YXT.com reports narrower loss with AI focus

DETROIT - YXT.com Group Holding Limited (NASDAQ: YXT), a Chinese firm specializing in AI-driven enterprise productivity currently valued at $45.7 million, has reported a significant narrowing of its net loss for the full year of 2024. The company attributes this financial improvement to its strategic pivot towards artificial intelligence technologies in its corporate learning platforms. According to InvestingPro analysis, YXT's stock appears undervalued based on its Fair Value calculation.

YXT.com's CEO, Peter Lu, highlighted in the full-year earnings discussion that advancements in AI are addressing key challenges in the corporate learning sector. The company's intelligent learning solutions are reportedly gaining increased recognition in the market.

For the full year of 2024, YXT.com announced its net loss decreased by 59.9% to RMB92.1 million ($12.6 million) from RMB229.8 million ($32.37 million) in the previous year. The company also reported a gross margin of 61.8%, up from 54.1% the prior year - a metric highlighted as particularly impressive in InvestingPro's analysis. Despite a revenue decline of 21.9% year-on-year to RMB331.2 million ($45.4 million), the company stressed that if certain business deconsolidations were considered, there would have been a slight increase in pro forma revenues.

The company's strategic shift towards serving large enterprise accounts is reflected in the net addition of 139 subscription customers and a net revenue retention rate for subscription customers of 100.9%.

YXT.com also disclosed that AI has enabled the launch of three new business lines currently in the customer validation phase, with plans to market them soon. These initiatives are part of the company's strategy to expand its business portfolio and leverage AI for cost reduction and efficiency improvement.

Looking ahead to the full year of 2025, YXT.com has authorized a share repurchase program of up to $10 million over two years, intending to fund these repurchases with existing cash. While the stock has experienced a significant 92% decline over the past year, the company maintains a solid balance sheet with more cash than debt. The company expressed confidence in its global expansion strategy and its position in the AI-driven corporate learning market. InvestingPro subscribers have access to 12 additional key insights about YXT's financial health and market position.

This financial update is based on a press release statement from YXT.com and is presented without bias or endorsement of the company's claims.

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