NEW YORK--(BUSINESS WIRE)--Glassbox (TASE:GLBX), a leading provider of digital experience intelligence for web and mobile applications, today announced its financial results for the fourth quarter and full year of 2023. In 2023, the company grew its annual recurring revenue (ARR) to $57.3 million, a 17% increase over the previous year. Cloud subscription ARR surged by 54% YoY to $50.5 million. Notably, Glassbox secured a three-year, $42.3 million agreement with a prominent bank, which bolstered its cloud subscription revenue.
Annual revenue in 2023 reached $48.6 million, reflecting a 6% expansion over the previous year. Specifically, revenue from cloud subscriptions increased by 35% to $35.2 million. In the fourth quarter, revenue hit $14 million, a notable 22% growth YoY, with cloud subscription revenue seeing a 69% surge over the same period of 2022.
Glassbox also continued its upward trajectory in non-GAAP operating profit to 68.9% compared to 65.7% in the previous year. Non-GAAP gross margin for the fourth quarter grew to 73.4%, demonstrating a substantial improvement from 61.8% in the same quarter of the previous year.
The company’s focus on enhancing profitability from cloud subscriptions was evident, with margins reaching 75.1% in 2023 compared to 65.4% in 2022. Notably, non-GAAP cloud subscription gross margin for the fourth quarter improved significantly, reaching 81.0% compared to 63.7% in the corresponding quarter of the previous year.
Glassbox also reduced its non-GAAP operating loss by 55% to $10.5 million in 2023. In the fourth quarter, the company realized a 97% YoY decrease in its operating loss to less than $200,000. These improvements are the result of enhanced operational efficiencies and expense management, which yielded results beginning in the third quarter of 2023.
The company also reduced its cash burn rate in 2023 to $4.0 million compared to $16.3 million in the previous year. Ending the year with a strong financial position, Glassbox boasted a cash balance of $46 million as of December 31, 2023, inclusive of a $20 million credit facility, providing ample financial flexibility for expansion and strategic initiatives.
Glassbox continued to fortify its customer base, welcoming 51 new customers in 2023 while emphasizing partnerships with new clients such as AXA, ANZ Bank, US HealthConnect, Co-Operative Bank and Dayuse. The company saw a significant improvement in customer retention rates, with a net retention rate of 121% and a gross retention rate of 91% for large enterprise customers in 2023.
“Glassbox realized strong results in 2023, driven primarily by our cloud subscription revenue and our strategic focus on segments where we hold a proven advantage, notably the financial and insurance sectors. We continue to add new customers and to see sustained growth in revenue from existing customers, who benefit from the rapid return on investment afforded by Glassbox. These accomplishments are complemented by strong profitability measures due to the operating efficiency initiatives taken in the year,” said Yaron Morgenstern, CEO of Glassbox.
Glassbox is at the forefront of AI-driven digital intelligence as it makes rapid strides towards its vision of Autonomous CX, which will revolutionize digital customer experience (CX) through self-optimizing digital applications.
Morgenstern further states, “In 2023, Glassbox made AI-driven innovation a top priority, delivering multiple new capabilities that utilized machine learning to drive greater efficiency in digital analytics. Then, Glassbox was the first in our market to harness generative AI (GenAI) when we released GIA (Glassbox Insights Assistant), a GenAI assistant that democratizes and accelerates access to digital insights for our customers. We built GIA using Microsoft’s Azure OpenAI Service to introduce the GenAI advantages to our customers with all the privacy and security protections they’ve come to expect from Glassbox and Microsoft.
“Our AI focus has continued to bear fruit in early 2024 with the launch of our Voice of the Silent solution, which represents the next evolution in voice of the customer (VoC) solutions. This solution taps the power of AI to eliminate the longstanding limitations of VoC: low response rates and lack of actionable feedback. This is a significant advancement towards ensuring organizations make well-informed business and CX decisions.”
About Glassbox
Glassbox (TASE:GLBX) reveals the insights that empower organizations to deliver better digital customer experiences. Our Digital Experience Intelligence platform automatically captures, visualizes and analyzes every digital journey in real time across websites and mobile apps. It serves as the unifying platform for product, UX, marketing, IT, analytics teams (and more) to assess performance, prioritize projects and optimize experiences. With unparalleled data privacy and security built in, hundreds of global customers across industries have chosen Glassbox to grow and optimize their digital businesses.
