Crexendo (NASDAQ:CXDO) Releases Earnings Results, Beats Expectations By $0.02 EPS

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

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 Down 9.7%

NASDAQ:CXDO traded down $0.72 on Wednesday, hitting $6.75. The stock had a trading volume of 636,459 shares, compared to its average volume of 384,836. The company has a market cap of $218.67 million, a PE ratio of 45.13 and a beta of 1.12. Crexendo has a 52 week low of $5.26 and a 52 week high of $11.23. The business’s fifty day moving average is $7.71 and its 200 day moving average is $7.27.

Insiders Place Their Bets

In related news, COO Douglas Walter Gaylor sold 55,000 shares of Crexendo stock in a transaction on Friday, May 29th. The stock was sold at an average price of $10.00, for a total transaction of $550,000.00. Following the sale, the chief operating officer directly owned 227,816 shares in the company, valued at approximately $2,278,160. This trade represents a 19.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Jeffrey G. Korn sold 39,500 shares of Crexendo stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $9.95, for a total value 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 approximately $2,079,808.70. This trade represents a 15.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 454,850 shares of company stock valued at $4,409,248. Insiders own 47.20% of the company’s stock.

Institutional Investors Weigh In On Crexendo

Hedge funds have recently bought and sold shares of the business. BNP Paribas Financial Markets lifted its position in Crexendo by 172.6% in the 3rd quarter. BNP Paribas Financial Markets now owns 4,394 shares of the company’s stock valued at $29,000 after acquiring an additional 2,782 shares in the last quarter. Strive Financial Group LLC purchased a new stake in shares of Crexendo in the fourth quarter valued at $31,000. Bank of America Corp DE grew its holdings in shares of Crexendo by 71.7% in the fourth quarter. Bank of America Corp DE now owns 6,174 shares of the company’s stock worth $32,000 after purchasing an additional 2,578 shares during the last quarter. JPMorgan Chase & Co. purchased a new stake in shares of Crexendo in the 2nd quarter worth approximately $41,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in shares of Crexendo during the 2nd quarter worth approximately $48,000. Institutional investors own 9.53% of the company’s stock.

Analysts Set New Price Targets

Several research analysts have recently commented on the stock. Lake Street Capital restated a “buy” rating and set a $11.00 price target 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 research report on Monday. Needham & Company LLC increased their price target on shares of Crexendo from $9.00 to $12.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. Finally, B. Riley Financial reduced their price objective on Crexendo from $10.00 to $9.00 and set a “buy” rating for the company in a research report on Wednesday. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $10.60.

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.