CXDO...Strong topline growth w/ $0.02 adj EPS...Crexendo Announces First Quarter 2023 Results
PHOENIX, AZ / ACCESSWIRE / May 9, 2023 / Crexendo, Inc.
CXDO, an award-winning premier provider of cloud communication platform and services, video collaboration and managed IT services designed to provide enterprise-class cloud solutions to any size business, today announced financial results for the first quarter ended March 31, 2023.
First Quarter Financial highlights:
Total revenue increased 53% year-over-year to $12.5 million
GAAP net loss of $(1.6) million, or $(0.06) per basic and diluted common share
Non-GAAP net income of $625,000, or $0.02 per basic and diluted common share
Financial Results for the First Quarter of 2023
Consolidated total revenue for the first quarter of 2023 increased 53%, or $4.3 million, to $12.5 million compared to $8.2 million for the first quarter of 2022. The Allegiant Networks business acquisition contributed $3.1 million to the consolidated total revenue in the first quarter of 2023.
Consolidated service revenue for the first quarter of 2023 increased 63%, or $2.8 million, to $7.2 million compared to $4.4 million for the first quarter of 2022. The Allegiant Networks business acquisition contributed $2.6 million to the consolidated service revenue in the first quarter of 2023.
Consolidated software solutions revenue for the first quarter of 2023 increased 26%, or $840,000, to $4.1 million compared to $3.3 million for the first quarter of 2022.
Consolidated product revenue for the first quarter of 2023 increased 149%, or $733,000, to $1.2 million compared to $492,000 for the first quarter of 2022. The Allegiant Networks business acquisition contributed $526,000 to the consolidated operating expenses in the first quarter of 2023.
Consolidated operating expenses for the first quarter of 2023 increased 47%, or $4.5 million, to $14.1 million compared to $9.6 million for the first quarter of 2022. The Allegiant Networks business acquisition contributed $3.4 million to the consolidated product revenue in the first quarter of 2023.
The Company reported net loss of $(1.6) million for the first quarter of 2023, or a $(0.06), loss per basic and diluted common share, compared to net loss of $(1.2) million, or $(0.05) loss per basic and diluted common share for the first quarter of 2022.
Non-GAAP net income of $625,000 for the first quarter of 2023, or $0.02 per basic and diluted common share, compared to non-GAAP net income of $405,000 or $0.02 per basic and diluted common share, for the first quarter of 2022.
EBITDA for the first quarter of 2023 was $(666,000) compared to $(774,000) for the first quarter of 2022. Adjusted EBITDA for the first quarter of 2023 was $749,000 compared to $302,000 for the first quarter of 2022.
Total cash and cash equivalents at March 31, 2023 was $3.7 million compared to $5.7 million at December 31, 2022.
Cash used for operating activities for the first quarter of 2023 was $(1.6) million compared to $(1.7) million used for the first quarter of 2022. Cash used for investing activities for the first quarter of 2023 was $(9,000) compared to $(34,000) used for the first quarter of 2022. Cash used for financing activities for the first quarter of 2023 was $(203,000) compared to cash provided by financing activities of $3,000 for the first quarter of 2022.
"Our strong topline performance in the first quarter was the result of continued execution from our legacy business as well as our recent acquisitions," said Crexendo Chief Executive Officer Jeff Korn. "We had very strong organic growth in our Software Solutions segment of 26% year over year as we continue to see strong demand for our platform offering. We remain concentrated on successfully integrating the acquired companies and are leading new initiatives designed to drive even greater organic growth and bottom line results for our combined organization. At the same time, we continue to make great strides in improving the operational efficiency of our business as we build a lean infrastructure that is capable of supporting our growth goals."
"Product-wise, we have continued to increase both the quality and quantity of our offerings, supporting our expanded sales efforts to drive additional revenues through new sales to new customers and add-on sales to existing customers. Entering the second quarter, we are prioritizing the profitability of the business and are cutting expenses where necessary to maintain a strong financial footing. We look forward to building on our momentum and further cementing our position as a leading provider in the UCaaS industry. I am convinced we are on the right track and our results will be very impressive."
Conference Call
Crexendo management will hold a conference call today, May 9, 2023, at 4:30 PM Eastern time to discuss these results.
Company CEO Jeff Korn, CFO Ron Vincent, and President and COO Doug Gaylor will host the call, followed by a question-and-answer period.
