Strong sales growth in the middle of competitive …

Appearance date: May 06, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• CREXENDO INC (Nasdaq: CXDO) recorded an increase in total sales of 12% compared to the previous year of $ 16.1 million.

• Software Solutions sales increased by 33%, whereby the gross margins in this segment rose by 500 basis points to 78%.

• The company achieved the GAAP redematability for the seventh quarter in a row with a net result of $ 1.2 million.

• CREXENDO INC (NASDAQ: CXDO) exceeded 6 million users on their software Solutions platform, which indicates a strong demand.

• The company is strategically investing in innovation and infrastructure, including migration to the Oracle -Cloud infrastructure, which expects the cost savings and margin expansion.

• Product sales decreased by 22% to $ 1.1 million compared to the previous year.

• The gross margin of service sales increases by 3% compared to 57% by 3%.

• The telecommunications market is still very competitive, and some competitors do not operate sustainable price practices.

• Operating costs rose by 8% to $ 14.9 million, which affected general profitability.

• There is uncertainty on the market due to macroeconomic factors, although CREXENDO INC (NASDAQ: CXDO) has not yet found any measurable addition to demand.

Q: Jeff, you have mentioned a sustainable double -digit growth. Is this guide relevant for the entire year 2025 or especially for Q2? A: Jeff Korn, CEO: The instructions are for the growth of the year. Although there can be quarterly deviations, we are confident that we will achieve growth of at least 10% compared to the previous year.

Q: Are there any changes to competitor behavior in terms of aggressive pricing and incentives? A: Jeff Korn, CEO: The behavior remains similar to 2024. We believe that these practices are not sustainable and continue to concentrate on profitable growth by offering superior service and customer experience.

Q: Can you provide further details about the impressive software -Bruttom marge and improvement and sustainability? A: Ron Vincent, CFO: The margin improvement is powered by increased income in the software Solutions department. While we had a great quarter, we aim at a range of 73-75%for the whole year.

Q: How does the acquisition of Metawitch through Allianza affect the market and what do you see in relation to the competition? A: Jeff Korn, CEO: We have not yet seen any significant changes. Our differentiated model and service level continues to arouse interest, and we are confident of gaining more business due to our superior product and our superior flexibility.