Shares of CXApp Inc (NASDAQ:CXAI) leapt 33% in after-hours trading Wednesday after the company disclosed the acquisition of EngineRoom, an AI-powered growth intelligence platform. CXApp said the deal is projected to lift its annualized revenue run-rate from about $4 million to in excess of $12 million and add approximately $1.6 million of adjusted EBITDA.
According to the company, EngineRoom itself is expected to produce roughly $8.1 million of annualized revenue, with about 94% of that revenue recurring and roughly $1.6 million of adjusted EBITDA. The platform brings more than 50 customer relationships across mid-market organizations, creating what CXApp describes as an established channel to deploy its Agentic AI SKY platform.
EngineRoom's product focus includes customer acquisition intelligence, attribution analytics, workflow automation, operational reporting and business optimization, and the company lists expertise across Google Ads, Google Analytics and Google Cloud technologies.
Khurram Sheikh, Chairman and Chief Executive Officer of CXApp, described a strategic view of AI's role in enterprise operations: "We believe AI is moving from point solutions and copilots into the operating layer of every modern organization. Our vision is for CXAI to become that agentic operating layer - helping organizations of all sizes automate work, improve productivity, optimize performance and make better decisions through intelligent agents."
As part of the transaction structure, EngineRoom founder Adam Laurie has agreed to remain with the business for at least three years after closing and will serve as General Manager of CXAI EngineRoom, a subsidiary of the newly formed holding company CXAI Australia.
CXApp said the acquisition is expected to expand its recurring revenue base and create avenues to build industry-specific AI solutions across professional services, healthcare, financial services, technology, education and sports and entertainment.
Financial snapshot and strategic implications
The company projects a material uplift to its top-line run-rate and a meaningful contribution to adjusted EBITDA from the EngineRoom business. The addition of EngineRoom's recurring revenue and customer relationships is presented as a channel for broader deployment of CXApp's agentic AI offerings into multiple verticals.
What remains to be seen
The statements in the announcement describe expected outcomes for revenue and EBITDA following the close of the transaction. The longer-term realization of the strategic benefits described will depend on execution after closing and on the integration of EngineRoom into CXApp's operating model.