Crexendo, Inc. (NASDAQ:CXDO) Q3 2023 Earnings Call Transcript

And we continue to see great momentum from this sector of the channel. These partnerships have played a pivotal role in expanding our market reach and driving growth. Our reseller channel is continuing to perform nicely as we are seeing strong contributions from our partners and seeing large size sales opportunities coming through the process. We continue to build on our roster of reseller partners and look forward to working with a growing number of companies as the program continues to scale. We’re also continuing to see record elevated demand for our Software Solutions platform, and are seeing strong momentum in that segment of the business. Last quarter, we talked about a large Cisco BroadSoft licensee that is leaving Cisco to launch their Crexendo platform, and this quarter we just landed a large Microsoft Metaswitch platform licensee to move over to Crexendo.

So, we’re seeing great opportunities to move licensees from the number one and number two platform providers, respectively, to Crexendo’s platform, which is number three, and also the fastest growing platform in the US. Some of our competitors have talked of slowing sales due to economic headwinds, yet we have seen strong demand in both segments of our business, and it shows in our results. As an aside that we have previously mentioned in the past, in the event of a significant downturn economically, I believe that recessionary times actually benefit our industry as businesses look for ways to cut costs and improve efficiencies and productivity, and that’s exactly what our solutions offer. As we’ve previously mentioned, the majority of business customers in the US still have not migrated over to the cloud, and it’s not a matter of if they move, but when they move and make that migration, and we see that continued momentum happening with our customers and our prospects out there, and that shows in our numbers.

Internationally, our sales efforts have continued to gain traction as we address the growing demands of overseas markets, and our commitment to the international expansion is driven by our belief in the transformative power of our solutions on a global scale, and we’ll continue to execute both domestically and internationally in future quarters. Operationally, we have achieved yet another quarter of record installations, which demonstrates our ability to efficiently meet growing customer demands at higher levels of volume. Furthermore, our focus on customer satisfaction continues to yield positive results and customer satisfaction remains at an all-time high, with continued strong reviews on G2.com, which is the technology industry’s leading independent review website.

On top of the great customer reviews that we continue to get, we were also blessed with multiple customer-selected industry awards that we received for our VoIP solutions, our UCaaS solutions, and our CCaaS offerings during the quarter, including the product of the year, presented by Internet Telephony. From a product and software standpoint, we have made significant strides in enhancing our offerings. At our recent user group meeting, which Jeff referenced, which had record attendance and tremendous energy and electricity at the conference, we unveiled new CPaaS, which is programmable communication capabilities on a call-processing-as-a-service type platform. We announced new capabilities via our API 2.0 release to empower our customers with advanced features and functionalities.

We also introduced new generative AI technology features that are powered by ChatGPT and the company’s contact center solution that will lead us and our partners into new opportunities and solutions for our customers. These investments set the stage for future releases, ensuring that we remain at the forefront of technological innovation within the industry. So, in summary, this quarter has been an exceptional step in the right direction for our company, as we hit record levels across the board. We’ve experienced remarkable organic growth. Our sales efforts have been fruitful both domestically and internationally, and we continue to witness increased demand for our solutions. As we look to the future, we’re eager to continue building on our momentum to realize future success within the organization.

I’ll now turn it over back to Jeff for any future comments.

Jeff Korn: Thank you, Doug. And I don’t have anything more to say at this point. So, Mike, why don’t you turn this open to questions.

Operator: [Operator Instructions] Our first questioner is Vivek Palani from Northland Capital.

Vivek Palani: Hi. Vivek on for Mike Latimore. Yes, I’m great. How about you?

Jeff Korn: We are wonderful. Thank you.

Vivek Palani: Yes. I’m on for Mike Latimore of Northland Capital. So, I have a couple of questions here. The first one is, do you typically see seasonality in the fourth quarter? If so, is it positive or negative?