Crexendo (CXDO) Planet MicroCap Showcase: VEGAS 2025 summary

Industry catalysts and market opportunities

• Four main catalysts are driving growth: Microsoft and Cisco platform disruptions, legacy provider financial struggles, and AI adoption.

• Microsoft’s exit from Metaswitch and Cisco’s price hikes/support cuts have led to licensee migrations, with 10 new major licensees added last year.

• Legacy PBX providers like Avaya and Mitel face bankruptcies, creating further retail-side opportunities.

• Only 60% of U.S. businesses have adopted cloud communications, leaving significant growth runway domestically and internationally.

• AI is a key technology driver, with new products like Video AI Studio and Voice AI Studio delivering actionable business tools.

Financial performance and growth metrics

• Achieved nearly $61 million in revenue last year, with 30% organic growth in wholesale and 14% overall organic growth.

• Wholesale segment (software solutions) is fastest-growing, now 40% of revenue; retail is 60%.

• Over 6 million users supported, up from 5 million in August, adding about 100,000 users monthly.

• $2 million GAAP income, $7.7 million non-GAAP net income, $8.2 million adjusted EBITDA, and 217% revenue growth over three years.

• Remaining performance obligation at $85.6 million, up 34% YoY, with $38 million scheduled for 2025.

Business model, customer base, and KPIs

• Wholesale customers pay per session, not per seat, saving 45%-50% on telecom expenses; average licensee pays $6,198/month.

• Wholesale churn is just over 1%, mainly due to acquisitions, with gross margins at 72% (up from 69%).

• Retail ARPU is $20/month; average account is 18 stations, $356/month; 80% of revenue is recurring, with 57% gross margin (67%-69% excluding acquisition impact).

• Retail churn is about 1% monthly, expected to return to 0.7-0.8%.

• Consistently ranked #1 in customer satisfaction in 29 categories on G2.com.