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

Crexendo (NASDAQ:CXDO) posted its quarterly earnings data on Tuesday. The company reported $0.12 earnings per share for the quarter, topping analysts’ consensus estimates of $0.10 by $0.02, FiscalAI reports. The company had revenue of $24.65 million during the quarter, compared to analysts’ expectations 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 Price Performance

CXDO traded down $0.84 during trading on Wednesday, hitting $6.62. The company’s stock had a trading volume of 716,659 shares, compared to its average volume of 385,452. Crexendo has a twelve month low of $5.26 and a twelve month high of $11.23. The stock has a market cap of $214.78 million, a PE ratio of 44.16 and a beta of 1.12. The firm’s 50 day moving average price is $7.71 and its 200-day moving average price is $7.27.

Insiders Place Their Bets

In other Crexendo news, CFO Ron Vincent sold 90,000 shares of Crexendo stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $10.03, for a total transaction of $902,700.00. Following the transaction, the chief financial officer directly owned 117,490 shares of the company’s stock, valued at $1,178,424.70. The trade was a 43.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Jeffrey G. Korn sold 39,500 shares of the firm’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $9.95, for a total transaction of $393,025.00. Following the completion of the transaction, the chief executive officer directly owned 209,026 shares in the company, valued at approximately $2,079,808.70. This represents a 15.89% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 454,850 shares of company stock valued at $4,409,248. 47.20% of the stock is owned by corporate insiders.

Institutional Trading of Crexendo

Several large investors have recently bought and sold shares of CXDO. BNP Paribas Financial Markets increased its holdings in Crexendo by 172.6% in the third quarter. BNP Paribas Financial Markets now owns 4,394 shares of the company’s stock valued at $29,000 after buying an additional 2,782 shares during the last quarter. Strive Financial Group LLC bought a new position in Crexendo during the 4th quarter worth $31,000. Bank of America Corp DE increased its position in 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 buying an additional 2,578 shares during the period. JPMorgan Chase & Co. bought a new stake in Crexendo in the second quarter valued at $41,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in Crexendo in the second quarter valued at $48,000. Institutional investors and hedge funds own 9.53% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have issued reports on CXDO. 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 report on Wednesday, May 6th. B. Riley Financial lowered their target price on shares of Crexendo from $10.00 to $9.00 and set a “buy” rating on the stock in a research report on Wednesday. Finally, Lake Street Capital reaffirmed a “buy” rating and issued a $11.00 target price on shares of Crexendo in a report on Wednesday, May 6th. Four equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, Crexendo currently has a consensus rating of “Moderate Buy” and an average target price 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.