Crexendo Announces Third Quarter 2020 Results
Crexendo, Inc. (NASDAQ:CXDO) reported a 15% increase in Q3 2020 revenue to $4.1 million, with a GAAP net income of $131,000 or $0.01 per share. UCaaS service revenue rose 14% to $3.5 million, while web services revenue fell 19%. Total operating expenses increased by 22% to $4.0 million. Year-to-date total revenue grew 13% to $12.1 million, yet net income decreased to $779,000 compared to $911,000 in the previous year. Crexendo's recent uplisting to Nasdaq and successful public offering position it for future growth despite pandemic-related challenges.
- 15% increase in total revenue to $4.1 million year-over-year.
- UCaaS service revenue up 14% to $3.5 million compared to the same quarter last year.
- Successful public offering increasing investor base and capital for growth.
- Total cash and equivalents rose to $15.5 million from $4.3 million at the end of 2019.
- GAAP net income decreased to $131,000 from $334,000 in Q3 2019.
- Web services segment revenue declined by 19% to $129,000.
- Operating expenses increased by 22%, impacting profitability.
PHOENIX, AZ / ACCESSWIRE / November 10, 2020 / Crexendo, Inc. (NASDAQ:CXDO), an award-winning premier provider of cloud communications, UCaaS (Unified Communications as a Service), call center, collaboration services, and other cloud business services that are designed to provide enterprise-class cloud services to any size business at affordable monthly rates, today reported financial results for the third quarter ended September 30, 2020.
Third Quarter Financial Highlights:
15% increase in total revenue year-over-year to$4.1 million .- GAAP net income of
$131,000 or$0.01 per basic and diluted common share. - Non-GAAP net income of
$290,000 or$0.02 per basic and diluted common share.
Financial Results for the Third Quarter of 2020
Consolidated total revenue for the third quarter of 2020 increased
Consolidated service revenue for the third quarter of 2020 increased
- Cloud Telecommunications Segment UCaaS service revenue for the third quarter of 2020 increased
14% to$3.5 million compared to$3.1 million for the third quarter of 2019. - Web Services Segment service revenue for the third quarter of 2020 decreased
19% to$129,000 , compared to$159,000 for the third quarter of 2019.
Consolidated product revenue for the third quarter of 2020 increased
Consolidated operating expenses for the third quarter of 2020 increased
The Company reported net income of
Non-GAAP net income of
EBITDA for the third quarter of 2020 decreased to
Financial Results for the nine months ended September 30, 2020
Consolidated total revenue for the nine months ended September 30, 2020 increased
Consolidated service revenue for the nine months ended September 30, 2020 increased
- Cloud Telecommunications Segment UCaaS service revenue for the nine months ended September 30, 2020 increased
16% to$10.3 million compared to$8.9 million for the nine months ended September 30, 2019. - Web Services Segment service revenue for the nine months ended September 30, 2020 decreased
16% to$421,000 , compared to$502,000 for the nine months ended September 30, 2019.
Consolidated product revenue for the nine months ended September 30, 2020 increased
Consolidated operating expenses for the nine months ended September 30, 2020 increased
The Company reported net income of
Non-GAAP net income was
EBITDA for the nine months ended September 30, 2020 was
Total cash, cash equivalents, and restricted cash at September 30, 2020 was
Cash provided by operating activities for the nine months ended September 30, 2020 of
Steven G. Mihaylo, Chief Executive Officer commented, "I am very pleased with the increase in revenue. UCaaS service revenue increased
Mihaylo added, "We are very pleased that we were able to close and have a fully subscribed public offering. As part of that process our team spoke to many investors who we believe are very excited with the Crexendo story. We have substantially increased our footprint with investors while increasing our investor base and our stock float. We have built this Company the right way, by methodically controlling expenses, followed by working toward Non-GAAP profitability which was followed by GAAP profitability which allowed us to then organically meet the stringent requirements for a Nasdaq listing. Now that we have successfully completed our public offering and raised the necessary capital, we can aggressively focus on organic growth and accretive acquisitions. We believe we have built the business to the point where we can now focus on growth."
Doug Gaylor, President and Chief Operating Officer, stated, "Our team continues to do a remarkable job day after day providing industry-leading products, services and support. We were recently honored to receive the prestigious 15th annual Internet Telephony excellence award. This as well as the numerous other awards we have received, confirm that when you use our Ride the Cloud Solutions® you get cutting edge solutions you can rely on while in most cases saving a substantial amount of money. We continue to focus and invest in sales and marketing so that we can grow the Company organically while at the same time, as Steve discussed, work aggressively to grow the Company through accretive acquisitions."
Conference Call
The Company is hosting a conference call today, November 10, 2020 at 4:30 PM EST. The dial-in number for domestic participants is 844-369-8770 and 862-298-0840 for international participants. Please dial in five minutes prior to the beginning of the call at 4:30 PM EST and reference Crexendo. A replay of the call will be available until February 10, 2021 by dialing toll-free at 877-481-4010 or 919-882-2331 for international callers. The replay passcode is 38142.
About Crexendo
Crexendo, Inc. is an award-winning premier provider of cloud communications, UCaaS (Unified Communications as a Service), call center, collaboration services, and other cloud business services that are designed to provide enterprise-class cloud services to any size business at affordable monthly rates.
Safe Harbor Statement
This press release contains forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. The words "believe," "expect," "anticipate," "estimate," "will" and other similar statements of expectation identify forward-looking statements. Specific forward-looking statements in this press release include information about Crexendo (i) being pleased with the increase in revenue; (ii) believing that the increase in UCaaS revenue is the most important factor in monitoring the business; (iii) results being impacted by the current pandemic with attrition of customers that did not remain operating or otherwise decreased their service level; (iv) being are hopeful that the worst of COVID related attrition has occurred; (v) having a substantial increase in expenses for this quarter, both in regard to investing in the business and initial listing fees associated with up listing to the Nasdaq Capital Markets in July; (vi) the investments being necessary and important for future growth; (vii) being pleased that it closed a fully subscribed public offering; (viii) investors being very excited with the Crexendo story; (ix) having substantially increased its footprint with investors while increasing investor base and stock float; (x) having built this Company the right way; (xi) being able to aggressively focus on accretive acquisitions and engage in meaningful M&A activity; (xi) team continuing to do a remarkable job providing industry leading products, services and support; (xii) awards confirming that when you use the Ride the Cloud Solutions® you get cutting edge solutions which in most cases save a substantial amount of money; (xiii) continuing to focus and invest in sales and marketing so that it can organically while at the same time working aggressively to grow thru accretive acquisitions.
For a more detailed discussion of risk factors that may affect Crexendo's operations and results, please refer to the company's Form 10-K for the year ended December 31, 2019, and quarterly Form 10-Qs as filed with the SEC. These forward-looking statements speak only as of the date on which such statements are made, and the company undertakes no obligation to update such forward-looking statements, except as required by law.
Contact
Crexendo, Inc.
Doug Gaylor
President and Chief Operating Officer
602-732-7990
dgaylor@crexendo.com
CREXENDO, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except par value and share data)
September 30, 2020 | December 31, 2019 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 15,353 | $ | 4,180 | ||||
Restricted cash | 100 | 100 | ||||||
Trade receivables, net of allowance for doubtful accounts of | ||||||||
as of September 30, 2020 and | 632 | 380 | ||||||
Contract assets | 94 | 22 | ||||||
Inventories | 263 | 382 | ||||||
Equipment financing receivables | 253 | 143 | ||||||
Contract costs | 403 | 379 | ||||||
Prepaid expenses | 332 | 141 | ||||||
Income tax receivable | - | 4 | ||||||
Total current assets | 17,430 | 5,731 | ||||||
Long-term trade receivables, net of allowance for doubtful accounts | ||||||||
of | 2 | 6 | ||||||
Long-term equipment financing receivables, net | 846 | 561 | ||||||
Property and equipment, net | 2,772 | 155 | ||||||
Operating lease right-of-use assets | 1 | 51 | ||||||
Intangible assets, net | 275 | 465 | ||||||
Goodwill | 272 | 272 | ||||||
Contract costs, net of current portion | 512 | 436 | ||||||
Other long-term assets | 152 | 106 | ||||||
Total Assets | $ | 22,262 | $ | 7,783 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 214 | $ | 86 | ||||
Accrued expenses | 1,570 | 1,754 | ||||||
Finance leases | 31 | 30 | ||||||
Notes payable | 1,071 | - | ||||||
Operating lease liabilities | - | 50 | ||||||
Income tax payable | 5 | - | ||||||
Contigent consideration | - | 175 | ||||||
Contract liabilities | 783 | 791 | ||||||
Total current liabilities | 3,674 | 2,886 | ||||||
Contract liabilities, net of current portion | 450 | 423 | ||||||
Finance leases, net of current portion | 63 | 86 | ||||||
Notes payable, net of current portion | 1,891 | - | ||||||
Operating lease liabilities, net of current portion | 1 | 1 | ||||||
Total liabilities | 6,079 | 3,396 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, par value | - | - | ||||||
Common stock, par value | ||||||||
shares issued and outstanding as of September 30, 2020 and 14,884,755 shares issued | ||||||||
and outstanding as of December 31, 2019 | 18 | 15 | ||||||
Additional paid-in capital | 73,414 | 62,400 | ||||||
Accumulated deficit | (57,249 | ) | (58,028 | ) | ||||
Total stockholders' equity | 16,183 | 4,387 | ||||||
Total Liabilities and Stockholders' Equity | $ | 22,262 | $ | 7,783 | ||||
CREXENDO, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share and share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
Service revenue | $ | 3,654 | $ | 3,259 | $ | 10,747 | $ | 9,414 | ||||||||
Product revenue | 489 | 343 | 1,317 | 1,294 | ||||||||||||
Total revenue | 4,143 | 3,602 | 12,064 | 10,708 | ||||||||||||
Operating expenses: | ||||||||||||||||
Cost of service revenue | 946 | 836 |
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FAQ
What are Crexendo's Q3 2020 financial results?
Crexendo reported a 15% increase in total revenue to $4.1 million, with a GAAP net income of $131,000 or $0.01 per share.
How did UCaaS revenue perform in Q3 2020 for CXDO?
UCaaS service revenue increased by 14% to $3.5 million in Q3 2020 compared to the same period in 2019.
What were the key challenges faced by Crexendo in Q3 2020?
The company experienced customer attrition due to the pandemic, affecting revenue.
What is Crexendo's outlook following its Nasdaq uplisting?
Crexendo aims to focus on organic growth and potential acquisitions after successfully completing its public offering.
How did Crexendo's operating expenses change in Q3 2020?
Operating expenses increased by 22% to $4.0 million compared to Q3 2019.
CREXENDO INC
NASDAQ:CXDOCXDO RankingsCXDO Latest NewsCXDO Stock Data
134.02M
12.03M
55.48%
20.52%
0.79%
Telecom Services
Telephone Communications (no Radiotelephone)
United States of America
TEMPE
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