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NEW YORK – Nixxy Inc. (NASDAQ:NIXX), a $36.8 million market cap company specializing in AI-driven business transformation, announced its entry into the telecommunications and data sectors with a strategic asset purchase. According to InvestingPro data, while the company maintains more cash than debt on its balance sheet, its overall financial health score is currently rated as weak, with short-term obligations exceeding liquid assets. The acquisition includes advanced AI integration, billing, Unified Communications (UC), and Contact Center software, along with related intellectual property. This move positions Nixxy to target a $15 billion Total (EPA:TTEF) Addressable Market (TAM) with a Compound Annual Growth Rate (CAGR) of 19%.
The company plans to launch these services under the Auralink AI subsidiary in Q2 of 2025, with an initial goal of reaching a $5 million monthly revenue run rate in Q2 and doubling that to $10 million by Q3. InvestingPro analysis indicates analysts expect significant sales growth in the current year, with revenue forecast to grow by 205%. However, the company’s stock has experienced high volatility, declining 8% in the past week despite showing a 30.75% gain over the past year. Nixxy is preparing to leverage Generative AI and Large Language Models (LLMs) to enhance voice and data services for global businesses.
Miles Jennings, the newly elected interim CEO and former CEO and CFO of Nixxy, expressed enthusiasm for the acquisition, stating it offers scalable revenue and significant upside within the industry. Jennings highlighted the company’s strategy to transform traditional industries with advanced technology.
The global telecom billing revenue management market, valued at $14.21 billion in 2024, is anticipated to grow at a 9.43% CAGR through 2029. Additionally, the unified communication as a service (UCaaS) market, estimated at $87.39 billion in 2024, is expected to experience a 19.8% CAGR from 2025 to 2030.
Nixxy’s acquisition aims to provide enterprises across various sectors, including telecommunications, financial services, healthcare, insurance, travel, and hospitality, with AI-powered voice and data services to drive customer experiences and maximize Return on Investment (ROI).
The company plans to provide initial financial guidance for the fiscal year and into 2026 in March, which will be filed with the SEC in compliance with Regulation FD. Based on current InvestingPro Fair Value calculations, the stock appears to be trading above its Fair Value, with analysts anticipating the company will not achieve profitability this year. Investors can access 11 additional exclusive ProTips and comprehensive financial metrics through an InvestingPro subscription.
This press release includes forward-looking statements and acknowledges the risks and uncertainties inherent in such statements. The company disclaims any obligation to update or revise forward-looking statements, except as required by law.
The information in this article is based on a press release statement.
In other recent news, Nixxy, Inc. has initiated a private offering of zero-coupon convertible notes, aiming to raise up to $50 million. These notes are unique as they are tied to Bitcoin’s historical volume-weighted average price and are convertible into common stock at $7.50 per share. Additionally, Nixxy has announced the resignation of its CEO, Granger Whitelaw, who will leave his position by the end of December 2024. The company is actively searching for his successor, with no disagreements cited as the reason for his departure.
Furthermore, Nixxy has withdrawn the scheduled record date for the spin-off of its subsidiary, Atlantic Energy Solutions, due to ongoing evaluations and regulatory reviews. The spin-off, expected to be renamed CognoGroup, remains a strategic priority for Nixxy, with further details to be announced. In another development, Christopher Mann has resigned from Nixxy’s Board of Directors just four days after his appointment, citing personal and professional commitments.
These recent developments reflect Nixxy’s ongoing strategic adjustments and commitment to leveraging advanced technology and data-driven insights. Investors are advised to consider the inherent risks and uncertainties associated with these announcements.
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