Crexendo, Inc. · NASDAQ:CXDO
Crexendo — Investor Presentation (June 2022)
21 slides from Crexendo's investor presentation, Jun 7, 2022
Slide 1: Investor Presentation
Investor Presentation Presented By Doug Gaylor, President & COO Ron Vincent, CFO June 7, 2022
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 12 years with Crexendo 10 years with Crexendo Prior Experience: Prior Experience:
Slide 4: Crexendo: Soaring Through The Clouds
Crexendo: Soaring Through The Clouds • Finished 2021 with $28.1M in revenue a 71% increase over 2021 and strong non-GAAP earnings of $1.7M • Q1 2022 Consolidated Revenue increase of 81% to $8.2M • Q1 2022 Non-GAAP net income of $405,000 and GAAP loss of ($1.22M) • Adjusted EBITDA for Q1 2022 increas
Slide 5: Crexendo By The Numbers
Crexendo By The Numbers Key Metrics Corporate Overview Year Founded • 1999 Headquarters • Tempe, Arizona $28.1M / $1.6M 79% MRR $409 Ticker Symbol • CXDO Rev. / Adj. EBITDA % of Total Revenue Avg. MRR Exchange • Nasdaq - July 2020 (2021) (2021) Per Direct Customer Data Center • Phoenix, AZ • Las Veg
Slide 6: Crexendo: The Complete Cloud Communications Choice
Crexendo: The Complete Cloud Communications Choice
Slide 7: America's Fastest-Growing UCaaS Platform!
America’s Fastest-Growing Fast-Growing Tech Leader in the UCaaS and Cloud Communications Space UCaaS Platform! Award Winning Collaboration Offering With Award-Winning Technology! for Video, Screen Share, & Webinars Recognized by Frost & Sullivan in 2021 as the fastest- growing UCaaS platform in Nort
Slide 8: The Leader in Cloud Communications
The Leader in Cloud Communications Advanced Development Through In-House Comprehensive Voice, Video, Meeting, Engineering and Third-Party Integrators Messaging & Mobile Solutions Leading Licensee and Agent/Partner Executive Management Team With Programs Wealth of Telecom Experience and Success Power
Slide 9: The Way We Communicate Has Changed
The Way We Communicate Has Changed UCaaS Market Size UCaaS Market Adoption CLOUD MIGRATION PLANS * ($ 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 $10,000 CURRENTLY DEPL
Slide 10: Tremendous Technology Adoption Still To Come
Tremendous Technology Adoption Still To Come Cloud Comms Penetration Forecast: USA/W. Europe 2020 80 70 60 50 40 30 20 10 0 Q4 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 Q2 2025 Q4 2025 USA W. Europe Source: Cavell Cloud Comms Report USA Q4 2020
Slide 11: Crexendo's Go-To-Market Sales Approach
Crexendo’s Go-To-Market Sales Approach Crexendo Partner/Agent Sales: Software Solutions Platform Direct Sales Revenue Share Model Licensees • Traditional Telecom Resellers • UCaaS Companies • Direct Crexendo Sales • Managed Service Providers • MSP’s representatives selling (MSP’s) • LEC’s/RLEC’s SMB
Slide 12: Future Growth Drivers
Future Growth Drivers New Reseller Logos & Platform Upgrades Agents/Partners Potential Acquisition Roll-Up Strategy Future Applications Enterprise and and Partnerships Major Accounts Global Key Market Expansion
Slide 13: Crexendo's Stocked Fishing Pond
Crexendo’s Stocked Fishing Pond ©crexendo’ —~__—sBEEEEE Lf BEEEEBEEE 1505 05 02 02 0 Direct Sales UCaaS Customers = 60,000 End Users @netsapiens’ Software Solutions g“g@_rE pS Licensee 1 Licensee 2 Licensee 3 Licensee 4 Licensee 5.. > 200 + 1 | I fata are efete UCaaS aes endure! oon Platform Custome
Slide 14: Global Presence: Growing Opportunity
Global Presence: Growing Opportunity Majority of Revenue and Customers Currently in USA • US Crexendo Agents: 175+ • US NetSapiens Resellers: 195+ 195+ 9 175+ Emerging International Markets • United Kingdom: 9 1 • Australia: 4 • New Zealand: 1 • Phillipines: 1 4 1
Slide 15: Growing Financial Profile
Growing Financial Profile Consolidated Revenue Gross Margin 2019 2020 2021 Q1 2022 2019 2020 2021 Q1 2022 ($ in 000’s) $28,092 72% 73% 70% 80% 67% $30,500 $28,000 53% $25,500 60% 47% $23,000 $16,387 $20,500 $14,436 39% 36% $18,000 34% $8,200 40% $15,500 $13,000 $10,500 20% $8,000 $5,500 $3,000 0% $5
Slide 16: Growing Financial Profile
Growing Financial Profile Operating Expenses as a % of Revenue (1) Churn Rate(2) 2018 2019 2020 2021 2018 2019 2020 2021 1.28% 1.00% 0.82% 5% 6% 7% 0.67% 0.80% 0.59% 7% 37% 18% 29% 31% 0.60% 0.40% 29% 27% 25% 29% 0.20% S&M G&A R&D 0.00% Backlog (1) Expected Backlog Revenue Recognition 2022 2023 2024
Slide 17: 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 18: 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 19: 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 20: 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 Added to Russell MicroCap I
Slide 21: Questions?
Questions? Thank You! Nasdaq: CXDO