• Revenue of $2.09m, up 1% QoQ
• Recurring revenue of $7.26m on an annualised basis
• Gross margin of 75%, up 1ppts QoQ
• Maintained a healthy cash position of $3.9m

XPON Technologies Group Ltd (ASX:XPN), an AI marketing technology company, has released its quarterly activity report and Appendix 4C cash flow statement for the three-month period ended 31 March 2025. The company reported revenue of $2.09 million, up 1% quarter-on-quarter, and in line with previous guidance regarding softer topline revenue year-on-year as the sales strategy is recalibrated. Recurring revenue accounted for 87% of total revenue, which on an annualised basis is $7.26 million. Gross margin improved by 1 percentage point to 75% compared to the previous quarter, consistent with the company's target margin range. XPON maintained a healthy cash position of $3.9 million as of 31 March 2025, reflecting a positive year-to-date cash flow of $0.5 million, providing a solid foundation for future growth. The company landed 1 new customer and expanded relationships with 8 existing customers, while maintaining a robust monthly customer retention rate of 97.1%. XPON's Wondaris Composable Customer Data Platform (CDP) is now available on the Google Cloud Marketplace, which simplifies the procurement and deployment process for customers while helping them maximize the value of their cloud investments.

The company has clear priorities for FY25, including: continuing to monitor and optimize the recalibration of the sales strategy towards high-margin, long-term recurring revenue growth; capitalizing on its leading market position by driving continued AI innovation with Wondaris to accelerate sales cycles and enhance value realization for customers; focusing on sustainable profitability by leveraging its relationship with Google for pipeline generation and growing its recurring customer base; maintaining momentum on its M&A strategy to enhance shareholder value while addressing balance sheet and convertible note refinancing to strengthen financial stability; ensuring a strong corporate culture and high employee engagement and motivation; and continuing to monitor and manage its cost profile in line with business performance.