connects the enterprise workplace into one intelligent operating system. That's why my belief becomes stronger and stronger every day as I see these clients going through multiple RFPs, multiple product evaluations, understanding all the different options out there, and then selecting us because we have the full solution. We have that capability, and we're growing more and more in that capability day in, day out. Next, I wanna talk a little bit about, you know, when you think about all of this, you kinda say, "Well, what does this mean long term?" Well, long term, what it means is we are the vertical AI for the office. Sky's platform is purpose-built for the office environment, where employees, visitors, facilities teams, and enterprise systems interact every day.

By connecting workplace data and workflows, Sky enables organizations to deliver more personalized experiences, improve utilization, reduce friction, and create a more responsible and responsive physical workspace. We believe, you know, we strongly believe the next phase of workplace technology will be defined by AI that understands context, where people are, where resources are available, which systems need to be coordinated, and how the office can adapt in real time. Sky's agentic AI capabilities are being developed to help automate routine workplace tasks, surface recommendations, orchestrate integration, and improve the employee and customer experience across complex enterprise environments. In a nutshell, what that means is the broader the platform value, the greater the potential multi-year renewals, larger deployments, integration fees, AI monetization, and expansion modules. When our— as you saw the video, when Maya's out there, she's using it every day for all the things.

It may be a small thing for you, but it may be great for her. It may be somebody else has a different use case. All these use cases combined make it a day in the life of a user that's so connected to their enterprise, they can't let go. That's what we're seeing with our clients that are scaling up. They see that connectivity. They see the secret glue that connects them together to make sure that they're using this every single day, and that's what we aim for. That's why. The analytics show us all the value of that. That's where the next piece comes in, which is, you know, behind our Q1 wins. I'm gonna run this quick animation to show you some of the data set that we collect.

As you can see, our partnership with Google is a major validation point for SkyView and our analytics strategy. The quote from Sean here at Google Cloud highlights the importance of embedded Looker as a scalable API-first data layer across our clients. This allows us to deliver real-time insights at enterprise scale and create the foundation for AI-powered analytics and conversational intelligence. You ask a question, you get an answer. You go deeper, you ask a second question, it goes deeper. You wanna show, you know, a dashboard that you wanna create, it can create it for you. You can create a visualization. You can create a report. You can create an animation. You can create everything you want within the data set that's provided and within the context of what's valuable to you.

At the end of the day, all of this enterprise AI needs enterprise data. Without trusted data, AI remains generic. With real workplace data, location intelligence, usage patterns, and operational signals, AI becomes actionable. That is the strategic value of SkyView, and analytics can become a meaningful expansion layer. Customers increasingly want predictive insights, utilization intelligence, real estate optimization, and AI-driven recommendations. We believe these capabilities support higher value pricing and expanded customer relationships over time. That's kinda like, you know, my view of how the market is expanding, how our customer wins are happening, how we're going forward. Let me turn it over to my colleague, Joy, to talk about the financial highlights. Joy?

Thanks, Khurram. I'll walk through our Q1 2026 financial performance and do some comparisons to previous quarter. Starting with revenue, we delivered $950K in total revenue for the quarter compared to $1.02 million in Q4. While this represents a slight decline, I want to provide context here. The quarter-over-quarter decrease reflects the timing of new deal closures and the revenue recognition pattern of our enterprise contracts, which I'll get into more detail in upcoming slides. What's really encouraging is our subscription revenue mix, which improved to 98% of total revenue, up from 96% in Q4. This demonstrates the continued strength and predictability of our recurring revenue model. Gross margin came in at 83% for the quarter compared to 87% in Q4.

This slight compression reflects some incremental infrastructure investments we made to support our agentic AI rollout and support our Google Cloud partnership. We expect gross margin to stabilize in the 80%-ish range as we scale these new capabilities and continue to invest in cutting-edge Google products. On the balance sheet side, cash increased to $12.3 million, up from $11.1 million at the end of Q4. This improvement came despite increased expenses in operating activities, reflecting a better working capital management and timing of customer collections. Finally, earnings per share improved to negative $0.08 per share compared to negative $0.13 in Q4. This 38% improvement reflects both the operating leverage we're achieving and the normalization of expenses, which we'll get into in the next slide. If we can move to slide 12.

Now let's dig into our operating expense story because this is where the discipline in our execution, one area in the discipline in our execution, really shows. Total operating expenses declined by $1.87 million or 27.6% quarter-over-quarter. The critical context here is in Q4, we took a $2.15 million non-cash goodwill impairment charge. When you exclude that one-time item, our underlying expenses actually increased only by $278K or 6%. I'll walk through the key items here. Research and development was essentially flat at $1.5 million, up just $10,000. This stability reflects our strategic choice to maintain our innovation pipeline while operating efficiently.

Our R&D team is now 70% of our total headcount. We're continuing to invest in agentic AI capabilities that are differentiating us in the market. Sales and marketing decreased by $79K or 16% down to $413K. This reduction came from optimizing our digital marketing spend and focusing our outbound efforts on higher probability enterprise opportunities. We're seeing much better conversion rates with this very targeted approach. G&A expenses increased by $347K or 17.6% to $2.3 million. This increase was driven by three specific factors: audit and compliance-related costs, legal expenses related to strategic partnerships and negotiations, and costs tied to overall governance enhancements.

These are foundational investments in our infrastructure as we prepare for our next phase of growth, and we hope to see the payoffs of these investments in future quarters. Amortization of intangibles remained flat at $683K, consistent with what we outlined last quarter. The bottom line here is that we're managing our expense base very tightly while making targeted investments in the areas that drive long-term value, innovation, partnerships, and governance. Let's move to the revenue slide. Let's talk a little bit about the forward momentum in the business, which Khurram alluded to earlier, which we're really excited about. As we talked about, this is our reset, and so we're really excited about our future and where we're headed. Even though revenue was down, our bookings tell a different story, and as we've said consistently, bookings are a leading indicator for this business.

Q1 bookings came in at $1.4 million, up 12.5% year-over-year compared to $1.25 million in Q1 2025. More importantly, we closed 3 enterprise deals with 3-year terms representing approximately $5 million in total contract value. These aren't transactional deals. These are strategic multi-year commitments from organizations continuing to bet on CXApp as their workplace experience platform. Breaking that down, we signed 1 new logo and renewed 2 large existing customers, both of which we hope to continue to expand their deployments with new offerings. These renewals are particularly significant because they validate both our product market fit and our ability to deliver ongoing value. Our NRR improved to 98% in Q1, up 12 percentage points year-over-year from 86% in Q1 2025.

This is a really critical metric because it shows that our existing customer base is not only staying with us, but they're expanding their usage of the platform. That's a really good growth story from previous years. Now, the real story here is the operational drivers. We beat our own internal bookings forecast by 19%, and we're a little ahead of plan. This outperformance comes from three sources. First, our agentic AI capabilities are starting to resonate with enterprise clients. We have five Sky Sandbox deployments live with enterprise clients now. These aren't pilots; these are production implementations where customers are seeing real productivity gains. Second, the Google Cloud partnership is creating a differentiation flywheel.

Google published a case study on our Looker integration. As Khurram mentioned, Sean Zinsmeister, their Director of Product Management for Data Cloud, specifically called out our differentiated approach to embedding Looker as a scalable API-first data layer. That validation from a tier 1 hyperscaling is opening doors with enterprise clients who wanna know that their platform is built on best-in-class infrastructure. Third, also as Khurram mentioned, our Gartner recognition as a visionary in enterprise workplace Magic Quadrant has given our sales team incredible air cover in competitive evaluations. The key takeaways here are we have leads, we have ongoing leads that are turning into bookings, which revenue trails behind that. We expect to see the impact of the increased bookings in the upcoming quarters.

The Q1 bookings momentum we generated, especially the new 3-year enterprise commitment, sets us up for revenue growth as these contracts convert and as we continue to expand within our installed base. We're building a high-quality pre-predictable revenue engine, and the foundational work we've done on product differentiation, strategic partnerships, and customer success is now translating into commercial traction. We can move to the next slide. We are building, as we said, we're building for the agentic era, and the new contracts that we landed have come from our focused efforts in marketing and some of the changes we've made from an implementation standpoint, changing our pricing, and not necessarily abandoning the SaaS model, but thinking more about the future and what agentic AI looks like for our enterprise clients.

Because of that, we're focused on maximizing revenue growth, continuing to control our costs, and protecting our margin. Khurram, back to you.

Thank you, Joy. As Joy alluded to, the new deals we have are built on this new, you know, pricing and monetization model, and we have purposely designed it with our clients in a way that it's scalable, it's repeatable, but more importantly, it protects our margins and it helps us scale with agentic AI. Very proud of the work the team had done on this, and I think it's a testament that these new clients have come on with this new structure, which I think is going to be, as Joy said, maximize our revenue growth, but also manage our costs efficiently in the new AI agentic world. You heard about, you know, SaaS is under threat. Well, our solution is actually really full AI native now.

It has the cost structure implemented upfront so that we get our cost back, but more importantly, it scales with AI usage and consumption. Let me move to the next slide to our roadmap and to tell you the story of where we're headed, what we're doing now, and where the success has been super beneficial for us. Number one, you know, Sky 1.0 is our core enterprise platform. It supports the install base, existing ARR that you see, the renewals, and add-on modules. You know, that's our base platform, that's our foundation, and that's there. All the new clients we have been signing up to Sky 2.0. They're day one starting with the 2.0 agentic AI operating layer. It is designed to capture agentic growth inside large enterprises through AI assistance, workflow intelligence, AI consumption, and expansion.

These clients didn't come in just on 1.0. They have signed up to 2.0. We're focused on delivering that in the June timeframe. It's still on schedule, but the sandboxes have been tested, the validation has happened. The product is being deployed by them in this quarter, so we can launch it with their customer base. As I said in previous calls, they do one or two campuses, and then they scale to 100. All of these clients have done it purposely to design there so they can scale to those, you know, 50 to 100 campuses or global access for them, for all the employees. This has been a Herculean effort from my team, and I'm pretty proud of it.

The beauty of it is we're the first ones that provide this agentic AI system, and that's why we filed the IP on it. The patents were filed. You know, we are pretty much a leader in both the, you know, orchestration layer of AI, but also the recommendation engine, the BOND and CORTEX that I mentioned last quarter. Those patents are going through their provisional process, and we will be filing their definitive on them as well. That provides us really a moat and something that's unique that nobody else in the industry has. That is our growth engine for now. This is for large enterprises. This is what 3 new clients have had. This is what the pipeline of new clients, the sandboxes that Joy mentioned, are all testing that.

Now we have a repeatable system where we can test with these clients, we can show them the capability, and they can scale up with us. The third thing that we've been working on in parallel has been our Sky or Sky squared or just Sky, if we make it easy. This is our disruptive mid-market expansion platform. It is designed for rapid deployment, channel distribution, marketplace availability, and broader market reach. That is something that is designed really for the small/medium enterprise. It is something that we have really worked on with our team to focus on kind of companies like our size that wanna have a solution because they face the similar problems of workplace experience and engagement among the employees. We're happy to share that we are making strong progress on that.

We launched the pilot in our campus here in San Ramon. Now we're working closely with our channel partners, including Google and AWS. We're gonna put it onto the Google Marketplace and AWS Marketplace this quarter. That's gonna be exciting. We also believe that there's other channel partners that wanna engage with us because this is a huge opportunity for growth. The mid-market is our disruptive scale platform. It's very frictionless, very simple, very easy, but very powerful in terms of that personalized experience. When we think about all of these three things, these are the three things that are the key pillars of Sky, and they will continue for the growth. The existing will continue. Those customers will move to 2.0.

The 2.0 customers may even use Sky for some of their applications, but there's gonna be a big roadmap for Sky 2.0 in terms of its agentic capabilities. Sky is gonna really drive into the mid-market. You know, we believe that the combination of enterprise expansion and mid-market scale is what gives us confidence in our long-term growth model. When we talk about the growth, the 30X+, this is all driven by this. Let me close with why we believe Sky is entering an important inflection point. First, enterprise demand. Q1 showed that large customers are making real commitments to AI-powered workplace transformation. Second, agentic OS for the workplace. Sky is evolving from a workplace application into an operating layer for people, places, assets, workflows, and context. Third, AI-native monetization.

Our model is built around implementation, licenses, integrations, and AI consumption, creating multiple revenue streams. Fourth, dual growth vectors. Sky 2.0 supports large enterprise expansion, while Sky opens the door to mid-market and channel-led growth. Fifth, solid financial foundation. We have a high recurring revenue mix, 80% plus gross margin profile, stronger cash position, and disciplined operating focus. In my view, Q1 was about proof. Proof that enterprise demand is real, proof that our platform strategy is aligned where the market is going, proof that our monetization model is designed for the AI era, and proof that Sky is positioned to convert enterprise AI demand into recurring margin-protected revenue growth. We are focused on execution, customer expansion, product innovation, and building durable shareholder value. Thank you to our customers, partners, employees, and shareholders for your continued support.

With that, I'm gonna open up the question for question and answers. I know that, Joy, you've seen some questions come up.

Yes.

Happy to respond to some questions here.

Yep. The first question we have is, do you believe it is possible to regain compliance organically? Also, how is CXAI 2.0 coming, and will cash flow positive come in 2026? I'll take part of this, and then, Khurram, hand it over to you. We do believe that it's possible to regain compliance organically, and we are feverishly working on that. I think Khurram gave you the roadmap to CXAI 2.0. It's coming along really well, and you'll see that out in the marketplace in the upcoming weeks, months. Positive cash flow, we're not gonna give any guidance, but we are always working towards positive EBITDA, and that is, you know, one of the goals we'd like to achieve, but can't give any solid guidance there. Khurram, you wanna add anything?

No, that was very good. I would just say that when we think about the business, we are trying to scale up organically and inorganically as well. We are looking at different options and different ideas to scale up. I think the fact that we have a CXAI 2.0 platform is great news because now there are a lot of people coming to us with partnership opportunities and things. You will be seeing more from us on that side because now with the platform working and deployable and gonna be on Google Cloud Marketplace and AWS Marketplace, I think you're gonna see a lot more opportunities. We are actively pursuing that. To answer the first question, yeah, absolutely.

We feel that we're gonna work very hard. Today's results hopefully demonstrate that we are on the right path to scale up. Hopefully, that will lead us to get back into compliance before our September deadline.

Khurram, I think the next one's for you, but I'll read it. Do the current impending patents granted infringe on already existing businesses? This is a multi-part question. Does the company plan to license the software to competitors in the space? With the June rollout, will the software have capabilities to integrate with government agencies?

Wow. Those are three great questions. I'll take one at a time. On the first one, I would say we have our attorneys Have done the filing. They will actually look at naturally if there's any infringements. We believe that we are not infringing on anybody. We don't know if anybody else is infringing us. We do believe we have a moat and we have something unique and different that nobody else has. We're gonna get those patents, you know, filed, provisional filed, get them definitive. In terms of licensing to competitors, look, we're always open to that. I think it's early days in the agentic AI world. I think our the reason why we filed also is given these impending agreements with our clients. It's super important to get those out there.

You're gonna see large multinational companies using the agentic AI solution from Sky. I think that will definitely create a buzz in the marketplace, and we'll hopefully see that product launch here in the coming weeks and months. That is the plan there. With the June rollout, you know, the software, naturally we are building it as universal solution that can be implemented by any enterprise, including government. We have not focused on the government market as yet, but I think with the approach that our team is having with channel partners, absolutely we will be looking into that opportunity. We will also look into international opportunities as well. There's a huge potential of other things, but our first focus was to get the product working as we described our vision. I think we're super close there.

We've got the sandboxes. We're going to be doing the final implementation. More importantly, we have really large U.S.-based clients that are now adopting it and going to be deploying it very soon. I think we're on the right path, but absolutely we're going to be focused on not only the licensing opportunity, but also the access to other verticals besides the work vertical that we're entering. Joy, do you have other questions?

Yeah, we have a couple of questions on revenue, but I think we already answered them about recurring revenue.

Yeah.

We've talked about the $5 million in bookings and, you know, just what we expect to see from a pacing standpoint from revenue. I don't think we need to go back over those questions. There's a question on can you detail I think the question is really can you detail a little bit about our partnership with Google Cloud?

Yeah. No, that's a great question. Look, there's two sides of the Google Cloud partnership. The first is on the product side. As you mentioned, we've been working very closely with them to build that agentic AI platform for analytics using their Looker platform. We have access to all the Looker code, and we've integrated all of that into our platform, and that provides us the engine for our application. Also with the Gemini and the Vertex AI systems, we have access to all of those. Naturally, end-to-end, we can use the full Google solution. We're not exclusive to that. There are other people that could do it, but we have implemented in a way that I think is unique and is differentiated as Google put it freshly out, did a case study.

They believe that we've kind of implemented in a very intelligent way. That product partnership is really going well and continues to go well. I think the other side of the equation is, you know, with helping and using Google and their workforce to help us with the go-to-market and to really launch the new Sky product, which is really more, you know, something that can be for the small minor enterprise. It's self-serve, easy to use. That is gonna be the exciting part this quarter as we launch it on that. Overall, I think, as you can see, Google is investing heavily in enterprise AI, so we get the value of that. We're also proud to be partners with them in looking at the next generation of AI systems.

We're working very closely with the IP that we have, with the patents we have on that solution, leveraging their infrastructure. There's a lot that can be done, but right now the idea is to really drive innovation and get it to the next level of deployment. I think you probably saw that Google Cloud announced when they made our announcement is at Google Cloud Next in Las Vegas, and they made a bunch of announcements there in terms of their investment in enterprise AI. All in all, it's a very good partnership, and I'm hopeful that we're gonna create more value for both companies.

Naturally, we're the smaller guy, but we leverage them. They're also excited about working with us just because we are at the leading edge of innovation in our space.

Thanks, Khurram. I think we have one more question. What are your expectations for the upcoming quarter? I don't know if we said at the beginning of the call, but we don't give guidance. We don't give revenue or bookings guidance. This is very directional, but we expect to see, just the, you know, the results of the team working really hard, onboarding new customers and just more progress with CXAI 2.0 and just our agentic platform. Khurram, you wanna add anything?

That's right. Yeah. I think the only thing I would add there is that, you know, we've been sharing with you a lot of information regarding this quarter anyway. I mean, when you say upcoming quarter, you mean this quarter that we're in. We're super busy with the, you know, with the, with the new clients that we've onboarded, and we're working with them on getting their application working, as well as the CXAI 2.0 and the CXAI (Sky), you know, deliverables we have. The team is very focused on that. It's a busy time at Sky, and I think the good news is there's a lot of enterprise demand coming. You know, there's a lot of, you know, interesting use cases coming on board.

I think we're super excited to convert all of these opportunities into real revenue and show the growth in the coming quarter. I think you can expect hopefully good news from us in terms of execution and delivery in the coming weeks and months here. Okay. I think that's all the questions we have. I want to thank everybody for joining the call. Thanks for your interest in Sky, we look forward to the next quarter's call, and hopefully we'll be keeping you updated as new things happen. You know, we're really focused on execution, and we hope to deliver on the things we mentioned in our call today. Thank you so much for your time, and take care. Bye.

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