Crexendo (CXDO) 16th Annual LD Micro Invitational Conference summary

Business performance and growth trajectory

• Achieved $100 million revenue run rate with 11 consecutive GAAP-profitable quarters, up from $10–15 million and unprofitable eight years ago.

• 182% revenue growth over three years, with Q1 revenue at $20.7 million and 29% year-over-year growth including acquisition.

• Maintains strong cash flow and balance sheet, with $2.5 million free cash flow in Q1 and $7 million cash on hand.

• Virtually no debt, except for a recent $5 million term loan to fund future acquisitions.

• Stock price rose from $6.50 to $9.75 in three weeks following Q1 results.

Market position and competitive landscape

• Third largest and fastest-growing software telecom platform provider in the U.S., behind Cisco and Metaswitch.

• Gained significant market share from Cisco and Metaswitch by offering a better, less expensive platform and capitalizing on uncertainty after Metaswitch's sale.

• 245 licensees on the platform, ranging from small to large, with negligible churn and 28% organic growth projected for 2025.

• Competes in retail against RingCentral, 8x8, Vonage, Avaya, and Mitel, with 15% organic growth in retail versus competitors' low single digits.

Revenue mix, acquisitions, and growth strategy

• 44% of 2025 revenue from wholesale/software, 56% from retail; recent $26 million acquisition will shift more revenue to retail.

• Acquisition strategy targets existing licensees, aiming to move them from wholesale to retail for higher margins and growth.

• Recent acquisition of ESI, a $26 million revenue licensee, was accretive from day one and paid for with $27 million cash and $7.5 million in stock.

• Pipeline of licensees interested in being acquired, supporting a roll-up strategy for continued top- and bottom-line growth.

• International wholesale business growing at 44% in Q1, with expansion into new markets like South Africa enabled by Oracle Cloud Infrastructure.