CXDO - Earnings call transcript Q4 2020

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Crexendo Fourth Quarter and Year End 2020 Earnings Call. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Steven G. Mihaylo. Sir, the floor is yours.

Steve Mihaylo

enough. close that's Mihaylo, everyone. afternoon, Good Steve Mihaylo, Crexendo. CEO Chairman and of I'm to all quarter call. I welcome you Crexendo's conference want to XXXX of fourth end and year

the General Ron first read agreement time, our Brinton, Doug Jeff our Vincent, today to Jeff with our am Jon CFO; and - Korn, going and our ask our the COO; Harbor Ron I statement On Gaylor, for and CRO; call Counsel. me Safe President will are to business you give up more some and rather. will After agreement comments. Doug a provide Jeff, please on general provide then that, Harbor Safe and - numbers. the could I the for questions. call details brief statement? update, read we will will sales

Jeffrey Korn

Steve. Thank you,

Steve Mihaylo

- statement. agreement saying keep I

Jeffrey Korn

everybody it. going We're make not to sign

read XXXX I to Securities forward-looking statements take this just that call Private the statements I'll of Act All statements and The Litigation of meaning to forward-looking statements. it. this call, Securities will conference XXXX. opportunity Reform in this want historical forward-looking provides than fact, Act the within contain other of a listeners harbor remind Act statements. So are Exchange such made Securities of of safe for XXXX the

statements or relating Commission, results SEC cause with relating otherwise. expect, are These obligation the call Steve. subject statements, year filings result detail differ are turn to and based the new NetSapiens to for and not I'd Crexendo risk forward-looking XXXX, statements statements in Forward-looking forward-looking but XX, on XX-Qs the uncertainties include, events explained actual the from undertake Securities whether to to or are merger upcoming Form now will merger words in update by anticipate, back like proxy not of Form those assumptions XX-K and expectation does information, the and the as could a NetSapiens ended that filed. here Exchange forward-looking December any are like Form factors the limited future to materially discussed today. aware Crexendo and as risks statements. including the any to X-K be that filed believe, to publicly identifying estimate, and of similar fiscal to other Investors the should revise any Steve? company's

Steve Mihaylo

Jeff. you, agreement week merger very been major we in us. say agreement a announced have has limited be Thank can and what too we with today This are NetSapiens. a believe big very, what announced I results. I merger the for I to about exceptional Yesterday,

merger and approval is the you both to understand, subject by Crexendo agreement As NetSapiens shareholders.

that a As should part on statement plan of which include file process, results information Schedule NetSapiens. of audited we XXA with to proxy

that encouraged very I $XX NetSapiens are to convinced especially. that further definitive that a mail to the big to without meeting the $XX last will We am could soliciting the shareholders merger has and be and votes as the votes say, to I'm and statement merger. can material. in of approved vote been nor I to and our solicit companies will million promptly, relating between proxy after has filed we benefit accretive a to the has shareholders synergies. shareholder revenue be at about convinced proxy it SEC, our it limited multiple to excited year. which entitled I'm what very be I Since merger. I'm include by construed the million able say will will that bring shareholder each yet that, both been transaction not I'm of

We are the stream. excited about revenue

a NetSapiens' supplier reality. X.X portfolio. sales have Ron tirelessly The its a growth been confident technology, and and a And global NASDAQ to pleased developed make and using will relationship with. in do. I value entire from Crexendo this growth, we accomplished to company more their team platform additional engineering, provider size exceptional increase In from to organization. Doug, wealth Crexendo become to we addition offering to said to over one community, growing not companies both and I a the supporting benefit NetSapiens' able big very offering would excellence working We in excellent service Jeff will I our and a customers, of I we revenue believe by benefit net enabled the show we are users. will add closely will win substantial with combined that the team encouraged XXXX. did extend for dominant am step working the million us could stream, an be shareholders. the a and rapidly have further am been to resources, have enhance continue their the marketing provide is and teams both It's be and provide I to This companies. major working talent. what NetSapiens management Crexendo's what the a would for which

to XXXX. We organically that completed continued we profitability. the non-GAAP And both uplisted and our our topped NetSapiens. equity with yesterday's accretive off We with a streak of NASDAQ. offering GAAP negotiating acquisition announcement We're of substantial in September

while operations, continue business. We positive growing generate the to and income same at our investing from time

improving on working board. across are the We

our sales process. We have in invested

our us. big recruitment of to was Our for our program. step be expanding Jon Brinton team and going partner sales is a Jon dealer

you see, growth. will expecting accretive revenue. working also these accelerate I'm So we're our organic improvements on

Anand management, team we on excited Buch management Crexendo's bring of work and Speaking to his with to team. are

expecting engineering strength to from We are exceptional will this team. combination. adding to be to glad who big David come Wang, I'm things very, very add our

revenue we pleased year good. the year the organic That for the XX% with increased things. I'm shows to Our very XXXX growth. December right results XXXX. are UCaaS our do XX, to were ended continuing service that

space. We are customer-centric We right and products also award-winning provide services. in the

doing am through accretive some please? excited more excited future. what Ron. about making you moves. to are About grow meeting we I'll tremendously go I and turn the we We and by With more both even the acquisitions. right our granularity, the to over organically achieved. Ron, are And continue that, will what we would business through

Ron Vincent

revenue Thank you, for fourth compared the quarter XX% quarter quarter Steve. increased we're million, Segment the XX% million to to the million or for $X.X the of Cloud as our quarter, increase increased for quarter quarter reported of $X.X consolidated fourth $XXX,XXX the - prior XX% prior the fourth with the for $X.X fourth an million Telecommunications compared quarter of to highlights Financial Service prior compared million, of for fourth the the pleased fourth of revenue to XXXX for $X.X for reported the revenue year. to of service million $X.X $X.X year. to year.

for of from for $X.X Segment decreased the for the increased the prior quarter prior significant $XXX,XXX share expenses related period $X.XX EBITDA income revenue as the Services The $X tax or diluted fourth service for and quarter Consolidated per Consolidated $XXX,XXX. tax for quarter million prior income and Web million, during to common Net the the share, and compared reported period the as share the year. share the $X.XX of $X.XX million to fourth million to diluted common the million period on was quarter prior debt. the $X.XX diluted allowance in Adjusted quarter common for to $X $XXX,XXX net $X.XX million, million $XXX,XXX the $X.X year. $X.X year. year compared of basic of per the compared of release $XXX,XXX quarter the for the to and of other fourth per income $XXX,XXX EBITDA quarter $XXX,XXX an for of $X.XX common deferred the of of prior recording $XX.X the to fourth common benefit increase for share XX% operating quarter same of the or share, share $XX,XXX to income compared and basic to of year. to to quarter for related basic fourth assets per $XXX,XXX, of prior $XXX,XXX diluted prior Non-GAAP XXXX increase or as year. XX% net income fourth XX% the revenue fourth compared of year. our the increased Our common of was the an to compared the Product same for valuation the for extinguishment per or quarter basic revenue year. to fourth the quarter $X.XX or XX% compared resulted common for million $X.X for fourth $XX.X per for same per

compared $XX.X growth prior $XX.X prior for for million continue year, $XX.X to in compared year. year. revenue increased generated an of XX% the for see revenue Cloud of million tremendous year to our for XX% to Segment million reported $XX.X Telecommunications segment. million increase We the the the Service to Telecommunications

year reported for million for $XX Segment million increased Telecommunications million Our XX% to or the year. the compared Product million million Cloud the revenue to for $X.X year. prior $X.X prior $X.X increased service reported $XX.X compared X% revenue to to

per million Consolidated that's significant and $X for million basic $X.XX of compared recording for Our extinguishment allowance income compared prior to tax on Adjusted EBITDA per million share to related next share for or year reported prior debt. be common $XX.X of compared the or basic XX non-GAAP $X.XX a for $X.XX per million to for prior compared $X.XX diluted the net net $X.X million EBITDA common million, the and compared $X.X basic year valuation common an per to as for $X.XX recognized XX- million $X.XX diluted common to operating during diluted the $X for resulting year. share year. to Non-GAAP $X.XX income common XX-month million year of compared $XX.X $X.XX is Telecommunications $X.X prior million million the the within million, common of end of the in net Net to year income year related the diluted expenses per deferred our December release to X% million in the the the that's $X.X year. and to XX% tax the share income the increase segment which other share basic of common prior at Again, the assets, backlog, or and per year. share, share to of the prior for share, anticipated million of of million and increased the income year. for $X.X year. to year from $XX.X $X.XX and $X.X per per benefit common as increased to at $XX.X income $X.XX

million $XX.X it relationships. proceeds customer payable. and million; provided the end on was activities CEO issuance utilized million With from Investing $XX.X the million that, of I'll those in activities turn for acquisition equipment, Our stock President proceeds comments and $XX.X XXXX. cash Financing restricted operations. common of September $XXX,XXX. $XXX,XXX million, at over of exercises, and stock at activities $X the compared additional million that's option and and from to property and asset for additional of cash end in of in proceeds equivalents $X.X the cash, provided our the Gaylor, year Operating from Doug to $X from purchase

Doug Gaylor

Thanks, Ron.

in for and to profitable continued We revenue finish headwinds the uncertainty QX the numbers earnings about pandemic. year our the growth growth by brought with despite solid

Nasdaq organic allowed Aside in initiatives, and followed added quarter we I'm quarter, to only year revenue to successful very be the growth we Jon as with is revenue. offering our perfect I'll and the industry September channel last And continue we discuss at our a goals shortly. by accomplishing our excited very negotiate as excited that I our roles the OTC Inter-Tel, tremendous more was definitive increase a ahead. very addition we our X the posted July, the made QX Officer. NetSapiens team. am results previous strong Brinton, him knowledge of the $XX.X XX% implementing been industry, about a to and us from in sales million, veteran, that And year-over-year about the to up-list We've Jon's to the Avaya, for our for us, busy further our members Mitel management from and very I'm the years. had to deliver and team to the for equity and year not executive with agreement strong to pleased the a position Revenue accurately Chief but in consistent with very detail in his

our backlog. increase backlog along $X.X Our XXXX increase quarter year-over-year, grow partner to channel grow for to help to nice new XX, continues from see was success a the continue our had our December to XX% helped which million and and and with partners. sales increase an existing we Partner from $XX.X as direct revenues our of more sales million,

Our UCaaS that GAAP our helped XX%. results. And gross to strong at contribute margin service strong remained

X NetSapiens the accretive Not only and have stream, of in accelerate a similar will benefit extremely winning, on to tool with will over many terrific equation. is that with able has has for make currently sides Microsoft mobility to strong increasing Crexendo Our cloud. commonly tremendously still nobody cash cloud relationships we the forward. from Management as our one can but put reasons and communication of and brandable and solution and have API have Crexendo yesterday be telecommuting, The way award Communications of perfect already of capabilities customized and migrated just working million that our And collaboration from could of us solution the platform having solutions for a collaboration come. many GAAP Crexendo solution be is very that are synergies very growing to $XX.X to of to opportunities that opportunity both million And us The is to the winning of to with coveted of a any meet for used of our seeing Product the at NetSapiens robust rapidly, going leaves compared end to developed People offerings they remarkably the the I'm QX teams earnings a Crexendo benefit for XX% for the allow the its with with integrations for a to to truly businesses positioned million Executive for develop recognizing in behind proceeds the the the from in-house feel communications technology highlighted itself market $X.X $XX.X sector acquire and the Since Zoom, the do about perfectly. combined advantage years a pandemic. and tools applications The The abilities the show environment. to acquisition The our transition was for of position revenue Internet Telephony for the over increase have combined help to in industry excited NetSapiens. both our all the the XXXX an created Crexendo position really Year. now library collaboration The team in fits continue very the exciting. needs to a X.X Teams, industry Product and a their immediately UCaaS already platform. with to Solution to be great million Year robust engineering leverage Unified and to flexible end highlighted as announcement the predicted. tremendous amount those agreement offering XXX is Service is remaining will major that primary very and a equity we expand requirement the the rapidly including approximately businesses cloud our opportunity the talented fit about the platform position work-from-home statistics put of our user-friendly XXXX. still mobility onset of Crexendo the and year XXXX, a users our compared at of their helped to to at the been in still well needs, need the XXXX greater. end and host awards organizations This growth. Communication tremendous never that both NetSapiens recognized capabilities not that the end continues and at

agreement management Our consistent will team to combined profitable dominant in focus acquire growth, our industry. well for the the with strong shareholders, the be our and on return NetSapiens position of announcement us player to

be it future and comments. more beyond, our and any turn I ability could meet for Steve to to outlook I back goals. with to over will exceed and our As additional forward we XXXX not our look pleased now

Steve Mihaylo

to people have team. of no to And to questions. that, said Having it I Doug. with comments want joining additional NetSapiens. that welcome John you, over turn the to I'll very we're Thank I all with except NetSapiens say pleased to the

Operator

open And and the from Instructions] [Operator B. Ladies you. line Thank we Riley. gentlemen, floor have questions. for live. a Josh, question is Nichols your from do Josh is

Aman Gulani

can congratulations the it stack want did on growth, guys. NetSapiens? to comment on Hey, the up ask, How you Aman business? This but Josh, profile profitability and in I jumping to trajectory does Crexendo's for margin is of acquisition.

Steve Mihaylo

again? name your was what Well,

Aman Gulani

Oh. It's Aman.

Steve Mihaylo

Oh, Aman.

a about the which in a just the lot of asking about, of you're we're all, statement First releasing proxy have in the statement, will the details of process proxy XXA. in

a have You and approximately that that the this XX to answer until NetSapiens there's XX to I been is in And of cannot question until understand part vote days. be company. will

just wait. Chief Jeff this you're him to to going and Legal turn over And to I'm talk have going our So Officer in the Korn, to meantime, to let you.

Jeffrey Korn

Just NetSapiens audit their clear, yet. to a be has more completed not little

So as outside which publicly it. are gave unaudited the and by approved were But having available. we've votes the as in proxy detail Steve without because file we the best being the given be we solicit such already from commenting Steve been the proxy numbers you're we hamstrung, will SEC included said, be information of is information when estimate. numbers until the time that for of any can't and out, looking our Much audit, will NetSapiens in the

Aman Gulani

Got it.

Okay.

Steve Mihaylo

you hope Aman. I understand, And

Aman Gulani

take might synergies understand. about, integration, you potential and able timeline totally realize? the like maybe that like long maybe that, could talk Are I that how to Yeah. on you cost

Steve Mihaylo

going the bring will the data should all, going again, rationalize accounting, we're which our bring down substantially, rationalize cost centers, which cost first we're of down. to Well, to

people offers require Beyond on border using session that that, controller. them, And the going transitioning be our software was a using doesn't Oracle think NetSapiens to and the we than And do. cost which now. a we a house cost few are busy were it of it's the to database, for in features more doesn't right platform, require developed of which

So, cost synergies. let going about going Doug bring down. to things I'm both the additional talk those of are to

Doug Gaylor

an Steve obviously, accretive Yeah, said, acquisition. it's as

And that. so, about we're excited extremely

the we when run look today. at So, both very efficiencies, organizations efficiently

combining able with to opportunity we'll combined, be teams. have to so, And consistently lots grow of

So I help the both product us faster. will on engineering excited It talent about get couldn't out sides the equation. of be more

As integration, We'll continue I on mentioned, the that. on expand there's already integrations NetSapiens develop XXX-plus platform. and API to

from together So working meetings anticipate on both the we perspective, up hitting an integration We've management the to that of streets we queued the already make sure running. sides maximize are can equation. and benefits got

Aman Gulani

Thank can through do helpful. model per charge pricing you the And like given maybe you Crexendo, then, that that's seat? walk economics and they the for not

Doug Gaylor

you set to end-users applications are if as mean, we NetSapiens to to that I that because UCaaS model. they're up model, is per primarily how different their about on resellers selling different a end-users. platform think today, end-user platform sell a it's a selling we Yeah, model. are seat

that the it it's users So an on got technology X.X today out is testament is got platform a they've to different they've The the model, that million they've there. model. built but a in that applications amazing truly their fact

And excited are so, number further. growing about it we even that taking and extremely

there. market the said, of out still is untapped As I XX%

And grow X.X there. about with much, the end-users think still tremendous when smaller NetSapiens' on than the of for side sides there million number the is both we the opportunity less side, growth XX,XXX on and out to a opportunity So tremendous opportunity much Crexendo at, there. equation,

Aman Gulani

Got it. Got it.

Steve Mihaylo

on NetSapiens white-label that Doug of well going And, an And selling product here. is as basis. couple license, on like basis, We furthermore, to their Aman, a product. ours Zoom. things with out. a very end-user would announced they sell be they're pointed product just I subscription a that NetSapiens a add to competes selling have

think here tremendous is opportunity one streams X there currently. We So there involved. are versus revenue different

Aman Gulani

color of? the Okay. of And talk type base What on helpful? enterprise million the large Are they Any customers? up is maybe composition like that would can customers made you the of about be X.X user users?

Doug Gaylor

think Crexendo their demographics But, the to very there, so enterprise small, gamut. they again, businesses, user is selling I they're which the primarily out Yeah, in similar community through base asset and run a of is to users partners, the tremendous mid-size organization. small

in partners, after, got going the success might different in so, in tremendous right that they're And have markets of different that that now. community markets of but all they're demographics

Steve Mihaylo

offer here. about one international base. well goes is that platform time other currently Obviously, as intend that as to X They or by there to and on And partners. thing X we I'd have expand customer like

Aman Gulani

Okay. Thank jump the you. I'll back queue. in

Steve Mihaylo

bet. You

Operator

your Your from question King line Colliers Securities. from next live. Andrew, is Andrew is coming

Andrew King

Congrats Great. taking question, my guys. good Thanks for on quarter. the

decline are XXXX, that margins. in first So, across you a that how trending factors gross your what talk question, Ron, just, and across seen we've Can impacting about slight XXXX? see you

Ron Vincent

Yes.

rough a was XXXX year. yeah, So,

we And through everyone had we sales so, like the stay-at-home with went challenges else. orders, as some year and the

look to customer so out And we help our base.

when the a X we've to revenue as to per those migrate basis people across to we on a sometimes period, over and months. very, we lower as good amortize forward months up discounts in very you go we're cloud, new up helping promos, those free, service it allocate customers, got seat not the - results and so offered X So

And gross year. so during our on margin saw impact that was the the you

- because of those Now, that XXXX. in the were we situation was were discounts

think And going continue I are those so to don't into XXXX.

Andrew King

to an idea your what Great. few months just, coming seen first really what your newcomer in focus Crexendo, love initiatives spending in where get your is And a you're and you've then as and your position on? I'd there, to time of Jon,

Jon Brinton

Ron, things serving their like to meet are that challenges pandemic help customers and our other Doug, team kind committed deal foundation extremely to with and I'm I Great. it solutions initiatives channel, can marketing just to the I've more, what delivering observed businesses. of that that and and say, serving Crexendo. of the it's the Thanks that our we're the great get and is in and grow, is, to And excited helped just for here and a is the customers from the with great Jeff What brings drive Steve, be perspective. their needs of question. people they grow to about a solid organization to marketing our platform at so expand forward NetSapiens to the acquisition taken revenue helping looking build as brand sales much also we to channel, the our opportunities sales business. would campaign sales here as I've And and expand a

Andrew King

my taking question, for Thanks guys. Great.

Doug Gaylor

Thanks, Andrew.

Operator

The is Okay. coming question from next Arham Khan from Eden Capital.

live. Your line is

Arham Khan

Thanks everyone this ever savings over Or to on about you've work results that this to Excellent of continued wanted will you I follow-up that Hello, generally is wanted speaking, is you've the your you you large the more here. bolt-on? again. want work Everything the you've acquisition. correct acquisition, landing and years. I this fruition, the acquisition Does spot size to ask for just with? constitute one come on believe? the one Or to that bolt-on question More rest said, for smaller that, than which your guided. significantly acquisition you? the be and kind net continue in especially then

Steve Mihaylo

took Just with up the been on really, team. it's when and NetSapiens' heading so we, this folks. Doug. was say, Doug of And time. I you this the Ron, Jeff lot deal working We've understand, a

both, great it's provided to talent. is they the XXX alone acquisition This to but thing And also be get the agreement accountants great We had the lawyers, and get revenue, they we will looking working it's pages. at, this. probably on provided technology. Just were the

our accretive technology database As is very, it I that software. controllers' session This requires good. to Crexendo. mentioned very But not. Oracle's This requires will earlier, does be border

going I if tell time size about comes or and being getting the asked wind we're larger that will acquisition the down right small be and another can you that up larger the we're X. Secondly, this is road year larger acquisition, this you when acquisitions, a to

do And want So to all have I that? that's to you Doug, to add something say.

Doug Gaylor

frogs discussions we've to got definitely it to prince this as kiss lot a I to of takes the of once next know, lot discussions obviously, Yeah, to a with your - analogy, then talked we here princess. opportunity continue we use have the to a integrated, lots lot, of you you get there, get old the we tremendous And found Arham, off out a And, one. it's or NetSapiens. find and

opportunities try we're on out the a will will industry seen the you it announcement few large has just encounter the And as in that general tremendous, know, what find get from there. this whole, to NetSapiens find from as not resonate I the excitement for going or just the kudos from think, once and and to it's the can tremendous, industry. as be our one you us. next tell our I so And getting been to the think but that you scoreboard we've depends with as hard tremendous well from employees. partners opportunities, smaller, NetSapiens it. then have I And from And a employees times, just on we or we only community, don't

Arham Khan

see much. Thanks It's Awesome. so it. again. Thank and Got you. you see great to guys

Doug Gaylor

Thanks, Okay. Arham.

Operator

is got live. [ph]. line your from We've remaining question one [William William, Lapp] Okay.

Unidentified Analyst

million. Congratulations million $XX XX%, you you. kind projected represents million it's acquisition, Thank would XX% of interesting $XX right? year about and if be Am revenue, But the to share can't Yes. profitability. and you note, although you about of $XX I the your do took on this the

Ron Vincent

We'll let Bill. you math, do the

Unidentified Analyst

that, is Okay. which Well, seems good. it like

- other the income benefit benefit? you accountant as of the the the I million part of of could tax generated may explain could of be Okay. what's forgiveness $X,XXX,XXX. that got Well, know as Could I'm revenue not the explain But tax explain, But PPP it. anyway, you provision loan, of - how that another the $X look. I somebody net if income? the dumb

Ron Vincent

Sure.

we've know, you turned in and in XXXX as XXXX. So profitable again

- back our year look We So as our on look we tax taxable of deferred our assess a valuation needs X our on result income. assets.

have had to forward need would as determine we've this that growing accumulated valuation allowance and years reassess reporting of that as the so there's a periods in that have And about $XX.X the result last on go in if to we we turn a business, a million for so over profitable, X NOLs basis.

was the the made quarter, of back our We differences longer as so, $X positive based that And worth the million profitable, deferred that valuation on back required income turn temporary of in our look and determined forecast, look of for future cumulative and taxable timing fourth other tax evidence income, differences. on determination allowance we additional as the period, assets. well no

Unidentified Analyst

Okay.

- you the on million right? me, carry $XX are your million using So XX/XX using so explain not your $XX You're return, how back are whole have the taxability? back, for of state carried using to your much you

Ron Vincent

what we're million-plus temporary effect doing the on differences. any So the tax $XX

so at million of remaining million the then And your you is XX% of federal the $X rate how it differences. temporary the And differences for have for NOLs. equate the that get you $XX times

Unidentified Analyst

Okay. That makes sense.

Okay, going Well, it. appreciate new how problem? you moving converting problem to your the I and their and be the interested use them of in some to over, see much to actually some customers line platform? Is we'll to of thank and it company's when in good a reading it bottom that expect you together? for be brings the the Do put luck, system, are proxy Steve, that we explanation. margins what

Doug Gaylor

platforms both to Yeah. We're have going concurrently. running

to on. So going going be jump to it's not you're that immediate something an see

Steve Mihaylo

get platform, and million customer going want more was features more is, a bit a bulletproof little to customers? that add one I X.X has why wouldn't All few to a

Unidentified Analyst

it's I don't it do to provider. uses anything, to I mean, automatically mean, to them? there's Okay. have seamless - them? It's not seamless But they

Steve Mihaylo

Yes.

Unidentified Analyst

they They don't to just anything, have convert or it. Okay. do get

taking my for Thanks question. Okay.

Operator

Okay.

is Investments. Michael, your from question from is live. Next Kaufman line Michael coming MK

Steve Mihaylo

Michael. afternoon, Good

Michael Kaufman

just sounds It you that a wondering how they I'm this great it Steve trying does have? integration many an also be Doug. Is are you. where it's employees versus I'm strategic like located? pretty quarter a excited have seem like for Hi, standpoint, that pulled fit. to going And you is straightforward? physically Or you excited off complicating? do very And in From times. I'm and something

Doug Gaylor

XX similar employees, outside of in based the the employees, between with of And out organizations. and one right workers California, the remote La San about of Diego. pretty as they've Yeah, Jolla, They're that's beauties size got straightforward, roughly well. of synergies X very

got they've workers does. Crexendo So the across as country remote

have we so, that And spot. of technology to all in don't have again, you have your the people one nowadays, with

are employees of the although in the got Canada and majority the across they've Jolla some some international. in employees area, So U.S., La their

Michael Kaufman

it's Well, it from like sounds you at a least, perfect fit, gave… cosmic review the that

Steve Mihaylo

Yes. We a fit. think good it's

Doug Gaylor

exciting row an is for huge that that's the the of area presence that that majority X.X some in in years is, on are been on growth but any the There calls, perspective, international part our is have today. here And and don't numerous area a it's million user we've asked again, from them. international, a States. And we conference

growing when still XX% really States That much the area much, us in to it's cloud of so a in many to left for and to of is penetration international lower move think And you the the about cloud. percentage the countries. adoption

international that head a great there. And arena. they've tremendous And so start already there's in got opportunity

Michael Kaufman

to you and It sounds follow forward we're you wish best into like And from next look bigger on you've leagues, luck. moved hearing success going of the the you to call. and I and the

Doug Gaylor

with Great. I us since forward know, were now World we majors the into to looking and up-list here. been the and well you've Series following winning we're officially AA, the our in

Michael Kaufman

stocks. I keep buying more

Steve Mihaylo

And, said Michael, what we we exactly everyone, would that let done do. remind me we've

Michael Kaufman

Absolutely.

Steve Mihaylo

sheets very, approval. as the We're that's all went on buckle difficult beginning. last up, year. this talking Put and… safety to We and belt NASDAQ pink NetSapiens. offering is just very is at well shareholder your organically. underway everyone the on to a And done far We've the acquisition public from that as did a left We

Michael Kaufman

On you positive. and lot of flow thing stayed is Well, a the… cash profitable other the

Steve Mihaylo

have as amortization that one more and intangibles, do There of is more to that well. thing understand you appreciate I Well, acquisitions, on. be more is so going to there's we and the

Michael Kaufman

understand that. I Oh,

Steve Mihaylo

still GAAP income, it non-GAAP our may So will but affect there. and our EBITDA our be income

Michael Kaufman

All right. make happen. it Well, I know you can guys

I'm So you. for rooting

Steve Mihaylo

Thank you.

Doug Gaylor

Thanks, Mike.

Operator

Okay.

from Kamen line Ken is your live. Your from Ken, is Mercadien. next question coming

Kenneth Kamen

have And news, they've didn't question of are because a were view have what that that through fill Great assessments what it trying of But just fill, things more some am appreciate be you were layman didn't NetSapiens wouldn't would very echo you exciting, you'd things are but so them? that been them. that are as the now for I a these stay you why very you the robust? I'll couldn't handful features question. bring curious, had for realistic to your want the I - or to high-level those One is, there the do? be guys. someone have I prospects would we you to telephone I'm of what X-part product, that, Congratulations. was of future. had is offering, conference said, you asking didn't pressing, been of just they make years calls asking The the understand, have So said more relates this, you around we And that to I'm to to that features? as able industry? filling holes as and customers your obviously, for migrate a you someone the these And think for

Steve Mihaylo

- me let to as time almost and good very will it. going be as on they as a Yeah, goes It's But I'm Doug one a product, - which turn bring product. over Zoom-like good comment Zoom good as to by. as it this thing. That's robust to includes

years. for room telecom going other I'm instance, to XX thing years over The for Doug together to and turn have must to Doug there experience company. a of in been doing. be over know that. on And this XXX elaborate in all we're running it of what is, We I,

Doug Gaylor

of technologies applications, we've being today in exception you that and of obviously, we with when question, all technology tool. highlighted past, at Great the And, this our few is them of a one collaboration the Yeah. look our make Ken.

screens is is need we to a NetSapiens today's we at white-label tool good tremendous the SNAP.HD, it's that in share And collaboration use a and offering. and look that that what some we environment. offering When of we do the have Our offering. do conferencing applications video

an definitely portfolio. at and they've opportunity look out go. there, Teams integrations that's I other and they've so, the a And meeting like upgrade us. got. that applications with XXX-plus to got applications with things library are integrations tremendous we will robust their those When we the that for into And Microsoft API that already ready add that's mentioned

So be fit to pick to what's right and best the for where able opportunities, that the we're and going choose positioning is.

to for So, both to analyze and presentation there, it really the the us make the worlds of gives right be out them. go customer's able needs best

Kenneth Kamen

much. counting is it. Keep retirement My you the good on work. thank up Great,

Steve Mihaylo

your their already degrees get. that advanced about hope to licking chops kids Thank you. I are their going they're

Kenneth Kamen

All right, guys. Congratulations.

Steve Mihaylo

Thank you.

Doug Gaylor

it. Appreciate

Operator

We no questions remaining have in queue.

Steve Mihaylo

things All we'll Good by want lot joining with got hopefully, call. a report around. to first And to right. us when to we able report conference the completely forward for thank of I finished. everyone. being NetSapiens thing Well, we'll And We've then, everyone be good on next afternoon, this have you time we quarter. look

Doug Gaylor

Thanks, Okay. everybody.

Operator

Thank conference This you, call. gentlemen. and does conclude ladies today's

a you You may time at lines disconnect for this your phone your participation. wonderful and have day. Thank

Crexendo (CXDO) 10 Mar 212020 Q4 Earnings call transcript