Crexendo (CXDO) Planet MicroCap Las Vegas 2026 summary

Business overview and market position

• Provides Unified Communications as a Service (UCaaS) to small and mid-sized businesses, offering both retail and wholesale software platforms.

• Competes with major players like Cisco and Alianza Metaswitch, ranking as the third-largest and fastest-growing platform provider in the U.S.

• Retail sales are primarily driven by a channel team, with over 250 resellers and significant growth from Technology Service Distributors (TSDs).

• TSDs contributed to a 51% surge in partner bookings in Q1, bringing larger customer opportunities.

• Differentiates through a sessions-based pricing model and strong customer support, leading to high rankings in telecom categories.

Financial performance and growth drivers

• Q1 saw 18% growth in Service UCaaS, with retail organic growth at 15% due to a one-time $1M sale.

• Wholesale side grew 12% in Q1 after a strong 28% organic growth the previous year.

• Backlog increased 56% to $135.6M, with $46M slated for 2026 and $42M for 2027, boosted by a recent acquisition.

• Acquisition of ESI Estech added $26M in revenue, purchased for $35M (mostly cash), and contributed to a 29% Q1 growth.

• Maintains profitability, achieving its 11th consecutive GAAP profitable quarter even after acquisition costs.

Strategic initiatives and technology

• Completed migration from owned data centers to Oracle Cloud Infrastructure in Q1, resulting in $35,000/month cost savings and expected margin improvements.

• Introduced an AI receptionist (Cairo) in January, increasing average revenue per user by about 40%.

• Sessions-based pricing offers 40–50% cost savings for customers switching from competitors.

• Focuses on both organic and inorganic growth, targeting future acquisitions in the $10M–$25M revenue range.

• Strong pipeline for converting dissatisfied licensees from competitors due to product dissatisfaction and cost advantages.