Software firm Crexendo's Q2 revenue beats analyst expectations

Overview

• Crexendo Q2 revenue rises 13% yr/yr, beating analyst expectations

• Non-GAAP net income for Q2 beats estimates, reaching $2.9 mln

• Adjusted EBITDA for Q2 exceeds expectations

Outlook

• Crexendo aims to accelerate telecom services revenue through profitable sales initiatives

• Company plans to expand Oracle Cloud Infrastructure presence for future growth

• Crexendo remains focused on strategic, accretive acquisitions to enhance growth

• Company well-positioned for growth with robust cash position of $23.5 mln

Result Drivers

• SOFTWARE SOLUTIONS - 31% growth in software solutions revenue drives overall revenue increase, per CEO Jeff Korn

• STRATEGIC INITIATIVES - Closing international data centers and expanding Oracle Cloud Infrastructure presence to maintain cost discipline

• CASH POSITION - Robust cash position of $23.5 mln supports continued growth and strategic investments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Crexendo Inc is $8.00, about 26.6% above its August 4 closing price of $5.87

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nACSMDRX5a