Crexendo Delivers Strong Third Quarter Results
Crexendo (NASDAQ:CXDO) reported strong Q3 2024 financial results with total revenue increasing 13% year-over-year to $15.6 million. The company's software solutions revenue grew 25% to $5.9 million, while service revenue increased 6% to $8.0 million. Net income was $0.1 million ($0.01 per basic share), compared to $1.7 million in Q3 2023. Non-GAAP net income reached $1.6 million ($0.06 per share). Cash and cash equivalents stood at $15.5 million, up from $10.3 million at the end of 2023. The company is investing in infrastructure improvements, including Oracle Cloud Infrastructure migration, and expects continued double-digit growth through Q4 and into 2025.
Crexendo (NASDAQ:CXDO) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un incremento del fatturato del 13% rispetto all'anno precedente, raggiungendo 15,6 milioni di dollari. I ricavi dalle soluzioni software dell'azienda sono aumentati del 25%, arrivando a 5,9 milioni di dollari, mentre i ricavi dai servizi sono cresciuti del 6%, toccando gli 8,0 milioni di dollari. L'utile netto è stato di 0,1 milioni di dollari (0,01 dollari per azione ordinaria), rispetto a 1,7 milioni di dollari nel terzo trimestre del 2023. L'utile netto non-GAAP ha raggiunto 1,6 milioni di dollari (0,06 dollari per azione). La liquidità e le equivalenti di cassa si sono attestati a 15,5 milioni di dollari, in aumento rispetto ai 10,3 milioni di dollari alla fine del 2023. L'azienda sta investendo in miglioramenti infrastrutturali, inclusa la migrazione verso Oracle Cloud Infrastructure, e prevede una continua crescita a due cifre fino al quarto trimestre e nel 2025.
Crexendo (NASDAQ:CXDO) reportó resultados financieros sólidos para el tercer trimestre de 2024, con un aumento del 13% en los ingresos interanuales, alcanzando 15,6 millones de dólares. Los ingresos por soluciones de software de la empresa crecieron un 25%, alcanzando 5,9 millones de dólares, mientras que los ingresos por servicios aumentaron un 6%, llegando a 8,0 millones de dólares. La renta neta fue de 0,1 millones de dólares (0,01 dólares por acción básica), en comparación con 1,7 millones de dólares en el tercer trimestre de 2023. La renta neta no-GAAP alcanzó 1,6 millones de dólares (0,06 dólares por acción). Las disponibilidades y equivalentes de efectivo se ubicaron en 15,5 millones de dólares, un incremento desde los 10,3 millones de dólares a finales de 2023. La empresa está invirtiendo en mejoras de infraestructura, incluida la migración a Oracle Cloud Infrastructure, y espera un continuo crecimiento de dos dígitos hasta el cuarto trimestre y en 2025.
Crexendo (NASDAQ:CXDO)는 2024년 3분기 재무 결과를 발표하며, 총 수익이 전년 대비 13% 증가하여 1,560만 달러에 이르렀다고 보고했습니다. 회사의 소프트웨어 솔루션 수익은 25% 증가하여 590만 달러에 도달했으며, 서비스 수익은 6% 증가하여 800만 달러가 되었습니다. 순이익은 10만 달러(기본 주당 0.01달러)로, 2023년 3분기의 170만 달러와 비교되었습니다. 비GAAP 순이익은 160만 달러(주당 0.06달러)에 달했습니다. 현금 및 현금성 자산은 1,550만 달러로, 2023년 말의 1,030만 달러에서 증가했습니다. 회사는 인프라 개선에 투자하고 있으며, Oracle Cloud Infrastructure로의 마이그레이션을 포함하여 4분기와 2025년으로 이어지는 두 자릿수 성장을 기대하고 있습니다.
Crexendo (NASDAQ:CXDO) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec un chiffre d'affaires en hausse de 13 % par rapport à l'année précédente, atteignant 15,6 millions de dollars. Le chiffre d'affaires provenant des solutions logicielles de l'entreprise a augmenté de 25 % pour atteindre 5,9 millions de dollars, tandis que le chiffre d'affaires des services a progressé de 6 % pour atteindre 8,0 millions de dollars. Le bénéfice net s'est élevé à 0,1 million de dollars (0,01 dollar par action ordinaire), contre 1,7 million de dollars au troisième trimestre 2023. Le bénéfice net non-GAAP a atteint 1,6 million de dollars (0,06 dollar par action). La trésorerie et les équivalents de trésorerie se chiffraient à 15,5 millions de dollars, en hausse par rapport à 10,3 millions de dollars à la fin de 2023. L'entreprise investit dans des améliorations d'infrastructure, y compris la migration vers Oracle Cloud Infrastructure, et prévoit une poursuite de la croissance à deux chiffres jusqu'au quatrième trimestre et en 2025.
Crexendo (NASDAQ:CXDO) hat starke Finanzzahlen für das dritte Quartal 2024 präsentiert, mit einem Umsatzanstieg von 13% im Vergleich zum Vorjahr auf 15,6 Millionen Dollar. Der Umsatz aus Softwarelösungen des Unternehmens stieg um 25% auf 5,9 Millionen Dollar, während die Dienstleistungserlöse um 6% auf 8,0 Millionen Dollar zunahmen. Der Nettogewinn betrug 0,1 Millionen Dollar (0,01 Dollar pro Stammaktie), verglichen mit 1,7 Millionen Dollar im dritten Quartal 2023. Der Nicht-GAAP Nettogewinn erreichte 1,6 Millionen Dollar (0,06 Dollar pro Aktie). Die liquiden Mittel und Zahlungsmitteläquivalente belaufen sich auf 15,5 Millionen Dollar, ein Anstieg von 10,3 Millionen Dollar Ende 2023. Das Unternehmen investiert in Infrastrukturverbesserungen, einschließlich der Migration zu Oracle Cloud Infrastructure, und erwartet weiteres zweistelliges Wachstum bis zum vierten Quartal und in das Jahr 2025.
- Revenue growth of 13% YoY to $15.6 million
- Software solutions revenue increased 25% YoY to $5.9 million
- Cash position improved to $15.5 million from $10.3 million in December 2023
- Operating cash flow increased to $4.1 million from $0.9 million YoY
- Net income decreased to $0.1 million from $1.7 million YoY
- Operating expenses increased 15% YoY to $15.5 million
- Non-GAAP net income declined to $1.7 million from $3.3 million YoY
- Adjusted EBITDA decreased to $1.7 million from $2.1 million YoY
Insights
Crexendo's Q3 2024 results show solid growth with
Key positives include strengthened cash position at
The strategic focus on software solutions is paying off, with this segment showing the strongest growth at
The open API strategy and focus on AI-driven applications show forward-thinking technology leadership, though the legacy system migration period could present temporary operational challenges. The implementation of advanced accounting systems signals a mature approach to scaling operations.
PHOENIX, AZ / ACCESSWIRE / November 6, 2024 / Crexendo, Inc. (NASDAQ:CXDO), an award-winning software technology company that is a premier provider of cloud communication platform and services, video collaboration and managed IT services tailored to businesses of all sizes, today announced financial results for the third quarter ended September 30, 2024.
Financial highlights:
Revenue of
$15.6 million , up13% year-over-yearNet income of
$0.1 million , or$0.01 per basic common share and$0.00 per diluted common share.Non-GAAP net income of
$1.6 million , or$0.06 per basic and diluted common share
Financial Results for the Third quarter of 2024
Total Revenue: Consolidated total revenue for the third quarter of 2024 increased
Service Revenue: Consolidated service revenue for the third quarter of 2024 increased
Software Solutions Revenue: Consolidated software solutions revenue for the third quarter of 2024 increased
Product Revenue: Consolidated product revenue for the third quarter of 2024 increased
Operating Expenses: Consolidated operating expenses for the third quarter of 2024 increased
Net Income: The Company reported net income of
Non-GAAP: Non-GAAP net income of
EBITDA and Adjusted EBITDA: EBITDA for the third quarter of 2024 of
Financial Results for the nine months ended September 30, 2024
Total Revenue: Consolidated total revenue for the nine months ended September 30, 2024 increased
Service Revenue: Consolidated service revenue for the nine months ended September 30, 2024 increased
Software Solutions Revenue: Consolidated software solutions revenue for the nine months ended September 30, 2024 increased
Product Revenue: Consolidated product revenue for the nine months ended September 30, 2024 increased
Operating Expenses: Consolidated operating expenses for the nine months ended September 30, 2024 increased
Net Income/(Loss): The Company reported net income of
Non-GAAP: Non-GAAP net income of
EBITDA and Adjusted EBITDA: EBITDA for the nine months ended September 30, 2024 of
Cash and Cash Equivalents: Total cash and cash equivalents at September 30, 2024 was
Cash Flow: Cash provided by operating activities for the nine months ended September 30, 2024 was
Management Commentary
"Crexendo delivered exceptionally strong financial results for the third quarter of 2024, reflecting our commitment to providing premier cloud communication software and services and continuing our organic growth trajectory. Consolidated revenue grew
Korn continued, "As we move forward, we continue reinvesting in Crexendo to drive future growth and efficiency. We've increased our headcount in engineering, service, and support and have made substantial investments into Oracle Cloud Infrastructure (OCI), which will provide a significant competitive advantage, especially in Europe, where our growth remains very robust. We are beginning the process of migrating our legacy cloud customers to OCI. Once complete, this transition will yield substantial cost savings and allow us to redeploy resources effectively rather than increasing headcount. Additionally, we are in the process of implementing an advanced accounting system to streamline our financial closings and provide real-time insights, empowering us to make agile, data-driven business decisions."
Korn added, "We recently concluded our most successful User Group Meeting (UGM), where the excitement was palpable. Our second codefest showcased impressive applications, particularly those leveraging AI, which our licensees can develop using our scalable, open APIs. Many of these applications will soon be available to all our licensees through our platform, enhancing our offerings and opening additional revenue-sharing opportunities. This is a very exciting time, with unprecedented interest in our software platform and strong demand for our phone services. I remain highly optimistic about our future growth and anticipate double-digit growth continuing through the fourth quarter and into 2025."
Conference Call
Crexendo management will hold a conference call today, November 6, 2024, at 4:30 PM Eastern time to discuss these results. Company CEO Jeff Korn, CFO Ron Vincent, and President and COO Doug Gaylor will host the call, followed by a question-and-answer period.
Dial-in Numbers:
Domestic Participants: 888-506-0062
International Participants: 973-528-0011
Participant Access Code 993699
Please dial in five minutes prior to the beginning of the call at 4:30 PM Eastern time and reference participant access code 993699 and the Crexendo earnings call. A replay of the call will be available until November 13, 2024 by dialing toll-free at 877-481-4010 or 919-882-2331 for international callers. The replay passcode is 51472.
About Crexendo
Crexendo, Inc. is an award-winning software technology company that is a premier provider of cloud communication platform and services, video collaboration and managed IT services tailored to businesses of all sizes. Our solutions currently support over five million end users globally, through our extensive global network of over 230 cloud communication platform software subscribers and our direct retail offering.
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 Crexendo (i) delivering exceptionally strong financial results for the third quarter of 2024 which reflects the commitment to providing premier cloud communication software and services; (ii) having year-to-date numbers as equally strong and being well ahead of internal and external expectations as it continues to execute its game plan; (iii) being excited with the momentum; (iv) believing these results underscore the strength of the scalable software platforms and the dedication of the team to meet the rising demand for comprehensive cloud solutions; (v) continuing to reinvest in the Company to drive future growth and efficiency; (vi) investments to the business and Oracle Cloud Infrastructure (OCI), providing benefits and a competitive advantage, especially in Europe, where growth remains very robust; (vii) expecting to begin the process of migrating legacy cloud customers to OCI which when complete will yield substantial cost savings and allow redeployment of resources effectively rather than increasing headcount; (viii) being in the process of implementing an advanced accounting system to streamline financial closings and provide real-time insights, empowering the Company to make agile, data-driven business decisions; (ix) recently concluded the most successful User Group Meeting (UGM), where the excitement was palpable; (x) the second codefest showcased impressive applications, particularly those leveraging AI, which licensees can develop using the scalable, open APIs with many of these applications soon be available to all licensees through the platform, enhancing offerings and opening additional revenue-sharing opportunities; (xi) believing this is a very exciting time, with unprecedented interest in the software platform and strong demand for phone services and (xii) remaining highly optimistic about future growth and anticipate double-digit growth continuing through the fourth quarter and into 2025. 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, 2023, and 2024 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.
Company Contact
Crexendo, Inc.
Doug Gaylor
President and Chief Operating Officer
602-732-7990
dgaylor@crexendo.com
CREXENDO, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value and share data)
|
| September 30, 2024 |
|
| December 31, 2023 |
| ||
Assets |
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 15,451 |
|
| $ | 10,347 |
|
Trade receivables, net of allowance of |
|
| 3,753 |
|
|
| 3,476 |
|
Inventories |
|
| 518 |
|
|
| 382 |
|
Equipment financing receivables, net of allowance of |
|
| 981 |
|
|
| 856 |
|
Contract costs |
|
| 1,746 |
|
|
| 1,345 |
|
Prepaid expenses |
|
| 1,327 |
|
|
| 508 |
|
Income tax receivable |
|
| 53 |
|
|
| - |
|
Other current assets |
|
| 35 |
|
|
| 35 |
|
Total current assets |
|
| 23,864 |
|
|
| 16,949 |
|
|
|
|
|
|
|
|
|
|
Contract assets, net of allowance of |
|
| 362 |
|
|
| 342 |
|
Long-term equipment financing receivables, net of allowance of |
|
| 2,228 |
|
|
| 1,768 |
|
Property and equipment, net |
|
| 438 |
|
|
| 670 |
|
Operating lease right-of-use assets |
|
| 1,676 |
|
|
| 1,009 |
|
Intangible assets, net |
|
| 21,283 |
|
|
| 23,556 |
|
Goodwill |
|
| 9,454 |
|
|
| 9,454 |
|
Contract costs, net of current portion |
|
| 2,739 |
|
|
| 2,273 |
|
Other long-term assets |
|
| 208 |
|
|
| 139 |
|
Total Assets |
| $ | 62,252 |
|
| $ | 56,160 |
|
|
|
|
|
|
|
|
| |
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 746 |
|
| $ | 769 |
|
Accrued expenses |
|
| 6,669 |
|
|
| 5,951 |
|
Finance leases |
|
| 39 |
|
|
| 75 |
|
Notes payable |
|
| 473 |
|
|
| 457 |
|
Operating lease liabilities |
|
| 555 |
|
|
| 566 |
|
Income tax payable |
|
| - |
|
|
| 53 |
|
Contract liabilities |
|
| 2,668 |
|
|
| 2,390 |
|
Total current liabilities |
|
| 11,150 |
|
|
| 10,261 |
|
|
|
|
|
|
|
|
| |
Contract liabilities, net of current portion |
|
| 255 |
|
|
| 198 |
|
Finance leases, net of current portion |
|
| 3 |
|
|
| 23 |
|
Notes payable, net of current portion |
|
| 236 |
|
|
| 592 |
|
Operating lease liabilities, net of current portion |
|
| 1,139 |
|
|
| 473 |
|
Total liabilities |
|
| 12,783 |
|
|
| 11,547 |
|
|
|
|
|
|
|
|
| |
Stockholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock, par value |
|
| - |
|
|
| - |
|
Common stock, par value |
|
|
|
|
|
|
|
|
shares issued and outstanding as of September 30, 2024 and 26,130,218 shares issued |
|
|
|
|
|
|
|
|
and outstanding as of December 31, 2023 |
|
| 27 |
|
|
| 26 |
|
Additional paid-in capital |
|
| 136,587 |
|
|
| 132,888 |
|
Accumulated deficit |
|
| (87,297 | ) |
|
| (88,467 | ) |
Accumulated other comprehensive income |
|
| 152 |
|
|
| 166 |
|
Total stockholders' equity |
|
| 49,469 |
|
|
| 44,613 |
|
|
|
|
|
|
|
|
| |
Total Liabilities and Stockholders' Equity |
| $ | 62,252 |
|
| $ | 56,160 |
|
CREXENDO, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share and share data)
|
| Three Months Ended September 30, |
|
| Nine Months Ended September 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
Service revenue |
| $ | 7,953 |
|
| $ | 7,517 |
|
| $ | 23,865 |
|
| $ | 21,983 |
|
Software solutions revenue |
|
| 5,860 |
|
|
| 4,691 |
|
|
| 16,331 |
|
|
| 12,729 |
|
Product revenue |
|
| 1,814 |
|
|
| 1,666 |
|
|
| 4,402 |
|
|
| 4,323 |
|
Total revenue |
|
| 15,627 |
|
|
| 13,874 |
|
|
| 44,598 |
|
|
| 39,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service revenue |
|
| 3,336 |
|
|
| 3,173 |
|
|
| 9,691 |
|
|
| 9,312 |
|
Cost of software solutions revenue |
|
| 1,686 |
|
|
| 1,327 |
|
|
| 4,523 |
|
|
| 3,805 |
|
Cost of product revenue |
|
| 1,081 |
|
|
| 923 |
|
|
| 2,507 |
|
|
| 2,643 |
|
Selling and marketing |
|
| 4,221 |
|
|
| 3,502 |
|
|
| 12,206 |
|
|
| 10,924 |
|
General and administrative |
|
| 3,695 |
|
|
| 3,309 |
|
|
| 10,423 |
|
|
| 10,473 |
|
Research and development |
|
| 1,473 |
|
|
| 1,276 |
|
|
| 4,050 |
|
|
| 3,605 |
|
Total operating expenses |
|
| 15,492 |
|
|
| 13,510 |
|
|
| 43,400 |
|
|
| 40,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income/(loss) from operations |
|
| 135 |
|
|
| 364 |
|
|
| 1,198 |
|
|
| (1,727 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other income/(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
| (7 | ) |
|
| (36 | ) |
|
| (31 | ) |
|
| (111 | ) |
Gain on sale of property and equipment |
|
| - |
|
|
| 1,459 |
|
|
| - |
|
|
| 1,459 |
|
Other income/(expense), net |
|
| 66 |
|
|
| (50 | ) |
|
| 103 |
|
|
| 37 |
|
Total other income/(expense), net |
|
| 59 |
|
|
| 1,373 |
|
|
| 72 |
|
|
| 1,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income/(loss) before income tax |
|
| 194 |
|
|
| 1,737 |
|
|
| 1,270 |
|
|
| (342 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income tax (provision)/benefit |
|
| (46 | ) |
|
| (33 | ) |
|
| (100 | ) |
|
| (81 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income/(loss) |
| $ | 148 |
|
| $ | 1,704 |
|
| $ | 1,170 |
|
| $ | (423 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.01 |
|
| $ | 0.07 |
|
| $ | 0.04 |
|
| $ | (0.02 | ) |
Diluted |
| $ | 0.00 |
|
| $ | 0.06 |
|
| $ | 0.04 |
|
| $ | (0.02 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 26,848,644 |
|
|
| 25,995,507 |
|
|
| 26,610,130 |
|
|
| 25,901,686 |
|
Diluted |
|
| 29,857,261 |
|
|
| 27,682,764 |
|
|
| 29,827,531 |
|
|
| 25,901,686 |
|
CREXENDO, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
|
| Nine Months Ended September 30, |
| |||||
|
| 2024 |
|
| 2023 |
| ||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
| ||
Net income/(loss) |
| $ | 1,170 |
|
| $ | (423 | ) |
Adjustments to reconcile net income/(loss) to net cash provided by/(used for) operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
| 2,505 |
|
|
| 2,695 |
|
Allowance for credit losses |
|
| 8 |
|
|
| 44 |
|
Share-based compensation |
|
| 2,293 |
|
|
| 3,112 |
|
Non-cash operating lease amortization |
|
| (12 | ) |
|
| (3 | ) |
Gain on sale of property and equipment |
|
| - |
|
|
| (1,459 | ) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Trade receivables |
|
| (247 | ) |
|
| (584 | ) |
Contract assets |
|
| (35 | ) |
|
| 2 |
|
Equipment financing receivables |
|
| (608 | ) |
|
| (770 | ) |
Inventories |
|
| (136 | ) |
|
| 207 |
|
Contract costs |
|
| (867 | ) |
|
| (994 | ) |
Prepaid expenses |
|
| (819 | ) |
|
| (560 | ) |
Income tax receivable |
|
| (53 | ) |
|
| - |
|
Other assets |
|
| (69 | ) |
|
| 210 |
|
Accounts payable and accrued expenses |
|
| 695 |
|
|
| (169 | ) |
Income tax payable |
|
| (53 | ) |
|
| (12 | ) |
Contract liabilities |
|
| 335 |
|
|
| (409 | ) |
Net cash provided by/(used for) operating activities |
|
| 4,107 |
|
|
| 887 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
| - |
|
|
| (92 | ) |
Proceeds from the sale of property and equipment |
|
| - |
|
|
| 3,792 |
|
Net cash provided by/(used for) investing activities |
|
| - |
|
|
| 3,700 |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Borrowing on line of credit, net |
|
| - |
|
|
| (82 | ) |
Repayments made on finance leases |
|
| (56 | ) |
|
| (76 | ) |
Proceeds from notes payable |
|
| - |
|
|
| 278 |
|
Repayments made on notes payable |
|
| (340 | ) |
|
| (2,143 | ) |
Proceeds from exercise of options |
|
| 1,573 |
|
|
| 93 |
|
Dividend payments |
|
| - |
|
|
| (130 | ) |
Taxes paid on the net settlement of stock options and RSUs |
|
| (166 | ) |
|
| (264 | ) |
Net cash provided by/(used for) financing activities |
|
| 1,011 |
|
|
| (2,324 | ) |
Effect of exchange rate changes on cash |
|
| (14 | ) |
|
| (1 | ) |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS |
|
| 5,104 |
|
|
| 2,262 |
|
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD |
|
| 10,347 |
|
|
| 5,475 |
|
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD |
| $ | 15,451 |
|
| $ | 7,737 |
|
Cash used during the year for: |
|
|
|
|
|
|
|
|
Income taxes, net |
| $ | (205 | ) |
| $ | (91 | ) |
Interest expense |
| $ | (25 | ) |
| $ | (111 | ) |
CREXENDO, INC. AND SUBSIDIARIES
Supplemental Segment Financial Data
(Unaudited, in thousands)
|
| Three Months Ended September 30, |
|
| Nine Months Ended September 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cloud telecommunications services |
| $ | 9,767 |
|
| $ | 9,183 |
|
| $ | 28,267 |
|
| $ | 26,306 |
|
Software solutions |
|
| 5,860 |
|
|
| 4,691 |
|
|
| 16,331 |
|
|
| 12,729 |
|
Consolidated revenue |
|
| 15,627 |
|
|
| 13,874 |
|
|
| 44,598 |
|
|
| 39,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating income/(loss) from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud telecommunications services |
|
| (38 | ) |
|
| 73 |
|
|
| 160 |
|
|
| (1,312 | ) |
Software solutions |
|
| 173 |
|
|
| 291 |
|
|
| 1,038 |
|
|
| (415 | ) |
Total operating income/(loss) |
|
| 135 |
|
|
| 364 |
|
|
| 1,198 |
|
|
| (1,727 | ) |
Other income/(expense), net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud telecommunications services |
|
| 64 |
|
|
| 1,425 |
|
|
| 104 |
|
|
| 1,360 |
|
Software solutions |
|
| (5 | ) |
|
| (52 | ) |
|
| (32 | ) |
|
| 25 |
|
Total other income/(expense), net |
|
| 59 |
|
|
| 1,373 |
|
|
| 72 |
|
|
| 1,385 |
|
Income/(loss) before income tax provision: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud telecommunications services |
|
| 26 |
|
|
| 1,498 |
|
|
| 264 |
|
|
| 48 |
|
Software solutions |
|
| 168 |
|
|
| 239 |
|
|
| 1,006 |
|
|
| (390 | ) |
Income/(loss) before income tax provision |
| $ | 194 |
|
| $ | 1,737 |
|
| $ | 1,270 |
|
| $ | (342 | ) |
Use of Non-GAAP Financial Measures
To evaluate our business, we consider and use non-generally accepted accounting principles ("Non-GAAP") net income, EBITDA, and Adjusted EBITDA as a supplemental measure of operating performance. These measures include the same adjustments that management takes into account when it reviews and assesses operating performance on a period-to-period basis. We consider Non-GAAP net income to be an important indicator of overall business performance because it allows us to evaluate results without the effects of share-based compensation, acquisition related expenses, changes in fair value of contingent consideration, amortization of intangibles, and goodwill and long-lived asset impairment. We define EBITDA as U.S. GAAP net income/(loss) before interest expense, interest income and other expense/(income), the gain/(loss) on the sale of property and equipment, goodwill and long-lived asset impairments, provision/(benefit) for income taxes, and depreciation and amortization. We believe EBITDA provides a useful metric to investors to compare us with other companies within our industry and across industries. We define Adjusted EBITDA as EBITDA adjusted for acquisition related expenses, changes in fair value of contingent consideration and share-based compensation. We use Adjusted EBITDA as a supplemental measure to review and assess operating performance. We also believe use of Adjusted EBITDA facilitates investors' use of operating performance comparisons from period to period, as well as across companies.
In our November 6, 2024 earnings press release, as furnished on Form 8-K, we included Non-GAAP net income, EBITDA and Adjusted EBITDA. The terms Non-GAAP net income, EBITDA, and Adjusted EBITDA are not defined under U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in analytical tools, and when assessing our operating performance, Non-GAAP net income, EBITDA, and Adjusted EBITDA should not be considered in isolation, or as a substitute for net income/(loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Some of these limitations include, but are not limited to:
EBITDA and Adjusted EBITDA do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
they do not reflect changes in, or cash requirements for, our working capital needs;
they do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt that we may incur;
they do not reflect income taxes or the cash requirements for any tax payments;
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will be replaced sometime in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements;
while share-based compensation is a component of operating expense, the impact on our financial statements compared to other companies can vary significantly due to such factors as the assumed life of the options and the assumed volatility of our common stock; and
other companies may calculate EBITDA and Adjusted EBITDA differently than we do, limiting their usefulness as comparative measures.
We compensate for these limitations by relying primarily on our U.S. GAAP results and using Non-GAAP net income, EBITDA, and Adjusted EBITDA only as supplemental support for management's analysis of business performance. Non-GAAP net income, EBITDA and Adjusted EBITDA are calculated as follows for the periods presented.
Reconciliation of Non-GAAP Financial Measures
In accordance with the requirements of Regulation G issued by the SEC, we are presenting the most directly comparable U.S. GAAP financial measures and reconciling the unaudited Non-GAAP financial metrics to the comparable U.S. GAAP measures.
Reconciliation of U.S. GAAP Net Income/(Loss) to Non-GAAP Net Income
(Unaudited, in thousands, except for per share and share data)
|
| Three Months Ended September 30, |
|
| Nine Months Ended September 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
U.S. GAAP net income/(loss) |
| $ | 148 |
|
| $ | 1,704 |
|
| $ | 1,170 |
|
| $ | (423 | ) |
Share-based compensation |
|
| 781 |
|
|
| 843 |
|
|
| 2,293 |
|
|
| 3,112 |
|
Acquisition related expenses |
|
| - |
|
|
| - |
|
|
| - |
|
|
| 1 |
|
Amortization of intangible assets |
|
| 755 |
|
|
| 793 |
|
|
| 2,273 |
|
|
| 2,377 |
|
Non-GAAP net income |
| $ | 1,684 |
|
| $ | 3,340 |
|
| $ | 5,736 |
|
| $ | 5,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Non-GAAP earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.06 |
|
| $ | 0.13 |
|
| $ | 0.22 |
|
| $ | 0.20 |
|
Diluted |
| $ | 0.06 |
|
| $ | 0.12 |
|
| $ | 0.19 |
|
| $ | 0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 26,848,644 |
|
|
| 25,995,507 |
|
|
| 26,610,130 |
|
|
| 25,901,686 |
|
Diluted |
|
| 29,857,261 |
|
|
| 27,682,764 |
|
|
| 29,827,531 |
|
|
| 27,544,993 |
|
Reconciliation of U.S. GAAP Net Income/(Loss) to EBITDA to Adjusted EBITDA
(Unaudited, in thousands)
|
| Three Months Ended September 30, |
|
| Nine Months Ended September 30, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
U.S. GAAP net income/(loss) |
| $ | 148 |
|
| $ | 1,704 |
|
| $ | 1,170 |
|
| $ | (423 | ) |
Depreciation and amortization |
|
| 829 |
|
|
| 887 |
|
|
| 2,505 |
|
|
| 2,695 |
|
Interest expense |
|
| 7 |
|
|
| 36 |
|
|
| 31 |
|
|
| 111 |
|
Gain on sale of property and equipment |
|
| - |
|
|
| (1,459 | ) |
|
| - |
|
|
| (1,459 | ) |
Interest income and other expense/(income) |
|
| (66 | ) |
|
| 50 |
|
|
| (103 | ) |
|
| (37 | ) |
Income tax provision/(benefit) |
|
| 46 |
|
|
| 33 |
|
|
| 100 |
|
|
| 81 |
|
EBITDA |
|
| 964 |
|
|
| 1,251 |
|
|
| 3,703 |
|
|
| 968 |
|
Acquisition related expenses |
|
| - |
|
|
| - |
|
|
| - |
|
|
| 1 |
|
Share-based compensation |
|
| 781 |
|
|
| 843 |
|
|
| 2,293 |
|
|
| 3,112 |
|
Adjusted EBITDA |
| $ | 1,745 |
|
| $ | 2,094 |
|
| $ | 5,996 |
|
| $ | 4,081 |
|
SOURCE: Crexendo, Inc.
View the original press release on accesswire.com
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