Financial Data and Key Metrics Changes - Corporate revenue for Q1 2025 reached $54.3 million, representing a 5.6% increase compared to $51.4 million in Q1 2024, marking the best growth in eight quarters on a normalized basis [6][24] - Adjusted EBITDA for Q1 2025 was $47.3 million, a decrease of 1.7% year over year, with a margin of 54.2%, exceeding expectations by 100 basis points [27][29] - Free cash flow for the quarter was $33.7 million, slightly down from $35.8 million in Q1 2024 due to increased receivables [9][30] Business Line Data and Key Metrics Changes - The SOHO channel revenue was $32.8 million, down 10.6% from $36.8 million in Q1 2024, reflecting a strategic focus on profitability [20][25] - Corporate customer base grew to approximately 60,000, a 9% increase year over year, with a revenue retention rate of 101% [15][24] - ARPA for corporate customers was $307, down $10 year over year, while SOHO ARPA was $14.83, showing a minor decrease [17][26] Market Data and Key Metrics Changes - The company noted a positive trend in corporate ARPA, increasing by almost $3 sequentially, while SOHO customer count decreased from 747,000 to 730,000 [21][29] - The VA deployment continues to gain momentum, with significant usage increases and new deployments proceeding as planned [18] Company Strategy and Development Direction - The company aims to acquire customers primarily in the healthcare space and drive revenue growth to 6.25% for the year [7] - Focus on managing cost structures while making modest investments in go-to-market operations for future benefits [7] - Continued emphasis on the core fax business, which contributes over 90% to corporate revenue, while also enhancing advanced solutions like Unite and Clarity [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth for the corporate channel, despite potential economic slowdowns [14][11] - The company is not currently seeing impacts from tariffs and is closely monitoring the economic environment [10][11] - Guidance for full-year revenue is set between $343 million and $357 million, with adjusted EBITDA between $179 million and $190 million [31] Other Important Information - The company repurchased approximately $10 million of debt in Q1 2025, with a total of $223 million repurchased since the program's launch [9][28] - Cash at the end of Q1 2025 was approximately $53 million, sufficient to fund operations and debt repurchases [29] Q&A Session Summary Question: Can you talk about growth in corporate revenue and VA deployment? - Corporate growth was supported by strong usage across fax brands and good adoption of advanced solutions, with the VA's FedRAMP high certification unlocking new opportunities [36][39] Question: When would you expect the decline in SOHO revenue to moderate? - The decline is influenced by advertising spend and profitability; the company is monitoring these closely to determine future actions [42][45] Question: Are there notable ads for larger enterprise accounts? - The company is adding customers across the board, including large enterprises, and has a robust pipeline for new customers [78][81]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1,130,000,000, an increase of 4% year-over-year in pro forma constant currency, exceeding the midpoint of guidance [5][21] - Non-GAAP earnings per share (EPS) was $1.78, above the guidance range, primarily due to a lower than expected non-GAAP effective tax rate [6][24] - The twelve-month backlog increased by 3.5% year-over-year to $4,170,000,000, supported by a strong pipeline [6][29] Business Line Data and Key Metrics Changes - Revenue from managed services reached a record $747,000,000, up 3.7% from a year ago, accounting for 66% of total revenue [24] - The company reported a non-GAAP operating margin of 21.3%, improving by 10 basis points sequentially and by 290 basis points year-over-year [23] Market Data and Key Metrics Changes - North America saw a slight sequential increase and a 1.4% year-over-year increase in pro forma constant currency [22] - Europe rebounded from previous weaknesses, benefiting from new deal activities and contributions from acquisitions [22] Company Strategy and Development Direction - The company is focused on accelerating the telco industry's adoption of GenAI and enhancing cloud services, with expectations of double-digit growth in cloud-related revenue for fiscal 2025 [16][30] - Amdocs is collaborating with Microsoft for cloud migrations and has secured significant projects in various regions, including the Philippines and Japan [7][10] Management's Comments on Operating Environment and Future Outlook - Management noted rising global macroeconomic uncertainty but believes the company is well-positioned due to its unique business model [18] - The company reiterated a revenue growth outlook of 2.7% for fiscal 2025, with a tightened range of 1.7% to 3.7% [19][30] Other Important Information - The company repurchased $135,000,000 of its own shares and authorized a new share repurchase plan of $1,000,000,000 [27][28] - Free cash flow before restructuring payments was $181,000,000, with a target of $710,000,000 to $730,000,000 for fiscal 2025 [28] Q&A Session Summary Question: Focus on AI contributions to revenue growth and collaboration with NVIDIA - Management indicated that GenAI activities are closely linked to data, with ongoing progress in AI-related projects contributing to revenue growth [34][35] Question: Customer spending behavior changes - Management reported no significant changes in customer spending behavior despite rising macroeconomic concerns [45][46] Question: Fluctuations in accounts receivable and unbilled balances - Management explained that fluctuations are normal due to the nature of various projects and milestones, and they do not guide for these balances due to their unpredictability [47][49] Question: Progress on AI offerings and contracting - Management noted good progress in data-related activities supporting GenAI, with several customers making significant strides, although specific names could not be disclosed [52][54]

CSG Q1 2025 Earnings Presentation Brian Shepherd CEO & President Hai Tran CFO Safe Harbor Forward-Looking Statements + Disclaimers This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," ...

Group 1 - The core takeaway from IBM's Think 2025 event is the significance of its software products and services for large enterprise customers leveraging AI [1] - Analyst James Schneider maintained a Buy rating for IBM with a price target of $270 [1] - IBM launched LinuxONE 5, capable of 450 billion secure AI inference operations per day [1][2] Group 2 - An upgraded version of watsonx.data was introduced, which enhances the accuracy of AI agents by utilizing unstructured data [2] - CEO Arvind Krishna emphasized that AI is transitioning from experimentation to delivering measurable business value, focusing on productivity and cost efficiency [2] - IBM anticipates that AI agents could drive 30% of the one billion new applications by 2028 [2] Group 3 - By implementing its AI solutions internally, IBM aims to support ongoing margin expansion and free cash flow growth while executing mergers and acquisitions [3] - At the time of publication, IBM shares increased by 1.1% to $252.02 [3]

Q1 2025 Financial Performance - As-reported revenue was $841 million, while as-adjusted revenue was $818 million[8] - As-adjusted organic revenue growth was +3%, and +10% excluding the impact of January 1 term license revenue[8,16] - As-reported ARR reached $2,176 million, with as-adjusted ARR at $2,111 million, representing +17% organic growth[8] - Non-GAAP EPS was $061, reaching the high-end of guidance[8] Segment Performance (As-Adjusted) - AECO revenue was $335 million with 0% organic growth, but +17% organic growth excluding January 1 term license revenue; ARR grew +19% organically to $1,294 million[25] - Field Systems revenue was $359 million, with +6% organic growth; ARR grew +25% organically to $358 million[28] - Transportation & Logistics revenue was $123 million, with +5% organic growth, or +6% excluding January 1 term license revenue; ARR grew +7% organically to $459 million[32] FY25 Outlook (As-Adjusted) - The company maintains full-year revenue guidance of $335 billion to $345 billion, representing +45% to +75% total growth and +40% to +70% organic growth[36] - Annualized Recurring Revenue (ARR) is projected to grow +13% to +15% organically[36] - Non-GAAP operating margin is expected to be between 263% and 273%, with Adjusted EBITDA margin between 278% and 288%[36]

Market Performance - As of May 7, the China AI 50 concept index declined by 0.88%, ranking among the top declines in concept sectors [1] - Within the China AI 50 sector, notable declines were seen in Weichai Heavy Machinery, Runze Technology, and Tax Friend Co., with significant gains in Cambricon, Zhongheng Electric, and China Telecom, which rose by 1.95%, 1.69%, and 1.67% respectively [1] Capital Flow - The China AI 50 sector experienced a net outflow of 1.917 billion yuan, with 40 stocks seeing net outflows and 8 stocks exceeding 100 million yuan in outflows [2] - The stock with the highest net outflow was Hand Information, with a net outflow of 296 million yuan, followed by Softcom Power and Inspur Information with net outflows of 195 million yuan and 169 million yuan respectively [2] Top Gainers and Losers - The top gainers in the China AI 50 sector included Cambricon, Zhongheng Electric, and China Telecom, while the top losers included Weichai Heavy Machinery and Runze Technology, which fell by 4.80% and 4.40% respectively [4] - The overall performance of the China AI 50 sector was overshadowed by other concept sectors such as the Armament Restructuring Concept, which gained 5.31% [2]

Industry Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [1] Core Viewpoints - The report highlights the acceleration of data value transformation, with high-quality datasets empowering AI development. The Digital China Summit emphasized the importance of high-quality datasets in driving AI advancements [4][5] - The establishment of various high-quality data collection projects across multiple cities indicates a growing focus on data-driven applications in sectors such as healthcare, transportation, education, and finance [5][6] - The report notes the launch of the first data asset securitization project in China, which marks a significant step in the marketization of data elements and provides a new financing channel for the digital economy [7][8] Summary by Relevant Sections Industry Basic Situation - The closing index is at 4675.66, with a 52-week high of 5440.49 and a low of 2805.53 [1] Relative Index Performance - The report provides a forecast of relative performance for the computer industry against the CSI 300 index, showing a potential increase of 24% to 46% from May 2024 to December 2025 [3] Key Companies and Investment Ratings - Notable companies in the industry include: - Sanwei Tiandi (Buy) with a closing price of 28.88 and a market cap of 2.23 billion - Shanghai Steel Union (Buy) with a closing price of 20.76 and a market cap of 6.62 billion - YunSai ZhiLian (Buy) with a closing price of 23.48 and a market cap of 32.11 billion - Shanda Diwei (Buy) with a closing price of 9.55 and a market cap of 3.82 billion - New Point Software (Buy) with a closing price of 33.00 and a market cap of 10.89 billion [10][12]

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]

Financial Performance - The company reported total revenue of $42.2 million for the first quarter of 2025, a decrease from $43.0 million in the prior year period, primarily due to the expiration of a customer contract in December 2024, despite a 3.3% growth in cloud subscribers year-over-year [5][6]. - Quarterly recurring revenue constituted 93.1% of total revenue, an increase from 91.1% in the prior year period [6]. - Gross profit increased by 3.4% to $29.7 million, resulting in a gross margin of 70.4%, compared to 66.9% in the prior year [6]. - Adjusted gross profit rose by 1.7% to $33.4 million, with an adjusted gross margin of 79.0%, up from 76.3% in the prior year [6]. - The company reported a net loss of $3.8 million, or $(0.37) per diluted share, compared to a net income of $4.5 million, or $0.23 per diluted share, in the prior year period [6][23]. - Adjusted EBITDA increased by 17.0% to $12.7 million, with an adjusted EBITDA margin of 30.2%, compared to 25.4% in the prior year [6][23]. Operational Highlights - The company successfully executed a $200 million term loan refinancing, extending debt maturity until 2029, which strengthens its capital structure and provides anticipated financial stability [3][5]. - The company reaffirmed its full-year guidance metrics, indicating confidence in achieving its financial targets despite a volatile global economy [3][7]. Cash Flow and Liquidity - Cash and cash equivalents were reported at $29.1 million as of March 31, 2025, down from $33.4 million as of December 31, 2024 [6][21]. - Free cash flow for the first quarter was $(3.0) million, compared to $(3.3) million in the prior year period, indicating a consistent cash spend during this historically heavy cash outflow period [6][26]. 2025 Financial Outlook - The company reiterated its full-year revenue guidance range of between $170 million and $180 million, with recurring revenue expected to be at least 90% of total revenue [11]. - Adjusted gross margin is projected to be between 78% and 80%, and adjusted EBITDA is expected to be between $52 million and $56 million, equating to at least a 30% adjusted EBITDA margin [11]. - Free cash flow is anticipated to be between $11 million and $16 million, excluding the expected federal tax refund of approximately $28 million plus applicable interest [11].

Financial Data and Key Metrics Changes - In Q1 2025, total revenue was $252 million, growing 11% year over year, exceeding guidance and crossing the $1 billion revenue run rate for the first time [7][24] - Adjusted EBITDA was $99 million, also ahead of guidance, with an adjusted EBITDA margin of 39% [8][30] - Adjusted gross profit was $192 million, with a gross profit margin of 77%, slightly down from 78% in Q1 2024 [28] Business Line Data and Key Metrics Changes - Approximately four percentage points of revenue growth came from cross-sell, upsell, and adoption of solutions, while three points came from new logos, and four points from Evolution IQ [25] - Emerging solutions contributed about four percentage points to total revenue, marking the fastest-growing portion of the portfolio [25] Market Data and Key Metrics Changes - Filed auto physical damage claims declined by 9% year over year in Q1 2025, attributed to economic sensitivity and increased consumer self-pay [14][52] - Consumer self-pay for repairs increased to about 25%, up from 11-12% three years ago, indicating a shift in consumer behavior [61] Company Strategy and Development Direction - The company aims to help clients manage complexity in the insurance economy through real-time data and AI-powered workflows [10][12] - Continued investment in innovation and expansion of established solutions is seen as a pathway for growth, particularly in the casualty market [18][23] - The renewal of long-term contracts with clients like Caliber Collision demonstrates the strategic role of the company in the auto insurance economy [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macroeconomic environment is creating near-term headwinds, particularly in claim volumes and client buying behavior [33][34] - Despite these challenges, the company remains confident in its long-term growth potential and ability to assist clients with digital transformation [38] Other Important Information - The company repurchased 7 million shares for $72 million under a $300 million share repurchase program [31] - Guidance for Q2 2025 revenue is set at $255.5 million to $257.5 million, representing 10-11% growth year over year [32] Q&A Session Summary Question: How does the company see the claims environment recovering? - Management indicated that claims volume has historically fluctuated and that the current decline is more about claims not being filed rather than a decrease in accidents [42] Question: What is the impact of the macroeconomic environment on ROI and emerging solutions? - The company emphasized that its solutions are ROI-based, which helps maintain demand even in uncertain conditions [45] Question: How long do weaker claims volumes typically last? - Management noted that such cycles can last from one to two years, with current consumer behavior influencing the filing of claims [51][52] Question: What is the current share of self-claim repair by consumers? - Self-pay by consumers has increased to about 25%, indicating a significant change in behavior compared to previous years [61] Question: What is the impact of tariffs on parts suppliers? - Management stated that tariffs have minimal impact on the company's subscription-based revenue model, although they are monitoring the situation closely [64] Question: What is the pricing model for MedHUB? - MedHUB will be monetized through a subscription-based revenue model, targeting a five to one ROI for clients [86][87]