Crexendo (CXDO) 10 Nov 192019 Q3 Earnings call transcript

Company Profile

Participants

Jeffrey Korn	General Counsel, Secretary
Steve Mihaylo	Chairman and CEO
Ron Vincent	CFO
Doug Gaylor	COO and President
William Gibson	ROTH Capital Partners
Kevin Dede	H.C. Wainwright & Co
Michael Kaufman	MK Investments

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

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

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

Steve Mihaylo

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

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

the you please Harbor would Jeff, read Safe statement.

Jeffrey Korn

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

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

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

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

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

Steve Mihaylo

discuss very today. Thank excited with our you, you Jeff. I results am to

a As you I and would that would will we last you important be be told profitable. year for XXXX year very us, that recall

remarkable accomplishment had of. expectations. of cloud are row done the and profitable. one a results a rest on that very revenue strong This in third that the the service delivered We GAAP proud have This very we have segment. our those I is We UCaaS is team quarter in telecommunication. very,

Our the without some to biggest and third like and the of increase away competitors it profitable. giving we XXXX, we saw XXXX did farm had QX, our quarter GAAP XX% were compared done of

On of a GAAP or reported XXXX, of and and for third $X.XX diluted or of basic per income share basis common $XXX,XXX per XXXX. basic we to compared during $XXX,XXX diluted net share loss common third quarter quarter of $X.XX the net the

Another improvement. great

a of cash great and job compared XXXX, generating of cash to cash We shareholder almost We We less on to do million doubled plan. it $X.X our cash restricted that XXXX. continue improve December as than as our improved cash our at one to dramatically. another and highly was we $X.X XX, September continue million our in every impressive to by execute shows value day All-in-all, year accomplishment. is work fact the XX,

When you very a we've improved these for proud. the increase. realized expanded our good to reason shareholder growth, increasing foreseeable revenue the consider current a had this at with in future. you a Our to equity we happened talked rate and expenses past, much than continue and Expect about gross be had our ratio our lower margin our substantial that improvements

expect very very be to expect -- continue continue our to to strong. to business I results be carefully manage will We the I and

organizations confirmed us UCaaS these have the results is and fact best by that our hard product Our by award And shown and awarding in saying team works results year. the everyday industry. independent by us service and not this; we by are just it both the every is it

continue will We accretive potential the continue are to grow three are acquisition confident we has has to An in as acquisition. strengthen company financial carefully the people at and have we has acquisition an looking an accretive acquisition good believe when have. basic criteria accretive operation. impress. acquisition team. will to I statements. there organically And We from our day improvements be audited have to has to one be An am to should garner and that some we it will more

that to over I'll With turn Ron? the Ron. call

Ron Vincent

XX% revenue third the to quarter $X.X revenue of of Steve. for million, third XXXX quarter million prior to increased million for the to quarter for quarter of Thanks $X.X Service the million, third Consolidated of year. the prior to reported $X for third the XXXX compared as the XX%, compared $X.X increased year.

for see compared to $XXX,XXX million, to quarter Telecommunication in Cloud as $X.X third XX% increased our the continue the strong Steve We for the reported to prior million $X.X revenue growth quarter or segment. year. Service of mentioned

the $XXX,XXX, Our X%, to reported for Product $XXX,XXX the to to year. $XXX,XXX quarter third XXXX $XXX,XXX, of Web Services quarter prior reported revenue third the segment for XX% quarter or decreased as for compared for as the $XX,XXX of increased the quarter year. a prior the compared revenue of third

of per X%, as the the third $X.XX $XXX,XXX million quarter $XXX,XXX, for share of for to diluted net of and prior the for to quarter third basics million, the or compared nearly the expenses quarter XXXX of common or a for Net compared $X.XX share, year. year. third operating increased per was basic $X.X $X.X quarter and Consolidated third income diluted prior the common loss to

period the the compared prior basic third as Non-GAAP and and or share common of $XXX,XXX of breakeven year. diluted was for $XX,XXX $X.XX share, quarter the basic net per loss or per to for income same net diluted

the as period $XXX,XXX EBITDA the Adjusted $XXX,XXX the for for of period EBITDA a loss to same as of quarter year. the $XXX,XXX quarter for $X,XXX to prior was was year. of for prior compared the third compared the same

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

periods prior of months for Our as nine XX% to compared $X.X the period for increased the reported to service year. the revenue million million same $X.X

the period year. prior service for period million for segment to Telecommunication $X,XXX,XXX revenue $X.X $X.X XX% the increased the reported compared of nine million to months Cloud Our or same

nine Services Web for in $XXX,XXX decreased as reported compared period prior same segment $XXX,XXX the to months XX% $XXX,XXX year. Our to or the for revenue the period

Our months to year. the expenses year. operating million to million, period period as the product increased the for $X.X Consolidated prior compared the period revenue same million the nine month period nine compared $X.X million the prior to XX% for for $X.X increased X% to same of $X for

diluted nine share compared same reported of period or of $XXX,XXX the income months per common diluted the $X.XX period or common as $X.XX basic million period diluted loss net income of period of was prior per nine compared for $X.XX reported a Non-GAAP of the common net net and for common same the or Net the to income as share share a $XXX,XXX common non-GAAP diluted $X.XX prior loss for the $XXX,XXX basic share, share, year. $X.X or year. per and months and for per to basic $X.XX per

period the period nine for for to million, of the months to loss compared $XXX,XXX the reported year. same months for EBITDA prior as for nine of the was $XXX,XXX, period same of the prior the $X.X EBITDA Adjusted as a compared period year. $XXX,XXX reported

to September was as and million, reported Cash, XX, cash $X.X cash at compared restricted XXXX million XX, at $X.X equivalents XXXX. December

cash cash. in $X.X provided and million Operating restricted equivalents cash, activities

cash, property purchase employee in equipment. activities financing equivalent Those cash, utilized the of And and activities cash $XXX,XXX and activities investing $XX,XXX primarily of from options. cash restricted Our primarily stock are of for equivalent due our cash. provided exercises

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

Doug Gaylor

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

For and our as the we balances revenue well significant our which increases business GAAP in we increases cash plan. consecutive illustrating unified and is that income substantial service while to third backlog in net delivering quarter, continue had execute UCaaS on communication

revenue Year-to-date, year-over-year. up our service UCaaS XX% is

represent $XXX,XXX of Our year-to-date net the of in increase over prior $XXX,XXX income loss $X.X million year-to-date XXXX. QX of

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

our revenue GAAP mentioned, and As to year. structure profitability our fixed model recurring has the allowed obtain cost model consistently previously combined well this with relatively have business I us

expand to partner as increases our increases sales, reselling in program partners nice and seen well as our continue We have in platform.

and to partners the the momentum programs new by joining opportunities being pursued incentives QX the excited We're that in launching team. and about Crexendo additional marketing continue are

to grow XX% year-over-year backlog and continues increase $XX.X Our to million.

momentum Our we sales quarter the installations are are seeing. service very adoption period hardware in the had strong the during offering. increase We soft for a we as phone our a our as in and increase heavier nice at seeing a and to pleased of we XX% saw an margins are gross increasing telecom are margins

more flow QX And the invest XXXX pleased sales Year we followed that first winning to year. into award In Communications the with we those in our QX, metrics of balances with award confident marketing the we I cash strong increase been were us positive that in the this XXXX continue that September. by are cash the efforts. we also award will and quarters the to year. these to by three of able Communication Unified All Year up Product awarded am very and business announce of I'm proud of inject another and in XX% for Solutions have the the trends Product will allow help

the and be authorities applications. chat, industry. cell engineering And platform including to continually continually center these team is in one recognized the of texting, of some in proud our our with and strongest industry by UCaaS offerings the we enhancing Our platform is in-house leading-edge collaboration capabilities, phone call are leading

and point and in marketing trends our have on growth an future We've investing we on sales cash flow we I consecutive growth GAAP and and the sales revenue can more quarters As we marketing in inflection those now reinvesting growth. previously and by concentrate focused the efforts, where stated, sales strong reached increasing are initiatives, can our earnings, company positive three accelerate programs had for of GAAP consistent and we profitability.

to and these finish and are sights and industry in to our Crexendo rather a migration assist with to businesses a the migrate of continue is XX% position still I using efforts has executing entire ability business not we on team growth but I'm our It's if on to tremendous excited in our And of partners. equipment. of opportunity their premise-based still to estimates very set the in the market the XX% as confident the of matter XXXX legacy am out XXXX. at plans our The cloud. prime when we and proud cloud,

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

Steve Mihaylo

Thank comments it you this you no have Doug at you up additional made. Christy, I the time. to for Ron questions. thank and that We'll comments open

Operator

[Operator Instructions]

Please with Our go William ahead. question Gibson first ROTH from Capital.

WilliamGibson

that on just a any And their color number Doug way growth partners the you. maybe how or growth or Is color can basically increase? path? got. little on Thank of existing percentage there on perhaps some also had could partners the more put you you give the you've a you

DougGaylor

increase Bill, our breakout you but tell three Yes. we We an quarters don't program. that that had sales consecutively numbers, in for will with the exact last I partner

get our to we're more So Those more enhanced. and traction continue partners. seeing numbers with

new We continue quarter ten to partners nine our on additional added we I or bring think partners, adding stead. this to

sales And on, these trained partners obviously we they with getting teams and on-boarded as and add so their program. are bringing our on

So are look to we're our and channel partners that where the at channel, when partner we our grow partner continue with seeing the continues from today increase. sales to we

telecom categories. know, We've partners bars don't a it core different but telecom I partners into smaller really We've and as offering. got our managed to partners down we've product data and Then providers. partners traditional break you we've some got at larger their our item, BXB added our service have that sell three the partners. As

we're partners the our and make channel components growth with of in today. up three a sector those actually our So partner lot seeing BXB

WilliamGibson

quarter the Good. year. that you trend increasing. fourth into and the I that And mentioned profit assume continues next gross

SteveMihaylo

This Bill. Mihaylo Steve is correct, speaking. That's

maybe of expect It's to be to it in better increase not or it. little next straight expect the going we increase a for a XX% the just it XX% We year year. range to line entire bit do probably but to to

the probably you, Thank correct. X% in see margin, next that's increase to or So our gross X% you're going XX over -months Ron.

Operator

question next go Please our And from Kevin ahead. Dede comes HCW. with

KevinDede

the Steve to see Hi, great. excited you got this about to I'm you're the services I I of it guys. first the up, Mihaylo. Steve. good looking web guess probably is numbers for months your down be call, and segment the afternoon, data business know Happy I'm financial the to business right tell took posted. But at the putting this on year. nine I

SteveMihaylo

correct. That's

We have XX% decreases.

KevinDede

about on. going you Yes. compared you're I wondering, it it's wondering I'm thinking listen, how have okay, in these peanuts I'm to know just what days?

SteveMihaylo

revenue receivables Well, of been running a close the July we've And And the which decision conscious about getting we discontinue back are zero. off now to segment. in made zero. XXXX that to is

will for becoming it's second sometime a But bit even I insignificant still stop fact, the more below in probably allow. that In little think or than year being, time income we net breaking probably next it's it'll out. be quarter, the But the that. first rules

reporting stop be is reporting segment revenue. itself will and one the we'll which company So recurring that just the

the quarter. slight that that year-over-year is be say Having to for said results. we'll fourth and so marketing uptick get a that spend even company's to will our I be we we're substantial going the or to the push out more in Doug see next can produce going a year, probably mentioned in word that ability money would

the I that be than how going to the this year. You're seen actually you've but improvement that'll in much significant it be, year. next will know XX% see going don't a better

I'm of you just trying there's I'm the side. Doug? a we're going going could, address do -- things think Doug to of on But multitude that, to if marketing let to

DougGaylor

just everything is the I as segment. Web smaller Services is concentrated on the thanks and Steve mean, Yes. piece a being but of the Kevin, puzzle smaller, obviously said, telecom

back that's have that additional at this stunted and look we we We put really a business. didn't back can fact that put as us, that up the for to the of we've got So nice into the a flow. marketing we've little until cash point now flow growth that cash And some in programs. sales and been key incentives that into cash

that have and for lot QX a that doors we've Now got we the year. claim initiatives the great because for of next for

and money anticipate it the that putting have from sales we'll the growth be able business, reinvesting we into by so nice back And perspective. to that

KevinDede

from side. but was money it's reporting sucking the that side wondering you that's business. how on just of out know I I you, these. you it away operate follow a the gentlemen Services okay, standpoint, developing granted but not if UCaaS Okay. is Web goes I And still not

just about. am kind I So what of thinking you're wondering

SteveMihaylo

I'm going comment, business. of any out handle that let just not But Ron it's the sucking money one. a to

RonVincent

hosting a center for our You're provide websites We're is right, are profit It Steve. centers. truly us. data hosting continuing for services that to

allocate results your you running the So [Multiple of it's associated there's a of you is lot a the expenses division, so portion what not find cost your Speakers] and with that reporting running profit for really yes, have segment center and but business a for us.

KevinDede

Steve. Good, the end. confusion Apologies okay, thank for you, on my

SteveMihaylo

Not a problem.

KevinDede

All right.

got little you just smaller UCaaS think changed. you've little business in us companies about these investing I'm there about a bit look your you what that players of seeing be see across you numbers and I now So might whether some overall and the share in consolidate know, or smaller you things for your a and plan what a to I Tell environment growing Doug, see of bit. maybe be it not us want the have not winner? wondering with changed to tell competitors what on as market the the cash appetite and other you're some the think out that you anymore. I guess might what side,

DougGaylor

Great question, Kevin.

that think haven't a and XX% customers to was I the of the quoting. previous that at the I where recently there's Cloud I were are out yet migrated & discussed Sullivan lot Communication did opportunity I XX% you of numbers a that from they presentation Frost cloud investor have attended it the there. those that to The as and that number a quoted Summit conferences,

get the competitors is left space a our allowing with And of runway remarkable a ours have that still there's lot to in for lot customer to really growth acquisitions. growth. So including us of

type talk So about when growth competitors are similar we success. having some XX% great; our of UCaaS year-over-year. That's a

But the to putting money they're bottom not any line.

talk out we very, are When boost. we're competition line similar that the proud competitive the there, the it's a profits to of very with fact bottom to we So marketplace. still growth having type about

of lot the to day of the and having only day, we the debt throwing far when at end and not so a their that at end of our So see all pay have the of any piper. the goes income competitors resources so model you

So are of money, are got reached lot the that out get there there look struggling when them. smaller a out losing lot they've we ones haven't players bankroll at profitability. a But that bigger behind profitability or of to there to

but in lots of there's private Most sector, opportunities. them the of

that one at good and there mentioned fits will feel into we that Steve the look and opportunities find those out there's opportunities confident that some accretive that right roll we three to if organization. it that's continue can to move criteria and plenty Crexendo. the think there for about what Steve we forward. picky we're and constantly Ron the are myself opportunities are But of right out we very But how and be choose for going looking and there I fit We

SteveMihaylo

Doug to that like to platform, players their own a I'd lot Yes. which either bit have add them. is of is little don't correct. a smaller There of are absolutely that. most

our bigger companies only of handful of that their have we're to And but Some there of maybe one competitors it. a we own continue out enhance platform. do

lot just then because the moving our accretive. to got can is of folks thing three course, and final other them Audited our smaller them our out platform statements, meet will their make earlier. competitive them to is environment a be over is criteria don't pointed that have but thing platform; an they the competitors. if accretive they've the I onto we platform these The that of move And because

XX four by industry. onto some this the million, that next moving that from several. platform and kind you on. be talking talk $XX I'm is, haven't XX point to to is them that, targets. we're yet. of $XX what to profitability capitalize there's going probably they probably what million, know be million to reached acquisition be going five to synergies just our an the see will but us months our in in acquisition margin you to about the I'm going is, to And $X about said not going today, we've gross that and companies, in million, be and or increase $XX And Having identified consolidation potential There's redundancies criteria it's going able

getting optimistic our we're be very, about very of next months. and course I'm XX the marketing that's business increase effort, more the segment should to So our over to word rate of sales of and going out that with XX the

So any I'm optimistic And lot I've asking, Kevin. more on a been than appreciate calls. I these of other your

KevinDede

no, side, Yes, hardware equipment in of side couple mind. these to guys of $X next that differentiator. that my you you've range. the on how equipment guys Steve? And you pleasure. you is questions I and kind stacks Sort refresh wondering of see A can if I as about that such see how that I'm think business that your of One yourselves there? more common don't you me When And see talk comes? the for to just guys as the proprietary guess providing million you other some million mentioned, growth a see just It's up to $XX smaller not the it.

SteveMihaylo

and few marketing are that having We or of or our being and a they're said sides or we margins phone, Doug else's Well on that I make. we most decent the phone And selling I'm whereas phones. Inc of margins companies consider are this or to smaller I'm talking selling the want do other and selling to have they're million, going these Cisco have. get one branding somebody proprietary brand it they million don't to situation. comments as question, the $XX mostly but $XX of million, million, equipment $XX $X both I a let Yale a Polycom answer of there competitors lot

I as XXX of a know we're on as desktop the in selling happens don't or folks So long bit phones the turn little that phones my desktop, eventually phones be Doug or but if away. it. I are using XX the to the to take years this X Doug has next and I'd on eventually over going opinion a his know going on and to to I on that different like are that, think thinking. get that's And some

DougGaylor

Yes.

and They do proposition broad first incentives and make and other phones that have do platforms. they and give Meta think proprietary. that so and and extra in we I soft extra phones so are foremost We that are Kevin, the unique SIP provisions. a do and are with manufacture, switch the we we phone extra are warranties they fact not compatible the

perspective change phones have not they does go can really proprietary to with from in should a factor, it those a but differentiating today, future. they're whereas they customer's the something if So use Crexendo

winning that's proposition always a customer. So for the

is And about frankly, disagreement for a this. have more on Steve and black death the we're XX the we've adoption soft fact Hardware and phones. And a quite bit talking of years been that I the do little now. phone and of of more seeing

about that deployed or that phones notice moving to somebody a we're fact in and SIP just or phone already more phone our Cisco comments my being their over their and gross has bring-your-own-device where our ink platform. Polycom soft we've more their You got earlier and Yale margins the

as portion that for of good our obviously actually margins gross is so as nearly the us, because but good service not helps our margins the hardware And margins.

always piece the So It differentiate equation. of think does be to is important ourselves. to going I part us our an of allow hardware

that two come have to them. capabilities Bluetooth continue out just new into models. with and We month models built We new this released Wi-Fi actually

So well. we're sets phone constantly enhancing our as

X same the we look to thing technology phone is tells so the do does mobile similar the a just the and does iPhone the they camera And just to give the very XX phone when So software telephone pixels industry. you new that the it to does the just at new with X but practical. quite much today, where as iPhone with more out as come enhancements as frankly cetera, iPhone but does, et

Wi-Fi do Bluetooth capabilities we our released. and models add just with that out with new we phones newest come enhancements some like We and

but winning life for the us capabilities, true for old with we need us, those that that's for year three have customers and with advantage that a that the they're phones those our four customers warranty So us. for still

so is stock, And a the a it it in we that older phone replace and replace newer with for phone. any about if don't breaks. we obsolete, customers phone don't benefit the worry being those have if We them have

SteveMihaylo

And, want one Kevin, there's thing clarify. to I

You company. were have gracious enough the as director. Doug just Thank to of have to do all growth Jeff you. good I'm this on it compliment I and and orchestra and the other don't me Ron with much as the we of here. people sort that

KevinDede

Well, humble question, I if yes, standard no, it, Mihaylo appreciate that's last a the response. One gentleman. Steve. I'm, one

so within Crexendo investment. the context an as it of Okay, sort of

it from for commentary attractive you is You gentlemen I and of writing the how because stock to especially that more might that about thin. for you the dev business on understand expand make mean it if those some some just and merger guess on side, I consider a And on negotiate cash all equation trade guess is trying investors with. plan your aside M&A so of how to difficult you the do I check.

SteveMihaylo

one, Yes. A is thinly that we our couple of stock recognized things. traded. Number

well. mentioned identified to firm options that companies the or earlier, five is expand liquidity folks more options, the a and recommendation we're as four And got have I sell which traded. as float our typical, time will from by we shares and XX,XXX those to folks we've hand, add the company. that On seeing today a time But other this

we counting liquidity the a getting also So of price us It things we're stock. to much lot the small do stock offering that float. in probably there that is And coverage. It works. the that get in float. that's might pretty point but expand to it would analysts' I'm the been which doing are the not would increase the way the would increase on a

those of been as whole thing like conferences. add been the you to have investor Maybe some to going would well. guys Doug Ron and haven't conferences. to to I And any color going these

DougGaylor

Yes.

we we people obviously, out into think have movement more the that the a comes out at shares desire The look stock trade more that as stock, that's the get do if we a when that that think there. often. today's question something buy of when is liquidity evidences for will issued stock in there's up does I deal realized But I that saw. liquidity there we that and who

not shareholders, the we're going always to the looking to we're dilute do think to try increase we're business going I grow it to grow ways anything for and but and So that, organically.

SteveMihaylo

be And it will accretive.

-- I expanding on really . which basis not shares all if So share any consider expands we a dilution per is dilution GAAP earnings you're at

Operator

And back Investing. [Indiscernible]GEO we'll to move

UnidentifiedAnalyst

or call. the a I thanks risk do compete So one now? environment deal as you this And you. if A thank know I for you for in opportunity And the might more see Great, in question how of taking for terms you question. just the in little be a -- you could into and the have development RingCentral, quick out to you playing that do wanted affecting it? how and you see here bit get see was environment that Avaya you

SteveMihaylo

the he's every let day. handle to Doug in since that going one I'm field out

DougGaylor

Yes.

it's think I us. opportunity today, a think I for As great

I lot future for there. a it the Avaya of of creates think uncertainty customers out

to that with I RingCentral basically has hunting gave their think Avaya every partnered go base out RingCentral a license customer there. after

Avaya playing or there. putting didn't this that, had the just I into thoughts feelings comparable feel Avaya offering they that hey, of cloud out into is is product my So a like my card kind kind I'm think of this

putting going felt customers hey, comfortable to that there. migrating feeling the and RingCentral to are cloud platform with they cloud be will out partnered if they their So be Avaya which invariably that, they didn't a have

market. They the players of partnered with one the in bigger

creates that think Avaya to us customers. those a And go I for that after of so lot opportunity

a they Crexendo an proactively are We're to than proactively pass base sell hopefully could out the customer customers have partners and get their better to today them offering have realize RingCentral there. the Avaya after that maybe season We after today. having going going open on

think a them. for proposition So path getting RingCentral my it's think RingCentral. via but That's to is season out a their personal I platform winning Avaya. proposition good I don't those for take and customers I just go winning to open for opinion, an think

I think realize cloud those it the also is to the allows us those and to for future talking way of customers that Avaya customers.

I the think we're going to equal have opportunity.

I competitive compete we think I think got RingCentral; more against when offering. we've

a price got we've think better point. I

get And the RingCentral interest and same competitive is out environment. out marketing we in so there efforts their play there, if think the with creating I their and to

going we're not than think RingCentral. against win I to often more

UnidentifiedAnalyst

of about profitable type talk you platform And solution. having a

take someone versus versus solution So like transfer when your a give able to needs be look cloud? you like will the at RingCentral you long to to RingCentral a to you it serve get to solution, customer's how

DougGaylor

Yes.

think you lines got They've coming hardware at installed. customer; traditional look premise the I telephone from when in company. their local their based the they've got

over Vonage, migrating for So and migration very migration him for XXX the cloud, the and comparable. and and process RingCentral very it us process the to is similar

system into digital cases So are moving a with as most or older getting platform. cloud of analog work and some cloud in moving phones that matter them them platforms in cases Avaya only of RingCentral, proprietary Avaya the their with out the a the phones to now the

just platform. digital Avaya to migrate and So RingCentral the those phones won't have analog customers that

same forklift the be with complete any So upgrade. That or talking a our they're of competitors. about us would

older a So platform an using SIP customer forklift got an it's that's today, not Avaya that's upgrade. phones complete

take phones while if RingCentral for those it's platforms, environment, on the customers those a it's Avaya phones have phones do of to that those on going platform SIP IP for lot necessarily put do. newer them IP them to aren't For so worth to Avaya even work

them cells that to phones. I RingCentral So imagine and going and Polycom they're getting to be primarily for Cisco would pushing to migrate

that RingCentral options, they're to are for other Crexendo competitors to I see migration that not would of go there. our going an considering easier path than so any go to or they think customer to to out And

hand-holding really I a change still customers have do to migrate think to cloud. to So great customers looking they are to job when do opportunity make migrate Avaya that we we the nice to And for cloud Crexendo. of a those the those a

premise a job better much a lot because from think a our we I competitors than came environment. of

pray approach of you plug competitors. our have lot to our in whole the and it through not plug different and I implementation it's when where works. plug a that a get plugged joke in competitors implementation have like and it they so the walk we pray. and type prey process, a than does We about talk really So plug it fact that they that approach you hope that

Operator

question Michael comes from Investments. next Our with Kaufman MK

MichaelKaufman

Hi, profitably. Steve growing business job Great and Doug. the and

with question to that be this. stock rocket percent the whole wouldn't idea gross the a stock level. grow this think is the the market I will total think and people I now? XX-plus how is in to there in company at sell from trying solid base, in open margins and out price But top-line I the many

DougGaylor

XX we quarter the of the of end employees. had As

MichaelKaufman

idea into can of guess proven So is you and Because machine, as somehow mean I to that as marketing now the the have and I to possible. we we have to a people said, it to hold a some sales new get land hands the bring on many it's grab add hands as that customer opportunities. these and

So reinvesting cash judiciously not flow you to the and the got. but the maybe as profits growing much, that adding organization

I be better the terms think served the return we'll in have. for overall you that of shoulders

SteveMihaylo

Michael, spend as and engineers on add our pedal money refreshed going add to one earlier, for to whole for really do preferably and also going customer. the to I we're more mean I we going keep quarter speak competitors, do a a some is don't continue we to marketing. going specific the there the think non-recurring they There's Yes. word out that as the a but idea we're we're customer If as beyond, decision out platform things XXX make get recurring The or first more of and but said, to we're and go I I and put salespeople, do to other to pointed of providing us. to to will we that. them have leading free to you telephones pack get with in to they engineering far --especially that's the the metal have with one can't goes. things the it that's the our platform engineering as to non-recurring

the it offer us to something a to that's road. tremendous the market. in also additional down bigger can And ability play gives we customers And

MichaelKaufman

a installation the idea you you're you their So is the successful and got cash whole hands looking flow until that for. have to hold then long-term

marketing as grows talent, the is top-line market sales and grow engineering capital and you're idea the long disproportionately. as profitable, adding So the to then slightly

SteveMihaylo

exactly identified You've what our thinking is.

MichaelKaufman

Well.

I think position great is I the hands. and God in company feel comfortable very my in speak.

Operator

question with Sprint Kevin O'Connell comes Tech next from Our AP.

UnidentifiedAnalyst

forward gaining Listen, the Question a national year-over-year with thoughts up you some intentions job by doing? interest at to the exchange for company pushing Steve. How what are point on specifically, everybody on the company's you results. way? great along what are Hey, your and at listing great institutional are

SteveMihaylo

that. or the listing we're up bit roadmap. organically, A up at Ron by more definitely end second the color this of to the next year. probably of on first quarter. little going probably We And we our one, probably is a of will things. up requirements give I'll list Number meet on list couple would in let quarter

and I as Michael's listing shareholders. think far don't dilute a that with offering, maybe coverage, although As with you up to small institutional agree I comment want getting

things So bit able add institutional are all I stock coverage, be of we a doing to those by want would roadmap. require to should coverage, little that Ron? Do that, analyst on get probably price higher our you to but

RonVincent

Kevin. Hi, Absolutely. Yes.

we of of million a $X,XXX,XXX. shareholder at increased $X to the standards we requirement One losses as of shareholder had at of At in there's the million equity. equity. shareholder been listing that end looking our requirements X/XX that we XXXX, accumulated And because we've their meet improve to there needed was are equity on had X

attain end $X to And that by shy equity year. of we're the So the think just in million we're the of we going required. shareholder

the first be meet quarter So or we a should requirements year to the year. able end by next of

SteveMihaylo

on And equity. will operating picture, there's our bring into getting improve the loss that also auditors us light. the our increase balance of And that's which some when will our to And pretty green give that carryforwards thing another close our we're equity. shareholder sheet and

first of meet operating combination going for the So the that increases, along second to quarter. with in that or sure we're

End of Q&A

Operator

to this no there questions time. appear further And at be

for to remarks. So I'll it closing management any back turn over

SteveMihaylo

are on Thank of for today. I'm is it. Christy. nobody going going one you in of even all We're impress being beyond of quarter; more. forward for thank coming that you impress to With the fourth in to job that made the you right. already those And shareholders from call all XXXX believe going I hard here or on all working very, And you you and months we've currently be going you, down think All the that, to this, is especially that to and tell the feel intend I are and will Far we very you. for of that you and years. XXXX lie we

stuff that goes thank we to year-end. for probably out of announcing And with is to want to of ones quarter which that other February first end with and be fourth I the everyone or here it So get And K it. look have forward will because part all being we today. March our the

or we talking probably thank and everyone in want normally late be to four to Appreciate March. pass Thank going or to it. do forward it's weeks So day. you you Good With we five and look February early I it. that, what

Operator

has concluded. Thank you. playback event The

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.