YXT.com Narrows Losses Through AI Integration in Corporate Learning Market

YXT.com Group Holding Limited, a Chinese provider of AI-enabled enterprise productivity solutions, continued to narrow its loss for the full year in 2024, driven by its leverage of artificial intelligence. The company's strategic shift from creating digital learning platforms to intelligent learning platforms driven by AI appears to be yielding positive results, enabling cost reduction and efficiency improvements while expanding its presence in the corporate learning market domestically and internationally.

Advancements in AI are creating significant opportunities for the corporate training industry, according to YXT.com CEO Peter Lu. AI technology is addressing key challenges in corporate learning, enabling personalized learning experiences that act as an invisible coach for employees and provide round-the-clock learning support. This intelligent coaching, integrated into work processes, allows learning to occur within real work scenarios, significantly enhancing talent development efficiency.

The AI-driven corporate learning market is forecast to reach $44.6 billion by 2028 driven by demand for upskilling and reskilling of global workforces. AI enables companies to more effectively share knowledge by automatically extracting tacit knowledge from experts and meeting records, transforming it into intelligent courses that reduce knowledge loss and promote the accumulation and reuse of corporate knowledge assets.

For the full year 2024, YXT reported its net loss narrowed 59.9% to RMB92.1 million ($12.6 million) from RMB229.8 million ($32.37 million) in the prior year, thanks in part to AI integration. Gross margin improved to 61.8% from 54.1% in the prior year, representing a 7.7% improvement. Revenue for full year 2024 was RMB331.2 million ($45.4 million), though the company noted that if the deconsolidation of China Europe International Business School Publishing Group Limited had occurred earlier, pro forma revenues would have shown a 1.0% increase.

The company's net change of 139 subscription customers reflects its strategic shift toward large enterprise accounts with consistent demand for corporate learning solutions, resulting in a planned reduction of small and medium-sized customers from its portfolio. Net revenue retention rate for subscription customers remained strong at 100.9%, compared with 101.4% in the prior year. YXT.com's embedding of AI into its platforms helps facilitate the acquisition of new customers, improve retention rates among existing customers, and increase cross-sales opportunities.

In conjunction with its earnings report, YXT.com announced its board has authorized the company to adopt a share repurchase program to buy back up to $10 million of its ordinary shares over a two-year period. Looking ahead to 2025, the company plans to continue growing in China and internationally, leveraging its strong AI capabilities and global strategy to create sustainable value for customers and investors.