CXDO - Earnings call transcript Q2 2019

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Operator

Good day, ladies and gentlemen, and welcome to the Crexendo’s Second Quarter 2019 Earnings Call. [Operator Instructions]

At this time, it's my pleasure to turn the floor over to Mr. Steve Mihaylo, Chairman and CEO. Sir, the floor is yours.

Steven Mihaylo

Tom. you, thank right, All Good afternoon, everyone. Chairman I'm of CEO Steve Mihaylo, Crexendo. and you to Crexendo’s welcome want to all call. I conference of the XXXX second quarter Ron are President Jeff today Gaylor, our Vincent, COO; Korn, me and our Counsel. With General CFO; Doug and our

update Jeff brief numbers, business going some provide Safe up Harbor will comments more then will Doug then relative a to and details read statement. I'm to sales open the the that, will will After provide the and questions. ask to I Ron on to general give we the quarter. call

Harbor Jeff, would you please read the Safe statement.

Jeffrey Korn

Steve. Exchange to contain for remind forward-looking you, of Securities Private Act XXXX the Act this will listeners the within opportunity of meaning of XXXX. XXXX harbor The Thank to safe I Reform provides want a statements Securities such Litigation call Securities that of statements. the this forward-looking Act take and

other in of statements conference statements historical made than statements. are call fact forward-looking this in All fact

not like but identifying statements to, other statements. statements of believe, will estimate, limited and Forward-looking expect, forward-looking expectation anticipate, similar include are words

that or discussed not filed. revise as forward-looking risk does information, fiscal December or events otherwise. are XX, Investors actual ended aware filings company's statements, that explained to Crexendo, detail whether for any XXXX publicly year Securities cause Commission, assumptions from Forms risks and any of Exchange a the Form the subject These XX-Qs be the new forward-looking and statements as uncertainties XX-K including obligation future could any on are results and result update materially undertake in the differ and here should today. are those based to in factors with the to

to to like the Steve, now Steve? back turn I'd call

Steven Mihaylo

Telecommunications of to grew quarter GAAP Cloud Jeff. for you, the respectable Crexendo. UCaaS quarter of row XXXX. the second XXXX, We second our We which service XX% an of quarter quarter increase for profit. had in in a segment. very revenue excellent had a substantial was Thank second This

of GAAP per the share very quarter On quarter $X.XX also income for or diluted $XXX,XXX for had breakeven reporting net $XX,XXX common share XXXX. common a a second second the or diluted we of basis, compared to nice progress per

effective. activities six management June compared by XX also to X has for XXXX provided for of for Cash the was operating XX, months months negative June been the Our very cash ended ended operating activities XXXX. $XX,XXX cash $XXX,XXX

service give carefully. All consider in continued that I excited confidence pleased of very all, I'm With positive before all manage and in revenue that results still metric business we today. very that UCaaS said, important sustained the and told the the results I announced in you with the most as growth. our we metric high have me

XXXX. in Crexendo second with of expense investments, and and every and investment with did carefully. Even marketing. carefully service operating We the expeditiously. business second XX% compared quarter increase increase quarter necessary improvements in very Crexendo the included but the these do included and the XXXX, business, watches expenses so of for This sales invest to

announced today we due the work We of tireless work and are efforts results shareholder team. value. the increase every to to The day hard Crexendo

in people know Our I UCaaS is what the our to to mission customers and provide products up and with show the wanting services best industry. serve the

revenue I growth. sustain am growth I our continue will encouraged that I'm Crexendo in highly to believe team. we very the and confident, company strongly and our by

turn I over Ron? the With will to that said, Ron. back call

Ronald Vincent

million quarter XX%, million $X of for second the second revenue $X.X prior $X.X $X.X revenue of XXXX the to Thank compared increased for quarter compared second the the to the year. you, the for quarter million XXXX quarter increased Steve. of million Service XX% to prior Consolidated to for reported of year. second

to $XXX,XXX the for revenue Steve the said. to $X.X million second $X quarter service segment, Telecommunications year. the reported Cloud of increased as prior compared Our for million quarter XX%

quarter Services Web to $XXX,XXX $XXX,XXX to $XX,XXX quarter or reported compared segment for prior a the decreased of XX% revenue the for year. Our the second

quarter $XXX,XXX of for the X%, reported Our $XXX,XXX XXXX the second of quarter to the compared second for increased prior product revenue year.

expenses for quarter compared Consolidated the the quarter increased operating year. $X.X prior second for million to the XX%, $X.X to second million of

year. net for per or common was share quarter the income the to Our $X.XX second diluted common compared $XX,XXX, for quarter or share per the $XXX,XXX second breakeven diluted of as prior

year. income net prior $X.XX $XXX,XXX $XXX,XXX $X.XX to diluted period or or the of for share Non-GAAP same of compared per share diluted for common quarter the per the second common

EBITDA period to year. the Adjusted quarter the for for compared was $XXX,XXX same to period EBITDA the for prior prior compared the quarter as was the $XX,XXX same for year. of $XXX,XXX second of the $XXX,XXX

the highlights months XXXX. XX Some for June X ended

For the XX% of same the period consolidated million revenue six period, year. $X.X to to as compared increased month for reported million $X.X prior the

to compared the Service reported prior to increased for million revenue the the of period $X X for XX% same months year. million ended $X.X

for for segment Telecom revenue $X.X $X,XXX,XXX period XX% compared The to the million month period same to for X the reported million prior the increased $X.X or service year.

year. for operating period to decreased for to increased $XXX,XXX period for for XX% same to the same revenue month The $XXX,XXX month year. or prior period the $X.X the X [ph] to million X as $XXX,XXX to the the Web increased $X.X Consolidated month XX% same Services prior year. XX% period X the in $XX,XXX for reported for period period million the segment, Product that's compared $XXX,XXX expenses prior the the compared of to compared revenue

period common $XXX,XXX as or same $XXX,XXX month of compared a was diluted breakeven period $X.XX $XXX,XXX year. the share for of per six of diluted the $XX,XXX common income for prior the year. or or Non-GAAP net per common month of the non-GAAP loss the same period period share Our net per for the per common reported income to net diluted was share net to for a diluted share six $X.XX prior income or compared $X.XX

$XX,XXX period period to of same reported year. $XXX,XXX the the reported compared year. month for the the six the And prior for of was $XXX,XXX loss prior month six the EBITDA EBITDA same $XXX,XXX for period for was adjusted as that's to period compared

cash, equivalents cash million $X.X restricted XX at XX, $X.X reported that's was Our December June cash at to compared XXXX. and million

activities Operating $XX,XXX period. Investing of activities the cash, financing for equivalents cash provided provided used cash cash. and of $XXX,XXX of activities $XXX,XXX

I'll to and Doug Gaylor, With it comments that, additional turn for over our on COO operations President

Douglas Gaylor

results we Thanks, very Ron. for momentum QX. pleased the with and that I'm delivered

well substantial had second in consecutive balances backlog, we income revenue, shows executing total the our business and that For quarter, GAAP plan. are telecom revenue, on we that cash increases

XX% segment in our increases increase and contribute of revenue revenue of to year-over-year non-GAAP year-over-year XX% total helped our Our and GAAP earnings. Telecom increase

Our of $XXX,XXX our plan consistently net to is of strong GAAP income profitably. a grow culmination managing

model this our combined us relatively have previously fixed year. GAAP to has these inflection recent and allowed I recurring structure mentioned, cost As non-GAAP revenue profitability points reach with our of

our focus We over Highlighting increase efficiencies. same revenue and a saw improving on X% GAAP continue XX% for on costs manage QX management's the total a to in well period. our constant profitability increase of

see continue sales and We from direct strong to bookings channels. both partner our

markets is secured these cloud value $XXX,XXX, which total with. one During more opportunities, contract were particularly effective half of sales with the dozen the a solution opportunities than is that multi-location greater target many of than the quarter, ride Crexendo's we

over helped the the highlighting over quarter points, first $XXX,XXX nearly of has metrics the further balances and company previous that these the year, for for also our the half of cash the reached. All increase by XX% inflection quarter by

Our XX% and that averaging backlog million increased over $X grow per continues period. to year-over-year quarter increase

the we Our pleased very are seeing. installations with are strong momentum and we are

that slightly increased the gross to for drive and margins telecom work Our to combined to quarter higher. we percentage continue on efforts XX%

We develop and by We offerings Unified Product our on collaboration, in INTERNET awarded our TELEPHONY magazine presented be for focusing that texting, were of one the enhancements continue of strongest system to able TMC design and Year Communications recognized the we the Award industry. have platform include by to been chat, the capabilities. softphone, UCaaS to recently XXXX

award by further truly our of is authorities This confirms UCaaS leading platform one the best-of-class. that presented industry on

You release a this see on later week. press announcement separate coming will this

inflection GAAP momentum earnings, to quarters in been reaching keep these these accomplishment complemented growth have our two to We revenue even growth of and a strong committed now are we with consecutive harder had points and continuing. working increased trends major has

the proud and excited entire I'm our continuing Crexendo to the and ability to XXXX efforts of second half team of very our confident execute beyond. of and in plans partners and on the I'm our on

will to I over Steve turn now it for additional any comments.

Steven Mihaylo

time, we'd Doug. the the like At Tom, questions to Thanks, folks for call. this are it that from up on open

Operator

Instructions] [Operator take question William ROTH Capital sir. We'll from Thank Gibson first Partners. our you, with

William Gibson

Thank you.

you handy? specific backlog the mentioned have up being XX%. You Do number

Douglas Gaylor

but $XX $XX.X just The believe, shy million. $XX million, specific of is number at to But I look million. of shy it, it's Ron. Ron is going just

Ronald Vincent

X,XXX,XXX [ph].

William Gibson

investments And the that agents service XX%, say Do how sales have are there sense a the And the marketing. does expenses to up then in operating of a versus sales, and now ago? growth acceleration rate? year an in many lead you

Douglas Gaylor

Thanks, Bill.

our stable So direct there, a put in resources. community are we've investment partner increase the large there for sales where we I reps last talk are and really all. pretty majority sales. so and agents at had of from actually some about our those out our sales don't there think, putting year. We've incentives we're When those out

from perspective, in we're than in actual expenses direct it more marketing So putting count. a growth head

William Gibson

you. Thank

Steven Mihaylo

expand on expand we've Mihaylo, on But To more added that. to Steve an answer is This partners. that, William.

more have sales. the on the feet partner Street do from of So we standpoint

William Gibson

Steve. Okay, thanks,

Steven Mihaylo

You bet.

Operator

We'll take with next our H.C.W. question Dede Kevin -- from

Kevin Dede

gentlemen. How you’re doing. Good afternoon,

Steven Mihaylo

afternoon, Kevin. Good

Ronald Vincent

you, are How Kevin. sir? Hey,

Kevin Dede

on I Doug for sentiments. the taking good. I’m Thanks call. his and echoed Steve suppose results. that the Congrats

growth You you over converts seem growth I'm and my strong what assumption measure Clearly, wondering, that pretty next backlog, about sales that to convert months. just XX else? in confident the the the trends. is --

your year. been see about now just your in measuring Where of your wondering, else for and you from leaves confidence over competitors? there? Cisco coming ability feeling I'm deal, the it's -- your you X grow Especially BroadSoft light you're it's how What base? how to has confident customer ingested

Douglas Gaylor

Sure. Thanks, Kevin. Great question.

expand First your backlog me question. let on

course runs to or So months as of XX out months. opposed XX the actually probably that like months more over XX

under of all XX most customers -- backlog anywhere to months about our are months. that typically So XX contracts, from just long-term of

So XX customer is probably run months I think, our about so. out, average or

the look look gives out still is fact of the on that in the optimism are businesses you on XX% there out me statistics, to if What you industry. what's legacy depending great industry the if XX% equipment. premise-based But at happening at there

said before of I've a cloud, the the cloud. so move again, it's and they to move businesses when if to it's this these it I'll not matter say And

and So to there was get Flip smartphones is industry came phone smartphones everybody the opportunity, of everybody had truly it before the a race tremendous phone out a related cell when kind on to came the amount when a of Motorola out, smartphones.

with happening And now be telecommunications. find anybody would to hard-pressed a is flip you phone, thing business using today, same

XX% course today to over of So next or premise-based at any Gartner X the Frost Sullivan the years, the equipment, out using that look XX% legacy that's reports of there. & or you still if

next years, of going Over to the the X cloud. course industry the adoption of tremendous to see is continue

that XX% down to And years, so X go to X% the it's you'll XX% percentage in next XX%. from see to

a it's So migration. be going to massive

ready to that we're able So willing take there, and business.

I on. very hands some our suited not the much think, as going time. to get not of as take quite that to we're be for of customers -- well But a business migrating shortage it's to we cloud can

of the advantage to runway cloud. take of migration plenty us from left the have we to for premise-based So huge

Steven Mihaylo

in eventually just this XX% Kevin, will North that. platform, add also market not you to maybe or a it's around a a said, XX% figure to as the countries bit And can it's converted. little world it of is, and just but market and is our XX%, U.S. out massive American like we Since the about big be or licensing is market. I'd market only Doug And a market, world the how own

we obviously, everything So a customers to into up scale tend bigger move there. market here. as time there And huge is out by we're goes doing

Kevin Dede

had looked could Okay. your you that's that your give guess mentioning exposure grow you're Thanks those a installed I'm try of and Well, yourself And my many to customer base, going seats of because have that then, how on us how for wondering, sort across Steve. XX you those larger rough that those position to companies base? than a if more? fewer had to next customers to question.

Douglas Gaylor

Again question. another great

this larger per So XX or breakdown as customer we you customer were opportunities the contract categories to I half past focus of the you tell sized I was that what and quarter are customer value, that a average trying get have at quarter. will percentage stations. significant. larger able $XXX,XXX our our sized that our to it accounts if secure average today, is into. having don't fit Kevin, those what so and at But they dozen accounts to se, I larger look each smaller of customers total mentioned, over

come you high tell partner that our majority of will the through I customers our sales. today

that bringing And bigger so bigger opportunities. are on we're focused on partners more

we look larger we much that to in where moving partners it's obviously the opportunities. to as is, on So fact at our opportunities focus bring our rely but so

that there. due pleased pipeline got pay size XX XX to the right our customer. got partners to for phone opportunities phone us a lot [ph] on a we're we're really that take could we're If the of off the bigger has so with going now we've in getting the that us a opportunities some to opportunity exists partner and But and get tremendously involved of customer, that

Steven Mihaylo

to We're larger to on for get to larger sales users. incentivizing end be and order one bigger going the Kevin, more channel in value. customers, Yes contract thing, concentrate

speak over X announcing to weeks. we and X the that next that's in the As be we'll works weeks sometime

many everything X,XXX, So all the from to XX the doing to way have as X,XXX phones as under move we're currently up phone. And possible customers we scale marketplace. in

large So the very, customers future. handle will our platform very in

Kevin Dede

X sort for gentlemen. picture to are how spent. having there where And to because going It's sort mind of a I Ron. how invest the Phoenix, bucks it the the sitting my X-way around question going the Ron, in for on table, match, of table Last probably me, toughest going gentlemen one you Okay. of million have wrestling is a I'm win wrestle and wondering, win, of Ron, it? if get is in if you who's $X.X arm this arm you're to sitting

Ronald Vincent

do save he needs. think, Well, and future in to I like I And for just And for in the be to like Steve, arm we additional that would promos making wrestle marketing have all investing because it spend watching sure to we and think Doug, sales. space. I'd expenses don't would money those one be

answer spend I'm I is to So, to would best it to different that be sure, everyone think, on I going materials marketing place it the a time new spend future at and generate like customers. think to the have to Doug, that revenue would from question. this

Douglas Gaylor

and comes with every in spades. our would our I that that you Yes, tell end dollar user customers we with invest back partners

see profitability how are just spend, very, So we we on our X quarters. in very increase cautious last over GAAP in can and the our you that

will So very what we're opportunities. very money spending cognizant the of in on we're that I'm make diligent talked on, also we and but calls, at Kevin, we've money looking fact to previous this acquisition money spend and we're about

so back invest overpay go putting so nice to we in putting X$ that and and those Right what make go at expensive I it for less it's now, there extra out incentives out in to customers there out do we funds, us it's look by is to $X. acquire market, it acquisition with for than the opportunities when can

Steven Mihaylo

R&D. area one and company and Ron that and there company. that's technology neglected is a This Doug is Yes, more

So Those to we'll things continue of the as well just we're to our continue as sales are sales, to marketing. grow along expand and X business. R&D that that with drive the the rest going and

Kevin Dede

problem have, thought, your my a just the thanks to out entertaining And know, so questions. would great problem it's it's it get welcome a one on and again there I to on Well, I gentlemen, read that I progress. And throw for to have. congratulations

Steven Mihaylo

You bet.

Douglas Gaylor

Thanks, Kevin.

Operator

Investments. go to with next MK Kaufman We'll Michael

Michael Kaufman

partners, to great their expeditious give material, so do you this Ron, more anything guess speed Certainly Hi, as them, point would them flow. out go and on quicker, bring progress. at cash they focusing they on Steve, up and in more line leverage could and to I get so you Really quarter. bottom with be good can fashion Doug train to customers a the helpful.

hold and them their And additional on marketing any people get up that to to spend money that kind or of material speed. hand to you

well in cash. terms and bit would that the in you that be of the line of run think, worth have a long leverage bottom I little now

lean my was it company, I a more. if the opportunity little bit just So would into

Douglas Gaylor

right, exactly You're Michael

Michael Kaufman

profitable. stay And

Douglas Gaylor

You're exactly right.

good earnings last we've babies the that. we reinvesting have the make budgets we're got couple old flow, some out nice partners on-boarding kiss our that The get can to I term. process an cash a Now travel that and use we you, quarters, hands would increase GAAP over is tell and of for little to bit solid. sure shake there

quite I last myself, so you're and visiting right. it -- I partners, will I'll be continuing our that have few And exactly some do been frankly, to because months of the

onboard guys in It's amounts revenue got residual these an and partners getting we're We've for tremendous there. what extra making them. about commissions out stream are Getting excited now. doing them that recurring

that getting just it's a so and there continuing out message. to matter of And preach

So out end recently portal our to and we a co-brand hired the our for access marketing all are in resources have of the efforts and partner our developing drip partners have marketing launched us campaigns partners them for for with for and we do new those that they developing partners to of We campaigns that's putting firm We materials can electronically. helping just beginning a year site users, those there. at marketing materials. go

Michael Kaufman

of I your Yes, bandwidth what I that. to in the people the you parties, the investment to is increase don't these but guess, hands may know of third hold have

you're -- touching often feeling they them... and you're as giving them possible. And So as

Douglas Gaylor

doubt. no Yes,

Michael Kaufman

A complete presentation.

the even So they to have deals comfortable. first you to get sell can may them help them -- big basically few

Steven Mihaylo

as that get Michael, to of do more continue will actually do and now bigger, we We we it.

training that, just holding country around bringing we folks and or is failed thing get larger, as So Phoenix in to business. training hand more the very into our that more very, the of start having And above. sessions is the important we'll mention other Doug,

Michael Kaufman

Sounds luck. great. Good

Steven Mihaylo

Thank you.

Douglas Gaylor

Michael Thanks,

Operator

next take with from [ph]. Hop We'll our question Axis Ryan Axon

Unidentified Analyst

simple. about guys is taking and you go have the Thanks question to My going NASDAQ for what pretty question. to you kind to in Have requirements order there? do meet my talked of

Douglas Gaylor

as the more topic as uplift about that. a progress have let have minimum definitely that. bit some I'll Ron Ryan, to color Ron, to I'll discussion continue we so our but us, We add more to a give talked for of color little and requirements that's been

Ronald Vincent

in were dropped Doug. thanks, joined OTC NYSE Yes. XXXX. January We off We Yes, on MX and previously the Exchange.

all to at So of we those corporate public the requirements need There one we've million maintain minimum continued OTCQX. float. of a meet is few that are still on of and the and governance -- filings a our shareholder to is X the a second equity and

we through XX so meet And depending meet determine months, shares in of to the always organically, and to and those public the that price on in can number shareholder X we or minimum next equity share not we're months of million $XX working float. requirements, had flow we internally the requirement the whether will ebb but

So remaining need those the satisfy speak. as we those working are we towards and X so to requirements we're that

Unidentified Analyst

you. Okay, thank

Operator

Khan Eden We'll Arham take Capital. next our question from with

Arham Khan

Hi, guys.

Steven Mihaylo

are Arham. How you,

Arham Khan

you doing. How good. guys Good,

Douglas Gaylor

thanks. Arham, good. We’re

Arham Khan

Doing kind their Good U.S. you Most of real from the to what to with questions quickly Is partnership touch been you well. of want I revenues there to guys. my can -- hear you Cellular attribute answered, again. did Partnership. kind but have been of on

Douglas Gaylor

them far. by We I our had actually will into that with break you we ever in reporting. out quarter tell don't strongest QX that segment But

previous So quarter. that times we in X almost was have any than better

great we well. the results and are to with to as U.S. that agent in momentum great out program getting reseller And continue channel excitement we there there. their started of relationship rolling and see lots recently Cellular So

getting and So momentum happy the Cellular the that extremely extremely with we're happy there. with U.S. with relationship

Arham Khan

is is some of And on this is looking acquisition kind of opportunity large a and focusing at in be opportunities plethora existing just of either with class market there what or out which the -- a too go else that small within today, tap going can your to and competitors, there are customer it, the you'll or X there of in something acquire comes Okay. you on? and is base those into up

Douglas Gaylor

opportunity is and is factor valuations out there. home. The our limiting is amount There a only It of tremendous synergies.

out we opportunities when players of is look there So at a there, our lot in space.

And Vonages, the the look And you when resellers XxXs, RingCentrals. obviously for there. guys, the take at, the BroadSoft big out out example, so you

they out resellers Cisco when acquired plus XXX were BroadSoft there. by had

there, So smaller that if much you big that take are platforms. probably XXX out there's or XXX have out the BroadSoft players guys

a opportunity So lot of definitely there out is there.

for something fit us. We look an would range, be opportunities acquisition be that that are million synergistic million to and X, lot accretive but And so opportunities, for acquisition going the a very investment. we've we're ideal a have that's the day from synergistic to for make perspective $X in to to would of $XX be opportunities always that from there, be good to we're talked selective, out us going looking for

we With make derail want do we the don't growth, our sure to got. that same-store momentum to anything we've

it’s at look we these be got when So to opportunity. opportunities, the perfect

Arham Khan

right. for long guys Okay. my All a question. watching Understood. I've for you Thanks time. been taking

and I in of inflection to it's these see to Best results. think, I point picked good this guys. this you of luck is -- really up really kind interest

Douglas Gaylor

Thanks, Arham.

Steven Mihaylo

you, Arham. Thank

Douglas Gaylor

Appreciate it.

Operator

We'll [ph], go Kevin investor. private to Instructions] next [Operator Walsh

Unidentified Analyst

work. Hey, Thank Steve Great you, Doug. and for great the and Ron quarter.

Steven Mihaylo

You bet.

Unidentified Analyst

equals revenue in to got revenue question I've at the prior is revenue noting year. I change growth from growth. converts backlog to everyone it guess, backlog I'm on looking and current because year a backlog.

to $X which in million is about 'XX, You the had the June XXX,XXX I $X backlog which Then million $X.X should 'XX per million come noticed quarter. a backlog, out increase year. roughly, April about increased

trying I'm we 'XX at had cyclical, also that quarter. But it we note, but I'm is $X.X prior that only million glen on flat, backlog a fair, get some this on, are April I or And June from was increase a really increase or allowed -- to items didn't a ticket plus increase that something $X.X in I million be $X note looking backlog the million to information to drop big this year year, increase.

Steven Mihaylo

this Yes, Steve is Mihaylo. Kevin [ph],

Unidentified Analyst

Hey, Steve.

Steven Mihaylo

a created is net. adjustment And give of it Ron customer some more have One case, you But bit particular backlog our they to our One little increase. customer realize in we and bankrupt going continue want I'm we've add to is expect that went that of to things that in Doug, hiccup. color to in to had to base. that. the and to any

Douglas Gaylor

at From But time where don't cyclical a Thank, closes next. quarter the we are standpoint, -- Steve. had there that's periods stronger all. business think the we cyclical quarter a from than in one

I think, most if look back we in quarters. recent

are Our and XXXX changes mentioned, QX the XXXX of as so there and of strong -- QX quarters very next. you were from one quarter to

less one average, been We million a but about it's may consistent have at look slightly long on of quarter, the back, quarter run. over over we increase if an in it looking $X per an pretty at

install look over lot quarter at And so because time four of next we of of jobs why to quarters one may the we just of that's of trending a a instead to push period the the it and jobs. when revenue and because deals backlog out timing quarter then customers we just recognize of a we of want close those the when those to

did away multiple of when and So backlog install so down. why is months that's goes degree and installed variant over a some some up the there jobs right and goes jobs are

Unidentified Analyst

Okay, thank much. very you

Operator

have Michael MK with Kaufman And Investments. follow-up from question we do a

Michael Kaufman

Yeah, hi guys.

want to pony if from long that they that noticed cancel draconian spoken I existing amount. things up have fees, just for don't even try like some service. They the and contracts the really they companies to extra of to competitors though I've that One have is you your cancellation

file with do the you your yours. any [Indiscernible] of program, [ph] technical when expire going wouldn't server you or from fees So those that them partners existing with a get cancellation an have, be to is on your there contracts where question

Douglas Gaylor

Yes.

with we agreements. fees So termination most There you're are right. associated --

so with ready if waiting might opportunities our there of them we So of so we and it's that so time are speak. always our jump one find agreement, when they for and ship, when out we to track do to try competitors, and work partners, with they be their

we we're they they when out expedite of agreements, come we So agreements cognizant and help them out if are and very potential under do that. those of when try prospects, to track reach

term effort organization. we a up organization to and their sure when We on also retention contacted have have very concentrated very, own very churn customers within very, a our our that make they rate low are and our come within very high agreements

customers want out we our So do love them we them to reach aware sure don't that to they make leave. and to that are we

us. And attractive so we with make it very

capabilities But competitive the are their agreement. And that Michael, we perspective, them, Obviously their different and but give different agreements clauses different they're do lot them to try through to that an very out termination get and expedite whatever those of happy fact our a a we have to amounts, under of can we we're agreements agreement. help everything of we cognizant -- if and try from not times. termination them guidance challenging can competitors with

taken from very a that fact the they and they did. would pleased tell better with we've when early customers their support. lot they're much you hopefully, And over, of And happy they and do service make that they're I that get transition contracts

it's were we've run make with their that they for had to the the with of so of -- lot fees move, can a some having they carriers. challenges paid termination they -- them, And they're that because happy business to existing comments

Michael Kaufman

much. you thank Okay, very

Douglas Gaylor

Michael. you, Thank

Operator

time, this further Mihaylo, closing are any at And Mr. queue. there in the to over for no questions comments. you I'll the call turn back

Steven Mihaylo

saying call and probably, you very let's in you, hard see the with quarter being is to will everyone it look All Well, today. we're being for continue November what me. September one, Ron appreciate on to Number and forward we Number we working and two, right. will next three, be number -- to you Tom. as Thank going X,

evening. you see on and we'll we X call for hope quarter conference all November So Bye. third care a Take now. the have good

Douglas Gaylor

everybody. Thanks,

Crexendo (CXDO) 11 Aug 192019 Q2 Earnings call transcript