Crexendo (NASDAQ:CXDO) Announces Earnings Results

Crexendo (NASDAQ:CXDO) announced its quarterly earnings results on Tuesday. The company reported $0.12 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.10 by $0.02, FiscalAI reports. Crexendo had a net margin of 6.15% and a return on equity of 13.84%. The business had revenue of $24.65 million during the quarter, compared to the consensus estimate of $24.65 million.

Here are the key takeaways from Crexendo’s conference call:

• Second-quarter revenue rose 49% year over year to $24.6 million, while GAAP net income reached $1.1 million and adjusted EBITDA increased 46% to $4.1 million. Operating cash flow for the first six months rose 89% to $4.8 million.
• NetSapiens platform momentum accelerated, with 11 new platform logos added in the first half versus two a year earlier. Management attributed the gains to the sessions-not-seats pricing model, competitive product advantages, and demand from Metaswitch and BroadSoft migrations.
• The ESI acquisition contributed $6.9 million of second-quarter revenue, exceeding management’s initial expectations, while integration is progressing and gross margins improved across service, software, and product revenue. Remaining performance obligation nearly doubled year over year to $139 million.
• Organic revenue growth was 7% in the quarter, affected by a $700,000 decline in perpetual license revenue and smaller initial platform deals as customers favor lower-upfront-cost subscriptions. Management expects these customers to expand over time, but AI offerings such as CAIRO are still early-stage and are not yet meaningful revenue contributors.

Crexendo Trading Down 9.7%

Crexendo stock traded down $0.72 during midday trading on Wednesday, hitting $6.75. The stock had a trading volume of 636,459 shares, compared to its average volume of 384,836. Crexendo has a 12 month low of $5.26 and a 12 month high of $11.23. The business has a fifty day moving average price of $7.71 and a 200 day moving average price of $7.27. The stock has a market cap of $218.67 million, a P/E ratio of 45.13 and a beta of 1.12.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on CXDO shares. Lake Street Capital reaffirmed a “buy” rating and set a $11.00 target price on shares of Crexendo in a research note on Wednesday, May 6th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Crexendo in a report on Monday. Needham & Company LLC increased their target price on Crexendo from $9.00 to $12.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Finally, B. Riley Financial reduced their target price on Crexendo from $10.00 to $9.00 and set a “buy” rating on the stock in a research report on Wednesday. Four investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $10.60.

Insider Buying and Selling at Crexendo

In other news, CFO Ron Vincent sold 90,000 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $10.03, for a total transaction of $902,700.00. Following the completion of the sale, the chief financial officer owned 117,490 shares in the company, valued at approximately $1,178,424.70. This represents a 43.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO David Tzat-Kin Wang sold 25,000 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.49, for a total transaction of $187,250.00. Following the completion of the transaction, the chief technology officer owned 559,747 shares of the company’s stock, valued at approximately $4,192,505.03. The trade was a 4.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 454,850 shares of company stock valued at $4,409,248. 47.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Crexendo

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its stake in shares of Crexendo by 11.2% in the 3rd quarter. Vanguard Group Inc. now owns 701,898 shares of the company’s stock valued at $4,562,000 after acquiring an additional 70,791 shares in the last quarter. Geode Capital Management LLC increased its position in Crexendo by 14.3% in the 4th quarter. Geode Capital Management LLC now owns 401,356 shares of the company’s stock worth $2,598,000 after buying an additional 50,288 shares during the period. Dimensional Fund Advisors LP lifted its holdings in shares of Crexendo by 1.6% during the fourth quarter. Dimensional Fund Advisors LP now owns 328,127 shares of the company’s stock worth $2,123,000 after buying an additional 5,241 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of Crexendo by 4.5% in the third quarter. Arrowstreet Capital Limited Partnership now owns 320,499 shares of the company’s stock worth $2,083,000 after acquiring an additional 13,845 shares during the last quarter. Finally, State Street Corp raised its stake in Crexendo by 11.0% during the 4th quarter. State Street Corp now owns 184,978 shares of the company’s stock valued at $1,197,000 after purchasing an additional 18,349 shares during the last quarter. Institutional investors own 9.53% of the company’s stock.

Crexendo Company Profile

Crexendo, Inc (NASDAQ: CXDO) is a provider of cloud-based communications and collaboration solutions tailored to businesses of varying sizes. The company’s flagship offering, CXsuite, integrates enterprise-grade voice, video conferencing, instant messaging, presence, and contact center functionality into a single platform delivered over the internet. By leveraging hosted infrastructure and a subscription-based model, Crexendo aims to reduce on-premises hardware costs and simplify management for IT teams and resellers.

Crexendo’s product portfolio includes a multi-tenant cloud PBX, SIP trunking, session border controllers and an application programming interface (API) suite that allows partners and customers to embed real-time communications into custom workflows.