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 ...

Industry Overview - Unified Communication as a Service (UCaaS) is becoming a leading network standard, driven by the cloud business model, which offers an affordable, scalable, and easily deployable solution for unified collaboration communication, particularly popular among large enterprises by 2025 [1] - The UCaaS market is projected to grow from $56.14 billion in 2025 to $175.83 billion by 2030, with a compound annual growth rate (CAGR) of 25.65% during the forecast period [6] Technological Advancements - The UCaaS market will see deeper AI integration in 2025 to enhance communication, a shift towards mobile-first platforms, increased adoption of Web Real-Time Communication (WebRTC), and a focus on security and compliance [2] - AI-powered capabilities such as virtual assistants, automated chatbots, and predictive intelligence will improve communication efficiency and enhance the remote work experience [3] - The introduction of 5G networks is transforming video and audio conferencing by enabling fast, low-latency communication, with advancements like 5G network slicing improving video call quality [4] Key Players - RingCentral (RNG), Cisco Systems (CSCO), and Crexendo (CXDO) are key players positioned to benefit from the growing UCaaS market [6] - RingCentral has been recognized as a Leader in the 2024 Gartner Magic Quadrant for UCaaS for ten consecutive years, bolstered by strategic partnerships with companies like AT&T and Cox Communications [8][9] - Cisco has also been recognized as a Leader in the 2024 Gartner Magic Quadrant for UCaaS for the sixth consecutive year, highlighting its commitment to innovation through its Webex platform [11] - Crexendo has expanded its presence in the UCaaS sector and won the Unified Communications Excellence Award for the fourth time, showcasing its leadership and innovation [15] Earnings Estimates - The Zacks Consensus Estimate for RingCentral's 2025 earnings is $4.20 per share, which has increased by a penny in the past 30 days [10] - Cisco's 2025 earnings estimate is $3.72 per share, reflecting a 1.92% increase over the past 30 days [14] - Crexendo's 2025 earnings estimate is 28 cents per share, which has risen by 12% over the past 30 days [17]

Crexendo (CXDO) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this company would post earnings of $0.02 per share when it actually produced earnings of $0.12, delivering a surprise of 500%.Over the last four quarters, the company has surpasse ...

Crexendo (CXDO) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on March 5, 2024, might help the stock move higher if these key numbers are better than expec ...

Crexendo (CXDO) shares ended the last trading session 16.7% higher at $7.40. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 24.1% gain over the past four weeks.CXDO is riding on its expanding clientele. Its cloud communication platform’s user base has now exceeded four million globally.This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year c ...