Q1 Bookings Outlook
Q: How did Q1 bookings perform?
A: Management is very pleased with Q1 results, indicating strong sales momentum and expecting double-digit growth. They noted that bookings continue to have great momentum without any slowdown in opportunities.

Gross Margin Improvement Post-Migration
Q: Will gross margins improve after migration completion?
A: They expect some improvement in gross margins as they complete migration to the Crexendo VIP platform, eliminating costs of supporting two platforms and an extra data center. While they may not return to the 70%-72% range prior to the Allegiant acquisition, they anticipate better margins going forward.

User Growth Drivers
Q: What drove user growth from 3.5M to 4M?
A: The growth to 4 million users was driven by adding 21 new logos, rapid onboarding of new platform providers, and existing licensees growing at or above the industry rate. They anticipate reaching 4.5 million to 5 million users over the course of this year.

Acquisition Strategy and Criteria
Q: What are your criteria for acquisitions?
A: The company looks at opportunities that are size-appropriate, improve gross margins, and profitability. Their preference is to acquire existing licensees for easier integration and accretive gains. They see plenty of opportunities and are excited about prospects surfacing.

Allegiant Cross-Sale Opportunities
Q: How are cross-sale opportunities with Allegiant?
A: There is significant opportunity to increase share of wallet by selling Allegiant's MSP and Internet services. They are integrating operations to deliver excellent customer experiences and are excited about the potential to add these services to their offerings.

Cost Savings from Facility Consolidation
Q: How much will you save from moving facilities?
A: Management expects substantial cost savings of at least $1 million by not maintaining two systems and moving to more cost-effective spaces. They anticipate significant savings on monthly expenses for rent and services due to attractive deals in the market.

International Revenue Growth
Q: What is the outlook for international revenue?
A: International revenue is currently less than 5% of total revenue but is growing. They are seeing traction especially in Australia, New Zealand, and EMEA regions, adding new partners and logos, and expect continued growth in these markets. ,

Hosted 2.0 Investment
Q: What is the investment size for Hosted 2.0?
A: They expect to spend about $300,000 this year and $1 million next year on the Hosted 2.0 solution, partnering with Oracle for hosting and back-end support. They anticipate substantial growth acceleration once the solution is fully operational.

AI Initiatives and Applications
Q: How are you exploiting AI technologies?
A: They are implementing AI in use cases like generative voice prompts, sentiment analysis, and contact center capabilities using ChatGPT. AI helps improve customer experience and operational efficiency but is viewed more as a revenue generator than a cost-saving tool replacing jobs. ,

Allegiant Gross Margin Improvement
Q: Any improvement in Allegiant's gross margins?
A: Allegiant's Service revenue gross margin was 37% in Q4, compared to Crexendo Business Solutions' 67%. The company expects some improvement as they integrate operations, though margins remain lower due to the nature of Allegiant's products and services.

TeleCloud Partnership and Market Potential
Q: What's the potential with the TeleCloud partnership?
A: The partnership targets migrating over 5 million traditional POT lines in the U.S. to cloud services. This presents a significant opportunity as companies decommission traditional copper lines. They are excited about participating in this migration and the growth prospects it brings.