Revenue Performance - Total revenue for Q3 Fiscal Year 2025 was $51.901 million, reflecting a 12% year-over-year growth[4,11] - Payments revenue reached $13.100 million, showing an 11% year-over-year increase[4] - Recurring revenue totaled $40.201 million for the quarter[4] - Total Annualized Recurring Revenue (ARR) reached $160.804 million, a 12% increase year-over-year[4] Revenue Composition - Software and related service revenue amounted to $36.245 million[4] - SaaS revenue contributed $9.299 million to the total[4] - Transaction-based revenue was $4.052 million[4] - Maintenance revenue reached $8.648 million[4] - Professional services generated $9.458 million[4] Profitability Metrics - Adjusted EBITDA from continuing operations was $12.724 million, representing an Adjusted EBITDA margin of 25%[11] - Net loss from continuing operations attributable to i3 Verticals, Inc was $(410) thousand[12] - Non-GAAP adjusted income before taxes from continuing operations was $10.249 million[12] - Adjusted net income from continuing operations was $7.687 million[12] - Adjusted diluted earnings per share from continuing operations was $0.23[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]

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Company Overview - indie Semiconductor, Inc. (NASDAQ: INDI) is a U.S. semiconductor company primarily focused on the automotive sector and also offers software solutions [1] Current Performance - The company has experienced poor performance amid ongoing geopolitical issues [1] - Recent easing of tensions may provide a potential for recovery [1] Investment Insights - The analyst expresses interest in initiating a long position in INDI within the next 72 hours [2]

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 Data and Key Metrics Changes - In 2024, the company achieved a net income of BRL2.2 billion, exceeding the guidance of BRL1.9 billion, despite macroeconomic challenges and over BRL100 million negative impacts from accounting changes [10][12] - Adjusted net income grew 18% year over year, with adjusted basic EPS increasing by 26% compared to the fourth quarter of 2023 [12][10] - The adjusted net margin was 18.4%, one percentage point higher year over year, reflecting strong operational performance [12] Business Line Data and Key Metrics Changes - The MSMB car TPV reached BRL403 billion, a 15% year-over-year growth, while total MSMB TPV exceeded expectations at BRL454 billion, a 22% increase [6][10] - The MSNB take rate was 2.55%, surpassing the guidance of 2.49%, indicating effective pricing strategies and increased contributions from banking and credit solutions [8][9] - The credit portfolio grew to BRL1.2 billion, significantly exceeding the target of BRL800 million, with non-performing loans over ninety days remaining controlled at 3.61% [9][21] Market Data and Key Metrics Changes - The active client base for MSMB payments increased by 19% year over year to 4.1 million clients, with a notable acceleration in client additions [15] - Retail deposits reached BRL8.7 billion, exceeding the guidance of BRL7 billion, reflecting strong performance in bundled payments and banking offerings [7][19] - The banking active client base grew 46% year over year to 3.1 million, outpacing the growth in the payments client base [19] Company Strategy and Development Direction - The company aims to establish Stone accounts as the primary financial hub for clients, focusing on enhancing the value proposition through a comprehensive ecosystem beyond payments [8][10] - Key initiatives for 2025 include investment products and workflow tools to accelerate deposit growth, alongside a focus on client engagement [8][19] - The company is transitioning to a strategy that emphasizes gross profit as a key performance metric, reflecting a more comprehensive view of monetization [18][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential macroeconomic challenges but expressed confidence in delivering sustainable long-term value creation [43][44] - The company remains committed to disciplined execution and prudent capital allocation, with a focus on maximizing intrinsic business value per share [43][44] - Management highlighted the importance of adapting to industry dynamics and maintaining a strong capital structure to support future growth [37][92] Other Important Information - The company recognized a goodwill impairment charge of BRL3.6 billion for the software cash-generating units, which is a non-cash accounting adjustment [28] - The adjusted net cash position at the end of the quarter was BRL4.7 billion, reflecting ongoing share repurchase activity [34] - The company expects to return excess capital to shareholders over time when growth opportunities are not immediately available [37] Q&A Session Summary Question: Performance of banking solutions and areas for improvement - Management noted that deposits are growing ahead of TPV due to successful bundling of payments and banking solutions, with ongoing development of new offerings to enhance client engagement [47][50] Question: View on dividends and capital structure - Management emphasized a commitment to transparency in capital allocation but did not commit to specific targets for dividends or buybacks at this time [52][53] Question: Pricing increases and their impact - Management confirmed that a substantial repricing initiative was implemented at the beginning of the first quarter of 2025, with expectations of low churn during this process [62][63] Question: Guidance on basic vs. diluted EPS - Management explained the decision to guide basic EPS was due to accounting volatility and the desire to avoid double counting share-based compensation expenses [66][68] Question: Potential sale of software business - Management stated that while there have been offers, none met the intrinsic value established for the software assets, and the focus will remain on maximizing value through cross-selling strategies [79][80]