Tue, May 6, 9:22 PM (6 days ago)
**Crexendo, Inc. (CXDO) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $16.06 million, up 12% YoY, driven by a 33% increase in software solutions revenue and a 4% increase in service revenue, offset by a 22% decrease in product revenue. - **Profit Margins:** Gross margin improved to 29% from 26% YoY. Operating margin increased to 7.2% from 3.4% YoY. - **Net Income:** $1.17 million, up 170% YoY, reflecting improved operational efficiency and higher revenue. - **Earnings per Share (EPS):** Basic EPS was $0.04, up from $0.02 YoY. Diluted EPS was also $0.04, up from $0.01 YoY. - **Cash Flow:** Operating cash flow was $1.24 million, a significant improvement from a use of $(166,000) in Q1 2024. Financing activities provided $1.76 million, primarily from stock option exercises. **Segment Performance:** - **Cloud Telecommunications:** Revenue increased by 4% to $9.19 million. Operating income was $181,000, up from $78,000 YoY. - **Software Solutions:** Revenue surged by 33% to $6.87 million. Operating income was $969,000, up from $405,000 YoY. **Trends and Uncertainties:** - **Growth Drivers:** Organic growth from existing customers and new customers, particularly in software solutions. - **Challenges:** Fluctuations in product revenue due to installation timing and discounts. - **Future Outlook:** Positive trends in remaining performance obligations (RPOs) indicate strong future revenue visibility. **Future Operations Impact:** - **Investments:** Continued investment in technology and CPaaS offerings to enhance competitiveness and profitability. - **Expansion:** Focus on expanding product offerings and customer base, leveraging cross-selling opportunities. **Liquidity and Capital Resources:** - **Cash Position:** $21.21 million in cash and cash equivalents as of March 31, 2025, up from $18.19 million at the end of 2024. - **Capital Structure:** No significant changes in capital structure or debt levels. **Management's Discussion:** - **Operational Efficiency:** Improved cost management and operational efficiencies contributed to higher profitability. - **Market Position:** Recognized as the fastest-growing UCaaS platform in the U.S., positioning Crexendo for continued growth. **Conclusion:** Crexendo, Inc. demonstrated strong financial performance in Q1 2025, with significant revenue growth, improved profit margins, and robust cash flow. The company's strategic investments and market positioning are expected to drive future growth and operational success.