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Crexendo, Inc. (CXDO) is a global provider of cloud communication platforms, video collaboration, and managed IT services. The company specializes in delivering enterprise-class cloud solutions to businesses of all sizes on a subscription basis, eliminating the need for significant capital investments. Crexendo supports over three million end users worldwide and offers scalable solutions tailored to meet diverse business needs.
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Cloud Telecommunications Services - Transmits calls using IP or cloud technology, converting voice signals into digital data packets for Internet or cloud transmission. Offers basic and enhanced features accessible via a single identity, regardless of connection method, and generates recurring revenue through long-term contracts, equipment sales, and additional fees.
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Software Solutions - Provides software licenses, maintenance support, and professional services, either separately or as bundled packages. Includes perpetual licenses, SaaS subscriptions, and term-based licenses, with revenue recognized over the term of the agreement or upon completion of services.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Jeffrey G. Korn ExecutiveBoard | CEO and Chairman | Serves on private and charitable boards (specific organizations not named) | Longest-standing employee of CXDO, joined as General Counsel, later served as EVP and CLO before becoming CEO. Instrumental in CXDO's growth in telecommunications. | View Report → |
Anand Buch Executive | Chief Strategy Officer | None | Co-founder and former CEO of NetSapiens, acquired by CXDO in 2021. Focuses on strategic direction and innovation. | |
David Wang Executive | Chief Technology Officer | None | Co-founder of NetSapiens, joined CXDO in 2021. Responsible for the architectural design of the NetSapiens platform. Holds multiple patents in voice compression and network technologies. | |
Doug Gaylor Executive | President and COO | Active board member for non-profits (specific organizations not named) | Joined CXDO in 2009 as VP of Sales, promoted to President and COO in 2012. Over 30 years of experience in telecommunications, specializing in sales and business development. | |
Jon Brinton Executive | Chief Revenue Officer (CRO) | None | Joined CXDO in 2020. Former VP of North America Channel at Avaya and held senior roles at Mitel, including leading the Cloud Division to achieve #2 global UCaaS market share. | |
Ron Vincent Executive | CFO | None | Joined CXDO in 2012 as CFO. Former audit senior manager at Ernst & Young. Licensed CPA in Arizona. | |
Anil Puri Board | Director | EVP of Western Economic Association International | Director since 2009. Noted economist and scholar. Former Provost and Dean at California State University - Fullerton. | |
David Williams Board | Director | CEO of Equity Capital Management Corp. | Director since 2008. Extensive expertise in asset management, taxation, and corporate governance. | |
Jeffrey P. Bash Board | Director | Consultant to FinTekk AP, LLC | Director since 2013. Provides strategic planning and corporate finance expertise. | |
Kevin Jackson Board | Director | None | Director since 2023. Former senior engineering sales leader at Hitachi and The Hackett Group, representing 61 of America's Fortune 100 companies. | |
L. Jasmine Kim Board | Director | None | Director since 2023. Former CMO at Sutter Health, led transformative initiatives including launching urgent care clinics and implementing patient engagement strategies. | |
Steven G. Mihaylo Board | Chairman Emeritus | Serves on boards of Arizona Heart Foundation, Junior Achievement of Arizona, and others | Former CEO and Chairman of CXDO (retired in 2023). Played a pivotal role in CXDO's transformation into a leading cloud communications provider. Owns ~43% of CXDO shares. | |
Todd A. Goergen Board | Director | Founder and Managing Partner of The Ropart Asset Management Funds | Director since 2006. Experienced in investing, capital allocation, and corporate governance. Chairman of CXDO's Compensation Committee. |
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While your services revenue grew 6% year-over-year, it was flat sequentially in Q3; given this stagnation, are there underlying macroeconomic factors or company-specific issues affecting your services revenue growth, and how do you plan to drive sequential growth in this segment?
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Operating expenses increased 15% year-over-year due to investments in headcount, Oracle Cloud Infrastructure, and your new accounting system; can you provide a timeline for when these investments will positively impact profitability, and how do you justify the near-term pressure on margins?
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Gross margins in your product segment decreased from 45% to 40% compared to the same quarter last year; what factors contributed to this decline, and what strategies are you implementing to improve product margins moving forward?
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You mentioned an increase in churn during the quarter, particularly from one national account; can you elaborate on the reasons behind this churn, and what measures are you taking to mitigate churn and enhance customer retention across your client base?
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Given the intense competition from established players like RingCentral, 8x8, and Vonage, and the apparent market slowdown in the U.S., how does Crexendo plan to differentiate itself and capture market share to sustain growth in this challenging environment?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Allegiant Networks, LLC | 2022 | In 2022, Crexendo, Inc. acquired Allegiant Networks, LLC for a total purchase price of approximately $9.4 million, structured with $2.0M in cash, a three-year $1.1M promissory note, and 2,461,538 shares issued at $2.57 per share. The acquisition was strategically aimed at expanding Crexendo’s presence in Kansas and Missouri by adding key UCaaS, Telecom, Managed, and Network Services capabilities; Allegiant became a wholly owned subsidiary and its CEO joined Crexendo as an Executive Vice President, supporting a highly accretive growth strategy. |
No recent press releases or 8-K filings found for CXDO.