Crexendo Inc (CXDO) 2023 Q2 法說會逐字稿

Greetings. Welcome to the Crexendo Second Quarter 2023 Earnings Call. (Operator Instructions) Please note, this conference is being recorded. I will now turn the conference over to your host, Jeff Korn. You may begin.

問候。歡迎參加 Crexendo 2023 年第二季財報電話會議。 （操作員說明）請注意，本次會議正在錄製中。現在我將會議交給主持人傑夫科恩 (Jeff Korn)。你可以開始了。

Thank you, Holly, and good afternoon, everybody. I want to welcome you all to our second quarter conference call. On the call with me today are Doug Gaylor, our President and COO; Ron Vincent, our CFO; and Jon Brinton, our CRO; and Anand Buch, our CSO.

謝謝你，霍莉，大家下午好。我歡迎大家參加我們的第二季電話會議。今天與我通話的是我們的總裁兼營運長 Doug Gaylor；羅恩‧文森特，我們的財務長；和我們的 CRO 喬恩·布林頓 (Jon Brinton)；還有我們的 CSO Anand Buch。

In a moment, I'll ask Jon to read our safe harbor statement. After that, I'll give some brief comments on our performance for the quarter. Ron will provide more detail on the numbers before handing over the call to Doug to provide a business and sales update. After that, I'll open the call up to questions. Jon, would you please read the safe harbor, please?

稍後，我將請喬恩閱讀我們的安全港聲明。之後，我將對本季的業績進行一些簡短的評論。羅恩將提供有關這些數字的更多詳細信息，然後將電話轉交給道格以提供業務和銷售最新情況。之後，我將開始電話提問。喬恩，請你讀安全港好嗎？

I want to take this opportunity to remind listeners that this call will contain forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for such forward-looking statements.

我想藉此機會提醒聽眾，本次電話會議將包含1933 年《證券法》和1934 年《證券交易法》含義內的前瞻性陳述。1995 年《私人證券訴訟改革法》為此類前瞻性陳述提供了安全港。看起來的陳述。

All statements made in this conference call, other than statements of historical fact are forward-looking statements. Forward-looking statements include, but are not limited to, words like believe, expect, anticipate, estimate, will and other similar statements of expectation identifying forward-looking statements. Investors should be aware that any forward-looking statements are based on assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in the company's filings with the Securities and Exchange Commission, including the Form 10-K for fiscal year ended December 31, 2022, and the Forms 10-Q as filed.

除歷史事實陳述外，本次電話會議所做的所有陳述均為前瞻性陳述。前瞻性陳述包括但不限於相信、期望、預期、估計、意願等詞語以及其他識別前瞻性陳述的類似期望陳述。投資者應注意，任何前瞻性陳述均基於假設，並受到風險和不確定性的影響，這些風險和不確定性可能導致實際結果與今天討論的結果有重大差異。這些風險因素在公司向美國證券交易委員會提交的文件中進行了詳細解釋，包括截至 2022 年 12 月 31 日的財年的 10-K 表格和已提交的 10-Q 表格。

Crexendo does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Back to you, Jeff.

Crexendo 不承擔公開更新或修改任何前瞻性陳述的義務，無論是由於新資訊、未來事件或其他原因。回到你身邊，傑夫。

Thank you, Jon and I might add, you actually do a better job of reading the safe harbor than I used to do.

謝謝你，喬恩和我可能會補充一點，你實際上比我以前在閱讀安全港方面做得更好。

I'm exceptionally pleased with our results for the quarter. and I think they speak volumes about the hard work undertaken by the entire team. From a high level in the second quarter, we continued to drive strong organic top line growth while making great strides in our cost reduction plan. Consolidated total revenue for the quarter increased 43% or $3.9 million to $12.7 million compared to $8.8 million for the second quarter of 2022. These are very, very impressive results driven by the steady organic growth across our organization.

我對本季的業績感到非常滿意。我認為他們充分說明了整個團隊所付出的辛勤工作。從第二季的高水準來看，我們繼續推動強勁的有機營收成長，同時在成本削減計劃方面取得了巨大進展。與2022 年第二季的880 萬美元相比，本季的合併總收入成長了43​​%，即390 萬美元，達到1,270 萬美元。在整個組織的穩定有機成長的推動下，這些結果非常非常令人印象深刻。

On the cost side and keeping with my remarks from last quarter, we have made considerable strides to streamline our operations and cut out nonessential spending while still investing for growth. These efforts have translated to almost $1 million sequential improvement in net loss from Q1. Most importantly, we were substantially cash flow positive in Q2, which I fully expect to continue.

在成本方面，與我上季度的言論一致，我們在簡化營運和削減不必要的支出方面取得了長足進步，同時仍然投資於成長。這些努力已使第一季的淨虧損環比減少近 100 萬美元。最重要的是，我們第二季的現金流量大幅為正，我完全預期這種情況會持續下去。

This is not a minor point. If you look at our industry peers, you will see that most do not have positive cash flow. We have always managed the business using sound business principles, being appropriately prudent and not mortgaging our future by overpaying for customers with unsustainable debt. I think our sound business philosophy is why we have the results we have and I have high expectations for our future.

這不是一個小問題。如果你看看我們的同行，你會發現大多數都沒有正現金流。我們始終採用健全的商業原則來管理業務，保持適當的謹慎，不會透過向具有不可持續債務的客戶支付過高的費用來抵押我們的未來。我認為我們良好的經營理念是我們取得今天成績的原因，我對我們的未來抱有很高的期望。

We plan to continue looking judiciously at our spending. We have sufficient staff and sufficient technology to expand. We continue to maintain a hybrid workforce, which has proven to be more productive in our digital-based line of work. Our team is effective and productive and just like our award-winning solutions have the ability to be mobile.

我們計劃繼續審慎地審視我們的支出。我們有足夠的員工和足夠的技術來擴展。我們繼續維持混合型員工隊伍，事實證明，這在我們基於數字的工作中效率更高。我們的團隊高效且富有成效，就像我們屢獲殊榮的解決方案具有移動能力一樣。

I'm excited to report that we have successfully closed the sale of our building in Tempe, Arizona as of yesterday. This transaction will add about $2 million of cash to the balance sheet and essentially remove almost all of our existing debt obligation, giving us greater financial flexibility as we focus on growing the business.

我很高興地報告，截至昨天，我們已經成功完成了亞利桑那州坦佩大樓的出售。這項交易將為我們的資產負債表增加約 200 萬美元的現金，並基本上消除我們現有的幾乎所有債務義務，使我們在專注於發展業務時獲得更大的財務靈活性。

Looking at operations, we have continued to make great strides in our integration efforts. Allegiant has enjoyed a smooth integration into our business and the team members are assimilated well. Over the last few months, we've completed reorganization of reporting responsibilities to create cross utilization against all divisions making us a more efficient and collaborative organization. While there are some processes and logistical matters we are still ironing out, I have been exceptionally impressed by the performance of this newly organized team structure.

從營運來看，我們的整合工作持續取得長足進步。 Allegiant 已順利融入我們的業務，團隊成員也得到了很好的融入。在過去的幾個月裡，我們完成了報告職責的重組，以實現所有部門的交叉利用，使我們成為一個更有效率和協作的組織。雖然我們仍在解決一些流程和後勤問題，但這個新組織的團隊結構的表現給我留下了深刻的印象。

With these changes, we have flexibility with our long-term strategy, and we're able to run a lean and effective organization. As we mentioned previously, we expect to see additional financial and operational efficiencies over the next few quarters.

透過這些變化，我們的長期策略具有靈活性，並且我們能夠運作一個精乾而有效的組織。正如我們之前提到的，我們預計未來幾季的財務和營運效率將得到提高。

On the sales front, we've seen significant growth from our master dealer channel, which is expanding the scope of our enterprise sales opportunities. It's clear that our strategic focus on this channel is paying off, and we're committed to our expansion strategy. As further evidence of our success, I'm pleased to report that we should very shortly surpass the 3.5 million end users globally. Some of you may recall that we surpassed 3 million end users earlier this year. Reaching 3.5 million users also equates to almost doubling of our user count since we acquired NetSapiens in June of 2011 -- 2021, excuse me. Those user numbers continue to increase as our licensees and more of our customers to the platform, and we are encouraged by the growth base of customers who have come to rely on our products to run their business every day. It's a very impressive metric.

在銷售方面，我們的主經銷商通路取得了顯著成長，這擴大了我們企業銷售機會的範圍。很明顯，我們對該通路的策略重點正在得到回報，並且我們致力於我們的擴張策略。作為我們成功的進一步證據，我很高興地報告，我們的全球最終用戶數量很快就會超過 350 萬。有些人可能還記得，今年早些時候我們的最終用戶數量已超過 300 萬。打擾一下，自從我們在 2011 年 6 月收購 NetSapiens 以來，達到 350 萬用戶也意味著我們的用戶數量幾乎翻了一番。隨著我們的被授權人和越來越多的客戶加入該平台，這些用戶數量不斷增加，每天依賴我們的產品來經營業務的客戶基礎的成長令我們感到鼓舞。這是一個非常令人印象深刻的指標。

In a similar vein during the second quarter, we also continued with the migration of customers, offer Crexendo Classic to our industry-leading VIP platform. This consolidation will ensure that all of our customers are hosted on a single best-in-class platform in terms of reducing costs as we sunset the legacy classical platform and transition valuable engineers and support staff to other parts of the business.

同樣，在第二季度，我們也持續進行客戶遷移，向我們業界領先的 VIP 平台提供 Crexendo Classic。這種整合將確保我們的所有客戶都託管在一個一流的單一平台上，從而降低成本，因為我們將淘汰傳統的經典平台，並將有價值的工程師和支援人員轉移到業務的其他部分。

We continue to see growth in demand in our Software Solutions segment. Although in recent months, we have seen lengthening of the sales cycle, specifically at the enterprise level.

我們繼續看到軟體解決方案領域的需求成長。儘管近幾個月來，我們看到銷售週期的延長，特別是在企業層面。

In Q1, we drove 26% organic growth in Software Solutions, where in Q2, we only recorded 9% growth rate. These variances can be directly attributed to the difference between subscription license sales and perpetual license sales. Historically, we sold most software solutions on a perpetual license. But over the last 1.5 years, we've seen much more adoption of our new licensing options to go with the subscription model, which lessens upfront revenue but increases monthly recurring revenue.

第一季度，我們推動軟體解決方案實現了 26% 的有機成長，而第二季度，我們僅實現了 9% 的成長率。這些差異可以直接歸因於訂閱授權銷售和永久授權銷售之間的差異。從歷史上看，我們以永久許可證出售大多數軟體解決方案。但在過去 1.5 年裡，我們看到更多人採用新的授權選項來配合訂閱模式，這減少了前期收入，但增加了每月經常性收入。

Over the long term, performance normalizes, and we believe that the growth opportunity as well as the favorable margin profile justify the unevenness that can sometimes occur here. Said another way, because we own the technology stack, these margins have increased nicely and will continue to increase over time, which supports our profitability goals. Nonetheless, we are still working on selling more monthly recurring contracts, which should help make the quarterly revenue more predictable on a regular basis and give us greater transparency to results.

從長遠來看，業績正常化，我們相信成長機會以及有利的利潤狀況證明了有時可能出現的不平衡現像是合理的。換句話說，由於我們擁有技術堆疊，這些利潤已經大幅增加，並將隨著時間的推移繼續增加，這支持了我們的獲利目標。儘管如此，我們仍在努力銷售更多的每月定期合同，這應該有助於使季度收入更加可預測，並使我們的結果更加透明。

We continue to expand using AI, which we find a very effective tool to support our customer service agents, and we are testing using AI in-house for certain level 1 customer service issues. We continue to use AI internally as an effective tool for debugging code for the engineering and support staff.

我們繼續擴展人工智慧的使用，我們發現這是支援我們的客戶服務代理的非常有效的工具，並且我們正在內部測試使用人工智慧來解決某些 1 級客戶服務問題。我們繼續在內部使用人工智慧作為工程和支援人員調試程式碼的有效工具。

In summary, the second quarter, the momentum we established at the start of the year, we are well positioned to meet our operational goals for 2023. We have made significant progress in growing sales, reducing debt and streamlining operations, all of which have served to vastly our financial health. Our primary focus has been and will continue to be on driving organic growth, increasing margin and integrating our acquisitions fully into the company. And we will continue to strategically expand while optimizing our operations in future quarters.

總而言之，第二季度，我們在年初建立的勢頭，我們完全有能力實現 2023 年的營運目標。我們在增加銷售、減少債務和精簡營運方面取得了重大進展，所有這些都服務於很大程度上影響我們的財務健康。我們的主要重點一直並將繼續是推動有機成長、提高利潤率並將我們的收購完全整合到公司中。我們將在未來幾季繼續策略擴張，同時優化營運。

One final housekeeping item before I hand the call over to Ron, at the end of Q2, we confirmed the appointment of 2 new board members to our Board of Directors. Kevin Jackson and Jasmine Kim. Kevin brings a diverse background having begun his professional career at Texas Instruments where he worked on design teams for supercomputers that targeted the geophysical industry as well as NASA. Kevin has also held senior engineering sales roles from multiple companies, including the family of Teledyne companies. Since 2000, Kevin has been in technology consulting, having previously run the Midwest region for High-Tech Corporation and finishing his career at The Hackett Group, where during his tenure, he represented 61 of America's Fortune 100 companies.

在我將電話轉交給 Ron 之前，最後一項整理事項是，在第二季末，我們確認了 2 位新董事會成員的任命。凱文傑克森和茉莉花金。 Kevin 擁有多元化的背景，他在德州儀器 (TI) 開始了自己的職業生涯，曾在面向地球物理行業和 NASA 的超級電腦設計團隊工作。 Kevin 也曾在多家公司（包括 Teledyne 公司家族）擔任高階工程銷售職位。自2000 年以來，Kevin 一直從事技術諮詢工作，此前曾負責High-Tech Corporation 的中西部地區業務，並在The Hackett Group 結束了自己的職業生涯，在該集團任職期間，他代表了61 家美國財富100 強公司。

Jasmine Kim is a growth marketing and management executive with deep expertise in all facets of marketing and customer engagement. Her career has spanned high-growth leadership roles in both Fortune 500 companies as well as start-ups that drive growth in new products and services. She has extensive experience in transformational high growth and company defining and digital channel and brand transformation, go-to-market strategies and cultural processes. Jasmine has served on numerous private and charitable boards.

Jasmine Kim 是一位成長行銷和管理主管，在行銷和客戶參與的各個方面擁有深厚的專業知識。她的職業生涯跨越了財富 500 強公司以及推動新產品和服務成長的新創公司的高成長領導職位。她在轉型高成長、公司定義、數位通路和品牌轉型、進入市場策略和文化流程方面擁有豐富的經驗。 Jasmine 曾在許多私人和慈善委員會任職。

We and I are very excited to have both Jasmine and Kevin on our Board, and we look forward to benefit from their future contributions. I believe we've made this a better company. I'm convinced that our results will continue to impress and that we will grow the company organically and when we are ready by adding accretive acquisitions.

我和 Jasmine 和 Kevin 加入我們的董事會感到非常興奮，我們期待從他們未來的貢獻中受益。我相信我們已經讓這家公司變得更好了。我相信，我們的業績將繼續令人印象深刻，當我們準備好時，我們將透過增加增值收購來有機地發展公司。

And with that, I'll turn the call over to Ron. Ron?

說完，我會把電話轉給羅恩。羅恩？

Thank you, Jeff. Good afternoon, everyone. I'll go over the financial highlights for the second quarter of 2023. Total revenue for the second quarter increased 43% to $3.8 million -- $3.8 million to $12.7 million compared to $8.8 million for the second quarter of the prior year. Service revenue for the second quarter increased 63% or $2.7 million to $7.3 million as compared to $4.6 million for the second quarter of the prior year.

謝謝你，傑夫。大家下午好。我將回顧 2023 年第二季的財務亮點。第二季的總收入成長了 43%，達到 380 萬美元，與去年第二季的 880 萬美元相比，從 380 萬美元增至 1,270 萬美元。第二季的服務收入成長了 63%，即 270 萬美元，達到 730 萬美元，而去年第二季的服務收入為 460 萬美元。

Software Solutions segment revenue for the second quarter increased 9% to $3.9 million compared to $3.6 million for the second quarter of the prior year. Product revenue for the second quarter increased 107% or $740,000 to $1.4 million compared to $692,000 for the second quarter of the prior year.

軟體解決方案部門第二季營收成長 9%，達到 390 萬美元，去年第二季為 360 萬美元。第二季產品營收成長 107%，即 74 萬美元，達到 140 萬美元，而去年第二季的產品營收為 69.2 萬美元。

Gross margins. For the quarter, Telecom Services gross margin was 58%; Software Solutions 67%. Our product margins were 38% and overall gross margins came in at 58%. Operating expenses for the second quarter increased 36% or $3.5 million to $13.2 million compared to $9.7 million for the second quarter of the prior year. The company reported a net loss of $545,000 for the second quarter or $0.02 loss per basic and diluted common share as compared to a net loss of $896,000 or $0.04 loss per basic and diluted share for the second quarter of the prior year.

毛利率。本季電信服務毛利率為 58%；軟體解決方案 67%。我們的產品利潤率為 38%，整體毛利率為 58%。第二季營運費用增加 36%，即 350 萬美元，達到 1,320 萬美元，去年第二季營運費用為 970 萬美元。該公司報告第二季淨虧損為 545,000 美元，或每股基本和稀釋普通股虧損 0.02 美元，而去年第二季淨虧損為 896,000 美元，或每股基本和稀釋普通股虧損 0.04 美元。

Non-GAAP net income of $1.1 million for the second quarter or $0.04 per basic and diluted common share as compared to non-GAAP net income of only $512,000 or $0.02 per basic and diluted common share for the second quarter of the prior year.

第二季非 GAAP 淨利潤為 110 萬美元，或每股基本和稀釋普通股 0.04 美元，而去年第二季非 GAAP 淨利潤僅為 512,000 美元，或每股基本和稀釋普通股 0.02 美元。

EBITDA for the second quarter was $383,000 compared to a loss of $232,000 for the second quarter of the prior year. Adjusted EBITDA for the second quarter increased $1.2 million compared to $626,000 for the second quarter of the prior year.

第二季 EBITDA 為 383,000 美元，而去年第二季虧損 232,000 美元。第二季調整後 EBITDA 增加了 120 萬美元，而去年第二季為 626,000 美元。

Highlights for the 6 months ended June 30, 2023, are as follows. Year-to-date total revenue for the 6-month period increased 48% or $8.1 million to $25.1 million compared to $17 million for the same period of the prior year. Year-to-date service revenue for the 6-month period increased 62% or $5.5 million to $14.5 million compared to $9 million for the same period of the prior year.

截至 2023 年 6 月 30 日止 6 個月的要點如下。今年迄今 6 個月期間的總營收成長了 48%，即 810 萬美元，達到 2,510 萬美元，而去年同期為 1,700 萬美元。今年迄今 6 個月期間的服務收入成長了 62%，即 550 萬美元，達到 1,450 萬美元，而去年同期為 900 萬美元。

Year-to-date Software Solutions revenue for the 6-month period increased 16% or $1.1 million to $8 million compared to $6.9 million for the same period of the prior year. Year-to-date product revenue for the 6-month period increased 125% or $1.5 million to $2.7 million, that's compared to $1.2 million for the same period the prior year.

今年迄今的 6 個月期間軟體解決方案收入成長了 16%，即 110 萬美元，達到 800 萬美元，而去年同期為 690 萬美元。年初至今 6 個月期間的產品收入成長了 125%，即 150 萬美元，達到 270 萬美元，而去年同期為 120 萬美元。

Year-to-date operating expenses increased 42% or $8 million to $27.2 million compared to $19.8 million for the same period of the prior year. Year-to-date, the company reported a net loss of $2.1 million for the 6-month period or $0.08 loss per basic and diluted common share compared to a net loss of $2.1 million or $0.09 loss per basic and diluted common share for the same period of the prior year.

年初至今的營運費用增加了 42%，即 800 萬美元，達到 2,720 萬美元，而去年同期為 1,980 萬美元。今年迄今，該公司報告 6 個月期間淨虧損 210 萬美元，或每股基本和稀釋普通股虧損 0.08 美元，而同期淨虧損為 210 萬美元，或每股基本和稀釋普通股虧損 0.09 美元上一年期間。

Year-to-date, non-GAAP net income of $1.7 million for the 6-month period or $0.07 per basic common share and $0.06 per diluted common share compared to non-GAAP net income of $917,000 or $0.04 per basic and diluted common share for the same period of the prior year.

年初至今，6 個月期間非GAAP 淨利潤為170 萬美元，或每股基本普通股0.07 美元，每股稀釋普通股0.06 美元，而非GAAP 淨利潤為917,000 美元，或每股基本和稀釋普通股0.04 美元上年同期。

Year-to-date EBITDA loss of $283,000 for the 6-month period compared to a loss of $1 million for the same period of the prior year. Year-to-date adjusted EBITDA of $2 million for the 6-month period. That's compared to $928,000 for the same period of the prior year.

年初至今 6 個月期間 EBITDA 虧損 283,000 美元，而去年同期虧損 100 萬美元。今年迄今 6 個月期間調整後 EBITDA 為 200 萬美元。相比之下，去年同期為 928,000 美元。

Our cash balance at June 30, was $4.2 million compared to $5.5 million at the end of 2022. Cash used for operating activities for the 6-month period, up $673,000 compared to $2.6 million used for the same period of the prior year. The second quarter had positive cash flows from operating activities of $881,000. That's compared to negative cash flows of $1.554 million for the first quarter of the year. Cash used for investing activities for the 6-month period of $92,000 compared to $40,000 used for the same period in the prior year and that's primarily data center equipment acquisitions.

截至6 月30 日，我們的現金餘額為420 萬美元，而2022 年底為550 萬美元。這6 個月期間用於經營活動的現金增加了673,000 美元，而上年同期使用的現金為260 萬美元。第二季經營活動產生的正現金流為 881,000 美元。相比之下，今年第一季的負現金流為 155.4 萬美元。 6 個月期間用於投資活動的現金為 92,000 美元，而去年同期為 40,000 美元，主要用於資料中心設備採購。

Cash used for financing activities for the 6-month period of $486,000 compared to cash provided by investing activities of $20,000 for the same period of the prior year.

6 個月期間用於融資活動的現金為 486,000 美元，而去年同期投資活動提供的現金為 20,000 美元。

Now I'll turn it over to Doug Gaylor, our President and COO, for additional comments on sales and operations.

現在我將把它交給我們的總裁兼營運長道格蓋勒 (Doug Gaylor)，以獲取有關銷售和營運的更多評論。

Thanks, Ron. I'm very pleased with our strong Q2 results and excited that we continue to execute on our game plan and manage the fundamentals of the business. Our 43% year-over-year increase was driven by a substantial 22% organic growth from our Allegiant acquisition, which outperformed expectations, combined with 9% organic growth in our Software Solutions segment and 6% organic growth from our Telecom Services segment.

謝謝，羅恩。我對我們第二季的強勁業績感到非常滿意，並對我們繼續執行我們的遊戲計劃並管理業務基本面感到興奮。我們年成長43% 的原因是收購Allegiant 後實現了22% 的有機成長（超出預期），再加上我們的軟體解決方案部門實現了9% 的有機成長，電信服務部門實現了6% 的有機成長。

The $12.7 million in revenue that we generated for the quarter, combined with a 21% year-over-year increase in our backlog to $51.2 million gives us greater visibility and confidence in our growth predictions over the coming quarters.

本季我們創造了 1,270 萬美元的收入，加上我們的積壓訂單年增 21% 至 5,120 萬美元，這讓我們對未來幾季的成長預測有了更大的可見性和信心。

As a reminder, our backlog is the sum of the remaining contract values for all of our telecom services and software solutions customers that will be recognized on a sliding scale over the next 60 months. Our organic growth efforts are continuing, and our performance in Q2 was generally steady. The 6% organic growth rate in telecom services was primarily driven by increased cloud adoption from end users and the 9% organic growth in our Software Solutions segment was driven by new logos as well as additions from our licensee network.

提醒一下，我們的積壓訂單是我們所有電信服務和軟體解決方案客戶的剩餘合約價值的總和，這些合約價值將在未來 60 個月內按滑動比例確認。我們的有機成長努力仍在繼續，第二季的業績整體穩定。電信服務6% 的自然成長率主要是由最終用戶雲端採用率的增加所推動的，而我們的軟體解決方案部門9% 的有機成長是由新商標以及我們的被授權人網路的新增內容所推動的。

As our licensees grow, many will add or need to add additional services from Crexendo, creating low-hanging organic software solutions cross-selling opportunities for the organization.

隨著我們的被授權人的成長，許多人將添加或需要添加 Crexendo 的其他服務，為組織創造簡單的有機軟體解決方案交叉銷售機會。

We added 8 new licensees for the quarter, bringing us to 233 licensees in total, which is on track with our internal expectations and we anticipate a significant number of additional licensees to come on board throughout the remainder of the year on the Software Solutions side of the house. And we also expect to continue to add strong dealer partners and agents in the Telecom Services segment.

我們在本季度增加了8 個新的被授權方，使我們的被授權人總數達到233 個，這符合我們的內部預期，我們預計今年剩餘時間內將有大量額外的被授權人加入到軟體解決方案方面。房子。我們也預計將繼續在電信服務領域增加強大的經銷商合作夥伴和代理商。

Our traditional Crexendo agent program continues to grow and our 3 large master agent partnerships with Telarus, OTG Consulting and Jenne distributors, all had strong performances for the quarter. We continue to build our roster of partners, and we look forward to working with a growing number of companies as the program continues to expand.

我們傳統的 Crexendo 代理商計畫持續成長，我們與 Telarus、OTG Consulting 和 Jenne 經銷商的 3 個大型主機代理商合作夥伴關係在本季均表現強勁。我們將繼續建立我們的合作夥伴名冊，隨著該計劃的不斷擴大，我們期待與越來越多的公司合作。

Our dealer channel is continuing to perform nicely as well, and we are seeing strong contributions from our resellers that are generating larger sized sales opportunities. We're continuing to record elevated demand levels for our solutions, and we are seeing great momentum in sales bookings despite economic headwinds. As an aside, in the event of an economic downturn, which now looks less likely but still possible, I believe that recessionary times actually benefit our industry as businesses look for ways to cut costs and improve efficiency and productivity, and that's exactly what our solutions offer.

我們的經銷商通路也持續表現良好，我們看到經銷商做出了巨大貢獻，創造了更大的銷售機會。我們的解決方案的需求水準持續上升，儘管面臨經濟逆風，我們仍看到銷售預訂的強勁勢頭。順便說一句，如果出現經濟衰退（現在看起來不太可能但仍然有可能），我相信衰退時期實際上對我們的行業有利，因為企業正在尋找削減成本、提高效率和生產力的方法，而這正是我們的解決方案提供。

From an industry opportunity perspective, over half of the businesses in the U.S. still haven't migrated over to the cloud, which still leaves plenty of opportunity for growth. As we surveyed the international market, we see even greater opportunity to enter these underserved geographies. Building on our international success in Q1, we had another solid performance in the second quarter. In addition, last week, we announced that Crexendo Licensee Access4 has now launched their UC Xpress, a revolutionary product built on the Crexendo NetSapiens platform, and they did this to expand their market opportunities for its network of over 400 resellers in the Australian and New Zealand markets.

從產業機會的角度來看，美國一半以上的企業尚未遷移到雲，這仍然留下了大量的成長機會。當我們調查國際市場時，我們看到了進入這些服務不足的地區的更大機會。在第一季國際成功的基礎上，我們在第二季再次取得了穩健的表現。此外，上週，我們宣布Crexendo 被授權人Access4 現已推出其UC Xpress，這是一款基於Crexendo NetSapiens 平台構建的革命性產品，他們這樣做是為了為其澳洲和紐西蘭400 多家經銷商網路擴大市場機會。紐西蘭市場。

Access4 has historically been a Cisco BroadSoft powered solution, but in order to support their rapid expansion plans they needed to introduce a commercially flexible solution with an industry-leading, robust feature set. They found the Crexendo NetSapiens platform offered the ideal framework to support Access4 growth goals, and its relationship between Crexendo and Access4 marks a significant milestone and a landmark partnership in the communication technology landscape of both countries.

Access4 歷來都是由 Cisco BroadSoft 支援的解決方案，但為了支援其快速擴張計劃，他們需要引入具有業界領先、強大功能集的商業靈活解決方案。他們發現 Crexendo NetSapiens 平台提供了支援 Access4 成長目標的理想框架，Crexendo 和 Access4 之間的關係標誌著兩國通訊技術領域的一個重要里程碑和具有里程碑意義的合作夥伴關係。

Our strong sales bookings in the first half of the year helped contribute to a record number of installs this quarter and has enabled us to reach nearly 3.5 million end users, as Jeff pointed out, that they're using our system globally on our platform. At the same time, customer satisfaction remains at an all-time high with continued strong reviews on G2.com, the technology industry's leading independent review website.

正如傑夫指出的那樣，我們上半年強勁的銷售預訂幫助本季度的安裝量創下了紀錄，並使我們能夠覆蓋近 350 萬最終用戶，他們正在全球範圍內的平台上使用我們的系統。同時，科技業領先的獨立評論網站 G2.com 的評論持續強勁，客戶滿意度保持在歷史最高水平。

As Ron mentioned, our Telecom Services margins and product margins declined to 58% and 35%, respectively, for the quarter, which was driven by lower margins from the Allegiant's service revenue contribution. But just as a reminder, the Allegiant offer offerings of additional managed services and network services along with their UCaaS offering, some of these services are lower margins, but ultimately helping pulling a much higher customer spend through a complete bundle of service offerings.

正如 Ron 所提到的，本季我們的電信服務利潤率和產品利潤率分別下降至 58% 和 35%，這是由於 Allegiant 服務收入貢獻的利潤率下降所致。但提醒一下，Allegiant 在 UCaaS 產品的同時還提供額外的託管服務和網路服務，其中一些服務的利潤較低，但最終透過一整套服務產品幫助拉動更高的客戶支出。

Our Telecom Services segment margins in both service and product without Allegiant's contributions were steady at 69% and 43%, respectively. We continue to expect the Telecom Services margins to return to the 70% range as we further integrate the company and improve profitability on certain offerings.

在沒有 Allegiant 貢獻的情況下，我們的電信服務部門的服務和產品利潤率分別穩定在 69% 和 43%。隨著我們進一步整合公司並提高某些產品的獲利能力，我們仍然預期電信服務利潤率將回到 70% 的範圍。

Our Software Solutions margins increased nicely to 67% for the quarter and because of our technology stack is proprietary, we do not have the typical growth costs associated with increased usage and therefore, expect to see these margins continue to improve as we add new logos and new licensees.

我們的軟體解決方案利潤率在本季度大幅增長至 67%，並且由於我們的技術堆疊是專有的，我們沒有與增加使用量相關的典型增長成本，因此，隨著我們添加新徽標和新的被許可人。

Moving on to product updates. Last quarter, we released our Insight management application for the Software Solutions platform. And through Q2, we have continued to note a great reception from our licensees in terms of order numbers and performance reviews.

繼續產品更新。在上季度，我們發布了適用於軟體解決方案平台的 Insight 管理應用程式。在第二季度，我們繼續注意到被授權人在訂單數量和績效評估方面的良好反應。

Going forward, we're excited about upcoming API enhancements on the product, along with additional applications that increase efficiency using AI, ChatGPT capabilities as well as others to improve customer interactions. As we look to the future, we are eager to continue delivering new capabilities, services and software offerings. We believe we have the best UCaaS offering in the industry and that we will continue to attract new customers and new partners, thereby allowing us to deliver strong returns for our shareholders.

展望未來，我們對該產品即將推出的 API 增強功能以及使用 AI、ChatGPT 功能以及其他功能來改善客戶互動來提高效率的其他應用程式感到興奮。展望未來，我們渴望繼續提供新的功能、服務和軟體產品。我們相信我們擁有業內最好的 UCaaS 產品，並且我們將繼續吸引新客戶和新合作夥伴，使我們能夠為股東帶來豐厚的回報。

With the combination of being the fastest-growing platform solution in the country and our growing licensee network and direct end-user offerings, along with our disruptive pricing model and our world-class team, we're perfectly positioned for the future. I'll now turn it back over to Jeff for any further comments.

憑藉著成為國內成長最快的平台解決方案、不斷成長的被授權人網路和直接最終用戶產品，以及我們顛覆性的定價模式和世界一流的團隊，我們為未來做好了完美的準備。我現在將把它轉回傑夫以徵求進一步的意見。

Actually, Doug, I don't have any comments. So Holly, I'd like to turn the call open to questions.

事實上，道格，我沒有任何評論。霍莉，我想在電話中提出問題。

(Operator Instructions) Your first question for today is coming from Eric Martinuzzi at Lake Street.

（操作員說明）今天您的第一個問題來自 Lake Street 的 Eric Martinuzzi。

Well, congrats on the cash flow positive. It was sooner and more than I was expecting for Q2. So that's definitely a nice milestone to return to there. I wanted to dive in on the how you're differentiating the master dealer channel specifically. You had obviously good success with your partners and agents here. And the record installs highlights that. But how -- you don't lack for competitors. How are you differentiating?

好吧，恭喜現金流為正。第二季比我預期的早，也多。所以這絕對是回到那裡的一個很好的里程碑。我想深入探討如何區分主經銷商通路。顯然，您與您的合作夥伴和代理商在這裡取得了巨大的成功。記錄安裝強調了這一點。但如何——你並不缺乏競爭對手。你如何區分？

Eric, I'll let Jon answer that.

艾瑞克，我會讓喬恩回答這個問題。

Eric, good question. First, I'll start with one of the ways that we have significantly differentiated ourselves is our real focus on carving out just a great customer experience. If you are familiar with G2.com, they are the largest independent software review site. We're currently ranked #1 across all providers for our category by our real customers on G2. And that's what I love about them. They validate that your reviewers are actually representing the company and your customers that they hold themselves forward to be representing. And if you understand that the master agent or technology service broker channel, the biggest thing, one of the key criteria to them is support after the sale. So where other competitors have stumbled of recent or not done as well in that area, we really focus across Crexendo on delivering an exceptional customer experience. I think it pays off there.

埃里克，好問題。首先，我將從我們顯著差異化的方式之一開始，那就是我們真正專注於打造卓越的客戶體驗。如果您熟悉 G2.com，它們是最大的獨立軟體評論網站。目前，根據我們在 G2 上的真實客戶的排名，我們在該類別的所有提供者中排名第一。這就是我喜歡他們的原因。他們驗證您的審閱者實際上代表了他們認為自己代表的公司和您的客戶。如果您了解主代理商或技術服務經紀人管道，最重要的事情，他們的關鍵標準之一就是售後支援。因此，當其他競爭對手最近在該領域遇到困難或做得不夠好時，我們在 Crexendo 真正專注於提供卓越的客戶體驗。我認為這是有回報的。

I think there's other ways that we're differentiating ourselves when you get in -- have been successful in growing into larger-sized customers over time and growing that channel. But to me, that's one of the key ways that I really feel like that we create additional value for those partners.

我認為，當你進入時，我們還有其他方法可以讓自己脫穎而出——隨著時間的推移，我們已經成功地發展成為更大規模的客戶，並擴大了這個管道。但對我來說，這是我真正認為我們為這些合作夥伴創造額外價值的關鍵方式之一。

Got it. And then on the Software Solutions side, obviously, it's a lumpy business. We were up 26% in Q1 with a good chunk of perpetual, I'm guessing, and then were 9% in Q2. But just on kind of an overall 12 months basis, what does that business grow? Is that a high single-digit growth business?

知道了。然後在軟體解決方案方面，顯然這是一個不穩定的業務。我猜我們在第一季上漲了 26%，其中有很大一部分永續債券，然後在第二季上漲了 9%。但僅從整體 12 個月的角度來看，該業務的成長如何？這是一個高個位數成長的業務嗎？

Yes. Right now, we're looking at for the remainder of this year, high single digits, and we're moving into the low double digits for next year.

是的。目前，我們預計今年剩餘時間將維持高個位數，明年將進入低兩位數。

And keep in mind, Eric, as we've talked about in the past, we have 2 ways to acquire our platform. One is on a proprietary perpetual license and one is on a subscription basis. And so as we see more perpetual licenses, we'll see a little bit higher nonrecurring revenue coming out of a quarter. That's what we saw a little bit in Q1. Q2 was a little bit more normalized with more subscription services. And those subscription services are great because we get a higher monthly recurring commitment out of those opportunities. And so that makes for a very more reliable, predictable monthly recurring revenue stream going forward. So that's where you saw a little bit of the up and down from Q1 to Q2, but still really nice growth in Q2 with 9%.

請記住，埃里克，正如我們過去談到的那樣，我們有兩種方式來獲取我們的平台。一種是專有的永久許可證，另一種是訂閱式的。因此，當我們看到更多的永久許可證時，我們會看到一個季度的非經常性收入會增加。這就是我們在第一季看到的一些情況。第二季的情況則更加規範化，訂閱服務也增加。這些訂閱服務很棒，因為我們從這些機會中獲得了更高的每月定期承諾。因此，這使得未來的每月經常性收入流變得更加可靠、可預測。因此，您可以看到從第一季到第二季有一些上升和下降，但第二季的成長仍然非常好，達到 9%。

Yes. I understand and congrats again on the quarter.

是的。我理解並再次祝賀本季。

Your next question is coming from Josh Nichols at B. Riley.

您的下一個問題來自 B. Riley 的 Josh Nichols。

Good to see the dramatic improvements in sales and operating performance. Looking here, I wanted to touch on a little bit more -- I know you've taken a lot of initiatives to minimize expenses and improve profitability. Like could you elaborate a little bit on what you've done there, how much that's currently saved? And anything else that you could do to further bolster the bottom line?

很高興看到銷售和經營業績的顯著改善。說到這裡，我想多談一點——我知道你們已經採取了很多措施來最大限度地減少開支和提高盈利能力。您能否詳細說明您在那裡做了什麼，目前節省了多少錢？您還可以做些什麼來進一步提高利潤？

Well, part of it is -- Josh, what we did is we looked at all of the employees we had and realized that we have -- when we could cross utilize them, we could prevent hiring an additional 10 to 12 people. So that was the use savings right there when we did a good job of putting everybody together. We stopped certain spending, which I thought was wasteful. We deferred certain spending, which we believed we could defer and we are waiting, as I said, for the huge savings that's going to come from being on one platform. That's going to have some actual very substantial hard costs and savings.

嗯，部分原因是——喬希，我們所做的是我們查看了我們擁有的所有員工，並意識到我們擁有的——當我們可以交叉利用他們時，我們可以避免額外僱用10 到12 名員工。這就是當我們很好地將每個人聚集在一起時所節省的使用量。我們停止了某些支出，我認為這是浪費。我們推遲了某些支出，我們相信我們可以推遲這些支出，正如我所說，我們正在等待透過一個平台來節省巨額資金。這將帶來一些實際的、非常可觀的硬成本和節省。

The rent here, the electricity, all the licenses that are necessary to keep it up. Not to mention, we will then have another 7 to 8 employees that we could redeploy across the organization who will continue to enable us not to have additional hires. It's hard to quantify because we are genuinely watching every penny. Ron is my watch dog. If somebody asks me to spend any money, Ron looks at it first and see if it's in the budget, and if it isn't, there has to be some cost savings to substantiate it. So it's mostly a matter of discipline and mostly a matter of genuinely watching every penny we spend and not skipping on customer service.

這裡的租金，電力，以及維持它所必需的所有許可證。更不用說，我們將有另外 7 到 8 名員工，我們可以在整個組織中重新部署，他們將繼續使我們無需額外僱用。這很難量化，因為我們真正關注每一分錢。榮恩是我的看門狗。如果有人要我花錢，羅恩首先會看看它是否在預算之內，如果不在，就必須節省一些成本來證實這一點。因此，這主要是一個紀律問題，主要是一個真正關注我們花的每一分錢並且不忽略客戶服務的問題。

I think, Josh, to add to that as we get larger, we have more leverage with our vendors and suppliers. And so the larger we get and the more we spend, the more leverage we have to negotiate rates. And so we've been able to do a good job of controlling our costs by renegotiating certain packages that have reduced our costs significantly.

喬希，我認為，隨著我們規模的擴大，我們對供應商和供應商的影響力也更大。因此，我們規模越大、支出越多，我們在談判價格時的籌碼就越大。因此，透過重新談判某些套餐，我們能夠很好地控製成本，從而顯著降低了我們的成本。

And then just to follow up on the point that you made in terms of migration of customers to the VIP platform, where are you? Is that like halfway down, 1/3 of the way down? And I know it's a gradual process, but expectations on time line there since it's a big opportunity.

然後跟進一下您在將客戶遷移到 VIP 平台方面提出的觀點，您在哪裡？是不是已經下降了一半，下降了 1/3？我知道這是一個漸進的過程，但對時間線有期望，因為這是一個巨大的機會。

It's about halfway done, Josh. And as I mentioned on the call, we have sold the building here. We have a maximum of being in the building 18 months. We can leave as soon as 12 months. I would love to have it done in 12 months, but we will absolutely have it done by the time we have to be out of the building.

已經完成一半了，喬許。正如我在電話中提到的，我們已經出售了這裡的大樓。我們最多可以在大樓裡待 18 個月。我們最快12個月後就可以離開。我很想在 12 個月內完成，但我們絕對會在我們必須離開大樓時完成。

We're picking up a lot of steam there, Josh, and the fact that we've automated a lot of the processes. And so that was probably the biggest challenge is making things a little bit more seamless and quicker in the processes. And so we've maximized that, and so we're going to start seeing that accelerate even more.

喬什，我們在那裡獲得了很大的動力，事實上我們已經實現了許多流程的自動化。因此，最大的挑戰可能是讓流程變得更加無縫和更快。所以我們已經最大化了這一點，因此我們將開始看到這種速度進一步加快。

Then you talked about it on the call, but if you could just dig a little bit deeper into the international opportunity. I don't believe -- it's not a very big percentage of the company's revenue today, but how quickly could you roll that out? In what regions are leveraging the channel effectively to be able to do that?

然後你在電話中談到了這個問題，但如果你能更深入地挖掘國際機會。我不相信——這在公司今天的收入中所佔的比例並不是很大，但是你能多快推出它？哪些地區正在有效利用該管道來實現這一目標？

Josh, I'm going to let Anand answer that. Go ahead, Anand.

喬什，我會讓阿南德來回答這個問題。繼續吧，阿南德。

Josh, I think the thing to look at is, today, we're probably about north of 20 international service providers outside of the U.S. Each one of these -- the longer sales and I think Jeff spoke to the fact that the bigger service providers that we're getting, they will come in. And as we're establishing our brand there, what you're starting to see, and we've seen that with a handful of our providers as you're starting to see the upgrades kick in. So the reality is that we're being opportunistic in certain areas. But if you look at kind of the throughput on a per person basis in that region, there's a lot of activity. And then also from a macro perspective, the conversion to cloud is trailing outside of the U.S. relative to where we are here in the U.S. So there's kind of a natural organic move in that direction.

喬什，我認為今天需要關注的是，我們可能有超過20 個美國以外的國際服務提供者。其中每一個——銷售時間越長，我認為傑夫談到了這樣一個事實，即更大的服務提供者當我們在那裡建立我們的品牌時，你們開始看到什麼，我們已經在我們的少數供應商中看到了這一點，因為你們開始看到升級因此，現實是我們在某些​​領域存在投機行為。但如果你看看該地區每人的吞吐量，你會發現有很多活動。然後，從宏觀角度來看，相對於我們在美國的情況，向雲端的轉換在美國以外的地區落後。因此，朝這個方向存在著一種自然的有機轉變。

In terms of the services that we already have, as Doug spoke to, folks are able to actually use a perpetual license or have a subscription and also host it in our facilities. We currently have facilities out in Amsterdam and the United Kingdom. And then we look to continue -- and we've got plenty of capacity there. And then with the next generation of hosted services, we're already looking at virtualizing and pushing out, which is already in place. So I think all the pieces are there. Now it's just a matter of continuing to kind of service the prospects that we have in the pipeline.

就我們已有的服務而言，正如 Doug 所說，人們實際上可以使用永久授權或訂閱並將其託管在我們的設施中。我們目前在阿姆斯特丹和英國設有工廠。然後我們希望繼續下去——我們在那裡有足夠的能力。然後，對於下一代託管服務，我們已經在考慮虛擬化並推出，這已經到位。所以我認為所有的部分都在那裡。現在的問題只是繼續為我們現有的潛在客戶提供服務。

And then just a housekeeping question for me. I know you broke out some of the organic versus Allegiant, but what was the total Allegiant revenue contribution during the quarter? I think last quarter it was $3.1 million.

然後是我的一個家事問題。我知道您列出了一些有機產品與 Allegiant 的對比，但是 Allegiant 在本季度的總收入貢獻是多少？我想上個季度是 310 萬美元。

Yes. So for the total revenue contribution was $3.2 million for the quarter.

是的。因此，本季的總營收貢獻為 320 萬美元。

Your next question for today is coming from Chris Sakai at Singular Research.

今天的下一個問題來自 Singular Research 的 Chris Sakai。

Can you talk about new licenses for the quarter? And how many were there from existing licensees?

您能談談本季的新許可證嗎？有多少來自現有的被授權人？

Yes. Let me just reiterate my statement from my comments and then I'll have Jon add some more color. We added 8 new logos in the quarter. I think 6 of those were domestic, 2 of those were international. And as far as the upgrades, we're constantly getting upgrades from our licensees that we have out there, we've got over 230 licensees now. So Jon, do you want to add a little bit more color on that breakdown?

是的。讓我重申我的評論中的陳述，然後我會讓喬恩添加更多顏色。我們在本季新增了 8 個新商標。我認為其中 6 個是國內的，其中 2 個是國際的。就升級而言，我們不斷從現有的被授權人那裡獲得升級，現在我們已經擁有超過 230 個被授權者。那麼喬恩，你想在這個細分上添加更多的色彩嗎？

Yes. So Doug gave you the general numbers and just understand with the new licensees, the opportunity is, about half of them are electing to have us host it as on and talked about in our infrastructure, our data centers have for self-hosting. And then about the current quarter, about 50% chose to procure their licenses on a subscription basis.

是的。因此，Doug 向您提供了一般數據，並了解新的被許可人，機會是，大約一半的人選擇讓我們託管它，並在我們的基礎設施中進行討論，我們的數據中心具有自託管功能。大約在本季度​​，大約 50% 的人選擇以訂閱的方式取得授權。

So when we talk about kind of the big initiatives, giving customers buying choice, whether they buy perpetual or subscription licensing and then giving them the opportunity to either host it themselves or us host it for them, we're generally seeing a pretty even split in those options, and we think that's one of our competitive advantages in the market.

因此，當我們談論某種重大舉措時，為客戶提供購買選擇，無論他們購買永久許可還是訂閱許可，然後讓他們有機會自己託管或我們為他們託管，我們通常會看到相當均勻的分配在這些選擇中，我們認為這是我們在市場上的競爭優勢之一。

Okay. Sounds good. And then can you guys talk about your hiring freeze from latter? Has there been any traction for new hires?

好的。聽起來不錯。那麼你們可以談談你們凍結招募的事嗎？對新進員工有任何吸引力嗎？

Well, Chris, I loosened up the hiring freeze. Originally, it was a complete hiring freeze. And then as we got the discipline we needed and started to cash flow, we've decided that it was necessary to replace positions where people have left or have been terminated. So it's not a complete hiring freeze anymore, but it is a -- we are only replacing people who have left. Next year, we will probably add, but we'll have to see where we are at that point.

好吧，克里斯，我放鬆了招募凍結。最初，這是完全凍結招募。然後，當我們獲得了所需的紀律並開始現金流時，我們決定有必要替換人員已離職或已被解僱的職位。因此，這不再是完全的招募凍結，而是——我們只是替換已經離開的人。明年，我們可能會添加，但我們必須看看當時的情況。

Okay. Sounds good. And then can you talk about the Access4 and UC Xpress in Australia. Can you provide any -- what should we expect as far as revenue there?

好的。聽起來不錯。然後您能談談澳洲的 Access4 和 UC Xpress 嗎？您能否提供任何資訊—就那裡的收入而言，我們應該期望什麼？

I'll let Anand answer that.

我會讓阿南德回答這個問題。

Yes. I mean I think from a revenue perspective -- so a couple of different things. Obviously, I don't think we provide guidance on where we're going to go. But just to give you a little bit of context, Access4 in general is one of the largest white label providers that has a pretty large channel following probably with respect to probably in the 600 to 800 range of resellers that turn around and resell off of the platform. So this is a white label offering that they're taking to market, which before -- and again, before they were actually providing those services using a BroadSoft platform.

是的。我的意思是，我從收入的角度來看——所以有一些不同的事情。顯然，我認為我們不會就我們的發展方向提供指導。但只是為了給您一點背景信息，Access4 一般來說是最大的白標提供商之一，擁有相當大的渠道追隨者，可能有 600 到 800 家轉售商，這些經銷商轉而轉售平台。因此，這是他們推向市場的白標產品，之前——而且是在他們實際上使用 BroadSoft 平台提供這些服務之前。

So they've made a pretty significant commitment. However, the growth prospects are -- we will see kind of over time as we go and then I think the other thing to keep in mind here is it's an alternative offering in the marketplace, and we've seen a general uptick from a lot of need in Australia in general. But it is basically a channel strategy that they're putting in place that will obviously turn around and benefit us in a great way.

所以他們做出了相當重要的承諾。然而，隨著時間的推移，我們會看到成長前景，然後我認為這裡要記住的另一件事是，它是市場上的替代產品，我們已經看到了普遍的成長。澳洲普遍需要。但這基本上是他們正在實施的通路策略，顯然會扭轉局面，讓我們受益匪淺。

Your next question for today is coming from Vivek Palani at Northland Capital.

今天的下一個問題來自 Northland Capital 的 Vivek Palani。

I'm Vivek on for Mike Latimore. I have a couple of questions with me. And the first one is what is the latest subscriber count?

我是麥克拉鐵摩爾的維韋克。我有幾個問題。第一個是最新的訂閱人數是多少？

I'm sorry, the latest what?

抱歉，最新的是什麼？

Subscriber count.

訂戶數量。

Do you know that Ron?

你認識那個羅恩嗎？

On the Software Solutions side, we have 233 licensed providers on the software solutions side of the house. And then on the direct side of the house, I don't have an exact number, but north of 90,000 direct end users on the platform.

在軟體解決方案方面，我們擁有 233 個獲得許可的軟體解決方案提供者。然後在房子的直接方面，我沒有確切的數字，但平台上有 90,000 名直接最終用戶。

Okay. And my second question is, have you seen any change in the sales cycle or [mid] size?

好的。我的第二個問題是，您是否看到銷售週期或[中等]規模有任何變化？

As we talked about during the call, we have found that the sales cycle for enterprise customers tends to take longer than it does for smaller customers, and we are trying to sell to far more enterprise customers. So to that extent, the sales cycle has increased, but I'll let Doug give a little more detail on that.

正如我們在電話會議中談到的，我們發現企業客戶​​的銷售週期往往比小型客戶更長，我們正在努力向更多的企業客戶銷售。因此，從這個意義上說，銷售週期已經增加，但我會讓道格對此提供更多細節。

Yes. I think when we're talking about the small and midsized businesses, I think the sales process hasn't changed dramatically. But as we've highlighted, we have seen an uptick in larger sized opportunities. I think we had over a dozen 6-figure total contract value sales during the quarter, which is pretty significant. And so when we see these larger-sized opportunities, they do take a little bit longer to materialize. And so we're not seeing a lot of headwinds from the economic challenges out there. So we're just plowing ahead, and there's a lot of demand for our products. So the sales cycle has not changed dramatically for us, and we're continuing to see good adoption of the product in the small and midsize.

是的。我認為當我們談論中小企業時，我認為銷售流程並沒有發生巨大變化。但正如我們所強調的，我們看到規模更大的機會增加。我認為本季我們的合約銷售總額達到了十多個六位數，這是相當可觀的。因此，當我們看到這些更大的機會時，它們確實需要更長的時間才能實現。因此，我們沒有看到經濟挑戰帶來太多阻力。因此，我們只是在努力前進，對我們產品的需求也很大。因此，我們的銷售週期並沒有發生巨大變化，而且我們繼續看到該產品在中小型企業中得到了良好的採用。

And again, the enterprise has always been a longer sales cycle, and we're going to probably continue to see that.

再說一遍，企業的銷售週期一直較長，我們可能會繼續看到這一點。

Your next question for today is coming from Michael Kaufman at MK Investments.

今天的下一個問題來自 MK Investments 的 Michael Kaufman。

I want to applaud the team's success and keeping up a financially responsible growth strategy compared to growth in any costs, which we've seen in some of our competitors like 8x8 and RingCentral. And I guess, to that end, how are we going to convey what we're doing that this is really a diamond in the rough to the investment community? I mean what kind of program do we have and at what point do we start doing some outlooks? Will we talk about the expense and revenue ratios, the total available market based on what we're doing and so that people get a better appreciation for -- that this is bigger than a breadbox.

我想讚揚該團隊的成功，並與任何成本的成長相比，保持對財務負責的成長策略，我們在 8x8 和 RingCentral 等競爭對手中看到了這一點。我想，為此，我們如何向投資界傳達我們正在做的事情，這確實是一顆未經雕琢的鑽石？我的意思是我們有什麼樣的計劃以及我們什麼時候開始做一些展望？我們能否談談費用和收入比率、基於我們正在做的事情的總可用市場，以便人們更好地認識到——這比麵包箱還要大。

Well, Michael, we are making strides in that. As you're aware, we did hire an IR firm who is going to be getting us out to home offices, which will get us in front of the new market. The team aggressively goes out to investment conferences and tells the story. We are doing an excellent job internally of tracking stock owners and potential stock owners, and we're reaching out to them directly. One of the things you're [son] recommended to us. We continue to market both to customers and potential stock owners see it.

好吧，邁克爾，我們在這方面正在取得進展。如您所知，我們確實聘請了一家投資者關係公司，該公司將把我們帶到家庭辦公室，這將使我們領先於新市場。團隊積極參與投資會議並講述故事。我們在內部追蹤股票所有者和潛在股票所有者方面做得非常出色，並且我們正在直接與他們聯繫。你[兒子]向我們推薦的事情之一。我們繼續向客戶和潛在股東進行行銷。

I mean we're in a little bit of a pickle here. As you well know, the telecom sector has some substantial headwinds for reasons that have nothing to do with us. It was the growth at end strategy and borrowing cheap money, which has now become quite expensive and has hurt them something we didn't do. And you're right, we need to do a better job of distinguishing that and showing that we've carefully run the business by sound principles, and we are growing from organic growth.

我的意思是我們現在有點麻煩了。眾所周知，電信業面臨著一些與我們無關的重大阻力。這是最終的成長策略和借入廉價資金，現在這已經變得相當昂貴，並傷害了他們，而我們沒有這樣做。你是對的，我們需要更好地區分這一點，並表明我們按照合理的原則謹慎經營業務，並且我們正在透過有機成長實現成長。

The message will start to get out. I hope that the micro cap market will start to be getting a closer look now that we've had the big runs in the larger markets. And we just -- Michael, all we can do every day is put our head down, work as hard as we can and deliver as hard as we can or reaching out to as many people as we can and continue to get results like this so when we're getting more eyes and when the market has turned both in telecom and from the micro cap, that people will see that we are, as you said, a diamond in the rough.

該消息將開始傳播。我希望，既然我們已經在較大的市場上進行了大規模的運行，那麼微型資本市場將開始得到更仔細的關注。我們只是——邁克爾，我們每天能做的就是低下頭，盡我們所能地努力工作，盡我們所能地交付成果，或者與盡可能多的人接觸，並繼續取得這樣的結果，所以當我們吸引更多的目光，當電信市場和微型股市場轉變時，人們就會看到我們，正如您所說，是一顆未經雕琢的鑽石。

And we do have, Michael, we do have 4 investment conferences coming up in September and October that you'll see a press release on here shortly. So we're doing our best to get our message out there to the masses because we know it's a great story.

邁克爾，我們確實有 4 場投資會議將於 9 月和 10 月舉行，您很快就會在這裡看到新聞稿。因此，我們正在盡最大努力向大眾傳達我們的訊息，因為我們知道這是一個很棒的故事。

No, I think you guys are doing a great job rooting for you. And -- but anything you could do in kind of forecasting without really forecasting. But look at the type of metrics you're expecting in terms of gross margin and the mix between the type of companies that you're servicing. So that's somebody could see going forward where this thing is starting to go.

不，我認為你們在支持你們方面做得很好。而且——但是你可以在沒有真正預測的情況下做任何預測。但請查看您期望的毛利率指標類型以及您所服務的公司類型之間的組合。所以有人可以看到這件事的發展方向。

We understand that. We're looking at it. And as we discussed during the call, one of the difficulties of doing that is the -- as one of the previous questioners asked, the lumpiness in the Software Solutions side, as we tend to convert more of the customers to a monthly subscription model, it will give us far more quarter-to-quarter ending, which will enable us to do that more easily. But it's something we're working on and something we're looking at.

我們明白這一點。我們正在研究它。正如我們在電話會議中討論的那樣，這樣做的困難之一是——正如之前的一位提問者所問的那樣，軟體解決方案方面的混亂，因為我們傾向於將更多的客戶轉變為按月訂閱模式，它將為我們提供更多的季末結局，這將使我們更輕鬆地做到這一點。但這是我們正在努力和正在研究的事情。

Okay. Best of luck. Congratulations.

好的。祝你好運。恭喜。

Your next question is coming from [Ronald Sol], a private investor.

您的下一個問題來自私人投資者 [Ronald Sol]。

Yes. We made a lot of good progress in reducing the GAAP net loss in this quarter from like -- perhaps to $500 million. When do we think we could be GAAP neutral?

是的。我們在將本季度 GAAP 淨虧損從約 5 億美元減少方面取得了很大進展。我們什麼時候認為我們可以保持 GAAP 中立？

Well, part of the problem, and I'll let Ron address this in more detail is the intangible costs we have from the acquisition. They are huge. They're not real cost to us, but their GAAP cost. So getting to GAAP profitability this year would be difficult, if not impossible. It's possible next year. But again, if we were to start doing acquisitions, you get back to intangible costs, but I'll let Ron give a little more detail.

好吧，問題的一部分是我們從收購中獲得的無形成本，我會讓羅恩更詳細地解決這個問題。它們很大。它們對我們來說不是真正的成本，而是按照公認會計準則計算的成本。因此，今年要實現以公認會計準則計算的利潤即使不是不可能，也是很困難的。明年就有可能。但同樣，如果我們開始進行收購，你就會回到無形成本，但我會讓羅恩提供更多細節。

As Jeff mentioned on the net income, net loss position from a GAAP basis, it's going to be a little challenging for the next year or so to get there. But on a non-GAAP basis and on an adjusted EBITDA basis, you're going to continue to see improvements in those numbers and we look forward to reaching that breakeven next year.

正如傑夫在談到按照公認會計原則計算的淨利潤和淨虧損時所提到的那樣，在未來一年左右的時間裡要實現這一目標將面臨一些挑戰。但在非公認會計原則和調整後的 EBITDA 基礎上，您將繼續看到這些數字的改善，我們期待明年能達到損益兩平。

Are you still there, sir?

先生你還在嗎？

Yes. Well, we made so much forwards in this quarter from $1.5 million to $0.5 million. I just thought maybe in the next quarter or 2, we could get it to breakeven.

是的。嗯，本季我們進行了大量遠期付款，從 150 萬美元增加到 50 萬美元。我只是想也許在接下來的一兩個季度，我們可以實現收支平衡。

Unfortunately, the $0.5 million is the -- is basically a lot of the intangible costs, and there's nothing we can do about that. But we will work as hard as we can. We will grow as fast as we can, and we are shooting for GAAP breakeven and/or profitability next year. But as Ron said, we will continue the cash flow, and that's the most important thing. As long as we're putting cash on the books and we're profitable, we will continue that.

不幸的是，50 萬美元基本上是無形成本的一部分，我們對此無能為力。但我們會盡我們所能地努力工作。我們將盡可能快速地成長，我們的目標是明年實現 GAAP 損益平衡和/或獲利。但正如羅恩所說，我們將繼續現金流，這是最重要的。只要我們將現金記入帳簿並且我們能夠獲利，我們就會繼續這樣做。

Right. Yes, it looks like we made a lot of progress on the cash flow.

正確的。是的，看起來我們在現金流方面取得了很大進展。

Any follow-up?

有後續嗎？

No.

不。

Your next question is a follow-up question coming from Josh Nichols.

您的下一個問題是 Josh Nichols 提出的後續問題。

Just one last question. I think you mentioned the backlog was, I think, (inaudible) is about $2 million. I assume that includes Allegiant which isn't really apples-to-apples on a year-over-year basis. Do you know what the sequential growth in the backlog was? What we end Q1 at?

只是最後一個問題。我想你提到積壓的金額（聽不清楚）約為 200 萬美元。我認為這包括 Allegiant，但與去年同期相比，這並不是真正的同類公司。您知道積壓訂單的環比成長是多少嗎？ Q1 的結尾是什麼？

So that growth is both excluding Allegiant. That is the Software Solutions and our cloud telecom, excluding the acquisition backlog. So the number you have there is apples-to-apples on a comparison basis.

因此，這種成長不包括 Allegiant。這是軟體解決方案和我們的雲端電信，不包括收購積壓。因此，在比較的基礎上，你所擁有的數字是同類的。

(Operator Instructions)

（操作員說明）

Seeing none, I want to thank everybody for their attention and for joining the call. We look forward to discussing with you our Q3 results. While I can't promise you what the stock market will do, I can promise you that everybody in this room has rolled up their sleeves -- okay, it's 109 degrees here in Phoenix. So nobody had long sleeves. But are rolling up their sleeves and are working incredibly hard every day to keep making this a better company, and I am confident that our results will continue to impress and that we'll have more exciting news when we reconvene again at the -- for the Q3 meeting.

沒有看到任何人，我要感謝大家的關注和加入電話會議。我們期待與您討論我們的第三季業績。雖然我無法向你保證股市將會如何，但我可以向你保證，這個房間裡的每個人都已經捲起了袖子——好吧，鳳凰城的氣溫為 109 度。所以沒有人穿長袖。但是，我們正在捲起袖子，每天都在非常努力地工作，以不斷使這家公司成為一家更好的公司，我相信我們的業績將繼續給人留下深刻的印象，當我們再次召開會議時，我們將有更多令人興奮的消息—第三季會議。

So I thank all of you. Good afternoon, and thank you.

所以我感謝你們所有人。下午好，謝謝。

Thank you, everybody.

謝謝大家。

Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束，此時您可以掛斷電話了。感謝您的參與。