Josh Nichols: Oh, great. So 12% year over year excluding the acquisition?
Doug Gaylor: That’s correct.
Josh Nichols: And congratulations again, Steve. Looking forward to working with you more in the future, Jeff.
Operator: Okay. The next question is coming from Mike Latimore with Northland Capital Market.
Mike Latimore: Congrats on the changes here, Steve and Jeff. And Steve, I hope you have a great retirement.
Steve Mihaylo: Thank you. I plan to.
Mike Latimore: Sounds good. You’re over 3 million subscribers on the software platform and clearly really strong growth there. Maybe, Doug, could you go into a little bit more detail on what’s driving that? Was it new service providers coming on? Is it current expanding ? Are you mostly replacing legacy systems or is it greenfield? Just a little more detail .
Doug Gaylor: Yes, great question, Mike. And so we’re really seeing that growth coming from all angles. So we are adding new logos. We added a considerable amount of new logos in 2022. Now those logos bring on seats but those seats have to migrate over from their existing platform. So we don’t see — when a new logo comes onboard, we don’t see thousands of seats coming onboard immediately. It’s a slow migration. Our existing licensees, of which we have over 205 licensees out there now, our existing licensees are continuing to see great growth across the board. So, yes, they’re in all different markets, in all different verticals and specialties. And so when we had our user group meeting in October for all of our licensees, we had record turnout and record enthusiasm from all of those licensees because their businesses are growing nicely.
So they’re seeing organic growth just from the demand of everybody that’s leaving premise-based equipment and moving over to the cloud. So when we think about the challenges that Avaya and Mitel and other premise based providers are having and the efficiencies and productivity and cost benefits of moving to the cloud, none of our licensees, including Crexendo, are having an issue with the lack of opportunities. There’s a lot of business out there that still needs to migrate to the cloud and we’re taking advantage of it, as are our partners. So the numbers I mentioned also include international. We haven’t seen a tremendous — still not a material contribution to our numbers but we saw tremendous growth in the international markets as well. And the international markets are even further behind on adoption than the U.S. markets.
So we continue to see nice traction in the U.K. and the European markets. And in Australia, we’ve got significant momentum in Australia right now as well.
Mike Latimore: Okay, that sounds good. And then in terms of cross-selling Allegiant’s managed services into the Crexendo base, can you just give a little more detail there about timing, how you’re going to package that, or any other relevant information?
Doug Gaylor: Yes. I’m going to pass that over to Jon and he’ll give a little bit more color but the benefit of Allegiant is that they had IT services, managed services along with network services. And so all 3 of those components are services that we didn’t necessarily offer as a core competency at Crexendo to our direct end user customers. And so Allegiant has done a great job of boxing all of that into a single-source provider for their end user customers. And so we anticipate using that for a lot of our larger opportunities out there on the Crexendo direct side. And I’ll have Jon at a little bit more color to that.
