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 ...

EX-99.1 2 cxdo_ex991.htm PRESS RELEASE EXHIBIT 99.1 Crexendo Announces First Quarter 2025 Results PHOENIX, AZ / ACCESSWIRE / May 6, 2025 / Crexendo, Inc. (NASDAQ: CXDO), an award-winning software technology company that is a premier provider of cloud communication platform and services, video collaboration and managed IT services tailored to businesses of all sizes, today announced financial results for the first quarter ended March 31, 2025. First Quarter Financial highlights: Cash and Cash Equivalents: To ...

I came across Crexendo, Inc. (NASDAQ: CXDO ) when recently working on my write-up covering its peer Ooma, Inc. ( OOMA ). While I assigned a Hold rating to OOMA stock, I find CXDO to be more attractively valuedAn individual investor primarily focused on undercovered companies, with more than 50 companies on my watchlist. My areas include technology, software, electronics and the energy transition. I have been investing my personal capital for over 7 years in a broad range of companies globally. Through my ye ...

Crexendo to Present at The LD Micro Invitational XVMarch 28, 2025 8:00 AM EDT | Source: LD MicroTempe, Arizona--(Newsfile Corp. - March 28, 2025) - Crexendo (NASDAQ: CXDO) announced today that it will be participating in the 15th Annual LD Micro Invitational at the Westin Grand Central in New York on April 9th and 10th, 2025. Crexendo is scheduled to present on April 10, 2025 at 10:00AM. Doug Gaylor will be representing the company.We are excited to be presenting at the LD Micro Conference in ...

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy w ...

Financial Data and Key Metrics Changes - Total revenue for Q4 increased by 15% to $16.2 million compared to $14.2 million in the prior year [30] - Full year revenue increased by 14% to $60.8 million compared to $53.2 million in the prior year [34] - Net income for Q4 was $507,000, up from $61,000 in the prior year [32] - Non-GAAP net income for Q4 was $2 million, compared to $1.6 million in the prior year [33] - Full year non-GAAP net income was $7.7 million, up from $6.7 million in the prior year [37] Business Line Data and Key Metrics Changes - Service revenue for Q4 increased by 4% to $8 million compared to $7.7 million in the prior year [30] - Software solutions revenue for Q4 increased by 32% to $7 million compared to $5.3 million in the prior year [30] - Product revenue for Q4 remained flat at $1.2 million [30] - Full year service revenue increased by 7% to $31.8 million [34] - Full year software solutions revenue increased by 30% to $23.4 million [34] Market Data and Key Metrics Changes - The company reported a 39% organic increase in international revenues, mainly in the European Union and Australia [45] - The remaining performance obligation (backlog) grew by 34% to $85.6 million [48] Company Strategy and Development Direction - The company aims to expand market share in a disciplined and profitable manner, avoiding price wars [10] - Crexendo is positioned as the third largest new path platform provider, leveraging disruptions in the market caused by competitors [11][12] - The company is committed to investing in software development and UCaaS enhancements [18] - The recent launch of an ecosystem vendor partner program is expected to drive substantial revenue growth [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued double-digit growth over the next year and beyond [28] - The company maintained GAAP profitability for six consecutive quarters and non-GAAP profitability for 25 consecutive quarters [23] - Management highlighted the importance of customer satisfaction as a competitive advantage [24] Other Important Information - The company has made significant investments in automation and financial systems to improve operational efficiencies [25] - The transition to Oracle Cloud Infrastructure is expected to generate substantial cost savings [22] Q&A Session Summary Question: What are the priorities for capital allocation? - The company is evaluating acquisitions, particularly in AI, and considering share repurchases if the market deteriorates [61][62] Question: Can you quantify the number of clients that migrated from competitors? - Seven Microsoft Metaswitch licensees and three Cisco BroadSoft licensees migrated to Crexendo in 2024 [65] Question: Did you see any change in sales cycles due to the Metaswitch acquisition? - Sales cycles are varied; some customers are moving quickly while others are taking their time [72] Question: Were there any seven-figure transactions in the software solutions business? - There were a couple of seven-figure transactions, but they are considered outliers [81] Question: What is the expected growth trajectory for 2025? - The company expects to grow adjusted EBITDA margins while reinvesting in the business [84] Question: How does Crexendo's product compare to Alianza's? - Crexendo focuses more on the business and enterprise market, while Alianza has historically targeted residential markets [90][92] Question: What percentage of legacy service provider lines have moved to cloud offerings? - Approximately 40% of businesses are still not on the cloud, but this number is expected to decrease significantly [101] Question: What is the average revenue per user at the retail and wholesale levels? - Retail ARPU is around $20, while wholesale average revenue per licensee is approximately $6,000 per month [106][111]