CXDO - Earnings call 3 2023

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

Operator

Greetings. Welcome to the Crexendo Third Quarter 2023 Earnings Call. [Operator Instructions] Please note that this conference is being recorded. I will now turn the conference over to your host Jeff Korn.

You may begin.

Jeffrey Korn

good and Mike, you, afternoon, everyone. Thank the to Crexendo QX call. conference XXXX Welcome

handing our and Buch, the are will to I'll Vincent, some quarter. COO; Brinton, more today with we'll read call our detail update. numbers brief the before and Gaylor, Jon our On statement. provide me give and that, our Doug provide safe on Doug safe call After to business then moment, performance CSO.In over Ron for our a open call our harbor President CFO; will comments to CRO; Jon Anand sales you that, Ron the After questions.Jon, harbor? a the please the the would read on

Jon Brinton

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

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

Jeffrey Korn

Jon. you, Thank

think times This I I direct the works exceeded the most change don't is where very of you expectations pretty I'm my know an team's that. by board. it we and But excellent one expectations. and quarter expectations, well. intend exceeded now exceeded was this We we external across the to of

with for focus the never be to we matter said And GAAP on of quarter strong third reach against Consolidated a XXXX? a million, the continued drive was wrong.In if last during profitability XX% not thought As fact, of milestone Year-to-date, the I prior XX% long how period. a I profitability we I quarter achieved increase to over growth asked been long anytime the to $XX.X X-month happier quarter, organization. have total for so. been This in roadmap. I've did quarter. strategic million increased I year. revenue from is started million addition our key turnaround year ours third has is the same GAAP to period an in revenues amazing $XX the increases significant really year.In This importantly $XX.X compared a a the the to we we executing a believe might our was sustained and time last in term focus revenue, for

now discussed an sound efficiencies. stand of And have and much initiatives achievement our together.Furthermore, our strategy, on we we've after strategy and growth as the serves operational For several validation increasingly that of cost put this footing, sale quarters especially the financial management to we successful work building.

also sets This us balance than to which markets, in us being our into necessity. out by shareholders.Organizationally most debt allows down and unit. long our reorganizing, apart quarter, for bogged sheet, operate approach as our the not from term but one rather and goals transactions to we're forced companies we that third only not make the cohesive maximizes streamlining our competitors, our of efficiently discussed, previously value in with have remarkable we opportunistic we of remain in integrating progress more align that As continue decisions ensures on to capital prudent make

in network recently and similar our our vendors and we engineering gathering Additionally, annual hosted see as we're and operating key staff delivering substantially meeting, top our throughout results items which our migration and partner the a and looking our year's I'm valuable next that remain customers one partner our continue platform in and was the dynamic VIP single the in balance bottom continue costs growth we've the most that forward. integration X other and user and our the support we held channels, a functioning already also from resellers. included come our focus industry-leading transition satisfaction the significant the we of to as the together prioritize legacy sales And end, the event.In our our off our we remained has spirit of of moving properly, platform. on consolidation, opportunities which levels provide will with and our teams on to will our line business.With reducing committed on Crexendo It ensure sheet to Anecdotally, our great that teams parts say sight we largest customers our from happy continuing installing sales vein, turn sunset superior this X forces.On to continents, culture licensees expect now group the collective on increased now leverage, scope platform to quarter end with classic accelerated is for amongst members. to employee process, of the platform, enhances third during are continue in system to us front, person to history meetings. company user was group which increased see dealer join team ecosystem to of we our forward the

driving and First, larger securing SMB deals. through organic aggressively certain enterprise growth

more MRC, very license.In acquisition and rather to targets. far what vision And software it's still Secondly, encouraged our we of do perpetual from a quarter where are by this solutions are potentially evaluating intensely revenue third results. the significant transitioning can organization a than portion that cry our today. accretive third, acknowledge We of we conclusion,

our over quarters will our work details to and Ron? future targets We to hard Ron more continue I'll what turn hold.With on for the to look on that, forward numbers. will call

Ron Vincent

quarter Thank quarter year. for as to year. Service to $X.X revenue compared compared follows: million prior everyone. the you, to XX% third highlights the the million XX% Jeff. prior the for the for quarter for third increased million million are for afternoon, the revenue for Financial Good third $XX.X increased third quarter $X.X Total to $X.X

the third XXX% product quarter And compared to $X.X for for million revenue revenue QX million in for solutions for XX%. of quarter $X.X increased to $X.X flat prior million $XXX,XXX prior this of our to with strong to the increased had third XX% the compared third year.We margins Telecom services quarter, Software prior also the of year, year. the came quarter the quarter.

$X.X basic adjusted share of came non-GAAP $XX,XXX and $X.XX and year, that's $X.XX XX% EBITDA XX% common at $XXX,XXX to $X.XX share of million $XXX,XXX year.Operating $X.XX XX% of the gross or million $XX.X for expenses from $X.X to increased our in $XX.X XX% for loss Year-to-date, quarter the compared QX for diluted third third QX total prior to basic net to income million or prior 'XX the the to from to third quarter quarter, $X.XX compared common XX% for to $XX.X XX% loss compared prior income $XX.X The a the basic ended increased diluted company Overall diluted net of quarter per $X.X million $XX.X a for September compared months Software the $X.X third million or highlights third to the to to million of basic of million per year. third the quarter highlights $XXX,XXX X on the million margins third prior of million., margin per -- to million from per quarter. for quarter the quarter and or EBITDA $X.X $XX year. of product $X.X XXXX in income for net the diluted share year. to revenue year.Non-GAAP million. for this quarter increased compared compared million Service XX% in million. increased for per quarter reported to third XX. the year.Little compared XX% -- of to the improved the of expansion solutions from $XX.X for few this and $X.XX to for net the And on of and margins revenue in expanded XX% prior QX share per

EBITDA increased million company $XXX,XXX a loss loss $X.XX or to the common Software period and to to X-month and revenue solutions $XX.X of common year. for year. net to basic XX% of year. and the $X.XX million the to non-GAAP $XX.X or income or XXX% $X.X period per to million adjusted net same to and the of the share year.Year-to-date the compared period Year-to-date basic and per prior million common diluted non-GAAP compared $X.X same to period diluted $X.X the compared loss basic of for income prior Year-to-date, $X.X the the for and the XX% same prior for $XX.X period million million was $X.X same million $X.XX to compared compared net the X-month net increased of million, diluted compared EBITDA revenue compared $XXX,XXX reported of per million.Operating per $X.XX for year, increased in the only X-month loss of of for $XX.X period million loss to a expenses basic a $X.XX period, share common $X.X per product the prior $X.X of of that's diluted for prior $X.XX per $XXX,XXX million share share

$X.X was Our XX, cash compared XXXX. XX at September balance December $X.X to million, at million

period for Our operating million was cash for X-month compared $X.X the the activities used $XXX,XXX same prior of year. to provided by the period

operating of $X,XXX,XXX for of of quarter for used $XXX,XXX cash the $XXX,XXX by million same the of compared provided $X.X prior flows period for of X-month period the flows cash XXXX.Cash third year. The the compared negative investing first to to quarters had X positive activities

in commissions. property received to we August on compared for the call, mentioned the and building $XX,XXX quarters. net this in purchase last earnings building our the we of X we $X,XXX,XXX used As of the equipment sale sold for of proceeds and year That's from the of first

for So the period same get X-month of to that's Cash the to for financing cash million $X.X X-month $XX,XXX prior $X.X activities the period period. how for for compared the of million of we used used year.

the of billing note financing we voice, on for the up During that our going Doug and for used was it activities; for [ payable repayment I'm on my business some to utilized so to quarter, of $X,XXX,XXX sales. turn $X,XXX,XXX over the highlights ].I've

Doug Gaylor

flat saw software demonstrated XX% segment, and performances a from have services for Similarly, detail.First, the of XX% platform by to by for increase was solutions the direct well an services and gross throughout as also margins I'd as quarter-over-quarter in impressive XX% improvements business, we telecom It for by growth $XX.XX year-over-year. combined the organic organic Ron on Allegiant solution Allegiant was XX% sales community.Our acquisition, margin Crexendo great our growing classic for licensee margins revenue the telecom includes Allegiant as our telecom a manage on our in software the from improvement optimize for gross to we margin margins nice Group, further our to of Ron. Thanks, installations number which services highlighted, new XX%, both offerings. as in from services upgrades And will costs driven remained offerings. segment record by relatively was out service highlighting put Gross which increased and segments logos, and that segment as start our results by product revenue product offering saw the more to XX% telecom quarter discussed or of XX% partner increase discuss product our as XX% all the which of focus fueled Crexendo taking continue quarter nice our contribution, gross the growth QX driven and in Ron was increasing our our Jeff million several with our impressive and also generated QX, I like segment a to exceptional on quarter.We witnessed of XX% channels. growth at

XX% cross-selling saw synergies acquisition a organic Jeff's exciting that successfully Allegiant quarter over last its Our into division their anniversary we integrated cross-utilization last legacy of continue celebrated nice our we opened week that we growth have Allegiant just to opportunities. business that X-year standalone and creating and of year.Echoing as in growth wide range group, see commentary, have from third up

XX the which recognized Our last of on our remaining includes to customer the next will be solutions number, a software increased backlog our number remind quarter. telecom values XX% contract a services year-over-year sum a that you $XX.X scale sliding just and is and months, the of over well. million Allegiant whopping that's from the XX% contracts increase backlog to as The by customers

resellers see sales to of Our backlog impressive we our from in These robust witnessed reach our confidence have sales our future partnerships great to future through and it and last agent reliable growth master number in continue and channel. updates long-time solidifies continue orders outstanding pivotal the the quarter, growth.As expanding saw to from role our provides market revenue and a and for from channels, increase relates stream contributions we played sector driving growth. momentum quarter this XX% which a receive

size is opportunities reseller to Our coming contributions process. channel through perform seeing partners large are sales seeing as from strong we nicely our and the continuing

landed companies and strong for on scale.We're to our growing our to this Cisco the continuing their large that we a and platform elevated a Microsoft just roster working of we move over BroadSoft launch to in solutions see licensee of continues about is that licensee large Metaswitch to to look continue software talked reseller momentum with record Cisco demand forward seeing a platform of quarter the and platform to Crexendo. segment partners quarter also business.Last program Crexendo leaving We are number build as to

move strong from segments demand providers competitors the to shows our and sales business So our we're is due in also platform headwinds, fastest and slowing we to the economic and Crexendo's of platform, in results. #X opportunities platform #X of both great have seen licensees #X, it the U.S.Some seeing our to talked growing which respectively have in of

business meeting quarter continue programmable record our multiple strides on and API We is that CCaaS software we've the new conference, at which attendance new also our and the of remain our with customers future within reviews both in when the productivity of ability by at in also in we recent will meet a unveiled yield event installations our for the releases, focus they that our Year high over at efforts our our is the continue aside we previously if our our to to introduced technology cloud. will partners of get, the to economically, type and which future demands quarters.Operationally, record domestically U.S. website.On to businesses and It's reviews customer as demands have to leading ways mentioned of make record and higher increased that levels there in in growing UCaaS features our of an efficiently domestically quarter exceptional forefront we we Product in transformative empower look step gX.com, solutions, of investments gain that's have results happening released we referenced customer technological past, generative continued industry.So the they that capabilities we execute to blessed As company's commitment enhancing group on of customers. in the volume. independent out in with companies, our CPaaS and that communication which traction customer and numbers. an solutions on times address powered standpoint, strong the our costs and features the our not actually by VoIP international summary, another received our selected with fruitful, set stage yet industry overseas continues still in to awards functionalities.We what growth, and Jeff our great significant on move of and review been and our which Internationally, power to lead a we of product our sales We've that across believe AI scale, customer have our announced the that an continued are migrated top the see markets, continued we the that we were demand that technology, offerings board. and recessionary Telephony.From migration tremendous Furthermore, internationally, contact remains we is customer expansion experienced user driven positive satisfaction center at I and solutions including presented global customers achieved continue growing the to for quarter, been levels in into of made sales direction all-time benefit downturn for our the industry mentioned and ChatGPT the advanced organic Internet a industry's in has during cut for call satisfaction the customers we for opportunities At witness this belief solutions capabilities, processing-as-a-service we internationally new previously which demonstrates improve prospects offer.As the efforts momentum ensuring a our both solution and energy and for had right that remarkable innovation not hit matter our have solutions. platform. new are move, but by offerings. we've majority shows and These a and as electricity X.X with and significant and to the the exactly efficiencies our solutions have the

momentum the to eager to future, future over success to look we're our back now turn to organization.I'll future any on realize we within Jeff for the it continue comments. As building

Jeffrey Korn

to Thank Doug, have don't anything this you, and at I say more point.

turn Mike, to don't this questions? So you open why

Operator

[ Tolani first ] Instructions] Northland is [Operator Vivek questioner from Our Capital.

Unknown Analyst

I'm Vivek Capital. Northland on Latimore Mike for for

I If you so, in is have And do couple questions seasonality it or So typically first a see negative? the is, quarter? of one the fourth positive here.

Jeffrey Korn

We've seen on it a I'll give little the And but some year. frankly, more let depends seasonality in the quarter. fourth detail, Doug

couple we've people have seen decisions deferred buying We it of in keep years money as happen. to years, where their But are in when and QX seen years balance. we've year-end QX with from are a trying to doesn't certain seen that that

completely But may to detail a able you not it's be Doug seasonable. sales. So give more on little

Doug Gaylor

reference I'd the always a Yes, most of business them got out services like use system, to that phone every there. has need and our

it's not as industries. as so other see in seasonal you would And

So have have fairly typically little a group our to a aside that onetime of which we a QX we We consistent from meeting, fairly board. But do in quarter. fourth we're bit the a but across business each bit event see revenue year of that, adds is because a our consistent. little in bump user that pop the is

Unknown Analyst

question cross-sales of about the next are what with is you levels seeing My Allegiant? Great.

Jeffrey Korn

Yes.

is today. our business a component Allegiant So of great

have very as company, also side division they data on speak. UCaaS to cross-selling our we similar telecom we're direct offerings is opportunities offering, and which have their house, are services so they but that team and that And that services what expanding unique of our sales services to managed to offerings the we the and of have

board. offerings having underway, across that the is initiative anticipate So impact and nice getting our direct just on that a sales we

Operator

hear with Lake We from Tony Street Capital. now Felling

Tony Felling

Congratulations to from on here. see Good a quarter. it great

quarter just think anything you're taking should Eric was you this step of or know run going in But of nice one-time we stair there I were here. new giving is the but a forward? kind about guys from guidance, aren't there kind in the here. filling is up -- So Martinuzzi rate

Jeffrey Korn

as I I was we're that hit one-time and just this were cylinders. This is it that steer on we won't going here. the promise there -- to certainly rate. usual, events for and be. run just hope all But you we fired be, will business to no

Doug Gaylor

Yes.

was good on of it think I equation. the sides execution all

all from I as So strong of comments, organically we saw the my increases divisions business. mentioned in

product think now. out when and for customers we're I the So what it's solution, perfect a good need that have you a right fit there offering

Tony Felling

on I there at? And know accretive future talked M&A targets. Is some to can give near-term you the anything you about, that insights us or talk for about looking what M&A you're obviously

Jeffrey Korn

were the we may it imperative over, thought brakes when looking the because have, I out the look. you of to business righted now fix acquisitions having As recall, and ship, to beginning I we're we're in the position at year. stop what we the took that on a of we put going the the We've synergies where start and was which get burn, I at all

first But reach we looking, other anything have immediately as target, time to specific talk start people about, integrated again. to immediately from ready but the on don't and on Doug we horizon. fishing start to who we us to the likes So pond now out time, looking have where to we have could nothing we're but

Operator

Our with Chris is Sakai next Singular question Research.

Chris Sakai

gain Just the -- $X.XXX let's let's a in What what million question, this was and see. equipment was of property quarter? sale on see,

Jeffrey Korn

Yes.

quarter, had $X our building we the last quarter. $X,XXX,XXX the last that sold sell we sold and So to It on we day the gain ability, million. call headquarters We our contract generated for it sale. corporate earnings a before announced

Chris Sakai

service margin And gross the year-over-year. XX% revenue for from looks that? What like lowered Okay. was reason XX% what about to

Jeffrey Korn

Yes.

the year. wasn't in of when acquisition last Allegiant So it we in our so X of year, first November made the of months

typically So telecom you and XX% between which at. XX% on services traditional looking were margins depending quarter gross our were

to If Allegiant. you and acquisition of out the did carve were we

gross margins XX%. in quarter. our it quarter, So And solutions, they bundled lower at margins the for independently, business is services with for XX% the offerings service services.And skewing for so quarter Crexendo given you the additional all their telecom that's because numbers was look last IT our if have the

the but So quarter. if XX% in Allegiant at that, carve for out came you

So that was drag a on our margins.

Chris Sakai

opportunity? international best What regions? were Can about you talk your your Okay. performing

Jeffrey Korn

want to that take Anand? You

Anand Buch

growth that's percentage the the a coming last of the in of have yes, Obviously, region. numerous earnings actually I at the quarters partners mean, coming biggest been Sure. over is up U.K., as think the has in our about a Australia acquisition Australia of we talked partner we but call. lot last out here as I couple

Chris Sakai

me. guess, guys Okay. reinstituting I for last consider you And Would dividend? then the ever

Jeffrey Korn

That would say But consider. is very never I I'll on never. low my of things list

Ron Vincent

reinvesting now, you're over nice we're mean, looking spike Right at And see of back is the the that seeing the reinvesting couple I Chris. into bottom you back Yes. by growth business, business, a I and that the last that into can quarters think in the revenue line.

our And right to so now that's reinvest really business. in is back focus the

Jeffrey Korn

have better We the of by and investing simply money uses doing acquisitions.

Operator

next is questioner Soueidan Our Maj with GeoInvesting.

Maj Soueidan

quick what what to was made don't XXXXHz. candidates of maybe gas much of comparison is kind here seems of seeing areas some might that called on curious I'm do? bought recently noticed be might they an what looking wondering about acquisition the on in any revenue, I don't you like you to could I like Xx today. a guess, there what they pricing talk and thought terms -- about I acquire XX, if I to company, which got kind it I some at front you Ooma but October your trading the what And acquisition I pay guys what interesting was looking into. bought, there of know question of you just out companies really. be that I a of and you're for it's kind company, know,

Jeffrey Korn

are a nearly of answer And excited question a we and revenues we. is not first. in platform fast second there I'm that provider growing a platform me provider lot a falling let that with are. as your similarity very as as are obviously, they And Well,

in largest, the third feature-rich best is We of the which the fastest-growing breed. and platform are country,

is. that if provider me.Nonetheless, We're looking this of fastest improve exciting. if platform And to what But go to to one-off a know that company this ahead. falling it's But that's job chops. be, is our value, [ will very it's the continue the continue doing we're precursor every best are. at growing. continue our the can keep not get values continue here job be here we best it our would exciting what revenue platform, sitting value no So every here matter day or obviously obviously, make if platform ] revenues to value to what that's a of our revenue, to and really don't point, the the day, increase to would But X.Xx our outside improve obviously again,

Maj Soueidan

I call, just talked a to night I at, think coming acquiring you I right? remember, about you're want interesting. not and first what had on at would that So your much sleep than think you conference price I worth you someone said you for you make ask you you're was thought less

Jeffrey Korn

on the up probably reward stock think reaches but X.Xx interesting at sleep is the platform that level we me until It to get little coming this will does, quarter. that revenue the a in keep a all let it better believes that me night, does still

Doug Gaylor

that Yes, it I you're correct. hertz, release, think if press again, highlighted you Maj, that saw XXXX

were X.X% X.X licensees million required We've or they're at platform. licensees think our XXX,XXX XXX,XXX or they've got their on got they I about doing but X.Xx platform. on revenue, plus --

the industry, in We valuations an in such and revenue very the So but said, maybe you where we're a what's on acquisition strategy. great it acquisitions of without a our pretty that's licensees come to really for acquisition there, was Jeff out growth it Xx at we in at largest like the there the or know comes think as feel and continue and opportunity bar refer being a to technology us potential a as going less interesting our focused still that's that the third I undervalued out We that now. a than look at be We platform able to resets ongoing other was we're for suite Allegiant And fastest-growing feel high that extremely technology look if comp like play, the acquired see hopefully valuation. from revenue. little but we're to.When a stream not to right for just growing out we good space, there and is to bit probably opportunities, on our us. going strong

really acquisition would stream. our focusing revenue So customers and strategy on be gaining

Ron Vincent

Maj, what are. we're value customers valuation looking depends of technology have that said With what and upon the they at, what the may

give So don't we table more may a we and of straight have the pay want that answer. to don't premium. than and it's customers to But But market some acquire to obviously, anything technology want but hard value, be on good moment. good worth we at a the

serious would as to a give pay something. to hard you for So me what it's answer for we

Maj Soueidan

And more the check Okay. back queue? or ask I can X I do questions in

Jeffrey Korn

ahead. Sure, go go ahead. No,

Maj Soueidan

I think and wondering, finance paying on in where about that their costs. of were I competitors and past rate seeing then you've reps there also they do terms maybe both that to of long because I'm do they mean, And comps aggressive in low when about of change sales the comp beer for RingCentral, have some they way how how to compete like Doug example, So ROI sales then where you had we a with the to talked some the was that you environment, of investment. it's you can't they change are up anymore do those borrow a kind that harder and to on now which levered that, -- they that

at any you seeing you going any Is guys on? benefit -- of that it are benefiting So all? of that

Jeffrey Korn

X, were shouldn't -- wouldn't us used used. but be have And I'll would verb answer, have competitors multiple made that an on acquiring spiffs I a sense. it going our some at the it X, multiples amount but can't is I revenue paid I it of X X thinking of -- of take they to it or X unprofitable business, to wouldn't let had for of valuation, get because paying the would doesn't dreams they make unreasonable was helping some. Doug and

I So market let that. little but I'll give and detail think has a the stabilized, rationalized Doug on more

Doug Gaylor

a from competitors. we spiffs lot And of extremely see out those still our there unprofitable

of offering boggles customer. and these just the it are some mind sometimes And gain guys at new to try to a what

job good the happy very for model our fact our the has customer that consistent, appreciate extremely are do our the we and fact. that think customers I I a been think after partners and and

out opposed on the think of bigger a I that's market market. reevaluate that of focusing RingCentral still their And challenges start our where enterprise it's as to sweet making to recent in most are the always there comments But competitors the lot they're a has lot think SMB going competitive I So there. our been. spot

are So to I people take things out and think starting we're there right notice. doing

Operator

Our Knop is B. Riley. next questioner with Kat

Katherine Knop

expansion today. just back here. to little Josh for a to the On go I international bit wanted

points XX call you about know you providers. from international little that expansion. if So maybe all? bit improved seeing more at on or talk -- the the maybe quarter's I data last could about call, some Has you're so last tangible number service having talked more a And international

Jeffrey Korn

Sure. that. Anand answer I'm let going to

Anand Buch

Yes.

speak that. me let to So

mentioned, XXX a as function, we're licensees I I at all Doug think if at think has you our of plus. as whole, look a

started obviously expanding market so a the you we're years as that growing, international a we of and couple it's at look into ago. only And if market as percentage a

question, path. the our But kind team. perspective channels and kind that we're we're you taking additional we players of at evolution keep when can curve we we answer a the But done it where strategy in different convert speak a in But that are to or channel a from to -- in continue their we from business lot cloud. have.And evolution is those markets, numbers every markets in general, if typically actually behind and can ebb of I The if of is leverage of bit X yes, that kind of North you of example, in specifically, they the happening a to additional to, way journey the is see that increase doing in to of little one of flow. international look of the partnerships obviously, to that footprint is customer in when macro is just mind see Australia, see, kind so original so trailing what's of to the X So relative like market you'll the the comes what quarter, at that grabbing look your or are we that's do now for started America. the given the types size the

Katherine Knop

in winning enterprises so new focused early you I on your -- larger and Okay. existing, you Helpful then also know can highlighted of And call but it larger there. today's on one probably businesses focus here.

just more the little for about can you've So of what a bit business share in future? a terms kind you of seen quarter the in winning and roadmap larger

Jeffrey Korn

pass I'll on Jon? that Sure, Jon. to

Jon Brinton

larger parts customer business, larger we're or potential X of a seeing So, the licensee. on a the

size. ago, part of I'll to -- growth it really and larger few through is where services we our funnel. expand mentioned as good business earlier, which growth which the introduced first, have overall us growth side a So helps in market. also that continuing is up in medium months trend continue offer Doug distribution better on omnichannel customer average our customer. CCaaS large-size helping to that seen the And a an telecom us a agents, of of to master we take we the Part is see into And speak

to take opportunities those stuff. a SMB pure Sometimes than little longer close the

So through to as the see close, continuing working across they expansion we're our there we're but funnel retail offers. good those

bit service trends the would seen with side that from service we the licensee old the several old than before their been people acquisition providers -- seeing Cisco converts several -- we're of things have a acquisition for have BroadSoft being to and of in Software partly larger being us getting also licensing key Cisco of for competitive we've partner a to deploy quarter, their that wins our offers from as nice offering. in from UCaaS that Microsoft.And we had we've Last Microsoft Metaswitch to our publicly. their the -- it UCaaS part had their license some and a base offers are partner alternative talked as about add platform business years of now platform talked turning because who a we to chose before, larger -- we've the Solutions, about Microsoft's years have providers to in beginning On been Metaswitch new are are

So a segment the we see in in we hadn't well, of continue business before. that to into that market part worked as growth

Katherine Knop

from just me. And then one more

renegotiating seen of you like suppliers your a on talked vendors So I as part past, and further guidance about to with you've reduce about rates know that talk greater plan. in the any you've Can updates front? costs

Jeffrey Korn

process. regularly, renegotiate that's to price. them We look get specific an don't vendor do the we every the avoid look every quarter. you give give ongoing companies Kat, from I ongoing want lower we at individual -- at you and of and and with Yes, we we prices and contracts all can't were expense process, it. an a combine I but individual it's when we duplication, it to examples, see companies, to one And seek

Operator

Our Investments. next [Operator MK Kaufman Michael question with is Instructions]

Michael Kaufman

that And competitors flow Congratulations debt. on of when more importantly, major drowning the incredible quarter. many your fact positive an cash in you're are

diamond work with coverage So guys a Ooma guess company good start believe valuations you the truly mentioned start that you I are that improve are made seeing rough. was of on the commensurate I doing. believe I will the you'll I the acquisition. And in that And and the more to

diamond great the and and you'll finance be the the be going just in with So fundamental sky. keep work up basic stay propositions to

Jeffrey Korn

listening nobody I business in We're do you, see Michael based believe upon there's fundamental grow And you I the QX is And greatly I analysts we'll the the business think hope doing But we and the who to managed not support all thank reflect have valuations But Michael. room your will thank be that start you, up. does appreciated. this seen that. carefully. that since agree, that. who should to principles. Well, certainly We are and guarantee results

Operator

of Do have our We closing the session. end our hosts have reached any question-and-answer remarks?

Jeffrey Korn

it genuinely asked listened taking Mike, I questions. appreciate call. and I No, sir. appreciate and the you everybody who called

we're about QX with you all us future, for when to excited I'm we and excited before, results. said very, speak March I very the disclose in again As

So until good care. take then, Bye.

Ron Vincent

Thanks, everybody.

Crexendo (CXDO) 9 Nov 232023 Q3 Earnings call transcript