Crexendo, Inc. · NASDAQ:CXDO
Crexendo — Q3 2021 Earnings Presentation
20 slides from Crexendo's earnings presentation, December 2021
Slide 1: Q3 2021 Investor Presentation
Q3 2021 Investor Presentation Presented By Doug Gaylor, President & COO Ron Vincent, CFO December, 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to, among other things, our history, business lines, bu
Slide 3: Today's Presenters
Today’s Presenters Doug Gaylor Ron Vincent President & COO CFO 11 years with Crexendo 9 years with Crexendo Prior Experience: Prior Experience:
Slide 4: Crexendo: Soaring Through The Cloud
Crexendo: Soaring Through The Cloud • Finished 2020 with $16.4M in revenue and strong GAAP earnings of $7.9M • Q3 2021 Consolidated Revenue increase of 113% and UCaaS Revenue increase of 21% • Q3 2021 Revenue of $8.8M and Non-GAAP net income of $800,000 • Completed major acquisition of NetSapiens on
Slide 5: Executive Summary: Crexendo At-A-Glance
Executive Summary: Crexendo At-A-Glance Key Metrics Corporate Overview Year Founded • 1999 Headquarters • Tempe, Arizona $16.4M / $1.9M 88% MRR $409 Ticker Symbol • CXDO Rev. / Adj. EBITDA % of Total Revenue Avg. MRR Exchange • Nasdaq - July 2020 (2020A) (2020A) Per Customer Data Center • Phoenix, A
Slide 6: A Combined Company with a Tremendous Future
A Combined Company with a Tremendous Future Advanced Development Through In-House Comprehensive Voice, Video, Meeting, Engineering and Third-Party Integrators Messaging & Mobile Solutions Executive Management Team With Leading Reseller and Partner Programs Wealth of Telecom Experience and Success Po
Slide 7: America's Fastest-Growing UCaaS Platform!
America’s Fastest-Growing Fast-Growing Tech Leader in the UCaaS and Cloud Communications Space UCaaS Platform! Award Winning Collaboration Offering With Award-Winning Technology! for Video, Screen Share, & Webinars Recognized by Frost & Sullivan in 2021 as the fastest- growing UCaaS platform in Nort
Slide 8: The Way We Communicate Has Changed
The Way We Communicate Has Changed UCaaS Market Size UCaaS Market Adoption CLOUD MIGRATION PLANS * ($ in mm’s) (% respondents) $24,800 $30,000 $25,000 $15,800 $20,000 Video Instant Customer Enterprise Conferencing Messaging & Experience IP $15,000 Presence Management Telephony $10,000 CURRENTLY DEPL
Slide 9: Tremendous Technology Adoption Still To Come
Tremendous Technology Adoption Still To Come Cloud Comms Penetration Forecast: USA/W. Europe 2020 80 70 60 50 40 30 20 10 0 Q4 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2025 Q4 2025 USA W. Europe Source: Cavell Cloud Comms Report USA Q4 2020
Slide 10: Crexendo's Go-To-Market Sales Approach
Crexendo’s Go-To-Market Sales Approach Crexendo Partner/Agent Sales: Direct Sales NetSapiens Platform Resellers Revenue Share Model • Traditional Telecom Resellers • UCaaS Companies • Direct Crexendo Sales • Managed Service Providers • MSP’s representatives selling (MSP’s) • LEC’s/RLEC’s SMB and Sma
Slide 11: Future Growth Drivers
Future Growth Drivers New Reseller Logos & Platform Upgrades Agents/Partners Potential Acquisition Roll-Up Strategy Future Applications Enterprise and and Partnerships Major Accounts Global Key Market Expansion
Slide 12: Crexendo's Stocked Fishing Pond
Crexendo’s Stocked Fishing Pond ©crexendo” _— Zo @netsapiens” Direct Sales Kerman Soresy UCaaS Customers Software Solutions = 56,000 End Users gl eT Reseller! Reseller 2 Reseller 3 Reseller 4 Reseller 5... ———> 195+ | | | on Software BoE on 05 08 Solution EI pee End User Customers Bem Customers Cust
Slide 13: Global Presence: Growing Opportunity
Global Presence: Growing Opportunity Majority of Revenue and Customers Currently in USA • US Crexendo Agents: 175+ • US NetSapiens Resellers: 195+ 195+ 5 175+ Emerging International Markets • United Kingdom: 5 1 • Australia: 4 • New Zealand: 1 • Phillipines: 1 4 1
Slide 14: Growing Financial Profile
Growing Financial Profile Consolidated Revenue Breakdown(1) Gross Margin 2018 2019 2020 2021 YTD 2018 2019 2020 2021 Q3 ($ in 000’s) $16,387 $19,096 70% 72% 73% 72% 80% $20,500 $14,436 $18,000 56% $11,908 60% 50% $15,500 47% 39% $13,000 34% 40% $10,500 $8,000 20% $5,500 $3,000 $500 0% Service Produc
Slide 15: Growing Financial Profile
Growing Financial Profile Operating Expenses as a % of Revenue (1) Churn Rate(2) 2018 2019 2020 2021 YTD 2018 2019 2020 1.00% 0.82% 6% 0.67% 6% 7% 0.80% 0.59% 7% 41% 0.60% 18% 29% 31% 0.40% 29% 27% 25% 27% 0.20% 0.00% S&M G&A R&D Backlog (1)(3) Expected Backlog Revenue Recognition Sep '18 Sep '19 Se
Slide 16: The Future of Business Communications
The Future of Business Communications Video Interactions Phone • VIP Communications • Cloud-Based UCaaS Platform • The Platform for Solution for Business Powered by NetSapiens How You Work Today
Slide 17: The VIP Difference
The VIP Difference A Better Communications Solution For Business Video Interactions Phone Contact Center Integrations Collaborate in HD Streamline workflows Use the device of your Powerful, native Integrate into quality with up to through Voice Mail, SMS, choice for HD business customer experience o
Slide 18: Industry-Leading 100% Uptime Guarantee and Lifetime Warranty
Industry-Leading 100% Uptime Guarantee and Lifetime Warranty • The VIP Platform is hosted in the world’s highest- rated geo-redundant data centers that are Tier 5, Exascale sites powered by 100% green energy • We back our user experience with 100% US-based support available 24/7/365 • Secure and rel
Slide 19: Investment Highlights: Meeting Our Commitments and Delivering Results
Investment Highlights: Meeting Our Commitments and Delivering Results Organically Up-listed to Nasdaq ATTRACTIVE INVESTMENT OPPORTUNITY Successfully Raise Capital to Fuel Future Growth Acquire Accretive Acquisition Targets High Long-Term Recurring Growth Contracts Revenue Recently Added to Russell M
Slide 20: Questions?
Questions? Thank You! Nasdaq: CXDO