Crexendo Inc (CXDO) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amid Competitive ...

GuruFocus News

Thu, May 8, 2025, 6:00 PM 2 min read

Release Date: May 06, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Crexendo Inc (NASDAQ:CXDO) reported a 12% year-over-year summation successful full revenue, reaching $16.1 million.

• The bundle solutions gross grew by 33%, with gross margins successful this conception expanding by 500 ground points to 78%.

• The institution achieved GAAP profitability for the seventh consecutive quarter, with a nett income of $1.2 million.

• Crexendo Inc (NASDAQ:CXDO) surpassed 6 cardinal users connected its bundle solutions platform, indicating beardown demand.

• The institution is strategically investing successful innovation and infrastructure, including a migration to Oracle Cloud Infrastructure, expected to thrust outgo savings and borderline expansion.

• Product gross declined by 22% to $1.1 cardinal compared to the erstwhile year.

• Service gross gross borderline decreased by 3% 4th implicit 4th to 57%.

• The telecom marketplace remains highly competitive, with immoderate competitors engaging successful unsustainable pricing practices.

• Operating expenses accrued by 8% to $14.9 million, impacting wide profitability.

• There is uncertainty successful the marketplace owed to macroeconomic factors, though Crexendo Inc (NASDAQ:CXDO) has not yet seen a measurable weakening successful demand.

• Warning! GuruFocus has detected 5 Warning Signs with CXDO.

Q: Jeff, you mentioned sustainable double-digit growth. Is this guidance applicable for the full twelvemonth 2025 oregon specifically for Q2? A: Jeff Korn, CEO: The guidance is for year-over-year growth. While determination tin beryllium quarterly variances, we are assured successful achieving a minimum of 10% year-over-year growth.

Q: Are determination immoderate changes successful rival behaviour regarding assertive pricing and incentives? A: Jeff Korn, CEO: The behaviour remains akin to 2024. We judge these practices are unsustainable, and we proceed to absorption connected profitable maturation by delivering superior work and lawsuit experience.

Q: Can you supply much details connected the awesome bundle gross borderline betterment and its sustainability? A: Ron Vincent, CFO: The borderline betterment is driven by accrued gross successful the bundle solutions division. While we had a large quarter, we people a 73-75% scope for the afloat year.

Q: How is the acquisition of Metaswitch by Allianza affecting the market, and what are you seeing successful presumption of competition? A: Jeff Korn, CEO: We haven't seen important changes yet. Our differentiated exemplary and work level proceed to pull interest, and we are assured successful winning much concern owed to our superior merchandise and flexibility.