Crexendo, Inc. · NASDAQ:CXDO
Crexendo — Investor Presentation (September 2017)
27 slides from Crexendo's investor presentation, September 2017
Slide 1: Investor Presentation September 2017
Investor Presentation September 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: Crexendo's Financial Highlights
Crexendo’s Financial Highlights Year Ended December 31, 2016 Corporate Snapshot • Consolidated revenue increased 17% Ticker CXDO • Telecommunication segment revenue increased 30% • Backlog increased to $15.9 million Market Cap (8/31/17) $22.8M • Reduced consolidated operating expenses by 6.2% • GAAP
Slide 4: Crexendo's Complete Cloud Solution
Crexendo’s Complete Cloud Solution Cloud IP CRM Integration Mobility Network Services Disaster Recovery Unified Communications Call Centers & ACD Email Integration SMB & Enterprise Multi-Location Collaboration Recording & Storage
Slide 5: Why Crexendo (CXDO)?
Why Crexendo (CXDO)? • Fast Growing Industry – 28% CAGR forecast from 2016-2020 and growth to $140 Billion by 2021* • Crexendo Telecom Revenues Grew 30% YoY in 2016 and 16% For First Half ’17 • Tremendous Industry Experience – Exec Mgmt. Team Over 100 Years Combined • Stock price should be extremely
Slide 6: Crexendo's Growth Strategy
Crexendo’s Growth Strategy Direct Sales • Direct Sales Responsible for 45% of Sales in 2016 • Sell directly to larger sized customers and National Accounts • Tenured and experienced Direct Sales Team with additional hires planned Partner Sales • Partner Sales Responsible for 55% of Sales in 2016 up
Slide 7: The Business Model Is Changing
The Business Model Is Changing No Everything Capital Expenses Included Maintenance Fees Up to 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 the Cloud!
Slide 8: Legacy Telecom vs. Crexendo's Cloud
Legacy Telecom vs. Crexendo’s Cloud Cost Areas > Local Dial Tone > Internet Service Cost Areas > Long Distance > Cabling Cost > Phone System > Maintenance – Per Trip > Phone Device/Service > Data Lines > Internet Service
Slide 9: Crexendo Is The Smart Choice
Crexendo Is The Smart Choice 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
Slide 10: Crexendo's Award Winning UCaaS System
Crexendo’s Award Winning UCaaS System
Slide 11: Crexendo Revolutionizes The Office
Crexendo Revolutionizes The Office 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 12: Crexendo's Advanced Data Center
Crexendo’s Advanced Data Center • Fully Redundant • Highest security levels • 99.999% Uptime • PCI compliant • 9-level network redundancy • 24x7 surveillance and monitoring • Redundant UPS power & generator • Redundant fiber entry points • Multiple Tier 1 Providers • Certified engineers and security
Slide 13: 35,000+ Users Trust Crexendo For Their Communications
35,000+ Users Trust Crexendo For Their Communications!
Slide 14: Competitive Landscape: The Crexendo Difference
Competitive Landscape: The Crexendo Difference! The Crexendo Difference • Handsets & System Designed, Engineered and Supported in-house (Higher Margins!) • CLEC vetted & approved everywhere available in US • Full Hardware Maintenance and Software Upgrades Included for Full Term • Most High End Featu
Slide 15: Telecommunications Segment Revenue
Telecommunications Segment Revenue Consistent Revenue Growth 2014 2015 2016 YTD 6/30/17 $8,500,000 $7,500,000 $6,500,000 NRR $5,500,000 MRR $4,500,000 $3,500,000 $2,500,000 $1,500,000 $500,000
Slide 16: Telecommunications Gross Margin
Telecommunications Gross Margin Consistent Margin Improvement Q2 14 Q2 15 Q2 16 Q2 17 70% 60% 50% 40% 64% 30% 55% 48% 20% 26% 10% 0%
Slide 17: Net Loss & Non-GAAP Net Loss
Net Loss & Non-GAAP Net Loss Consistent Bottom Line Improvement 2014 2015 2016 YTD 6/30/17 $- $(1,000,000) Non-GAAP $(2,000,000) Loss Portion $(3,000,000) $(4,000,000) $(5,000,000) $(6,000,000) $(7,000,000)
Slide 18: Telecommunications Segment Backlog
Telecommunications Segment Backlog Consistent Growth in Backlog Q2 14 Q2 15 Q2 16 Q2 17 $18,500,000 $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 19: In conclusion – Crexendo has / Future Goals
In conclusion – Crexendo has: • Established a low cost, recurring revenue business model that is competitive in any market • Increased telecom revenue, telecom backlog and gross margin percentage every year since entering the telecom market • Reduced GAAP losses, Non-GAAP losses and cash flow burn e
Slide 20: Questions & Answers
Cerexendo Questions & Answers
Slide 21: Appendix
(Serexendo ride the cloud Ca
Slide 22: Leadership Team
Leadership Team Leader Experience 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
Slide 23: 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
Slide 24: Reconciliation of Non-GAAP Financial Measures – Fiscal Year 2016
Appendix - Reconciliation of Non-GAAP Financial Measures – Fiscal Year 2016
Slide 25: Reconciliation of Non-GAAP Financial Measures – Q2 2017
Appendix - Reconciliation of Non-GAAP Financial Measures – Q2 2017
Slide 26: Condensed Consolidated Balance Sheets
APPENDIX - CREXENDO, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except par value and share data)
Slide 27: Thank You!
Thank You! Symbol OTCQX: CXDO