Crexendo (NASDAQ:CXDO) Posts Earnings Results, Beats Expectations By $0.02 EPS

Crexendo (NASDAQ:CXDO) posted its earnings results on Tuesday. The company reported $0.10 EPS for the quarter, topping the consensus estimate of $0.08 by $0.02, FiscalAI reports. Crexendo had a return on equity of 13.74% and a net margin of 7.44%.The firm had revenue of $20.71 million for the quarter, compared to analyst estimates of $19.63 million.

Here are the key takeaways from Crexendo’s conference call:

• Crexendo reported a strong quarter with $20.7M revenue (up 29% YoY), GAAP net income of $0.6M and non‑GAAP net income of $3.3M, marking its 11th consecutive GAAP profitable quarter.
• The March 1 acquisition of Estech Systems (ESI) contributed about $2.1M in the quarter, integration is “ahead of plan,” and ESI added materially to backlog and near‑term sales activity.
• Product innovation and AI are strategic drivers — the newly launched CAIRO AI receptionist/orchestrator and a growing EVP partner program (48 partners, 11 AI-focused) are expected to boost ARPU and licensee monetization.
• Organic performance remains healthy (management expects sustained double‑digit organic growth excluding ESI) and remaining performance obligations rose to $135.6M, but visibility on ESI’s sustained monthly run‑rate is limited with only one month of included results.
• Operating expenses rose (~$3.2M excluding ESI) and margin headwinds included OCI migration costs, acquisition‑related charges (~$800K), and increased product sales at low margins, leaving operating margin at 2% this quarter.

Crexendo Stock Up 17.1%

Crexendo stock traded up $1.43 during mid-day trading on Wednesday, reaching $9.74. 1,082,569 shares of the company’s stock were exchanged, compared to its average volume of 203,037. Crexendo has a twelve month low of $5.07 and a twelve month high of $9.78. The company has a market cap of $303.25 million, a P/E ratio of 57.27 and a beta of 0.93. The company has a fifty day moving average of $6.44 and a 200-day moving average of $6.58.

More Crexendo News

Here are the key news stories impacting Crexendo this week:

• Positive Sentiment: Q1 results beat expectations — Crexendo reported revenue of $20.7M (up ~29% Y/Y) and GAAP net income of $0.6M; EPS was $0.10 vs. consensus $0.08, reflecting improving margins and profitable growth. This is the primary near-term catalyst for the rally. Press Release
• Positive Sentiment: Analyst upgrade — Needham & Company raised its price target from $9 to $12 and initiated/maintained a Buy, signaling ~26% upside versus the prior share level and likely attracting fresh interest from growth-oriented investors. Benzinga
• Neutral Sentiment: Additional coverage and context — Multiple outlets (Zacks, MarketBeat, Seeking Alpha transcript) highlight the quarter’s key metrics, the conference call detail, and comparisons to estimates; useful for due diligence but not new catalysts by itself. Earnings Call Transcript
• Neutral Sentiment: Volume and momentum — Intraday volume is well above average, suggesting momentum-driven trading; that can amplify moves but also raises short-term volatility risk. MarketBeat
• Negative Sentiment: Valuation and durability questions — Even after the beat, CXDO trades at a relatively high P/E for a small-cap (consensus forward EPS still modest), so further upside may depend on sustaining growth and margin expansion in coming quarters. Zacks Analysis

Wall Street Analyst Weigh In

Several research firms recently issued reports on CXDO. Lake Street Capital reiterated a “buy” rating and issued a $11.00 price objective on shares of Crexendo in a report on Wednesday. Wall Street Zen lowered Crexendo from a “strong-buy” rating to a “buy” rating in a research note on Friday, January 23rd. Weiss Ratings reissued a “hold (c)” rating on shares of Crexendo in a research report on Wednesday, April 8th. Finally, Needham & Company LLC boosted their target price on shares of Crexendo from $9.00 to $12.00 and gave the company a “buy” rating in a report on Wednesday. Four analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $10.40.

Insider Buying and Selling at Crexendo

In other news, CTO David Tzat-Kin Wang sold 20,482 shares of the stock in a transaction on Monday, March 9th. The stock was sold at an average price of $7.00, for a total value of $143,374.00. Following the sale, the chief technology officer directly owned 629,949 shares in the company, valued at approximately $4,409,643. This trade represents a 3.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 47.20% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in CXDO. Goldman Sachs Group Inc. boosted its holdings in shares of Crexendo by 2.5% in the 4th quarter. Goldman Sachs Group Inc. now owns 94,318 shares of the company’s stock valued at $610,000 after buying an additional 2,260 shares in the last quarter. Bank of America Corp DE lifted its position in Crexendo by 71.7% during the 4th quarter. Bank of America Corp DE now owns 6,174 shares of the company’s stock worth $32,000 after acquiring an additional 2,578 shares during the period. BNP Paribas Financial Markets grew its position in Crexendo by 172.6% in the 3rd quarter. BNP Paribas Financial Markets now owns 4,394 shares of the company’s stock valued at $29,000 after buying an additional 2,782 shares during the last quarter. Occudo Quantitative Strategies LP boosted its holdings in shares of Crexendo by 20.4% in the fourth quarter. Occudo Quantitative Strategies LP now owns 18,016 shares of the company’s stock valued at $117,000 after acquiring an additional 3,056 shares in the last quarter. Finally, JPMorgan Chase & Co. raised its holdings in Crexendo by 56.2% during the third quarter. JPMorgan Chase & Co. now owns 10,676 shares of the company’s stock worth $69,000 after purchasing an additional 3,841 shares in the last quarter. Hedge funds and other institutional investors own 9.53% of the company’s stock.

About Crexendo

Crexendo, Inc (NASDAQ: CXDO) is a provider of cloud-based communications and collaboration solutions tailored to businesses of varying sizes. The company’s flagship offering, CXsuite, integrates enterprise-grade voice, video conferencing, instant messaging, presence, and contact center functionality into a single platform delivered over the internet. By leveraging hosted infrastructure and a subscription-based model, Crexendo aims to reduce on-premises hardware costs and simplify management for IT teams and resellers.

Crexendo’s product portfolio includes a multi-tenant cloud PBX, SIP trunking, session border controllers and an application programming interface (API) suite that allows partners and customers to embed real-time communications into custom workflows.