Financial Data and Key Metrics Changes - Consolidated revenue grew 13% year-over-year to 13.9 million in Q3 of the prior year [21] - GAAP profitability was reported at 1.7 million, down from 15.5 million due to investments in headcount and Oracle Cloud Infrastructure [24] Business Line Data and Key Metrics Changes - Software solutions revenue increased 25% year-over-year to 8 million [21] - Telecom Services segment gross margins remained consistent at 55% year-over-year [23] - Product revenues increased 9% to 1.7 million in the prior year [21] Market Data and Key Metrics Changes - The telecom backlog grew 22% year-over-year to $77.4 million, indicating strong future revenue potential [40] - The company surpassed 5 million users on its platform, with expectations to reach 6 million by early 2025 [45] Company Strategy and Development Direction - The company is focused on organic growth, with expectations for double-digit growth continuing into 2025 [20] - Significant investments are being made in Oracle Cloud Infrastructure to enhance competitive advantages, particularly in Europe [9][10] - The company is also looking to make strategic acquisitions to further drive growth [12][85] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to attract customers from competitors like Cisco and Microsoft, particularly due to recent instability in those companies [17][18] - The management highlighted the importance of customer service as a key differentiator in a competitive market [8][19] - There is optimism regarding the ongoing industry shift towards cloud communications, which is expected to drive substantial growth [18] Other Important Information - The company has maintained a strong focus on customer satisfaction, ranking number one in 18 categories on G2.com [8][39] - The migration of legacy customers to the new VIP system is expected to yield cost savings and operational efficiencies [11][63] Q&A Session Summary Question: How many expansions did you have in the quarter? - The company had eight new logos and five expansions from existing licensees, indicating strong growth [47] Question: Can you provide a status on tools for managed service providers? - Progress continues with new partners helping to automate migrations from Microsoft and BroadSoft [49] Question: What is the impact of the macro environment on services revenue? - There was a slight increase in churn from one national account, but overall sales channels remain strong [56] Question: How do you view the competitive landscape? - The company is seeing increased interest from customers dissatisfied with competitors, creating opportunities for growth [70] Question: What are the biggest investments planned for the next year? - Key investments will focus on Oracle Cloud Infrastructure, the Oracle accounting system, and potential acquisitions [85]
Crexendo(CXDO) - 2024 Q3 - Earnings Call Transcript