Margin expansion from Hua Zang LLM MaaS and AI hardware sets the stage for sustainable earnings growth
SHANGHAI, April 9, 2025 /PRNewswire/ -- Xiao‑I Corporation (NASDAQ: AIXI), a global leader in artificial‑intelligence solutions, today pre‑announced selected, unaudited results for the year ended December 31, 2024.
Driven by accelerating adoption of its Hua Zang large language model (LLM) as a Model‑as‑a‑Service (MaaS) offering and rising sales of AI‑powered consumer hardware, Xiao‑I generated approximately US$70.3 million in revenue, up 19 % year‑over‑year. Strong margin expansion enabled the Company to achieve positive operating income in the fourth quarter of 2024, establishing a profitable run‑rate as it enters 2025. Management now guides to full‑year profitability in 2025.
Key Financial Highlights
- Revenue: ~US$70.3 million in 2024, +19 % YoY.
- Gross Margin: Improved to 69 % (vs. 67 % in 2023) on higher‑margin MaaS mix and scale efficiencies.
- Net Loss: Narrowed to US$12.9 million, a 52 % improvement from 2023, reflecting disciplined cost control and revenue growth.
- Run‑Rate Profitability: Positive operating income achieved in Q4 2024 positions the Company for sustained profitability.
Management Commentary
"A year ago we set out to prove that our technology platform could scale profitably," said a Company spokesperson. "By the fourth quarter of 2024 we crossed into operating profitability on a run‑rate basis, and the momentum in both Hua Zang MaaS deployments and AI hardware sales gives us confidence to guide for full‑year profitability in 2025. We will continue to focus on high‑margin, recurring revenue streams while prudently investing in innovation that deepens our competitive moat."
Litigation Update – Additional Upside Potential
As previously disclosed, Xiao‑I has sued Apple Inc. for alleged patent infringement related to voice‑assistant technologies. All hearings concluded in 2024, and the parties are awaiting a ruling from the Shanghai High People's Court. A favorable judgment could provide non‑operating upside to the Company's 2025 financial results; however, no potential award is included in current guidance.
Disclaimer for the Projection and Guidance
The projection is based on current business progress and assumes no material non-cash impairments or similar losses. However, given the heightened macroeconomic volatility in 2025, including potential trade policy shifts and demand fluctuations, management may adjust expectations in response to operational realities. Investors should remain cognizant of these risks impacting profit realization timelines.
About Xiao-I Corporation
Xiao-I Corporation is a leading cognitive intelligence enterprise in China that offers a diverse range of business solutions and services in artificial intelligence, covering natural language processing, voice and image recognition, machine learning, and affective computing. Since its inception in 2001, the Company has developed an extensive portfolio of cognitive intelligence technologies that are highly suitable and have been applied to a wide variety of business cases. Xiao-I powers its cognitive intelligence products and services with its cutting-edge, proprietary AI technologies to enable and promote industrial digitization, intelligent upgrading, and transformation. For more information, please visit: www.xiaoi.com.
Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's ability to achieve its goals and strategies, the Company's future business development and plans for future business development, including its financial conditions and results of operations, product and service demand and acceptance, reputation and brand, the impact of competition and pricing, changes in technology, government regulations, fluctuations in general economic and business conditions in China, and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission ("SEC"). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, including under the section entitled "Risk Factors" in its annual report on Form 20-F filed with the SEC on April 30, 2024, as well as its current reports on Form 6-K and other filings, all of which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For investor and media inquiries, please contact: Ms. Berry Xia Email: ir@xiaoi.com
