Crexendo (CXDO) LD Micro 20th Annual Main Event Conference summary

Business model and market position

• Unified communications platform serves telecom and technology providers through wholesale SaaS and small and mid-sized businesses through retail services.

• Wholesale platform supports 250 licensees and over 8 million end users; retail serves about 200,000 direct customers. Revenue mix: 30% wholesale and 70% retail.

• Ranked third-largest U.S. telecom software platform provider; Frost & Sullivan named it the fastest-growing UCaaS platform, with 28% organic wholesale growth in 2025.

• U.S. cloud adoption is 65%-70%; Gartner expects legacy premise-based systems to transition rapidly over the next three years.

Growth and financial performance

• Q2 revenue grew 49% YoY, including ESI; H1 revenue totaled $45M, with 7% organic growth excluding the acquisition.

• Reached a $100M revenue run rate; stated commitment is to achieve that level by end-2026 and target a $150M run rate by end-2028 through organic growth and acquisitions.

• Recorded 12 consecutive GAAP-profitable quarters; gross margin increased 200 bps from Q1 to Q2, while adjusted EBITDA and cash flow continued to grow.

• Q2 cash was $18.3M, net cash $13.4M and debt $4.9M; $139M RPO was up 90% YoY, including $45M contracted for 2027.

Acquisition strategy

• Acquired Dallas-based ESI in March for $35M; ESI had $26M revenue and added about 75,000 direct seats. Purchase price was 78% cash and 22% stock.

• ESI was a 14-year licensee already using the platform, avoiding customer migration; integration plans include consolidating support and accounting functions and moving data centers to Oracle Cloud Infrastructure.

• Data-center migration is expected to add $30,000-$40,000 monthly savings as contracts expire; acquisitions from the 250-licensee base are a planned growth channel.