Group 1 - The article provides a buy rating for Crexendo, Inc. (CXDO) due to its innovative concurrent-session pricing model, which is expected to help the company capture significant market share [1] - CXDO's platform is noted for its technical flexibility and deep integration, enhancing its competitive position in the market [1] - The author emphasizes a fundamental, valuation-driven investment approach, focusing on businesses with potential for scalability and long-term free cash flow generation [1] Group 2 - The author has a decade of experience in investment banking and is currently managing personal funds, indicating a strong background in financial analysis [1] - The motivation for writing is to share investment insights and receive feedback from the investment community, aiming to assist readers in identifying long-term equity value drivers [1] - The analysis is intended to be both analytical and accessible, targeting high-quality, long-term investment opportunities [1]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Crexendo (CXDO) currently holding a Momentum Style Score of B [2] Group 2: Performance Metrics - Crexendo has seen a 14.67% increase in shares over the past week, outperforming the Zacks Internet - Services industry, which rose by 1.57% [5] - Over the past quarter, Crexendo shares have risen by 47.14%, and by 99.07% over the last year, while the S&P 500 increased by 16.66% and 14.76%, respectively [6] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for Crexendo is 260,073 shares, indicating a bullish sign with rising stock prices [7] - In the past two months, two earnings estimates for Crexendo have increased, raising the consensus estimate from $0.28 to $0.29 [9] Group 4: Investment Recommendation - Crexendo is rated as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Crexendo (CXDO) closed the last trading session at $5.35, gaining 5.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $8.30 indicates a 55.1% upside potential.The mean estimate comprises five short-term price targets with a standard deviation of $0.97. While the lowest estimate of $7.50 indicates a 40.2% increase from the current price level, the most optimistic analyst expects th ...

Core Viewpoint - Crexendo (CXDO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Recent Performance and Projections - For the fiscal year ending December 2025, Crexendo is projected to earn $0.29 per share, reflecting an 11.5% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Crexendo has risen by 56%, indicating a significant upward revision in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, suggesting superior potential for market-beating returns [9][10]. - Crexendo's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong likelihood of price appreciation in the near term [10].

Core Viewpoint - Crexendo (CXDO) has shown a significant price increase of 24.2% over the past four weeks, with analysts suggesting further upside potential based on a mean price target of $8.30, indicating a 42.9% increase from the current price of $5.81 [1] Price Targets and Analyst Estimates - The mean price target consists of five short-term estimates with a standard deviation of $0.97, where the lowest estimate is $7.50 (29.1% increase) and the highest is $10 (72.1% increase) [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Analyst Consensus - Analysts have shown increasing optimism about CXDO's earnings prospects, with a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - Over the last 30 days, two earnings estimates have been revised upward, leading to an 18.2% increase in the Zacks Consensus Estimate for the current year [12] Zacks Rank and Investment Potential - CXDO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside in the near term [13]

Core Insights - Crexendo (CXDO) reported revenue of $16.06 million for the quarter ended March 2025, reflecting a year-over-year increase of 12.4% and surpassing the Zacks Consensus Estimate by 1.66% [1] - The company's EPS for the quarter was $0.08, which is an increase from $0.06 in the same quarter last year, resulting in an EPS surprise of 33.33% compared to the consensus estimate [1] Revenue Breakdown - Service revenue reached $8.18 million, exceeding the estimated $7.91 million, marking a 4.3% increase year-over-year [4] - Product revenue was reported at $1.01 million, falling short of the estimated $1.32 million, representing a decline of 22.2% compared to the previous year [4] - Software solutions revenue amounted to $6.87 million, surpassing the estimated $6.57 million, and showing a significant increase of 33.5% year-over-year [4] Stock Performance - Over the past month, Crexendo's shares have returned 19.5%, outperforming the Zacks S&P 500 composite's return of 11.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1 - Crexendo reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and showing an increase from $0.06 per share a year ago, resulting in an earnings surprise of 33.33% [1] - The company achieved revenues of $16.06 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.66% and increasing from $14.29 million year-over-year [2] - Crexendo has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Group 2 - The stock has gained approximately 0.8% since the beginning of the year, contrasting with the S&P 500's decline of -3.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $16.26 million, and for the current fiscal year, it is $0.28 on revenues of $67.01 million [7] - The Zacks Industry Rank indicates that the Internet - Services sector is in the bottom 43% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Crexendo (CXDO) Q1 2025 Earnings Call May 06, 2025 04:30 PM ET Company Participants Jeff Korn - CEO & Executive Chairman of the BoardJon Brinton - CRORon Vincent - CFODoug Gaylor - COO & PresidentAnand Buch - Chief Strategy Officer, GM of Software Division & DirectorMatthew Maus - Equity Research AssociateJesse Sobelson - VP - Equity Research Conference Call Participants Eric Martinuzzi - Senior Research AnalystMike Latimore - Managing Director & Senior Research AnalystGeorge Sutton - Partner & Senior Resea ...

Revenue Performance - Total revenue for the three months ended March 31, 2025, was $16,057,000, representing a 12% increase from $14,286,000 in the same period of 2024[172]. - Service revenue increased by $337,000 to $8,182,000, while software solutions revenue rose by $1,722,000 to $6,868,000, offset by a decrease in product revenue of $288,000[172]. - Cloud Telecommunications Services segment service revenue increased by 4% to $8,182,000 in Q1 2025 from $7,845,000 in Q1 2024[190]. - Total revenue for the Cloud Telecommunications Services segment was $9,189,000 in Q1 2025, slightly up from $9,140,000 in Q1 2024[189]. - Software solutions revenue increased by 33% to $6,868,000 for the three months ended March 31, 2025, compared to $5,146,000 in the same period of 2024[202]. Income and Earnings - Income before income tax for the three months ended March 31, 2025, was $1,215,000, a 164% increase from $461,000 in the same period of 2024[173]. - Net income for the three months ended March 31, 2025, was $1,171,000, compared to $434,000 in the same period of 2024, resulting in basic and diluted earnings per share of $0.04[171]. - U.S. GAAP net income for Q1 2025 was $1,171,000, compared to $434,000 in Q1 2024, representing a significant increase[182]. - Non-GAAP net income for Q1 2025 was $2,603,000, up from $1,922,000 in Q1 2024, reflecting a growth of 35%[182]. Operating Expenses - The increase in operating expenses was primarily due to higher salaries, benefits, bonuses, and share-based compensation totaling $532,000[173]. - Selling and marketing expenses increased by 2% to $2,852,000 in Q1 2025, driven by higher commission expenses[197]. - General and administrative expenses decreased by 10% to $1,938,000 in Q1 2025, mainly due to reduced executive and administrative salaries[198]. - Research and development expenses decreased by 51% to $132,000 in Q1 2025, as resources were allocated to the Software Solutions segment[199]. - Research and development expenses increased by 42% to $1,391,000 for the three months ended March 31, 2025, compared to $980,000 in the same period of 2024[208]. - General and administrative expenses rose by 39% to $1,581,000 for the three months ended March 31, 2025, compared to $1,138,000 in the same period of 2024[207]. - Selling and marketing expenses increased by 17% to $1,437,000 for the three months ended March 31, 2025, compared to $1,231,000 in the same period of 2024[206]. Cash Flow and Financial Position - Net cash provided by operating activities surged to $1,238,000 for the three months ended March 31, 2025, compared to a net cash used of $(166,000) in the same period of 2024, representing an increase of 846%[211]. - Cash and cash equivalents increased to $21,207,000 as of March 31, 2025, up from $18,193,000 as of December 31, 2024[210]. - Net cash provided by financing activities increased by 105% to $1,763,000 for the three months ended March 31, 2025, compared to $859,000 in the same period of 2024[214]. Remaining Performance Obligations - Remaining Performance Obligations (RPOs) increased by 14% to $54,683,000 as of March 31, 2025, compared to $48,082,000 as of March 31, 2024[193]. - Remaining Performance Obligations (RPOs) rose by 41% to $27,266,000 as of March 31, 2025, up from $19,295,000 as of March 31, 2024[203]. Acquisitions and Agreements - The Company completed the acquisition of Allegiant Networks for a total consideration of $2.0 million in cash, a $1.1 million promissory note, and 2,461,538 shares of common stock[218]. - The promissory note has a term of three years with quarterly payments of $98,381, starting April 1, 2023[218]. - The Company entered into a consulting agreement with Steven G. Mihaylo for $14 per month, totaling $168 annually[219]. - During the three months ended March 31, 2025, the Company paid $42 to Mr. Mihaylo for consulting services[219]. Risk Factors - The Company has not experienced material foreign currency risk as sales and operating expenses are predominantly in U.S. dollars[221]. - The exposure to foreign currency fluctuations from operating expenses is considered immaterial at present[223]. - The Company does not believe inflation has materially affected its business or financial condition[224]. - If inflationary pressures increase, the Company may struggle to offset higher costs through price increases[224]. Technology and Investment - The company continues to invest in technology and CPaaS offerings to enhance competitiveness and profitability[165]. - The company’s software solutions segment includes software licenses, maintenance support, and professional services, with revenue recognized based on performance obligations[159]. - The company’s cloud telecommunication services include essential and advanced features, enhancing business productivity without requiring capital expenses[164].

Crexendo (CXDO) Q1 2025 Earnings Call May 06, 2025 04:30 PM ET Speaker0 note this conference is being recorded. I will now turn the conference over to your host, Jeff Corrin, Chairman of the Board. You may begin. Thank you, John, and good afternoon, everyone. Welcome to the Crexendo Q1 twenty twenty five year end conference call. I'm Jeff Corin, CEO and Chairman of the Board. On the call with me today are Doug Gaylor, our President and COO Ron Vincent, our CFO and in the room with us is John Britton, our CR ...