Crexendo Earnings Call Transcripts
Fiscal Year 2026
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Unified Communications provider reported strong Q1 growth, driven by both retail and wholesale channels, with significant contributions from Technology Service Distributors and a major acquisition. The company completed a cloud migration, launched an AI product, and maintains a robust backlog and profitability.
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Revenue has surged to a $100 million run rate with 11 straight profitable quarters, driven by organic growth, strategic acquisitions, and strong AI adoption. The company is rapidly gaining market share from larger competitors and expects continued expansion through acquisitions and international growth.
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Q1 2026 saw 29% revenue growth and 11 straight quarters of GAAP profitability, driven by strong organic performance and the ESI acquisition. Integration synergies, AI product launches, and a robust pipeline support double-digit organic growth and margin expansion.
Fiscal Year 2025
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Delivered double-digit organic growth and sustained profitability, with annual revenue up 12% to $68.2M and net income of $5.1M. Completed the strategic ESI acquisition, expanded AI offerings, and expect continued growth and margin improvements in 2026.
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Q3 2025 saw 12% revenue growth, strong gains in software solutions, and record user adoption. Margins improved, cash reserves grew, and new AI products are expected to drive future revenue. Management projects continued double-digit growth and further margin expansion.
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Revenue grew 13% year-over-year to $16.6M, with software solutions up 31% and telecom services up 4%. Gross margin remained strong, and the company achieved its eighth consecutive quarter of GAAP profitability. Major cost savings are expected in 2026 after U.S. data center migration.
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Q1 2025 saw 12% revenue growth and a 33% surge in software solutions, with gross margin rising to 65%. Profitability improved, cash reserves grew, and the company remains confident in double-digit year-over-year growth, driven by innovation, disciplined execution, and market disruption at competitors.
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Significant industry disruption among major competitors and legacy providers is fueling rapid growth, with strong financial performance, high recurring revenue, and innovative AI-driven solutions. The company is targeting a $100 million run rate by 2026 through organic and acquisition-driven expansion.
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Industry disruption from Cisco and Microsoft is fueling rapid growth, with strong financials and a unique dual wholesale-retail model. AI-driven solutions and a robust acquisition pipeline support a $100 million run rate target by 2026.
Fiscal Year 2024
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Achieved record Q4 and full-year results with 14% revenue growth and strong profitability, driven by robust software solutions and telecom services performance. Benefited from industry disruption, expanded backlog by 34%, and expect continued double-digit growth in 2025.
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Q3 2024 saw 13% revenue growth and strong software segment expansion, with continued GAAP profitability and a robust cash position. Customer migrations, new logos, and international wins fueled momentum, while investments in cloud infrastructure and accounting systems set the stage for future growth.
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Revenue grew 16% year-over-year to $14.7M, with net income up 220% and strong margin expansion. Software solutions surged 35%, backlog rose 39% to $71M, and the company expects continued double-digit organic growth, supported by investments in cloud infrastructure.