Crexendo, Inc. · NASDAQ:CXDO
Crexendo — Investor Presentation (May 2018)
21 slides from Crexendo's investor presentation, May 22, 2018
Slide 1: Crexendo
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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 Cloud Communications and UCaaS 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
Slide 4: 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; 49 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 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 * Doubled Top Line Telecom Revenues in last 3 years * Reduced GAAP losses, Non-GAAP losses a
Slide 6: The Telecom Industry is Changing
The Telecom Industry is Changing No ( ) Everything & Capital Expenses a © Included @ Maintenance Fees G@ 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 t
Slide 7: Crexendo's Complete Cloud Solution
Crexendo’s Complete Cloud Solution Cloud IP Mobility Disaster Recovery i” «crexendo’ @ an cone “7 cloe the cloud Email Integration SMB & enterprise (| oh GED) mute-Location a, Collaboration ‘a @e Recording =) CRM Integration Unified EL Communications _— Network Services
Slide 8: The Crexendo Difference!
The Crexendo Difference! The Crexendo Difference (SCfe@XeNdO’ * 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 Stand
Slide 9: Improving Financial Profile
Improving Financial Profile Ticker: CXDO Year Ended Year Ended Quarter Ended December 31, | December 31, March 31, 2016 2017 2018 Market Capitalization $19.7 million $30.0 million $40.0 million Outstanding Common Stock 13.7 million 14.3 million 14.3 million Consolidated Revenue 17% 22% 22% increases
Slide 10: Telecommunications Segment Revenue
Telecommunications Segment Revenue Consistent Revenue Growth 2014 2015 2016 2017 Qi 2018 $10,500,000 $8,500,000 |NRR mMRR $6,500,000 $4,500,000 $2,500,000 $500,000
Slide 11: Telecommunications Gross Margin
Telecommunications Gross Margin Consistent Margin Improvement Qiis Qi16 Qii7 Quis 70% - 60% 50% | 40% | 30% | 20% | 10% 0%
Slide 12: Telecommunications Segment Backlog
Telecommunications Segment Backlog Consistent Growth in Backlog qQiis Q116 Qli7 Qi118 $25,500,000 | $20,500,000 + $15,500,000 + $10,500,000 | $5,500,000 + $500,000 +
Slide 13: Telecommunications Segment Backlog
Telecommunications Segment Backlog Expected Backlog Revenue Recognition 2018 2019 2020 2021 2022 2023 $6,010,000 | $5,010,000 ~ $4,010,000 | ' $3,010,000 | ' $2,010,000 | $1,010,000 | “J | —_ $10,000
Slide 14: Net Loss & Non-GAAP Net Loss
Net Loss & Non-GAAP Net Loss Consistent Bottom Line Improvement 2014 2015 2016 2017 Qi 2018 $1,000,000 - | _ $(1,000,000) $(2,000,000) $(3,000,000) $(4,000,000) $(5,000,000) $(6,000,000) $(7,000,000)
Slide 15: Crexendo's Growth Strategy
Crexendo’s Growth Strategy Partner Sal + Currently at 200 Partners with growth plans to add 10% per Quarter + 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 i
Slide 16: Questions & Answers
«6crexendo ride the c Questions & Answers
Slide 17: Crexendo - Ride the Cloud
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Slide 18: 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 19: Appendix - Reconciliation of Non-GAAP Financial Measures
Appendix - Reconciliation of Non-GAAP Financial Measures — First Quarter - 2018 Reconciliation of U.S. GAAP Net Loss toNon-GAAP Net Loss (Unaudited) ‘Three Months Ended March 31. —we_ —_22__. Gi thousands) US.GAAPnetloss $ @) $s 15) Share-based compensation 62 260 Amortization of rent expense paid i
Slide 20: Appendix - Crexendo, Inc. and Subsidiaries Balance Sheets
APPENDIX - CREXENDO, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except par value and share data) March 31, 2018 De. Assets Current assets: Cash and cash equivalents s 1,117 s 1.282 Rearicted cash 100 100 Trade receivables, net of allowance for doubtful accounts of $2
Slide 21: Thank You!
«6crexendo ride the c Thank You! Symbol OTCQX: CXDO