Crexendo, Inc. · NASDAQ:CXDO
Crexendo — Investor Presentation (September 2018)
22 slides from Crexendo's investor presentation, September 2018
Slide 1: Investor Presentation September 2018
Investor Presentation September 2018 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 Cloud Communications and UCaaS space • Tremendous Industry Experienced Company – Exec Mgmt. Team With Over 150 Years Combined Experience • Designers of a world class, patented cloud based telecom system with in- house engineering staff that
Slide 4: 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 5: The Telecom Industry is Changing
The Telecom Industry 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 when they move to the Cloud!
Slide 6: Crexendo’s Complete Cloud Solution
Crexendo’s Complete Cloud Solution Cloud IP CRM Integration Mobility Unified Communications Disaster Network Recovery Services Call Centers Email & ACD Integration SMB & Enterprise Multi-Location Collaboration Recording
Slide 7: The Crexendo Difference!
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 Off
Slide 8: Improving Financial Profile
Improving Financial Profile Ticker: CXDO Year Ended Year Ended Quarter Ended December 31, December 31, June 30, 2016 2017 2018 Market Capitalization $19.7 million $30.0 million $37.1 million Outstanding Common Stock 13.7 million 14.3 million 14.3 million Consolidated Revenue 17% 22% 22% increases (o
Slide 9: Telecommunications Segment Revenue
Telecommunications Segment Revenue Consistent Revenue Growth 2014 2015 2016 2017 YTD Q2 2018 $10,500,000 $8,500,000 NRR $6,500,000 MRR $4,500,000 $2,500,000 $500,000
Slide 10: Telecommunications Gross Margin
Telecommunications Gross Margin Consistent Margin Improvement Q2 15 Q2 16 Q2 17 Q2 18 70% 60% 50% 40% 65% 67% 30% 55% 48% 20% 10% 0%
Slide 11: Telecommunications Segment Backlog
Telecommunications Segment Backlog Consistent Growth in Backlog Q2 15 Q2 16 Q2 17 Q2 18 $25,500,000 $20,500,000 $15,500,000 $10,500,000 $5,500,000 $500,000
Slide 12: Telecommunications Segment Backlog
Telecommunications Segment Backlog Expected Backlog Revenue Recognition Remaining 2018 2019 2020 2021 2022 2023 $6,010,000 $5,010,000 $4,010,000 $3,010,000 $2,010,000 $1,010,000 $10,000
Slide 13: Net Loss & Non-GAAP Net Loss
Net Loss & Non-GAAP Net Loss Consistent Bottom Line Improvement 2014 2015 2016 2017 YTD Q2 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 14: Crexendo’s Growth Strategy
Crexendo’s Growth Strategy Partner Sales • Currently more than 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 exp
Slide 15: 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; 31 years experience in the (2010) telecom industry
Slide 16: Ride The Cloud With Crexendo
Ride The Cloud With Crexendo • Great Technology That We Own and Design • Great Software That We Develop With and For Our Customers • Great Team That Has Had Great Success in the Industry • Great Industry That Has Tremendous Future Growth • Great Recurring Revenue Model • Great Cost Management Strate
Slide 17: Questions & Answers
«6crexendo’ ride the c lou Questions & Answers
Slide 18: Appendix
(Serexendo ride the cloud Ca
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
Slide 20: Reconciliation of Non-GAAP Financial Measures – Second Quarter 2018
Appendix - Reconciliation of Non-GAAP Financial Measures – Second Quarter - 2018 Reconciliation of U.S. GAAP Net Income/(Loss) to Non-GAAP Net Income/(Loss) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 As Adjusted As Adjusted (In thousands) (In thousands) U.S
Slide 21: Condensed Consolidated Balance Sheets
APPENDIX - CREXENDO, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except par value and share data) Ju n e 30, 2018 De ce m be r 31, 2017 As s e ts Current asset s: Cash and cash equivalent s $ 1,340 $ 1,282 Rest rict ed cash 100 100 T rade receivables, net of allowance
Slide 22: Thank You!
Thank You! Symbol OTCQX: CXDO