Crexendo (CXDO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 13% year-over-year to $15.6 million, driven by 25% growth in software solutions and solid service revenue gains.

• Net income for Q3 2024 was $148,000 ($0.01 per share); non-GAAP net income was $1.7 million ($0.06 per share).

• For the nine months ended September 30, 2024, revenue rose 14% to $44.6 million, with net income of $1.2 million compared to a net loss in the prior year.

• Surpassed 5 million users on the platform, with over 100,000 new users added monthly.

• Management highlighted robust demand, strong momentum, and continued investment in cloud infrastructure and AI-driven applications.

Financial highlights

• Q3 2024 revenue: $15.6 million (up 13% YoY); service revenue $8 million (up 6%); software solutions $5.9 million (up 25%).

• Q3 2024 net income: $148,000; non-GAAP net income: $1.7 million; adjusted EBITDA: $1.7 million.

• For the nine months, revenue was $44.6 million (up 14% YoY); adjusted EBITDA was $6.0 million.

• Cash and cash equivalents at September 30, 2024 were $15.5 million, up from $10.3 million at year-end 2023.

• Operating expenses for Q3 2024 increased 15% to $15.5 million, driven by investments in headcount, Oracle Cloud Infrastructure, and accounting systems.

Outlook and guidance

• Management anticipates continued double-digit organic growth through 2024 and into 2025, with robust demand and European expansion.

• Ongoing investments in Oracle Cloud Infrastructure, advanced accounting systems, and potential acquisitions are expected to drive future efficiency and cost savings.

• Management expects operations and liquidity sources to satisfy cash requirements for at least the next 12 months.

• Achievement of at least 90% of annual revenue and Adjusted EBITDA performance targets is considered probable for 2024.