Crexendo, Inc. · NASDAQ:CXDO
Crexendo — Investor Presentation (December 2017)
23 slides from Crexendo's investor presentation, Dec 4, 2017
Slide 1: Investor Presentation December 2017
(Serexendo’ ride the cloud Investor Presentation December 2017 Symbol OTCQX: CXDO
Slide 2: Safe Harbor
Safe Harbor This presentation includes forward-looking statements within the meaning of the federal securities laws. These statements relate to, among other things, our history, our business lines, business strategy, goals , plans and expectations concerning our business, our market position and the
Slide 3: Who Is Crexendo?
Who Is Crexendo? A Fast Growing Technology Leader in The Hosted Telecom Space Designers of a world class, patented cloud based telecom system with in- house engineering staff that appeals to businesses with 5 to 5000 handsets 5-Time Award Winner of Internet Telephony Excellence Award and Multi- Year
Slide 4: Leadership Team
Leadership Team Steve Mihaylo, CEO (2008) Founder and formerly CEO of $500 million Inter-Tel sold for $740 million in 2007; 46 years experience in the telecom Industry Doug Gaylor, President & COO Former Sr. VP Sales at Inter-Tel; 30 years experience in the (2010) telecom industry Ron Vincent, CFO (
Slide 5: Why Invest in Crexendo Now?
Why Invest in Crexendo Now? + Fast Growing Industry — 28% CAGR forecast from 2016-2020 and growth to $140 Billion by 2021* + Rapid Shift To The Cloud - Approx. 70-75% of businesses today not on the Cloud yet + Crexendo Telecom Revenues Grew 30% YoY in 2016 and 26% YTD ‘17 + Reduced GAAP losses, Non-
Slide 6: The Telecom Industry is Changing
The Telecom Industry is Changing No ( ) Everything & Capital Expenses a & Included © Maintenance Fees & Upto date & Support Fees & Mobile & Obsolescence & Secure @ Headaches & Simple Businesses save an average of 25-55% on their monthly Telecom expenses and increase productivity when they move to th
Slide 7: Built For Business
Built For Business Saves Money Every Month Improves Business Processes Adapts to Business Growth Survives Through Disasters Increases Efficiency Trusted By IT Stays Up To Date Improves Security & Reliability Optimizes IT Resources Simplifies Self-Service Admin Preferred By Users Features Are Easy Pe
Slide 8: Crexendo
6 crexendo UCaaS Call Center/ACD Mobility Collaboration Call Recording Soft Phones Cloud Fax Unified Messaging Disaster Recovery/Business Continuity SMS/Chat BYOD (Bring Your Own Device)
Slide 9: Crexendo's Complete Cloud Solution
Crexendo’s Complete Cloud Solution Cloud IP '}) CRM Integration mobitty({ Network Services Disaster — Recovery ( ee) Unified Communications crexendo’ x cloe the cioug Call Centers =| _ & ACD Integration ere & Erase 1 i. Wy) Multi-Location (| cor Collaboration (2) recoring & Storage
Slide 10: The Crexendo Difference!
The Crexendo Difference! + Handsets & System Designed, Engineered and Supported in-house (Higher Margins!) CLEC vetted & approved everywhere available in US Hardware Maintenance and Software Upgrades Included for Full Term Most High End Features Included as Standard Offering Can provide service to c
Slide 11: Improving Financial Profile
Improving Financial Profile Ticker: CXDO Year Ended Nine Months Ended December 31, 2016 September 30, 2017 Market Capitalization $19.7 million $23.6 million Outstanding Common Stock 13.7 million 14.3 million Consolidated revenue increases 17% 11% (over prior period) Telecom Segment revenue increases
Slide 12: Telecommunications Segment Revenue
Telecommunications Segment Revenue Consistent Revenue Growth 2014 2015 2016 YTD 9/30/16 ==YTD 9/30/17 $8,500,000 $7,500,000 $6,500,000 $5,500,000 $4,500,000 $3,500,000 $2,500,000 $1,500,000 $500,000 NRK m=MRR
Slide 13: Telecommunications Gross Margin
Telecommunications Gross Margin Consistent Margin Improvement Q3 14 Q315 Q3 16 Q317 70% §¢ 60% | 50% | 40% | 30% | 20% | 10% | 0%
Slide 14: Telecommunications Segment Backlog
Telecommunications Segment Backlog Consistent Growth in Backlog Q314 Q315 Q316 Q317 $18,500,000 Z $16,500,000 | $14,500,000 | $12,500,000 | $10,500,000 ~ $8,500,000 + $6,500,000 $4,500,000 + $2,500,000 + $500,000 | *
Slide 15: Net Loss & Non-GAAP Net Loss
Net Loss & Non-GAAP Net Loss Consistent Bottom Line Improvement 2014 2015 2016 YTD 9/30/16 YTD 9/30/17 “7 S- $(1,000,000 $(2,000,000 $(3,000,000 $(4,000,000 $(5,000,000 $(6,000,000 $(7,000,000
Slide 16: Crexendo's Growth Strategy
Crexendo’s Growth Strategy Partner Sales + Currently at 180 Partners with growth plans to be at 200 by Q1 + Focused on Reseller Partners in 4 Key areas: - Traditional Telecom VAR’s - Data and B2B VAR’s - Managed Service Providers (MSPs) — Master Agents + Tenured staff with a wealth of experience in
Slide 17: Questions & Answers
«crexendo ride the c Questions & Answers
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Slide 19: Appendix — Crexendo Cloud Telecom Features
Appendix — Crexendo Cloud Telecom Features Crexendo Cloud VoIP Features Highlights User Features - Continued + Business-Class Voicemail with E-Mail Delivery + Call forward/Call transfer/Call waiting + Extensive Auto Attendant Options Paging — Internal and External + Free Unlimited Local & Domestic L
Slide 20: Appendix - Reconciliation of Non-GAAP Financial Measures — Fiscal Year 2016
Appendix - Reconciliation of Non-GAAP Financial Measures — Fiscal Year 2016 Reconciintion of U.S GAAP Net Loss to Non-GAAP Net Loss (Unaudited) Year Ended December 31, 2016 2015 Gn thousands) US. GAAP net loss s 2D s GSD Share-based compensation 653 1,306 Amortization of rent expense paid in stock,
Slide 21: Appendix - Reconciliation of Non-GAAP Financial Measures — Q3 2017
Appendix - Reconciliation of Non-GAAP Financial Measures — O3 2017 ‘Reconciliation of U.S. GAAP Net Loss to Non-GAAP Net Income/(Loss) (Wnaudited) ‘Three Months Ended September 30, ‘Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) (in thousands) US GAAPnet loss s as) Ss @y os G03)
Slide 22: Appendix - Crexendo, Inc. and Subsidiaries Condensed Consolidated Balance Sheets
APPENDIX - CREXENDO, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except par value and share data) September 30.2017 __ December 31, 2016 Assets Corrent assets: ah equivalents s 1,207 s 19 ‘cash 100 100 ivables, net of allowance for doubtful accounts of $28 as of Septem
Slide 23: Thank You!
«crexendo ride the c Thank You! Symbol OTCQX: CXDO