CXDO - Earnings call transcript Q2 2022

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Operator

Good day, ladies and gentlemen, and welcome to the Crexendo Second Quarter 2022 Earnings Call. At this time, all participants have been placed in a listen-only mode and the floor will be for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Steven Mihaylo. Sir, the floor is yours.

Steven Mihaylo

Thank you. afternoon. Good Chairman Crexendo. Mihaylo, CEO and Steve of I'm I QX XXXX welcome all to Crexendo's of you conference want to call.

sales CFO; CRO; On statement. the Jeff ask and our Jeff President Doug Korn, Gaylor, Brinton, call provide detail with I'm give and our me COO; and today After our General to comments. more Ron going CSO; read read please numbers. Buch, brief statement? open our will we'll Anand Jeff, call update, are Counsel. harbor our Jon and provide our some to to on Vincent, that, a harbor safe Doug the will I will Ron the the questions. safe business you then up would

Jeff Korn

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

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

Steven Mihaylo

with shows we non-GAAP operates results. services and I to and our quite from the increase It positive you, is metric. Yet overriding is I'm work profitability, as and in results Company continue our to of basis still services growth headwinds that All we are massive is extraordinary. Considering facing both software the the that best the pleased a goal, and me. continued really industry. very Thank company. economic adjusted of year-over-year The impressive. Jeff. macro discussed The last revenue and provide XX% one the both division. solutions are division very cloud a in to acceptance QX together good very business very telecommunication look also in strong EBITDA sides very, maintain employees quarter, on and the an trends both that

have the You before, and of day. them I is very the providing can services improve. will all accelerate still I convinced With keep and which best to best out this our but and growth. am innovating we for every slogan, keep to believe way said, our our to go empty love continue our will that it we to not Crexendo that an heard clients, do customers single me continue say

forgotten. something We business a expenses we managing We simple is increase managing makes its XXX, business margins. gets value. This better every process, carefully. and are often business margin, It the a sales but fundamentals, to day. stress very shareholder do is That

do and we'll team continue so. regularly the So business, the remind am I play. the the have to carefully built manage product proud we to I that business,

unsustainable -- our is current competitors and interest many of crippling run up which businesses. rising not with sustainable have We debt rates

to management. very we will impress. The stress future, importantly, impress also and high Most for will and customers. will with I convince will expectations strategic results. we sustainable steady will convinced continue careful I our am I have we convinced -- We process impress and results our our shareholders am our

grown will XXXX that We our people. award I'm continue from continue are and awards carefully the grow way, the My both most I'll confidence particularly the call and impressive by to Perhaps that, for won is performance the have verified organically boosted this shows that. will monitoring. Report efforts VOIP of GX.com's high is in ranking we as the we customers. only to Ron. the business convinced that accretive number the gratifying lately. With the doing right The fact awarded business, being This providers. the turn numerous over is we that with have Summer one acquisitions our Ron? Grid

Ron Vincent

Steve. Good everyone. with you, highlights quarter the financial afternoon, for some I'll of second Thank start XXXX.

million Our total for million quarter XX% $X.X second to compared revenue increased to year. second the quarter of $X.X the prior the for

the increased for million quarter the to compared year. million quarter X% revenue to service the prior Our $X.X second second of for $X.X

compared share for net expenses. and Same The million loss Our the share quarter $XXX,XXX common to Operating software prior year. for year. quarter prior three increased quarter loss the XX%; one for and the comment the second to product, compared includes quarter the acquisition were quarter a comparison the basic and $X.XX per margins to software the million telecom or prior quarter operating purposes, $X the only and and basic margin as increased for or second for date reported consolidated Gross of net prior our $XX,XXX and XXXX for months basic June second second the net includes for ended to year. overall gross year. to XX, of second the the software the diluted revenue reported quarter the as the purposes, one of of of of second to a XX%; services, common the quarter $X.X loss XX%. XX%; of the of breakeven was our comparison expenses the of from million XX% $X.XX prior share June a solutions, solutions per solutions as XX% non-GAAP $XXX,XXX million X, a earnings quarter second of second $XXX,XXX quarter $X loss for non-GAAP to compared for compared follows: $X.X per remind second basic share activity $X.XX increased I'll common income Company revenue year. solutions diluted $X $XXX,XXX compared basis, and Product software the segment. for only of month XXX% of for to On a diluted XXXX, second for segment the only we million prior on everyone month quarter

loss the the to second Our for of $XXX,XXX year. $XXX,XXX quarter the EBITDA compared was second loss quarter for prior

to as $XXX,XXX second Our for the adjusted quarter for the year. prior the second a $XXX,XXX quarter of loss EBITDA of increased compared

So very positive increases there.

increased Now six-month the to for June I'll months XX million the period million prior revenue $XX.X compared highlights six year. Total period. the for to highlight ended some of XX% $XX for same the

Our increased service period million of X% $X to the for to year. $X.X compared million for the period six-month revenue prior the same

diluted for the of the period million $X equivalents $X.X compared basic compared of $X.X to non-GAAP and million share loss as period XXXX. was solutions of segment solutions as Cash activities included six-month used just for loss million Our the for acquisition per for only million only $X.X compared for was per for year. or the prior million $XX,XXX operations. to it to expenses the $XXX,XXX the basic $XX.X for million Cash prior in period XX On increased And six loss to XXXX. financing of months period operating a that, June to to having Doug income year. comparison to per period President cash June we $XXX,XXX the $XXX,XXX compared the XX% investing the our same and for $XX,XXX the loss XX, $XXX,XXX for COO, for same for software compared Product to share The six-month for $XX.X compared $X.X software $XX,XXX one months $X.X for million With or or months purposes, used to due cash Total six-month million of million year. the month revenue period year. of reported a Adjusted to the period to same software you, of six ended Operating same of period activities for as the XX, the EBITDA $XX.X $X.X the for non-GAAP period six-month for share and over the increased to million $XXX,XXX common for used $X.X compared $X.XX compared used of net increased June and prior the cash prior activities sales XX% XX year. the to compared the million same $X.X of used activities the ended period. six prior EBITDA basic six-month Gaylor, the of for same of to remind $X.X $X.XX the XXXX, diluted expenses to million basic period turn income period was earnings XX, compared for and ended December the six-month additional on or same from common June our at to at I'll $XXX,XXX diluted the in loss XXX% reported prior the revenue of operating the net $X.XX Cash for of and was June a solutions dated basis, period XXXX, the same common loss same net was period from used comments year. period for year. that prior investing year. for six-month Company as share of million the period X, compared the prior for $X.XX prior of to the prior a of period year. the for diluted

Doug Gaylor

in Thanks, a quarterly had strong performance We Ron. QX. very

$X.XX non-GAAP Our of improve represented numbers $X.XX increase XX% share continued that QX per earnings revenue strong over $XXX,XXX of million a to or and XXXX. with

I the together. acquisition with As in anniversary one-year more well how our NetSapiens June, two have we be celebrated the come not pleased of could organizations of

synergies, and improvements. top We well line continued and and strong have companies combining realized bottom the growth are for two positioned

so confident year-to-date After of fastest-growing the solutions in UCaaS growth cloud why telecom a in such that with of companies the great we our highlight America line XX% marriage. were organic strong create the North to our our can combination going software platform for over Our evident our the with million have two contributions, segment user announcement product awards last third-party tell $X.X milestone first year we honeymoon received as that multiple I marriage, recent still few is our services by you months. and well as our end of the offerings great as on

end the at Our strong backlog million -- strong QX. is very of $XX.X at

solutions direct Our backlog add software customers as represents We well backlog had number run a and QX XXXX. strong software segment continue XX% in number platform the for our includes their we our to Crexendo licensees amounts backlog bookings our very the the utilize to of quarter for UCaaS that of as new solutions business. as increase

for like during appearing QX, high further pipeline of Avaya, recent and Our for two great strong, amount XxX platform, in continues major at a our that new others. of industry and reinforcing to platform the had see challenges for have attended we licensees conferences we demand competitors our our while Mitel, be some interest we

purchases Our as with benefit rapid migration the Crexendo growth we licensees cloud, of from session and are businesses the to with that they grow. seeing additional strong

new develop from further more new these applications solutions even the Crexendo additional to segment. continue solutions growth software We help services in drive organic to and monetize to

many We features. and release are version announce was software new our released that platform our excited QX XX during requested provides and on to

for be center excited also automations and with omnichannel our that Service our perfectly contact happening are applications. previously of Mavenir designed Center excited about as will are center Crexendo -- engagement, call release with that chatbots announced We We that this pending a are as new part customer quarter. release Contact announcement of with our and larger that

revenue our evaluating platform will increase the partnerships our always and similar for and We add are functionality streams. to that offerings

in competitors, software of Cisco's and BroadSoft our continue Microsoft's differentiate to solutions We largest our Metaswitch. two ourselves segment

and gives continue new are competitors, and model significant our over have prospects excited funnel Our we over have pricing XXX about in now to us the licensees licensees. our platform adding advantages very we our using

starting groups agent are Consulting master with Our like Consulting Telecom traction. OTG and Group to get partnerships

also We're to the strong growth produce expect sales very organizations. partnerships. both from pipeline predictions and from We these those sales about optimistic of growth

logos a with on we Our the new onboarded XXX% guarantee phones VIP that record Crexendo on offering as grow our QX. warranty has uptime continues to the of along platform amount customer Crexendo lifetime in

to We agent excited in agent are funnel partners continue larger opportunities that add new and the table. about the are the bringing to these to and new partners program the

mentioned, strong and are I organizations created personnel the has combined Crexendo. to our As processes in synergies recognizing that regards a very

Our our accounting under the teams smooth. all marketing has been performing of our of Ron very sales CRO, direction all and Vincent Brinton. The been Jon have personnel well of consolidation under

Our and additional CTO, assurance quality Wang, and and teams together resources combined the working David talent engineering development under from are benefiting our teams that seamlessly and now possess. the

grow operations and Our relationships, plans I'm come two about handling with and teams how pleased very are and all to our and excited very our direct customer organization. our organizations our continue I excelling support am together, of have indirect to and go-forward

us for basic we proof non-GAAP continues expenses strong succeed. feel our I'm hard that The we that have grow well have we our with very future I'm about our earnings. direction combined managing Crexendo demand a the As non-GAAP synergies generated quarter we the high, of will are continue of amortization pleased that offerings solutions $X.XX business extremely fantastic to mentioned, We opportunity per that that our the efficiencies for product on tremendous for the is this opportunity intangible leverage I'm as for to earnings and cost make future. growth. a the work of And Crexendo. combination. organization our together to strong, and effort to positions common comp team have and a more stock very and is based and amount successful and of us our continue employees believe see have excited the come and and we share previously assets to thankful extremely

offerings our to Steve our partners the We licensees for best industry for shareholders. delivering will to any I the comments. over further will and returns in the are our turn continue committed to delivering UCaaS it best and now customers, back

Steven Mihaylo

No.

you I going open think now. between for everything up I'm you've questions to Ron, Doug. and covered it Mike?

Operator

from Boss Riley Griffin [Operator from Securities. Instructions] comes first question B. Our

Griffin Boss

So first is how helpful. any update on few quarters be Just give there you up looking, if given it for us a me, I curious churn could spiked guys ago? an was color would

Steven Mihaylo

Well, I the tell this, let in I'm you can down. Ron going Vincent to blanks. it's fill

Ron Vincent

come have. we're basis month, per we And were predicted, Thank we -- points, X.XX% improvement, Yes. a the down have you, trending and Steve. down XX monthly see on Yes, about we as we X.XX% we to and that's average.

the good So very improvement over year-end numbers.

Griffin Boss

next, Great. the process color That's the migration great to hear. And then, any yes, just progressing to NetSapiens so on is customer platform? how

Steven Mihaylo

Doug I'm Griffin. going to let handle that one,

Doug Gaylor

We coming have We've very full about them accounts got migrated a probably migrate over. It's Griffin, Yes. that's of XX% over. nicely. process. don't along our to

in So to handling migrating it platform because we're of a one gingerly details from there's the very lot other.

a just onboarded top are all it's migration steady On being So slow customers new process. onto and VIP of platform. the that,

on little working well our coming smooth. that's some team migration that engineering to a of to So faster, extremely it's extremely along got and going extremely, everything scripts as us well. is do -- We've allow

more So handling is be and migrations I coming are to platform. all we're customers that pleased our VIP how along new strong the how couldn't platform adding of the the on with

Griffin Boss

Great.

Okay. And for I your ecosystem. then to always partners guys evaluating add last the you prepared one remarks in mentioned new to you're know me.

give lines? the right or can in seeing Or pipeline? us anything you M&A guys now? those Anything are you Just if there along pursuing was curious else terms anything of actively

Steven Mihaylo

that rules that, slowed And an audit. the with Well, on tell And significantly. us SEC of can rules working I do we're the because that accounting that up requires always you we that, M&A. and

Doug Gaylor

got rich out happening. numerous opportunities there, and discussions we've pipeline The with is

opportunities excited us. where lead so those And may we're about

Jeff Korn

have Anybody so detail we've give discussions is any can't us NDA, given. under we more we with than already

Operator

have Lake Street We from Bruce now Capital. Goldfarb

Bruce Goldfarb

on Congratulations the great results.

Steven Mihaylo

We're noticed. I'm has glad somebody about result. excited the pretty

Bruce Goldfarb

churn and growing. down Fantastic and you're

Steven Mihaylo

I'm go sorry. We faster ahead. for are. there AICPA. the Anyway, And and frustrated. bit was a grow little We if just the some I'm SEC

Bruce Goldfarb

How for the second year? of is NetSapiens half looking pipeline the

Steven Mihaylo

that let Doug. to and Buch going Anand handle I'm one

Anand Buch

as I Jon providers existing can we faster than as, Yes, rate fees market. to base to that can then CRO of aggregate we partner jump see at existing grow an well service kind comment in license we continue -- have Yes, Brinton. in, I'm have, our the the to Sure. -- the happy the the and continue

in opportunities itself for so both creates upgrades capacity that And upgrades. existing in both of pipeline the in terms of growth existing

So continue in coming to we that Doug new internationally a see logos looks pretty in, and and as of as out, pretty solid. pointed And addition well. in both quite bit North increase America then healthy to

well? comment So know to on as you Jon, want that I don't if

Jon Brinton

The would Many to seeing have adding. the to them I is them. -- strong. solution and say, Bruce, host talking us that we're we're Yes. of that we're is are that customers partners thing the choosing assist the pipeline nice for the of

As you build is deploy and know, it in own infrastructure that part strategy in it their of ours. deploy our or go-to-market they can

many us of solution about time. our we've are host to licensing choosing model, more X/X portfolio licensees the will And us the solutions for added rapidly then grow revenue them. recurring them new our actually subscription software are which So of having that over also help the

in strong the So continue good to see period. and we pipeline results

Steven Mihaylo

those to take a that And that there glove that I we away Microsoft. our We've away we're Cisco, taken business we'd in but got listening of from away starting now be fest. love take add, we're might that love include better you you love Microsoft, we've business out might them. taking of that's customers, white also business a always And and for from care because service. from Bruce, and are customer, to we potential

Bruce Goldfarb

success. your explains It

Steven Mihaylo

I'm excited.

Bruce Goldfarb

customers in XxX, like bounties risk. at trying transfer last regarding reseller My they're your are any question even Yes. and their winning there is, to an sales take their away behavior change competitor is

Steven Mihaylo

we The Look, with they the is to all that compete Vonage have XxX helping to because went let that all of the of in. each RingCentral and I'm that are Ericsson and debt No. fact going But fact other. Doug struggling fill us.

Doug Gaylor

Yes.

seen I But some. bonuses think dwindling we very have environment. still competitive those of exorbitant a it's some

So a are I under a crunch. think at as of maybe that of cash look more some little bit you our competitors

got realizing bottom better to I they're they've think showing that line that start improvements.

of so incentives those are lessening. And some

very to continue we been plan, So and it's very, our play game successful.

competition that continue we work is Mitel, can So game and with of to layoffs game continuing we take as much strong as Avaya announcements of trying the by our just RingCentral which plan. advantage at recent and and see to we're and plan, our twirling, a to very

Steven Mihaylo

And let other me here. out one point little factor

We have no other that in But acquisition. that. are of a on bit and said, competitors our debt building our than that little grounding

Bruce Goldfarb

Makes you my on a And lot Congrats quarter. better fantastic the questions. again positioned. that's all

Operator

Chris now from have Singular We Sakai Research.

Chris Sakai

was had expenses just the my to first much question, improvement guess, looks like have mentioned It last just guys I organic? a wanted about how that that some I cost margin was a I to just how one. of I -- know X%. you goods quarter, know moved not been gross of because of considered improvement much it wanted that? And R&D of sold expense. was has I you

Steven Mihaylo

said to a improve. Having the going Ron. going over one quarters, couple that to you which to I first Well, things out that here I'm expenses. all turn to we a all managers we're second. bunch you're our But going that, over the a Ron details that to fruit, on fact low-hanging give let of whole lot And the see of next harp we've identified point is need it in of cut to me will the Vincent of

Ron Vincent

software development to those was members and Chris, the our that review team guidance completed the products. on to of we the the our we And performance work improvement but classify analysis that and in -- their as our analysis R&D reclassification software margin on majority our of and related on the made of individuals refining proper platform.

was of So reclassification. majority increase quarter that recognized during we that there margin the the the

Steven Mihaylo

of But going it, are you're better. Chris, we just aware to so get

Chris Sakai

last X% Right, range was the you're Okay. that saying quarter?

Doug Gaylor

Yes.

to few think giving well that's quarters. and I here targeted think range, in our the I way resales in the numbers next and the on still we're

Chris Sakai

and how and right. how And subscription the revenue, is then is the All recurring? onetime much with full much

Ron Vincent

software onetime that side, recurring XX% So XX% solutions and on down And the the break revenue. was was in footnotes. for our we quarter, about

yes. So,

Chris Sakai

last going? Okay. Great. how start quarter. the that going know it to did the go? in And partnership of month you How Mavenir was was I then right the said

Jon Brinton

is Jon this Brinton. Chris, Yes,

in partnership. there's the two So -- to sides

last in So the that built on our was Mavenir quarter, UCaaS solution their launched platform.

for next rollout then offer. customer the the couple division. us of software So for that of as rollout beginning of actually their far product, they're around as a commercial CCaaS doing weeks solutions our we're commercial in that the platform in of September our And

in this So our we and to we're own that partners that preview product that on been lighthouse had have quarter. us in some offer with deploying product, within

done It's market. we've So things the we're preview partners excellent the us in about of going great. excited very gotten are of the channel getting kind from feedback that some and and actually socialized with, work

Operator

We now private hear investor. Gilmore], a from [Edward is who

Unidentified Analyst

Congratulations quarter and on there. growth the great

savings quick and questions continued curious was Doug of given of cost of and acquisitions opportunities companies? from me. see I it honeymoon I still acquisition. still Just was for I kind the consolidation mentioned if any two phase in merger that the And you that was the since of curious, think kind remark, if a couple from the

Steven Mihaylo

to is, this over answer I'm guys and to Doug my yes, turn going on the -- call. short it and all other The longest

Doug Gaylor

some there about lot XX a When space Yes, and we months, seeing we're cost Yes, of our as left. our synergies mean list items, of and lot opportunities of successfully, action come got in we're we the and we're those we've XX renegotiated still very on get We've have completed once that leases synergies those and lot majority or Ed. of of lease recognized there's still have joining call. those taking priority couple we And contracts on still a there. progress companies list. two those that. already put that and Thanks, savings some of things absolutely. been options. there's opportunities the hit pleased had reallocating probably together, next some and those I savings significant I with some The expire, anticipate appreciate we advantage those a identified. we've cost you things and but of the come a up over evaluating up savings, recognized

on they're where us we and pleased hit off benefiting check we're lot organization still now each list, know list, extremely to continue continues grow. for there's right our our continue to all So check them more we are with opportunity to on and and a other as the

Steven Mihaylo

if One business, of mobility we're little that's telecommunications remember, the the though continue that in they're to Edward, have things to the unbelievable we as is we starting of money, are in business. business our you add to a of those the even see customers our to benefits and productivity benefits. own and we cloud well, those that's And see product will some we bit correctly. And save using

better true, get but better going so only and to said is Doug on. from it's what So here

Unidentified Analyst

step line give tremendous to will a with there. might again, Okay. the some able to increase quarter-over-quarter also, as around of like percentage see see as where Do you that to Great. question, that's you growth And a then top do see next kind revenues lift top subsequent continued And expectations the from going be color then on? continue to quarters? be line incremental that any of you that shift the growth in

Steven Mihaylo

for this restate quarters, continued three and or now state I'll we've two Look, it.

turn and to XX% approximately first to going acquisitions. we bigger XX% from to we to And growth I'm organic easier. acquisitions. give not involved that, be get our plenty color and to his This XX% The comment. like Doug to it XX% get XX% of from With rodeo. had and I they're as over bigger, easier -- in expect -- Company that said, we were is going all We to

Doug Gaylor

looks got we that the half of been QX confident will second pipeline We've think from strong on the the has year and to I QX, Yes, a extremely momentum think I that what like. continue. saw

on lots our continuing in again, execute got We've game opportunities the to good So we're, plan. pipeline. of

so operations team these them we great take through job is getting Our of implemented, doing a jobs revenue. can

don't plan again, I that we exactly game the feel give guidance, confident but really way executing we So our forward should we're be.

Unidentified Analyst

and just kind any force share then me. last quick cost good Just met there are on side use and between expectations the you're seeing -- services vice that being anything the being one the sales and from as as Crexendo? customers of other for being NetSapiens each And able you seeing Any lift commentary far your are to are question company and opportunities you versa?

Doug Gaylor

Yes.

two there. to our have segment mean, solutions we platform the licensees our a reason. for I think I sells software out segments

different And so user that's a go direct benefits market areas. strategy and we but in end our agents in selling customers, both than to sales force our to direct how

user meeting our got we've so there. October, our licensees And a up coming group in which will have high majority of

and help sales of business. how is to on can grow marketing and going lot year they be that a this so And focus their

And to software solutions in or that got the that so on out platform of help through them is of have businesses. And worked growing direct our a platform lot our to suggest we side the IP implement lot ideas a going we're acquisition. great their

so going direct on platform our our forward that's applications. And

more our more and lifetime XXX% industry. offers It's so warranties. out extremely, efficiencies And uptime it with guarantee there functionality, extremely being there in well received out the

very sales I'm pleased are initiatives how two separate focuses. They the are So sales with going.

a agent more platform job looking we've and a of can the got shows, best than When they're licensee, comes worlds whatever because to we trade shows, of one at great these an both important if And up of of do teams has handle we both they're so for. their with needs focused somebody to us keeping done them. what's Jon these trade on

sell for got solutions that that? solution we've own too. ready their looking to a Jon, to their they're color If they host just us any platform, So a looking that well. as platform they're on it. own our if And great, for we've got basis, share to platform, to for want great, we've yet, if want great, they revenue you got aren't add

Jon Brinton

diverse a what strategy. kind that I go-to-market would amplify of to just Doug add it's said is

get model. their The the of important for that partner thing the the we is works for day, best option end business at partners the

we the technology. one and or everything it can that experience to all different we to then is have continue one -- take on-ramps stream, our So investment two of R&D with that The three beauty on partners over platform stream that time. is one develop of can happens

at to at look we looking licensees partners to additional software we're as looking the of as how telecom partnerships, doing, platform customers or which always capabilities and look our solutions along potential capabilities, end our that. division. with big what a we're And add division services deliver we to we Anand is both part at and that content is So our additional in me

So the two part ability efficiency really the here. opportunity to or same revenue think market is with of three creates what to I have the routes

Steven Mihaylo

And channels to distinct one you is Edward, we remember, we things have the that have operate of four through.

bunch portion we everything, XXX through whole sell multiple which direct, competitors XX over that. salespeople, our licensees. there, they cover probably on concentrating a through again, think stuff, there's Our I two sell end And division sells we we're we salespeople sell sell when end cover through. have to the label our We also a the but is of different them. which customers. mostly and of label partners, say only they have licensees, white white channels division mostly Those that concentrating user. of user, about and sometimes is sell and telecom I sell software solutions little We bit we of and through a And

getting started. So we're just

Operator

Michael Our with questioner is Kaufman Investments. next MK

Michael Kaufman

want you I to the Steve great and quarter. team for another congratulate and Doug,

gross would and go where we now a I expense term to on would you're of integration that we the with the for metrics where would and how getting else be we're the helpful where of helpful everything helpful the think business, to margin be show so there's where in could thought ratios you're that early we really in can putting would opportunity economic what are a the is things would an major see to get horizon be it it That's key down mentioned know -- about it for have there and you long state forward start you some maps kind on soon? me. an and going going because that else, revenue One that that XX%-plus like handle only of and helpful the road be somebody we so a if investors acquisition transient talked

Steven Mihaylo

going next As required, and granular what's the and time more mile to on, starting probably goes we're our year. we'll extra now, reporting. go get report Right more we with

you're But to So We're couple start expenses, months in working yes, quickly. working margins. revenue, working and from on seeing results on a here real of we're now. we're and going on that's just

Michael Kaufman

great All right. in know keep the I and growing. I it everybody hands. And Company all is just for assets their thank

Steven Mihaylo

to grow. job. on fall not the going asleep bet. You We'll We're

Operator

Do there [Operator appears time. Instructions] to at you queue any have it? finish closing this no Sir, to comments the be questions like in further you'd

Steven Mihaylo

to to everyone have replay do closing things the one are want have And to started, just going on hoops answer But and all call this and I in a the else and to better of here happens incoming. all I I else tell it's we to on a that few getting and long the of that that, to it's it's better we this in call, know everything of been people time the comments, regulation because be evening Mike. out. from and get all and to look here we for you mean, and get you good evening. going to is I'm job, talking get it wish hope not And get jump next a through. just good QX as we to bigger, care, asleep will we're on going falling the on Nobody is everyone that, the to going better. call. But bigger. forward it's Take And there. the With because and in it's to I hang better. going either. call that of to

Doug Gaylor

Thank you, everybody.

Operator

you. Thank gentlemen, does and conclude Ladies today's conference this call.

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

Crexendo (CXDO) 13 Aug 222022 Q2 Earnings call transcript