#China #Shanghai #Xiao-I Corporation #AI Solutions #profitability

Xiao-I Corporation's Strong 2024 Financial Performance

On May 15, 2025, Xiao-I Corporation (NASDAQ: AIXI), a global leader in artificial intelligence solutions, announced its financial results for 2024, revealing a remarkable year of growth and a clear path to profitability by 2025. The company reported a total revenue of approximately $70.31 million, reflecting an impressive 18.8% increase compared to the previous year. This surge in revenue can largely be attributed to the strong demand for its Hua Zang LLM-powered Model-as-a-Service (MaaS) offerings and breakthrough sales in AI hardware.

Key Financial Highlights

Revenue and Gross Profit

In 2024, Xiao-I achieved a notable improvement in its financial stature:

• - Revenue rose from approximately $59.17 million in 2023 to about $70.31 million in 2024, showcasing a growth rate of nearly 19%. This robust increase was driven by the expanding market for AI solutions, particularly the company's innovative SaaS offerings.
• - The gross profit also experienced a substantial rise, from $39.42 million in 2023 to $48.05 million, corresponding to a growth rate of about 21.9%. This brings the gross profit margin to a healthy 68.3%, signaling effective cost management and operational efficiency.

Cost Management and Net Loss

The company proved its commitment to prudent spending, demonstrating a disciplined approach to expenses:

• - Research and Development (R&D) expenses saw a significant reduction, dropping from $52.39 million in 2023 to $34.66 million in 2024, which represents a sizeable 33.8% decrease. This reduction emphasizes the efficiency gains achieved through the productization of core technologies.
• - Xiao-I also managed to narrow its net loss from $27.01 million in 2023 to $14.55 million in 2024, marking a 46.1% decline. Such improvements indicate promising scalability in revenue and effective management of operating costs.

Legal Proceedings and Market Challenges

While celebrating these substantial improvements, the company remains vigilant regarding its ongoing legal matters. During 2024, Xiao-I was engaged in legal proceedings against Apple Inc. for alleged patent infringement, with significant milestones reached:

• - By July 31, 2024, the trial phase concluded, followed by a series of hearings at the Shanghai High People's Court in September and November. As of now, all processes have been completed, and all parties await the court's decision.

Management's Perspective on Future Growth

Management expressed optimism regarding the company’s trajectory. The advances in AI technology positions Xiao-I as a mature player in the industry:

“2024 marks our evolution into a mature AI-driven growth company, powered by the Hua Zang LLM foundation. Going forward, while advancing profitability through hardware innovations like AI Glasses, we confront material risks needing vigilant management. Geopolitical factors, especially U.S.-China relations, may impact procurement and service deployments,” noted Xiao-I's management team.

This statement highlights both confidence in innovation and recognition of potential external challenges, particularly given the recent geopolitical landscape that could affect supply chain resilience and hardware scaling.

Conclusion

Xiao-I Corporation's 2024 achievements showcase its resilience and adaptability in the fast-evolving AI sector. As the company edges closer to profitability in 2025, continued innovation and strategic risk management will be crucial in navigating the complexities of the global market. Stakeholders will be keenly monitoring the upcoming decisions on their ongoing legal proceedings, as well as the firm’s efforts to solidify its market position amid increasing competition in the AI solutions arena. For more detailed information about Xiao-I Corporation and its innovative AI solutions, visitors can check the official website at www.xiaoi.com.