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Gain: $15.6 million, up 13% year over year.
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Revenue from software solutions: $5.9 million, up 25% year over year.
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Service revenue: $8 million, up 6% year over year.
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Product yields: $1.8 million, up 9% year over year.
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Consolidated gross margin: 61%, consistent with the previous year.
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Gross margin of software solutions: 71%, consistent with the previous year.
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Gross margin telecom services: 55%, consistent with the previous year.
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Net income: $148,000, or 1 per share of common stock.
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Non-GAAP net income: $1.7 million, or 6 per common and diluted common share.
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EVENTS: $1 million, compared to $1.2 million last year.
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Adjusted EBITDA: $1.7 million, compared to $2.1 million last year.
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Cash and cash equivalents: $15.5 million as of September 30, 2024.
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Cash provided by operating activities: $4.1 million for the nine-month period.
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Telecom backlog: $77.4 million, up 22% from Q3 2023.
Release date: November 6, 2024
For the full earnings call transcript, please refer to the full earnings call transcript.
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Crexendo Inc (NASDAQ:CXDO) reported a 13% year-over-year increase in consolidated revenue, driven by 25% growth in its software division.
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The company maintained GAAP profitability for the fifth consecutive quarter and non-GAAP net income for the 24th consecutive quarter.
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Crexendo Inc (NASDAQ:CXDO) increased its cash and cash equivalents to $15.5 million from $10.3 million at the end of 2023.
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The company has successfully added eight new logos and five extensions of existing licenses in the software solutions segment.
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Crexendo Inc (NASDAQ:CXDO) is experiencing strong international growth, with new successes in Australia and Africa, and an average of more than 100,000 new users are added to the platform every month.
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Operating expenses increased 15% to $15.5 million due to investments in workforce, Oracle Cloud infrastructure and accounting systems implementation.
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Net income fell to $148,000 for the quarter compared to $1.7 million last year, partly due to the lack of profit from the sale of a corporate office building.
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Product margins fell to 40% from 45% in the third quarter of last year.
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The company faces challenges in maintaining high margins and is working to improve them.
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Crexendo Inc (NASDAQ:CXDO) expects future acquisitions could impact GAAP profitability due to intangible costs.
Q: How many new logos and extensions has Crexendo had this quarter? A: Doug Gaylor, President and COO, stated that Crexendo added eight new logos and made five extensions to existing licenses this quarter, marking a significant achievement in their software solutions segment.
Q: Can you provide an update on the tools to help service providers migrate from Microsoft and Broadsoft? A: Anand Buch, Chief Strategy Officer, said Crexendo has added a partner to automate migrations and is working with a pipeline of additional partners to facilitate migrations from other platforms. Progress is going well.
Q: What is the status of the application ecosystem and its potential financial impact? A: Anand Buch explained that Crexendo’s application ecosystem includes automation applications, customer experience chatbots and vertical applications. The ecosystem has grown to include more than 50 vendors, and while no specific revenue guidance is provided, the applications improve retention and differentiation.
Q: Is there a macro issue affecting the sequential flatness of service revenues? A: Ronald Vincent, CFO, clarified that there is no macro problem. The flatness was due to a slight increase in customer churn on a national account and variations in the mix of service and product revenue.
Q: How does Crexendo balance direct sales with leveraging the reseller channel? A: Jon Brinton, Chief Revenue Officer, stated that Crexendo takes a balanced approach, investing heavily in growing software solutions sales due to its high margin profile, while leveraging direct sales for customer feedback and interaction.
For the full earnings call transcript, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
