Crexendo (NASDAQ:CXDO) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Crexendo (NASDAQ:CXDO) released its earnings results on Tuesday. The company reported $0.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.02, FiscalAI reports. Crexendo had a net margin of 5.31% and a return on equity of 15.00%. The company had revenue of $24.65 million during the quarter, compared to analyst estimates 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 Stock Performance

NASDAQ:CXDO traded down $0.08 during mid-day trading on Thursday, reaching $6.55. The stock had a trading volume of 143,185 shares, compared to its average volume of 385,772. The business has a 50 day simple moving average of $7.65 and a 200 day simple moving average of $7.27. Crexendo has a twelve month low of $5.55 and a twelve month high of $11.23. The firm has a market capitalization of $212.32 million, a price-to-earnings ratio of 46.78 and a beta of 1.12.

Insider Buying and Selling at Crexendo

In other news, CEO Jeffrey G. Korn sold 39,500 shares of the company’s stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $9.95, for a total transaction of $393,025.00. Following the completion of the sale, the chief executive officer directly owned 209,026 shares of the company’s stock, valued at $2,079,808.70. This represents a 15.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, COO Douglas Walter Gaylor sold 55,000 shares of the business’s stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $10.00, for a total value of $550,000.00. Following the sale, the chief operating officer owned 227,816 shares in the company, valued at approximately $2,278,160. The trade was a 19.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 453,400 shares of company stock worth $4,395,111. 47.20% of the stock is currently owned by company insiders.

Institutional Trading of Crexendo

Hedge funds and other institutional investors have recently made changes to their positions in the business. BNP Paribas Financial Markets boosted its holdings in Crexendo by 172.6% during the third quarter. BNP Paribas Financial Markets now owns 4,394 shares of the company’s stock worth $29,000 after purchasing an additional 2,782 shares during the last quarter. Strive Financial Group LLC bought a new stake in Crexendo during the fourth quarter worth about $31,000. Bank of America Corp DE grew its position in Crexendo by 71.7% during the 4th quarter. Bank of America Corp DE now owns 6,174 shares of the company’s stock worth $32,000 after acquiring an additional 2,578 shares during the last quarter. JPMorgan Chase & Co. bought a new stake in Crexendo during the 2nd quarter worth approximately $41,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in shares of Crexendo in the 2nd quarter valued at about $48,000. 9.53% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on CXDO shares. Weiss Ratings restated a “hold (c+)” rating on shares of Crexendo in a report on Monday. B. Riley Financial reduced their price target on Crexendo from $10.00 to $9.00 and set a “buy” rating on the stock in a report on Wednesday. Lake Street Capital reiterated a “buy” rating and issued a $11.00 target price on shares of Crexendo in a research note on Wednesday, May 6th. Finally, Needham & Company LLC upped their price target on shares of Crexendo from $9.00 to $12.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $10.50.

About Crexendo

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.