CXDO - Earnings call transcript Q2 2024

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Operator

Greetings, and welcome to the Crexendo Inc.

Second Quarter 2024 Earnings Call. At this time, all participants are on a listen-only mode and a question-and-answer session will follow the formal presentation. [Operator Instructions]. I will now turn the conference over to your host, Mr. Crexendo, of CEO Korn, Inc. Jeff begin. Sir, you may

Jeffrey Korn

of Welcome Thank XXXX QX Jeff Chairman and everyone. Ollie you, and good Korn CEO Board the Ollie, to of Conference said, Crexendo's just afternoon, Crexendo. Call. as I'm,

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

Jon Brinton

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

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

Jeffrey Korn

Thank you, Jon. most share our outstanding as directions successful a highlight the I'm technology quarter yet thrilled company. and results to telecom that strategic

Let's into dive right highlights. our

expectations up room number of income This up quarter, XXX% Ron's won't to step XX% year-over-year is is we million, in our Crexendo dedication the of our analysts. a hard consecutive which fourth but work due as Everyone direct customers. achieving maintained day its driving with signaling the shareholder those and of I our internal profitability for $XX.X our lucky of year-over-year, and revenue the as the entire consider exceeded team. and we remarkable future quarter, word, everyone team. I been licensees as for in as growth our ahead. Crexendo on myself It's technology every wonderful have but best talented value, achievement, our sure me and a tell Crexendo bright how making of work this well tremendously period world's also the a with focused remarkable. streak GAAP both net only on you I is to well thunder, at cannot

in rooted continuous improvement. However, our philosophy remains

can our we that to we laurels, complacency, it further. the putting satisfaction breed committed are recognize be might boundaries rest on While tempting and to

to ongoing Through this factor time, support committed market and as this teams more strides quarter. and team. increased adapt reporting levels metrics to the of and to performance our success been endeavor even in strong day key operations. and further. We processes We and agile responsibilities, elevating customer the every contributed enhancements have response our our we in crucial our These made seen remain we directly structures. refining and staffing, installation work has becoming efficiency to We've enhancements service our This improved our demands. organization quarter's these significant evolving is is A effective. improve

improving We in have done Part MSB this of margins. also mix and and high market, in an labor low-margin pricing of improvements sales, excellent transactions. job of the particularly is the deemphasizing

our measures our On in results our and We to speak our also anticipated, migration themselves. top than technology schedule the platform work larger accounts. migration, very front, the a smooth been of slower to VIP assure for as with are particularly platform taking diligently from those on extraordinary revenue Legacy both Classic our has line we

seamless and customers valuable demand have such this processes, And these while delayed rightfully We is that customers. are ensuring paramount migrations retaining have precision. requirements for has some custom

I QX reasonable that think time the a migration should completed XXXX. be line is during

is there is it forever, However, goal. no so completing room perfectly the

on we in that's integrate mistake, these centers. system infrastructure cloud invested accounting the for improve more heavily OCI and infrastructure industry for will and some do are services Make allow technology and needs. A attempting necessary will our to provides no us hosting completely future our for than developing services, options Oracle in future. we turn our our investments long-term best, company robust customers now of acquisitions. is and deployment We what managing to larger the Using are OCI and it hosted integrated rather also to have in advanced up as focus our internal most times for customers attract. and our accounting data and is next-generation NetSuite almost important

they our are While these long-term and with have them, profitability. investments cost for corresponding associated a evolution current without necessary savings,

long-term profitable are in to investments making these while future. GAAP intending our remain even We fully

be Software substantial is poised for Solutions growing growth. and division Our rapidly should

in United services provider third out and capitalize particularly Microsoft X to denigrate are and and competitors, we services. We market #X phase certain largest the the well-positioned the as platform are States, and opportunities, other on Cisco

these and continue the able SMB opportunities. cloud to substantial long-term meet to in future market prevalent. invest are platform expand we the of is needs to the to face market. we from so essential significant capitalize success communications every our where less However, from continue exciting, especially stiff must for Internationally, The Europe competition to we tremendously players. that potential, on is and It other really in the customer enterprise be services see our we can

London that pleased office the European is of Rim. and gaining of strong Our Pacific the and traction, anticipate our in both have and Europe very we results pipeline there. operations am strong opportunities we the genuinely growth I with

about private equity strategies financial align front, shareholder by acquisition the we for with opportunities shareholders -- remain expectations. strategic our multiples On that high cautious looking are constantly driven but and

with strategic on conclusion, our be quickly can further that promising. to optimistic look In our support. execution, growth looks are poised I And market prospects. shareholder Thank details for incredibly turn to over about deals more and accretive. do the Ron? I'll position financial and more the only ever value. achievements. numbers. We sense With on will enhance forward commitment make for we to focus strategic call ongoing than continual now and you continued and our future that, We your am Ron

Ron Vincent

Thank you, Good everyone. Jeff. afternoon,

quarter compared up revenue wonderful quarter million had XX% the of year. mentioned, second $XX.X the $XX.X for quarter, the total to we prior Jeff a to for million with As

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

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

as year. million to XX% XX% gross year, decreased the compared focus second were revenue as gross for quarter higher product XX% the million quarter $X.X of we the Consolidated margin quarter to prior Our to product for the margins compared second the $X.X of for continue prior on offerings. to

Solutions XX% the prior Our the gross for second quarter were Software margins year. XX%. That's quarter compared for the of to

the into increased XX% in compared of $XX.X second year. perspective, year. the year. XX%, quarter of revenue Our in this expenses That's million to XX.X prior of quarter XX% quarter XX%, the To And to by that's put resources and Telecom have from compared we XX prior gross quarter of XX% $XX.X our compared quarter up for second margins prior the margins XX% Service the million year. margins second the second the FTEs outsourced the X% to from year. added to the Operating quarter increased the second prior segment gross the driven product for of to of service were that's in prior

So, in as the quarter and income and income $X.XX our That's per $X.XX and $XXX,XXX diluted per $X.XX common prior continue common Net quarter prior and basic quarter. was non-GAAP per per for of share the our the $X.XX share, for to a common million Non-GAAP and invest the product basic second of compared net to for basic share $XXX,XXX year. $X.X we the to $X.XX per second That's of services. $X.X and share loss income common year. diluted of of diluted quarter. loss net for compared the diluted or basic net million a

was as the was of million the quarter compared EBITDA the the $XXX,XXX prior second And for $X.X $X.X for EBITDA to prior quarter That's million the for quarter adjusted million. second to of quarter our year. $X.X compared the Our year. for

provided cash used financing period $X.X June at prior the operating the additional for the period was turn and X-month was the operating period for investing by comments cash activities $XX.X $XX,XXX the for to period period used XXXX. for of investing $XXX,XXX activities of prior Cash used to our I million year. Gaylor, Doug by COO, the And same was million. balance activities year. million of for over will provided for in activities compared of now $XX.X it to of on for to XX cash Our X-month operations. at prior compared for XX, sales Cash to and That's activities December President compared $XXX,XXX cash compared the $XXX,XXX for same X the year.

Doug Gaylor

Thanks, Ron. for very XXXX. I'm quarter of with QX results the for and the was first for quarter pleased our Crexendo, half a and great

GAAP in XX% organically the rate year-over-year the growth QX of the along profitable organic result of of year, organic line focus of growing with our direct first consecutive for managing and were the XX% growth our top half Our the the business. fourth on quarter and fundamentals

results our which increased results of our quarter well. our the XXrd non-GAAP are quarter. GAAP net as synergies the and our extremely non-GAAP improvements to segments. and from quarter, share, XX% This The from strong year-over-year plans or saw on is for our income for our flow our procedures quarter quarter managing prior executing the in cash position for strong quarter for our share, processes, and of the that well we our business income, highlight and in $XXX,XXX the continue net to strong with Our consecutive all or a $X.XX highlight of cash $X.XX success business million net $X.X sales, as and income our XXX% contributed costs positive also a maximizing our

see with solid of rate growth to rate anticipate retreat should segments for that are user competitors, has from our to Software The products fueling the X that Crescendo. new on UC XX% quarter. on exciting our opportunities propelled achieved continues. strong Microsoft. particularly closing as existing and What organic organic of success, X MaX us rapid continue in quarter, continued cuts Microsoft that combination for Software this significant with business and I we they their experiencing our for mark We a their a board is recently the platform indication on a coming growth, Metaswitch combined growth on business strong The Metaswitch is we leave segment XX% announced end-of-life growth providing both the licensees, organic is us logos for our our has quarter. our Solutions a and in in Solutions in segment our our XX% their organic growth continued platform division, services many of largest signaled million recent Cisco demand eclipse together the which platform platform

the agents increase small from Crescendo. and migration additional and rapid their to by our continue Crexendo services with grow, to licensees continue midsize businesses and licensees enterprise Our spend and And to level as the cloud. need benefit they

out X added mentioned, internationally see to strong we new solutions previously logos for Jeff the of as during software quarter. well, our As demand office U.K. more and continue our

revenue, including at offset Services segment, our Telecom product grew the reached decline the growth. low-margin for organically revenue thus, double-digit at in to for We've and less made a segment Our growth conscious portion product the by product revenue X% XX%, services effort quarter. focus on

those to sales highlighted from strong demand resellers our channel from brokers, saw from see our to by XX% for XX% sales service continue offerings also and compared our And rate We QX a in significantly up our partners a as agents. quarter numbers are telecom for known of growth the growth master in channel XXXX.

their a nice Our we sell to share from partners. our continue and and existing on basis, partners prospects channel services our growth see channel to customers revenue

strong channel best-in-class solutions on because to and have and relationships satisfaction partners VoIP of XXX% guarantee our continues competitors provider like uptime in and our that have industry highest of Our ranked strong us the with confidence results our lead sites service all GX.com. review our customer customer in the as

a year-over-year, that's enhancing our offerings. largest independent and saw partnerships, again increase Our successful channel in partner their due to sales XX% customer

grow Our a backlog and strong success. million, from future increase of XXXX, which continues our to now of $XX.XX is at XX% indicator is an of QX

a software on customers is remaining the the sliding number over reminder, backlog our months. will services our recognized a contract and next be our of As telecom for sum scale XX values the solutions that

margins our at XX%. from and that gross continue margins under Solutions gross Software our remained we're MSP on in being Services mentioned, telecom our acquisition margins And affected lower has Telecom strong selective there. we steady margins by margins remained margins more gross as to product have at service lower segment QX Our sales Allegion XX%, increasing from be by those already working services. on

our functions. offerings replacing enhance on offerings with to artificial et addition to the automatically released recently third-party expand in product offerings. greetings, messages, our continues to our to same need auto-attendant marketing create continue that the We updates AI using customers expensive AI, platform We new software allow cetera, for intelligence or services perform hold that to

deployed applications to on developed platform. allow intelligence applications more be Our artificial and enhanced API our integration X.X for

daily We they hundreds can leading can users delivering developers day our solutions a building those the we third-party solutions integrate to are edge implement AI every in platform, on regards basis, of have to and immediately. that use and end on

We're growth remarkably opportunities are next have we previously, our As and in that proactively result we looking the in complement future. acquisitions will to have growth. our for our acquisition mentioned inorganic efforts optimistic our successful, past synergistic been organic significant

really first services. products our momentum for continue The we half has of lot to and of been for demand us, see a strong XXXX in and

We continue and and to cash margins, plans growth flow positive execute for well on our our managing business organic expenses. increasing

growth end-user and solution there shareholders. for opportunity ability returns best direction and still now for the for I'm great growth, our our very back the over to further that the rapid to best and highlights comments. our turn to I'll is Our any customers deliver about Jeff continue excited our it to

Jeffrey Korn

don't have any Thank comments. further you, I Doug. And Ollie,

Let's up open the to questions. call

Operator

Instructions]. you. questions. Thank for conducting At will please One we poll this be moment time, we you. our question-and-answer session. Thank [Operator while

Mike Our coming first Northland with Capital is question from Latimore Markets.

Mike Latimore

Congrats on the great results.

flow from excellent. is look cash great organic operations growth and Your

pricing? growth quarters. more? on a their versus business. that congrats software guess within some the XX% I rates big software existing part are you a late context new to that. on licensees and you accelerated taking XX% can more kind Maybe around because that's guess had of XX% few are versus would to seeing pretty own great last your question So, I a The Just I acceleration. your be bit selling actions from little over subscription there? from little a frame What

Jeffrey Korn

to Mike, to that give with I'm to we'll and answer, Jon going start Jon. Anand

Jon Brinton

that that leveraging had at things in and the area. that healthy think funnel from talk growth, you rate. entrepreneurial larger companies future, partnered Yes. are software and of growth today? we carriers a areas. you and that success purchase to are continued we're I how we've with user are really when We and one, I growth Mike, upgrades them a some in continue compounding leads mean, the to in the couple us a about They driving great great our understand and seeing doing and excel, like

in seeing indicated that about both BroadWorks Jeff an bases are them. and indicated Metaswitch and for We Doug Microsoft others partners and as influx from from interest, they're have long-term future the Cisco Partners concerned who

And type we we So, ecosystem they grow well. moving as and services of and can our platform, to are at in the partners. additional looking with getting those traction some our to our partners sell to just also that continue we're

of there that a to across now -- that. So, bit is area generally across that business, just lumpiness

So, to going model I to part that business. of for add you we do software the in XX% growth, solutions have that that. Anand, continue into build we're anything wouldn't if strong I And double-digit have the necessarily but don't like growth believe you to want know, to

Jeffrey Korn

had told Ron your a model. relief face not And look his into on of to build he that when you

Anand Buch

it I pretty nailed mean, well. I Jon think

emphasize the this a quite services ecosystem Mike, growth predictable shift area, little yes, is I more in top a what Jon get that said, a with like licensing. the we've perpetual think add to from to to of the of we think and I about other that the bit bit to revenue the just idea comes kind other is seeing lumpy before, spoken to also the of all little but It's on we're from of platform. --

it's relief And Jeff little XX% said, your I build not bit So, like into bit across of to a sighed the a board. that model.

Jon Brinton

We versus pleased do that do you point about on build We very recurring recurring in revenue in we're look consistently has quarter-over-quarter, And do, that. as just provide and the follow-on. breakdown continued the that, to the if see you time at queue. a

Mike Latimore

is the healthy. fairly margin business the And Is that on bit? software remained going a little gross or consistent here, sustainable Excellent. something Okay. very forward that run

Jeffrey Korn

but short give The I'll let you is more detail. yes, Ron answer

Ron Vincent

well in between is in to staff. we've the use to to have we between And team software as existing third-party It's that XX% is for gross experiencing year addition Mike, for I of Yes. leverage as growth as able we and resources been there business. margins. XX.X prior margin, customer mentioned to anywhere FTEs. that compared very team high XX% my engineering-related and typically been our leverage consultants invest that recently. QX of we margin But this focus a our the on work, as continued service comments, We've

And to so, the XX% margin. coming that to in increase. XXs, Quarters lagging, up we improve We in we're and see on low can at XX% we ago, margin. and think to that. We're were were starting we continue now

Operator

Josh is Riley. with B. Our question coming next from Nichols

Jeffrey Korn

are Hi, doing? you How Josh.

Josh Nichols

million increase the in on say it's you did who's aren't such thing a into bottom. like But touch to that, -- that -- I've curious report great. Doing if while growth? $X acceleration this see think kind some strong going about provide we seen sequential XX, the top that I'm the such what's in are a building into like counting? One be And to services or that you driving backlog great I would a wanted biggest just there. in is because of And from rapid the I just backlog could context for to great.

Doug Gaylor

most Yes. XX- of Obviously, of obligations contractual all customers the or know, consists as our number and XX-month of are you agreements. backlog our on

immediately. strong to those we And so, as continue into go sales, numbers have our backlog

sales And so, on the the number segment we've Software because to that discontinues the segment. both Services got that strong of Telecom Solutions and compound

number, as to that number, because think sales to XX% I continue growth, to number. we that continue I strong So year-over-year. was That's segments grow and both backlog said that that's it add on up great

Josh Nichols

context for that, yet, the what's I terms growth. build the not point out healthy And I I in in to the then expectations just of software it's just the appreciate trying piece, think. recurring bit breakdown in But double-digit queue lumpy future? a is the little and time for understand curious, about versus

Ron Vincent

Yes.

Software our is onetime. Solutions revenue on XX% the recurring versus So, side,

Operator

Needham from Koontz coming is question next with Our Company. & Ryan

Ryan Koontz

customer customer saw growth about you I Mike's coming could. I hear or expansions new question your to Software if response of didn't wins? clarification, Quick in that more from if Solutions, your

Jeffrey Korn

give Ron more But It's that. both. on can detail actually you

Ron Vincent

Yes.

quarter, were to logos we we our had During had that the X upgrade added partner, and X new orders.

Ryan Koontz

like done? in in further to margin Nice. it gross over gross What step-up solution And sounds And kind me lift are remind can some percentage some side? on there's you the the to opportunities on see margins, where Oracle migration you is there? of your

Jeffrey Korn

the started sure customers we number putting on a it's because it with and Ryan, just make it do few new seamlessly. we this platform, point Oracle. very to understand we integration We're small can at a their

won't really QX or until of next You year. see much of QX a migration

Ryan Koontz

the there? is you I'm estimate? it. very that like Got Obviously, after, your competitive go can in environment see. And guessing. with Metaswitch much what's success, big you And that favor I do your installed how tilting base

Doug Gaylor

spent there XXX X that about the large. Fairly acquiring out million there's We think years them so Metaswitch When on bought they or probably Microsoft platform. licensees Metaswitch. $XXX ago,

fairly us. retreating decent announcement And the space, opportunity creates it's platform of telecom organization. just So, out a sized for Microsoft's of

excited it. about So, we're

think brought migrated or have in X we Crexendo last over that I the months, Metaswitch X a platform. on few the quite to licensees

that opportunities So, part or business excited they're of removal their us. for about and the from to the we're from extremely it's part that business and going of retreat -- create the

Ryan Koontz

pulling synergy Got it still much look between it. the between of your that of X are subscription base? map remind can sides there the Software is you together the you how kind all side. technology what's Or the built like of And VoIP on me kind R&D and road business? -- side and Is Solutions same

Doug Gaylor

customers got Yes, it's VIP platform that business. software is end-user on NetSapiens we've solution our the our are all on still for platform be XX% we customers branded that complete the our platform older as also of -- platform, direct -- some all by to QX. we're our our VIP migrating And the is the platform of We end that same of our earlier, and as today. have that anticipate, migration on platform over to VIP of platform the classic mentioned Jeff

them enhanced So, classic upgrade that, customers our platform, of the which price. when for enhanced off at just last capabilities, platform features same we the the getting them our look and to VIP giving gives nice we're

Jeffrey Korn

between synergies that an you unimportant mentioned. is thing the X not the And

understand was hand-in-hand retail fact when what One acquired the needs. would a sudden, drives that we of market like our working be of all the things NetSapiens who the engineers really engineers with we wholesale

We food. a eat it's synergistic So, opportunity. our own dog been very

same why customers going the to second every the and make platform to that's is to are work be day Crexendo we the on sure none. platform, of All

Ryan Koontz

Perfect.

lines of were your deals one backlog. of maybe than previously Xs, housekeeping I your Are contracts Just read terms new doing the are expanded of than little a last between you like sounds one. increasing kind maybe? X-year in more in It duration? kind you

Doug Gaylor

X-year on is Yes. but churn almost that Most the on our are negligible. of agreements, software solutions licensees

little very the side licensee house. churn So, on platform the of

On majority end-user retail the the are get XX-month direct customers customers, contracts. us. customers, terms on probably where higher of the with pricing those the best That's on they

would XX-month Secondarily contracts. to that be

Operator

Our next question is coming from Mark Hagan with Lake Street Capital.

Mark Hagen

I around was was away, could any and just Phoenix you that's where data understanding wondering if my put of investments? color kind and OCI center the going the legacy at it with

Jeffrey Korn

off Well, hosted a one, our end our platform. or step, X. hosted as it's to running expect we will separate morphed legacy morph onto it platform, to our of by a is a which be we're do everybody X-step said we on one VIP But platform may QX, moving be to not but which classic process over of the

Operator

question from next coming Chris Our is Singular with Sakai Research.

Chris Sakai

you've an quarter growth. we be get idea Solutions in revenue of we how What -- concerned? next the should got what to far as -- Software wanted expecting Just can as that's margin about sort and growth

Jeffrey Korn

will don't We're that growth number. expect damn be good for will all it for and trends John XX% but a to Anand in it a you, commit but continual I market. explained as to not going number be strong growth, but less than We growth, Chris, previously. have XX%, continual look

Chris Sakai

telecom solutions Do would you that day outpace one services? foresee software

Jeffrey Korn

Absolutely.

Doug Gaylor

Xx we're now, rate is retail the you the Software seeing our that division. if look at of growing Yes, rate growth Solutions at

a just looking platform. of demand service a for for providers there's So, lot pent-up

grow. So, we of that see segment business to the continuing

be XX% year now, total to close of within majority. X, revenue a or it could stream, And so the right it's the

Chris Sakai

in is And expansion Australia Okay. going? Interesting. how

Jeffrey Korn

I'll answer that. us, for let Anand we're harder great market inroads. but a It's making some

Anand Buch

a a in international as to then interesting Yes. that even added our I ever a actually were of as U.K. region. some had that And another on operation come logos grow. mean, the the actually product number change. to, our to spoke well, there. consumed Australia because markets international handled resource referred differently. existing see from Any of slightly operation. There's of partners of these continue the our have We've that do We've Ron I of we partners so Jeff lot handful think, Street,

eye licensing to on mentioned But larger So, the core same an of and these we operating providers, regions, specifically And folks you seeing bit platform and well, it's moved read And larger there. of also have Jeff Cisco keep in have over of interest like service as some still partners quite actually BroadSoft. whatnot. providers, as that. platform, those some BroadSoft. from we're that And a the core at the we're core, the then probably

continue we to those see good progress areas. in So,

Operator

question Broker. from next Igor coming is Our with Freedom Tamasek

Unknown Analyst

some strong I about your year for guidance given your full your just Maybe us give future half the year. guidance. wanted to ask plans. performance first of the Maybe about can you

Jeffrey Korn

don't you telephone. Apparently, up. have breaking a were you Crexendo Igor, sorry, I'm

repeat the question, If we it. appreciate could you would

Unknown Analyst

about Previously, double-digit So, growth, you guidance. organic I revenue something maybe full that you changed? your year expect mentioned was talking would

Jeffrey Korn

digits, it changed more in We're nothing will except be expectation or than Nothing double-digit double expect changed, give has guidance, of better growth. not to ready more has I than low but XX%. specific our the

Unknown Analyst

ask Maybe to partnership. you bit expect? wanted give also can a on I about your little And Oracle benefits details magnitude some more do of numbers cost you

Jeffrey Korn

I as indicated the learning we're testing Well, and before, process.

hosted as as amount and our increases of ancillary in And to to it benefits time has said, us. our for of platform the response savings any We cost data connection. of over over huge I which will -- maintain the increases time all longer be which the set it have a up we can that we to next move so no the centers, year, customers course OCI expect

But to win-win. be closing the we year, all be over So, expect over will next data OCI. a moving everything centers to and course it the of

Operator

[Operator Instructions].

is from question with next McColgan coming Investors. Our Sam Breakout

Sam McColgan

everything, really killing to Great likely margins, see flows, great cash OpEx gross guys are improvement, Yes. it. Brilliant you quarter, sheet. down, coming revenue, balance

on killing You're all cylinders, think. I

it Just curious was top down kind breaks to at can of looking backlog, you when else international, if for asked, that. of you're that on any how is me which one just in your everything domestic got give terms color of I of in versus question terms

Jeffrey Korn

I'm handy, Ron not sure let that answer have we that. but I'll

Ron Vincent

we We by a don't versus reporting. disclosure Yes. have backlog that to Currently, our backlog international. future by disclose U.S. consider segment. adding I'll

Jeffrey Korn

part prior, to our a which has trigger become I requirements. certain international As will reporting Sam, business, mentioned material of begun

be one, is that something necessarily, and should start that track we it for you. to will So not but answering we able

Doug Gaylor

And little Sam. a to on give you color that, just

have for this the halfway at million backlog this currently remaining $X.XXX part So, in of year, we XXXX. year, for

up million revenue number queued in XXXX. and already then for that million $X.XXX For XXXX. backlogs little $XX for is XXXX, for for bit $X over And for XXXX, million we million have a XXXX, $XX.XXX

So, XXXX revenue see queued already for that up for how our success, in backlog having you critical $XX million is can it. future

Sam McColgan

Yes, are for I the the to backlog. sharing. Thanks hearing maybe for look the forward breakdown numbers brilliant in future. those

Operator

Our next Investments. question MK with is coming from Michael Kaufman

Michael Kaufman

outside wondering what And you're best X really think, areas, of doing in in I'm the the perfectly financial how that right for tuck-in. an environment. secret this in for sense companies to the you companies small terms they're strategy, not people in and the acquisitions want the that tuck-in the somewhere might I might an exposure the terms be that the were the and of now or and is worth thank And of aligned And really companies to moon, some an you balanced were be it. incredibly terms but team in opportunity, attacking to see the just kept possible is really small Street, And be perfectly thing Wall think running said geography really opportunity. strategically seem attack direction. makes else other in all either We I as exit business before, investors. on talking the metrics, opportunity there don't generating about have of more company small in the

Jeffrey Korn

All right, Mike.

First, let thank me It me compliments the appreciated. to much for team. both you the and is

question go moment Sanders field. comments, me by are mentioned our Street tuck-in, Wall my Even private supported let equity in that as acquisitions. in just with last I Secondarily, is not paying the regarding your at small multiples

So it that's difficult. making

licensees smaller in much have in million the interest $X Now some of our million private an to equity not $X of range. does

Eventually, multiple. looking So, are and the a the it that licensees have licensees larger at the come would people to even will all understand that you their become rational paid, is. us what head. we would moment, Street small in But the what better multiple a and believe and acquisitions Wall multiple think they at being in back are market will make rational

keeping who business. also can price our somebody and a us they expect. with the sell. to eyes wants to and make future ride not We going open. if portion tuck-in But the accretive of our enhance not we do grab And acquisition, going is we right and in to We an get purchase anything enhance we advantage see or have the will stock or numbers but to the acquisition be our acceleration the we're we the for it, are can that acquisition, of for sake or an

Doug Gaylor

part the getting other Mike, out our question, the on on And of message there.

conferences over investor not to of summertime. There's up after X starting We do conference. investment course investment continue as We've many the but to months. next going they're the get queued on, got conference

City telling lined days, up conferences, trying virtual up times get Crexendo's few the sites a the a us with meetings retail story investor story few a out to and different quite couple up our there of New that the see then of And in lot next You'll quite picked masses. of have on to we've to over with York investors. are got it course

fact continue we the that will and to more appreciate So, a that. tell the rough acknowledging diamond the you pick more story, in people on are times the we up the

Michael Kaufman

you'll do of luck. great sure job. a I'm Best

all you've And far, expectations. my so exceeded

Jeffrey Korn

get Well, at Michael. But if can somebody home. that you, I thank tell me to only

Operator

comments. I to further time, any Korn for no hand it Mr. this at in questions queue will back the have closing we As

Jeffrey Korn

results I again, offices to thank to want continue thank proud. the here to for in that the day and us everybody the for investors of are for with and team questions and team make make in of customers we your room our me all and and every want sure these who all working our again, support. I joining the

talking our QX to to look results, have great we afternoon. you So, and forward about a

Doug Gaylor

Thanks, everybody. Bye-bye.

Operator

call, And you Thank disconnect your This time. for at you. participation. concludes you we lines may and your this thank today's

Crexendo (CXDO) 6 Aug 242024 Q2 Earnings call transcript