By Meg Flippin, Benzinga
DETROIT, MICHIGAN - April 8, 2025 (NEWMEDIAWIRE) - YXT.com Group Holding Limited (NASDAQ: YXT), the Chinese provider of AI-enabled enterprise productivity solutions, continued to narrow its loss for the full year in 2024, driven by its leverage of artificial intelligence.
About two years ago, the company said it would shift its focus from creating digital learning platforms for corporations to creating intelligent learning platforms driven by AI, and that may be starting to pay off. Not only is it enabling YXT.com to reduce costs and improve efficiencies within its own business, but the company said it’s helping to expand its presence in the corporate learning market both domestically and abroad.
“Advancements in AI are creating significant opportunities for the corporate training industry,” said YXT.com CEO Peter Lu when discussing full year 2024 earnings results with analysts and investors. “AI technology is addressing key challenges in corporate learning. As a result our corporate learning solutions are gaining wider recognition.”
Intelligent Corporate Learning Taking Off
AI in the corporate learning market is taking off, forecast to reach $44.6 billion by 2028 driven by demand for upskilling and reskilling of global workforces.
For good reasons. For starters, AI enables personalized learning experiences, acting as an “invisible coach” for employees and providing round-the-clock learning support. For instance, before client meetings, AI can help employees practice through simulated conversations. While drafting proposals, it can automatically recommend exemplary cases. When someone is panicking and forgets their talking points, AI can instantly remind them of crucial information. This intelligent coaching, integrated into work processes, can enable learning to occur within real work scenarios, which YXT.com says significantly enhances talent development efficiency.
AI also helps companies more effectively share knowledge. Using AI technology, tacit knowledge from experts and meeting records can be automatically extracted and transformed into intelligent courses. This not only reduces knowledge loss but also efficiently promotes the accumulation and reuse of corporate knowledge assets, turning information into productivity.
YXT.com's embedding AI into its platforms helps it facilitate the acquisition of new customers, improve retention rates among existing customers and increase cross-sales opportunities. With AI, YXT.com is able to introduce new products, strengthen its market presence and expand its service offering within the evolving corporate training landscape, reports the company.
AI’s Impact On YXT.com’s Earnings
For the full year 2024, YXT reported its net loss narrowed 59.9% to RMB92.1 million ($12.6 million), from RMB229.8 million ($32.37 million) in the prior year thanks in part to AI. Meanwhile, gross margin for the year stood at 61.8%, compared with 54.1% in the prior year, representing an improvement of 7.7%.
Revenue for full year 2024 came in at RMB331.2 million ($45.4 million), which was down 21.9% from RMB424.0 million ($59.72 million) in the prior year. If the deconsolidation of China Europe International Business School Publishing Group Limited or CEIBS PG occurred as of the beginning of 2022, the pro forma revenues would have been RMB327.9 million ($44.9 million) for the full year of 2024, compared with RMB324.6 million ($45.72 million) for the full year of 2023, representing an increase of 1.0%, reports YXT.com.
The company says the net change of 139 subscription customers reflects its strategic shift toward large enterprise accounts with consistent demand for corporate learning solutions. This realignment resulted in a planned reduction of small and medium-sized customers from its portfolio. Net revenue retention rate for subscription customers was 100.9%, compared with 101.4% in the prior year, reported YXT.com.
“The rapid development of AI has created tremendous opportunities for our company, allowing us to successfully transform from digital learning to intelligent learning and expand our offerings into talent management. In 2024, our AI initiatives delivered tangible results in cost reduction and efficiency improvement, significantly narrowing our losses while enhancing value for both customers and shareholders,” said Lu. “Our three new AI-powered business lines have already entered customer validation phase and will soon be brought to market, further expanding our business portfolio. As we execute our global expansion strategy this year, YXT.com is positioned at the forefront of the AI-driven industry transformation, ready to create sustainable value for our customers and investors alike.”
Looking Out To 2025
In conjunction with its earnings report, YXT.com announced its board has authorized the company to adopt a share repurchase program in which it may buy back up to $10 million of its ordinary shares in the form of American depositary shares over a two-year period. The company plans to fund the share repurchases via existing cash on the balance sheet.
Looking out to the full year 2025 YXT.com says it’s focused on continuing to grow in China as well as internationally. With what the company says is a “healthy balance sheet” and “solid” development strategy, YXT.com is confident it's well positioned for the year.
“With a strong AI capability and global strategy, we are well positioned to create sustainable value, provide greater support to our customers and deliver returns to our investors,” said Lu.
Featured photo by Brian Penny from Pixabay.
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