Industry Overview - The Internet - Services industry is influenced by macroeconomic factors such as inflation, interest rates, labor markets, and supply chain issues, with a generally positive outlook in a stronger economy [1][6] - Companies in this industry rely on substantial software and hardware infrastructure to deliver services globally, accessible via personal connected devices [5] - The industry operates under two primary models: ad-based and ad-free, with major players including Alphabet, Baidu, and Akamai, alongside emerging companies like Dropbox and Crexendo [6] Investment Opportunities - Dropbox (DBX) and Crexendo (CXDO) are highlighted as attractive investment options due to their growth prospects, AI adoption, and cost-cutting measures [2][17] - The Zacks Internet - Services industry has improved its rank, now positioned in the top 40% of 245 Zacks-classified industries, indicating several opportunities [9][11] Financial Performance - The industry has experienced a net gain of 29.9% over the past year, outperforming the broader Technology sector's 22.2% gain and the S&P 500's 15.6% gain [12] - The forward 12-month price-to-earnings (P/E) ratio for the industry is currently at 21.24X, which is a premium to its median value of 19.76X over the past year but a discount to the S&P 500's 22.8X [15] Company-Specific Insights Dropbox (DBX) - Dropbox has integrated AI into its business to enhance customer experience, leading to a 15.6% increase in share price over the past year [20] - The company beat earnings estimates by 19.5% in the last quarter, with 2025 revenue and earnings growth expected at -2.2% and 7.6%, respectively [20] Crexendo (CXDO) - Crexendo operates in a niche market, providing cloud communication solutions and has seen significant growth opportunities through AI integration [23][24] - The company topped revenue estimates by 2.2% and earnings by 75% in the last quarter, with expected revenue and earnings growth of 10.9% and 9.1% for the following year [26]

Group 1 - Leidos (LDOS) is currently outperforming its peers in the Computer and Technology sector, with a year-to-date return of 26.3% compared to the sector average of 14.3% [4] - The Zacks Rank for Leidos is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions, with a 7% increase in the consensus estimate for full-year earnings over the past 90 days [3] - Leidos belongs to the Computers - IT Services industry, which has seen an average loss of 16.8% this year, further highlighting its strong performance relative to its industry [5] Group 2 - The Computer and Technology sector includes 605 individual stocks and is currently ranked 5 in the Zacks Sector Rank [2] - Another stock in the sector, Crexendo (CXDO), has also shown strong performance with a year-to-date return of 15.7% and a Zacks Rank of 2 (Buy) [4][5] - The Internet - Services industry, to which Crexendo belongs, has a year-to-date increase of 8.3% and is ranked 97 among 34 stocks [6]

Summary of Key Points Core Viewpoint - Crexendo (CXDO) shows potential for significant upside, with a mean price target of $8.5 indicating a 41.4% increase from the current price of $6.01, reflecting positive sentiment among analysts [1][11]. Price Targets and Analyst Estimates - The mean estimate consists of six short-term price targets with a standard deviation of $1.26, suggesting variability in analyst predictions. The lowest target is $7.50 (24.8% increase), while the highest is $11.00 (83% increase) [2][9]. - Analysts have recently revised earnings estimates upward, with a 10.3% increase in the Zacks Consensus Estimate for the current year, indicating a positive trend that correlates with potential stock price movements [12][11]. Analyst Behavior and Price Target Reliability - Analysts often set overly optimistic price targets due to business incentives, which can mislead investors. This behavior raises questions about the reliability of price targets as indicators of actual stock performance [8][7]. - A low standard deviation in price targets indicates a high degree of agreement among analysts, which can serve as a starting point for further research into the stock's fundamental drivers [9][10]. 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 estimates, suggesting a strong potential for upside in the near term [13][11]. - While the consensus price target may not be a definitive measure of potential gains, it does provide a directional guide for investors [14].

Core Insights - Crexendo (CXDO) reported revenue of $16.55 million for the quarter ended June 2025, marking a year-over-year increase of 12.7% and exceeding the Zacks Consensus Estimate by 2.2% [1] - The earnings per share (EPS) for the same period was $0.09, compared to $0.07 a year ago, resulting in a surprise of 50% over the consensus EPS estimate of $0.06 [1] Revenue Breakdown - Service revenue was reported at $8.37 million, surpassing the average estimate of $8.23 million by analysts, reflecting a year-over-year increase of 3.8% [4] - Product revenue was $1.2 million, exceeding the average estimate of $1.13 million, but showing a year-over-year decline of 7% [4] - Software solutions revenue reached $6.98 million, above the average estimate of $6.82 million, with a significant year-over-year increase of 31% [4] Stock Performance - Over the past month, Crexendo's shares have returned -8.1%, contrasting with the Zacks S&P 500 composite's increase of 1% [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 $0.09 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and showing an increase from $0.07 per share a year ago, resulting in an earnings surprise of +50.00% [1] - The company achieved revenues of $16.55 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.20%, and up from $14.69 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 12.2% since the beginning of the year, outperforming the S&P 500's gain of 7.6% [3] - The future performance of Crexendo's stock will depend on management's commentary during the earnings call and the outlook for earnings estimates [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $17.14 million, and for the current fiscal year, it is $0.29 on revenues of $67.19 million [7] Group 3 - The Internet - Services industry, to which Crexendo belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, Upwork, is expected to report quarterly earnings of $0.26 per share, with revenues projected to decline by 3.5% from the previous year [9][10]

Financial Data and Key Metrics Changes - Total revenue increased by 13% to $16.6 million compared to $14.7 million in the same quarter last year [7][16] - GAAP net income was $1.2 million, up from $0.6 million year-over-year [7][17] - Adjusted EBITDA for the quarter was $2.8 million, compared to $2.2 million in the prior year [17] - Remaining performance obligation (backlog) increased to $83.5 million, up 17% from the previous year [22] Business Line Data and Key Metrics Changes - Software solutions revenue grew by 31% to $7 million compared to $5.3 million in the same quarter last year [7][16] - Telecom service revenue increased by 4% to $8.4 million, while product revenue decreased by 7% to $1.2 million [16][21] - Gross margin for software solutions improved to 74%, while telecom services gross margin was 56% [23] Market Data and Key Metrics Changes - The master agent technology service distributors saw an 88% increase in sales bookings year-over-year [22] - The telecom services retail segment grew at 2% organically for the quarter [21] Company Strategy and Development Direction - The company is focused on transitioning to Oracle Cloud Infrastructure, which is expected to yield significant cost savings and improve innovation [12][20] - Crexendo is actively reviewing several potential acquisitions, ensuring they align with the vision of strategic profitable growth [13] - The company is enhancing its AI capabilities, with plans to roll out AI call bots and operator functions [10][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's trajectory, highlighting strong demand for its offerings and a commitment to delivering best-in-class services [14][26] - The company is not pursuing low-margin opportunities, focusing instead on profitable growth [11][22] Other Important Information - The company reported a strong cash position of $23.5 million, supporting continued innovation and strategic initiatives [13][18] - The company has successfully completed its international data center migration to Oracle Cloud Infrastructure [20] Q&A Session Summary Question: What is the pipeline for the second half of the year? - Management expects continued growth in new licensees and upgrades, with the total active licensee count around 240 [31][32] Question: How will the T-Mobile acquisition of UScellular impact the relationship? - Management sees tremendous opportunities with the T-Mobile acquisition and anticipates expanding the successful partnership with UScellular [34][36] Question: What margin improvements can be expected after closing international data centers? - Major savings are expected next year when domestic data centers are closed, with minimal immediate impact from international closures [37] Question: What is driving the strong growth in master agent sales? - Strong relationships and excellent customer service have fostered growth in the master agent channel [40][41] Question: What is the outlook for software revenue growth? - The company anticipates maintaining double-digit organic growth, with software solutions expected to continue growing at over 30% [45] Question: How is the remaining performance obligation structured? - The remaining performance obligation is heavily weighted towards the first three years of contracts, indicating strong future revenue streams [50] Question: What is the status of product revenue? - The company is strategically moving away from low-margin product sales, which has led to fluctuations in product revenue [53][54] Question: How is international expansion progressing? - The company continues to see strong demand in international markets, particularly in Europe and Australia [68]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Crexendo reported strong financial performance for both Q2 and the first half of 2025, driven by significant growth in software solutions revenue and substantial increases in profitability metrics [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Crexendo reported strong financial performance for the second quarter of 2025, with consolidated total revenue increasing by 13% year-over-year, primarily driven by a significant 31% growth in software solutions revenue. The company achieved substantial increases in GAAP net income, Non-GAAP net income, EBITDA, and Adjusted EBITDA Q2 2025 Key Financial Metrics | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | | :-------------------------- | :-------------------- | :-------------------- | :----------- | | Total Revenue | $16.6 | $14.7 | +13% | | Service Revenue | $8.4 | $8.1 | +4% | | Software Solutions Revenue | $7.0 | $5.3 | +31% | | Product Revenue | $1.2 | $1.3 | -7% | | Operating Expenses | $15.4 | $14.1 | +10% | | Net Income (GAAP) | $1.2 | $0.6 | +100% | | Basic/Diluted EPS (GAAP) | $0.04 | $0.02 | +100% | | Non-GAAP Net Income | $2.9 | $2.1 | +38% | | Basic EPS (Non-GAAP) | $0.10 | $0.08 | +25% | | Diluted EPS (Non-GAAP) | $0.09 | $0.07 | +28.6% | | EBITDA | $2.0 | $1.4 | +43% | | Adjusted EBITDA | $2.8 | $2.2 | +27% | [Six Months Ended June 30, 2025 Financial Highlights](index=1&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Financial%20Highlights) For the first six months of 2025, Crexendo maintained strong growth, with total revenue increasing by 13% year-over-year, largely propelled by a 32% rise in software solutions revenue. The company saw significant improvements in both GAAP and Non-GAAP profitability metrics, alongside a healthy increase in cash and cash equivalents H1 2025 Key Financial Metrics | Metric | H1 2025 (in millions) | H1 2024 (in millions) | Change (YoY) | | :-------------------------- | :-------------------- | :-------------------- | :----------- | | Total Revenue | $32.6 | $29.0 | +13% | | Service Revenue | $16.6 | $15.9 | +4% | | Software Solutions Revenue | $13.8 | $10.5 | +32% | | Product Revenue | $2.2 | $2.6 | -15% | | Operating Expenses | $30.4 | $27.9 | +9% | | Net Income (GAAP) | $2.4 | $1.0 | +140% | | Basic EPS (GAAP) | $0.08 | $0.04 | +100% | | Diluted EPS (GAAP) | $0.08 | $0.03 | +166.7% | | Non-GAAP Net Income | $5.5 | $4.1 | +34% | | Basic EPS (Non-GAAP) | $0.19 | $0.15 | +26.7% | | Diluted EPS (Non-GAAP) | $0.18 | $0.14 | +28.6% | | EBITDA | $3.9 | $2.7 | +44% | | Adjusted EBITDA | $5.5 | $4.3 | +29% | - Cash and Cash Equivalents increased to **$23.5 million** at June 30, 2025, from **$18.2 million** at December 31, 2024[13](index=13&type=chunk) - Cash provided by operating activities for the six months ended June 30, 2025, was **$2.5 million**, consistent with the prior year. Cash provided by financing activities significantly increased to **$2.7 million** from **$0.8 million**[14](index=14&type=chunk) [Company Overview and Strategy](index=2&type=section&id=Company%20Overview%20and%20Strategy) Crexendo is a leading cloud communication software provider, focused on profitable growth through strategic initiatives like OCI expansion, cost discipline, and AI integration, serving over six million global users [About Crexendo](index=2&type=section&id=About%20Crexendo) Crexendo, Inc. is an award-winning software technology company specializing in cloud communication platforms and unified communications as a service (UCaaS), including voice, video, contact center, and managed IT services for businesses. Its software solutions serve over six million end users globally through a network of subscribers and direct retail offerings - Crexendo is an award-winning software technology company and a premier provider of cloud communication platform and services, video collaboration, and managed IT services[1](index=1&type=chunk)[18](index=18&type=chunk) - Core offerings include cloud communication platform software and Unified Communications as a Service (UCaaS) offerings such as voice, video, contact center, and managed IT services[18](index=18&type=chunk) - The company's cloud communications software solutions support over **six million** end users globally through an extensive network of over **235** cloud communication platform software subscribers and direct retail offerings[19](index=19&type=chunk) [Management Commentary and Strategic Outlook](index=2&type=section&id=Management%20Commentary%20and%20Strategic%20Outlook) CEO Jeff Korn emphasized Crexendo's continued momentum and focus on profitable growth, highlighting the software solutions segment as a strategic moat. The company achieved its eighth consecutive quarter of GAAP profitability and 27th consecutive quarter of Non-GAAP net income. Strategic priorities include expanding Oracle Cloud Infrastructure (OCI) presence, maintaining cost discipline, accelerating telecom services revenue, and pursuing accretive acquisitions, with a focus on embracing AI applications - CEO Jeff Korn stated that the strong second quarter performance underscores continued momentum and a laser-like focus on profitable growth, with software solutions segment growth being a strategic moat[15](index=15&type=chunk) - The company achieved its **eighth consecutive quarter of GAAP profitability** and **27th consecutive quarter of Non-GAAP net income**[15](index=15&type=chunk) - Strategic priorities include closing international data centers, expanding Oracle Cloud Infrastructure (OCI) presence, maintaining cost discipline, accelerating telecom services revenue through profitable sales initiatives, and reviewing strategic, accretive acquisitions. The company also plans to advance its software platform and embrace AI applications[15](index=15&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements reflect Crexendo's strong asset growth, robust revenue and net income increases, and improved cash flow from financing activities for Q2 and H1 2025 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Crexendo's total assets increased to $71.36 million from $64.94 million at December 31, 2024, primarily driven by a significant rise in cash and cash equivalents and trade receivables. Total liabilities slightly decreased, contributing to a notable increase in total stockholders' equity Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :----- | | Total Assets | $71,363 | $64,938 | +$6,425 | | Cash and cash equivalents | $23,450 | $18,193 | +$5,257 | | Trade receivables, net | $5,620 | $4,352 | +$1,268 | | Total Liabilities | $13,062 | $13,525 | -$463 | | Total Stockholders' Equity | $58,301 | $51,413 | +$6,888 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Crexendo demonstrated robust revenue growth for both the second quarter and the six months ended June 30, 2025, largely fueled by its software solutions segment. This strong top-line performance translated into substantial increases in GAAP net income and earnings per share across both periods Q2 2025 Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :-------------------------- | :---------------------------------------------- | :---------------------------------------------- | :----------- | | Total Revenue | $16,552 | $14,685 | +13% | | Software solutions revenue | $6,975 | $5,325 | +31% | | Total operating expenses | $15,449 | $14,105 | +10% | | Net income/(loss) | $1,232 | $588 | +109.5% | | Basic EPS | $0.04 | $0.02 | +100% | | Diluted EPS | $0.04 | $0.02 | +100% | H1 2025 Condensed Consolidated Statements of Operations (in thousands) | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | :----------- | | Total Revenue | $32,609 | $28,971 | +13% | | Software solutions revenue | $13,843 | $10,471 | +32% | | Total operating expenses | $30,356 | $27,908 | +9% | | Net income/(loss) | $2,403 | $1,022 | +135.1% | | Basic EPS | $0.08 | $0.04 | +100% | | Diluted EPS | $0.08 | $0.03 | +166.7% | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities remained stable year-over-year. However, cash provided by financing activities saw a substantial increase, primarily due to proceeds from the exercise of options, resulting in a significant overall net increase in cash and cash equivalents H1 2025 Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :------------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :----------- | | Net cash provided by operating activities | $2,533 | $2,486 | +1.9% | | Net cash used for investing activities | $(18) | $0 | N/A | | Net cash provided by financing activities | $2,696 | $778 | +246.5% | | Net increase in cash and cash equivalents | $5,257 | $3,264 | +61.1% | | Cash and cash equivalents at period end | $23,450 | $13,611 | +72.3% | [Non-GAAP Financial Measures and Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section details Crexendo's use of Non-GAAP financial measures, including reconciliations for Non-GAAP net income, EBITDA, and Adjusted EBITDA, highlighting their purpose and inherent limitations [Use of Non-GAAP Financial Measures](index=6&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Crexendo utilizes Non-GAAP net income and Adjusted EBITDA as supplemental measures to assess operating performance, making adjustments for items such as share-based compensation, acquisition-related expenses, and amortization of intangibles. The company acknowledges that these non-GAAP measures have limitations, including not reflecting cash expenditures, working capital changes, interest, taxes, or asset replacements, and may not be comparable across different companies - Non-GAAP net income and Adjusted EBITDA are used as supplemental measures to evaluate operating performance, adjusting for share-based compensation, acquisition expenses, changes in fair value of contingent consideration, amortization of intangibles, and goodwill/long-lived asset impairment[32](index=32&type=chunk) - EBITDA is defined as U.S. GAAP net income/(loss) before interest expense, interest income and other expense/(income), gain/(loss) on sale of property and equipment, goodwill/long-lived asset impairments, provision/(benefit) for income taxes, and depreciation and amortization[32](index=32&type=chunk) - Limitations of Non-GAAP measures include not reflecting cash expenditures, working capital needs, interest/tax payments, cash requirements for asset replacements, and potential inconsistencies in calculation compared to other companies[33](index=33&type=chunk)[38](index=38&type=chunk) [Reconciliation of Non-GAAP Net Income](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Net%20Income) Non-GAAP net income for Q2 2025 was $2.86 million ($0.10 basic EPS), a 34% increase from Q2 2024. For the six months ended June 30, 2025, Non-GAAP net income was $5.53 million ($0.19 basic EPS), up 36.1% year-over-year, primarily adjusted for share-based compensation and amortization of intangible assets Q2 2025 Reconciliation of Non-GAAP Net Income (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | :----------- | | U.S. GAAP net income/(loss) | $1,232 | $588 | +109.5% | | Share-based compensation and related taxes | $825 | $788 | +4.7% | | Amortization of intangible assets | $801 | $758 | +5.7% | | Non-GAAP net income | $2,858 | $2,134 | +34.0% | | Non-GAAP basic EPS | $0.10 | $0.08 | +25.0% | | Non-GAAP diluted EPS | $0.09 | $0.07 | +28.6% | H1 2025 Reconciliation of Non-GAAP Net Income (in thousands) | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | :----------- | | U.S. GAAP net income/(loss) | $2,403 | $1,022 | +135.1% | | Share-based compensation and related taxes | $1,623 | $1,526 | +6.4% | | Amortization of intangible assets | $1,507 | $1,518 | -0.7% | | Non-GAAP net income | $5,533 | $4,066 | +36.1% | | Non-GAAP basic EPS | $0.19 | $0.15 | +26.7% | | Non-GAAP diluted EPS | $0.18 | $0.14 | +28.6% | [Reconciliation of EBITDA and Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA) EBITDA for Q2 2025 increased to $1.96 million from $1.42 million in Q2 2024, while Adjusted EBITDA rose to $2.78 million from $2.20 million. For the six months, EBITDA grew to $3.88 million (from $2.74 million) and Adjusted EBITDA reached $5.50 million (from $4.27 million), with share-based compensation being a primary adjustment Q2 2025 Reconciliation of EBITDA and Adjusted EBITDA (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :-------------------------- | :---------------------------------------------- | :---------------------------------------------- | :----------- | | U.S. GAAP net income/(loss) | $1,232 | $588 | +109.5% | | EBITDA | $1,959 | $1,416 | +38.3% | | Adjusted EBITDA | $2,784 | $2,204 | +26.3% | H1 2025 Reconciliation of EBITDA and Adjusted EBITDA (in thousands) | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | :----------- | | U.S. GAAP net income/(loss) | $2,403 | $1,022 | +135.1% | | EBITDA | $3,880 | $2,739 | +41.7% | | Adjusted EBITDA | $5,503 | $4,265 | +29.0% | [Supplemental Information](index=2&type=section&id=Supplemental%20Information) This section provides details on the Q2 2025 earnings conference call, the company's safe harbor statement regarding forward-looking information, and key contact details [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) Crexendo management hosted a conference call on August 5, 2025, to discuss the second quarter results, featuring CEO Jeff Korn, CFO Ron Vincent, and President/COO Doug Gaylor. Replay access was provided for those unable to attend the live call - A conference call was held on August 5, 2025, at 4:30 PM Eastern time to discuss the results[16](index=16&type=chunk) - The call was hosted by CEO Jeff Korn, CFO Ron Vincent, and President and COO Doug Gaylor[16](index=16&type=chunk) - A replay of the call was available until August 12, 2025, with specific dial-in and passcode information provided[17](index=17&type=chunk) [Safe Harbor Statement](index=3&type=section&id=Safe%20Harbor%20Statement) This section outlines the company's forward-looking statements, which are protected under the Private Securities Litigation Reform Act of 1995. It advises readers to refer to the company's SEC filings for detailed risk factors and clarifies that Crexendo is not obligated to update these statements unless required by law - The press release contains forward-looking statements, identified by words like "believe," "expect," "anticipate," and "estimate," which are protected under the Private Securities Litigation Reform Act of 1995[20](index=20&type=chunk) - Specific forward-looking statements include beliefs about continued momentum, software solutions growth as a strategic moat, business model strength, investment in infrastructure, execution of strategic priorities (e.g., OCI expansion, cost discipline, acquisitions, AI applications), and a robust cash position[20](index=20&type=chunk) - Readers are directed to the company's Form 10-K and quarterly Form 10-Qs filed with the SEC for a more detailed discussion of risk factors. The company undertakes no obligation to update these statements, except as required by law[21](index=21&type=chunk) [Company Contact](index=3&type=section&id=Company%20Contact) Contact information for Crexendo, Inc. is provided, specifically for Doug Gaylor, the President and Chief Operating Officer - Contact for Crexendo, Inc. is Doug Gaylor, President and Chief Operating Officer[22](index=22&type=chunk) - Contact details include phone: **602-732-7990** and email: **dgaylor@crexendo.com**[22](index=22&type=chunk)

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]

Core Viewpoint - Crexendo (CXDO) shows potential for significant upside, with a mean price target of $8.30 indicating a 55.1% increase from the current trading price of $5.35 [1] Price Targets and Analyst Estimates - The mean estimate consists of five short-term price targets with a standard deviation of $0.97, suggesting variability in analyst predictions [2] - The lowest estimate of $7.50 indicates a 40.2% increase, while the highest estimate suggests an 86.9% surge to $10 [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price direction [9] Analyst Sentiment and Earnings Estimates - Analysts have shown increasing optimism about CXDO's earnings prospects, as evidenced by a positive trend in earnings estimate revisions [11] - The Zacks Consensus Estimate for the current year has risen by 18.2% over the past month, with two estimates increasing and no negative revisions [12] - CXDO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13]