Crexendo Inc (CXDO) 2024 Q1 法說會逐字稿

Greetings and welcome to the Crexendo first quarter 2024 earnings call.

歡迎參加 Crexendo 2024 年第一季財報電話會議。

(Operator Instructions) Please note this conference is being recorded.

（操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to your host, Mr. Jeff Korn.

現在我將會議交給主持人 Jeff Korn 先生。

Sir, you may begin.

先生，您可以開始了。

Thank you, Ali, and good afternoon, everyone.

謝謝阿里，大家下午好。

Welcome to the Crexendo Q1 2024 conference call.

歡迎參加 Crexendo 2024 年第一季電話會議。

I'm Jeff Korn, Chairman of the Board of Directors, and CEO.

我是傑夫·科恩，董事會主席兼執行長。

On the call with me today are Doug Gaylor, our President and COO; Ron Vincent, our CFO; Jon Brinton, our CRO; and Anand Bush, our CSO.

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； Jon Brinton，我們的 CRO；以及我們的首席安全官阿南德布希 (Anand Bush)。

In a moment, Jon will read our safe harbor statement.

稍後，喬恩將閱讀我們的安全港聲明。

After that, I will give some brief comments on our performance for the first quarter.

接下來我將對我們第一季的業績做一些簡單的評價。

Ron will then provide more detail on the numbers before handing the call over to Doug to provide a business and sales update.

然後，羅恩將提供有關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。

After that, we'll open up the call to questions.

之後，我們將開放提問。

Jon, would you please read the safe harbor statement?

喬恩，請您閱讀安全港聲明好嗎？

Thank you, Jeff.

謝謝你，傑夫。

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.

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。

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for such forward-looking statements.

1995 年《私人證券訴訟改革法案》為此類前瞻性聲明提供了安全港。

All statements made in this conference call, other than statements of historical fact, are forward-looking statements.

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。

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.

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。

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.

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。

These risk factors are explained in detail in the company's filings with the Securities and Exchange Commission, including the Form 10-K for the fiscal year ended December 31, 2023, and the Forms 10-Q as filed.

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 2023 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.

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。

I'd now like to turn the call back to Jeff.

我現在想把電話轉回傑夫。

Jeff?

傑夫？

Thank you, Jon.

謝謝你，喬恩。

I'm very excited to report that in the first quarter, Crexendo maintained its streak of achieving GAAP profitability for the third consecutive quarter and non-GAAP net income for the 22 consecutive quarter.

我非常高興地向大家報告，在第一季度，Crexendo 保持了連續第三個季度實現 GAAP 盈利能力和連續 22 個季度實現非 GAAP 淨利潤的勢頭。

This performance reflects on the dedication of our entire team who work to make certain that we provide the best cloud communication software in the industry.

這項業績反映了我們整個團隊的奉獻精神，他們致力於確保我們提供業界最好的雲端通訊軟體。

We combine that with superb customer service, where G2 ranked us the number one in 19 customer satisfaction categories in G2's Spring 2024 report.

我們將其與卓越的客戶服務相結合，在 G2 2024 年春季報告中，G2 將我們評為 19 個客戶滿意度類別中的第一名。

Making the fifth consecutive quarter that Crexendo has been rated first in multiple satisfaction categories.

Crexendo 連續第五個季度在多個滿意度類別中被評為第一。

This shows that we strive for operational excellence and delivering value to our shareholders and our customers.

這表明我們致力於卓越營運並為股東和客戶創造價值。

With that said, we don't rest on our laurels, and we are always looking for ways to improve our cloud communication software and our customer service.

儘管如此，我們並沒有滿足於現狀，我們一直在尋找改進我們的雲端通訊軟體和客戶服務的方法。

We know there are multiple solutions, and we will continue to work to be the solution of choice both on the software solution business and on the telecom services business.

我們知道有多種解決方案，我們將繼續努力成為軟體解決方案業務和電信服務業務的首選解決方案。

The strong financial results in Q1 included a 14% year-over-year organic increase in total revenues to $14.3 million, which was driven by a 25% growth in the software solution segment as well as near double-digit increase in telecom services revenue, which equated to very solid performances across all revenue segments.

第一季強勁的財務業績包括總收入同比有機增長 14% 至 1,430 萬美元，這是由軟體解決方案部門增長 25% 以及電信服務收入近兩位數增長推動的。都非常穩健。

Our efforts are certainly bearing fruit and is evident by the GAAP earnings of $434,000 and non-GAAP net income of $1.9 million and adjusted EBITDA of $2.1 million.

我們的努力確實取得了成果，GAAP 收益為 434,000 美元，非 GAAP 淨利潤為 190 萬美元，調整後 EBITDA 為 210 萬美元。

Our goal is to deliver profitable growth and create value for our shareholders.

我們的目標是實現獲利成長並為股東創造價值。

The transition of customers from our Crexendo Classic system to the cutting-edge VIP platform continues to advance effectively.

客戶從 Crexendo Classic 系統向尖端 VIP 平台的過渡繼續有效推進。

We remain optimistic about completing this migration by year-end.

我們對年底前完成此遷移仍持樂觀態度。

This will allow us to vacate our current premises and move to a new location.

這將使我們能夠騰出目前的辦公室並搬到新的地點。

The cost savings of not maintaining two platforms together with the reduction in rent costs and other ancillary expenses should result in substantial cost reductions.

不維護兩個平台所節省的成本，加上租金成本和其他輔助費用的減少，應該會導致成本大幅降低。

We continue to aggressively manage costs.

我們持續積極管理成本。

With that said, however, we will make strategic investments in the business so that we can continue to be the cloud communication leader.

儘管如此，我們仍將對該業務進行策略性投資，以便我們能夠繼續成為雲端通訊的領導者。

Last month was a really big month for us.

上個月對我們來說是非常重要的一個月。

We announced that we now serve over 4.5 million users on our platform.

我們宣布我們的平台現已為超過 450 萬用戶提供服務。

We continue to add users at a steady pace, and I see no end in sight.

我們繼續以穩定的速度增加用戶，而且我看不到盡頭。

Frost and Sullivan, who in their recent 2024 report awarded us the Competitive Strategy Leadership Award for Excellence in Cloud Communications, confirmed that we are the fastest-growing UCaaS platform in the industry.

Frost and Sullivan 在最近的 2024 年報告中授予我們雲端通訊卓越競爭策略領導獎，並確認我們是業界成長最快的 UCaaS 平台。

Our team and our disruptive business model of sessions, not seats, continues to give us a competitive edge.

我們的團隊和顛覆性的會議業務模式（而不是席位）繼續為我們提供競爭優勢。

We were also given the honor of ringing the Nasdaq closing bell.

我們也榮幸地敲響了納斯達克收盤鐘。

Our exceptional team was able to join us either in person or by video, and many of our employees had their images splashed on the Times Square billboard.

我們優秀的團隊能夠親自或透過影片加入我們，我們的許多員工的照片都出現在時代廣場的廣告看板上。

I must admit it was very exciting for us to share that honor with some of our licensees who joined us as we had our partner advisory council meeting at the Nasdaq offices.

我必須承認，當我們在納斯達克辦事處舉行合作夥伴諮詢委員會會議時，與加入我們的一些被許可人分享這項榮譽，我們感到非常興奮。

We have a partner advisory meeting every quarter to make sure that we constantly stay in touch with our licensees, and we are adapting to their needs.

我們每季都會召開合作夥伴諮詢會議，以確保我們始終與被授權者保持聯繫，並適應他們的需求。

That's one of the ways that Crexendo excels.

這是 Crexendo 的優勢之一。

But it was really a thrill for us, and me in particular, to get to close the market that day.

但那天收盤對我們來說，尤其是對我來說，確實令人興奮。

Our work with Oracle is also progressing rapidly and smoothly.

我們與甲骨文的合作也進展迅速、順利。

As you may have seen, we put out a press release today to celebrate what I am sure will be a great winning combination.

正如您可能已經看到的，我們今天發布了一份新聞稿來慶祝我相信這將是一個偉大的勝利組合。

We are very excited about the growth of our hosted offering and anticipate even more positive developments.

我們對託管產品的成長感到非常興奮，並預計會有更積極的發展。

We expect substantial growth as more and more customers are looking for a more turnkey solution and seek to have us do the hosting for them.

隨著越來越多的客戶尋求更全面的解決方案並尋求讓我們為他們提供託管服務，我們預計將大幅成長。

Our tremendous team, working with the Oracle team, should make us the top hosted solution in the industry.

我們龐大的團隊與 Oracle 團隊合作，將使我們成為業界頂級的託管解決方案。

With that said, we will continue to improve our non-hosted solutions and keep them the best in the industry also.

話雖如此，我們將繼續改進我們的非託管解決方案，並使其保持業界最佳水平。

Lastly, I would like to touch on our recent filing today of a shelf registration, which you should be able to find on EDGAR.

最後，我想談談我們今天最近提交的貨架註冊申請，您應該可以在 EDGAR 上找到該註冊。

While this is not for immediate use, it's a testament to our commitment to good corporate governments.

雖然這不會立即使用，但它證明了我們對良好企業政府的承諾。

This is something I've personally advocated for some time even before becoming CEO.

這是我個人在成為執行長之前就一直提倡的事情。

The shelf is good for three years and gives us flexibility to determine when and if we use it and under what terms.

該架子的有效期為三年，讓我們可以靈活地決定何時使用、是否使用以及在什麼條件下使用它。

We anticipate that if we use the shelf, it will be for future strategic investments, most likely in accretive acquisitions.

我們預計，如果我們使用該貨架，它將用於未來的策略性投資，最有可能用於增值性收購。

It's just one more tool in our arsenal to effectively close deals that make sense.

這只是我們武器庫中的另一個工具，可以有效地完成有意義的交易。

In conclusion, I want to reiterate our expectation for double-digit organic growth.

最後，我想重申我們對兩位數有機成長的預期。

We are poised for continued success, and I'm confident in our ability to deliver outstanding results in the quarters to come.

我們已做好持續成功的準備，我對我們在未來幾季取得出色業績的能力充滿信心。

The future looks bright, and we could not be more excited.

未來一片光明，我們無比興奮。

I'll now turn over the call to provide some financial highlights.

我現在將轉交電話以提供一些財務要點。

Ron?

羅恩？

Thank you, Jeff.

謝謝你，傑夫。

Good afternoon, everyone.

大家下午好。

Some financial highlights for the first quarter of 2024 are as follows.

2024 年第一季的一些財務亮點如下。

Total revenue for the quarter increased 14% to $14.3 million compared to $12.5 million for the first quarter of the prior year.

本季總營收成長 14%，達到 1,430 萬美元，而去年第一季的總營收為 1,250 萬美元。

Our service revenue for the quarter increased 10% to $7.8 million compared to $7.1 for the first quarter of the prior year.

本季我們的服務收入成長了 10%，達到 780 萬美元，而去年第一季的服務收入為 7.1 美元。

Software solutions segment contributed 25% growth in revenue to $5.1 million compared to $4.1 million for the first quarter of the prior year.

軟體解決方案部門的營收成長了 25%，達到 510 萬美元，而去年第一季的營收為 410 萬美元。

Our product revenue increased 6% to $1.3 million compared to $1.2 million for the first quarter of the prior year.

我們的產品收入成長了 6%，達到 130 萬美元，而去年第一季的營收為 120 萬美元。

We continue to see strong gross margins for the quarter.

我們繼續看到本季強勁的毛利率。

Service gross revenue gross margin came in at 60% for the quarter.

本季服務總收入毛利率為 60%。

Product revenue gross margin 44% for an overall telecom services segment gross margin of 58%.

產品收入毛利率為44%，電信服務部門整體毛利率為58%。

That's compared to 55% in Q4 of last year.

相比之下，去年第四季為 55%。

Software solutions gross margin 73% as compared to 66% in Q4 and 59% or 71% in Q1 of the prior year.

軟體解決方案毛利率為 73%，而第四季為 66%，去年第一季為 59% 或 71%。

Overall gross margins 63%.

整體毛利率63%。

Our operating expenses for the quarter decreased 2% to $13.8 million compared to $14 million for the first quarter of the prior year.

我們本季的營運支出下降了 2%，達到 1,380 萬美元，而去年第一季的營運支出為 1,400 萬美元。

We reported net income as Jeff mentioned $434,000 for the quarter.

我們報告了 Jeff 提到的本季淨利潤 434,000 美元。

That's $0.02 per basic and $0.01 per diluted common share.

即每股基本股 0.02 美元，每股稀釋普通股 0.01 美元。

Compared to a net loss of $1.6 million or a $0.06 per basic and diluted common share for the first quarter of the prior year.

相比之下，去年第一季的淨虧損為 160 萬美元，或每股基本和稀釋普通股虧損 0.06 美元。

We also reported non-GAAP net income of $1.9 million for the quarter.

我們還報告了本季非 GAAP 淨利潤為 190 萬美元。

That's $0.07 per basic and $0.06 per diluted common share.

即每股基本股 0.07 美元，每股稀釋普通股 0.06 美元。

Compared to a non-GAAP net income of $625,000 or $0.02 per basic and diluted common share for the first quarter of the prior year.

相比之下，去年第一季的非 GAAP 淨利潤為 625,000 美元，或每股基本和稀釋普通股 0.02 美元。

EBITDA for the quarter was $1.3 million compared to a loss of $666,000 for the first quarter of the prior year.

本季 EBITDA 為 130 萬美元，而去年第一季虧損 666,000 美元。

Adjusted EBITDA came in at approximately $2.1 million.

調整後的 EBITDA 約為 210 萬美元。

That's compared to $749,000 for the first quarter of the prior year.

相比之下，去年第一季的銷售額為 749,000 美元。

We ended the quarter with a strong cash balance of $11 million.

本季結束時，我們擁有 1,100 萬美元的強勁現金餘額。

That's compared to $10.3 million at December 31, 2023.

相比之下，截至 2023 年 12 月 31 日，這一數字為 1,030 萬美元。

We used $166,000 for operating activities during the quarter, mostly to pay down accrued liabilities and accounts payable balances.

本季我們使用了 166,000 美元用於經營活動，主要用於償還應計負債和應付帳款餘額。

Cash used for investing activities was nil for the quarter compared to {$9,000} in the prior year.

本季用於投資活動的現金為零，而上年度為 {$9,000}。

Cash provided by financing activities for the quarter was $859,000 compared to cash used for investing activities of $200,000 for the same period of the prior year.

本季度融資活動提供的現金為 859,000 美元，而去年同期用於投資活動的現金為 200,000 美元。

I will now turn it over to Doug Gaylor, President, and COO, for additional comments on business and sales.

我現在將其轉交給總裁兼營運長道格·蓋勒 (Doug Gaylor)，以獲取有關業務和銷售的更多評論。

Thanks, Ron.

謝謝，羅恩。

We had another very strong performance in Q1, and I'm very pleased with our momentum to start 2024.

我們在第一季再次取得了非常強勁的表現，我對 2024 年開始的勢頭感到非常滿意。

Our 14% year-over-year increase in Q1 revenues, along with our third consecutive GAAP profitable quarter, were the direct result of our focus on growing organically and managing to the fundamentals.

我們第一季營收年增 14%，以及我們連續第三個 GAAP 獲利季度，是我們專注於有機成長和管理基本面的直接結果。

We had GAAP net income of $434,000 for the quarter, or $0.02 a share, and on a non-GAAP basis we had strong non-GAAP net income of $1.92 million for the quarter, or $0.07 per share, and this was our 22 consecutive quarter with non-GAAP net income.

我們本季的 GAAP 淨利潤為 434,000 美元，即每股 0.02 美元，以非 GAAP 計算，我們本季的非 GAAP 淨利潤為 192 萬美元，即每股 0.07 美元，這是我們連續 22 個季度實現的與非公認會計準則淨利。

Our results for the quarter continue to highlight our success in managing cost and recognizing significant synergies from our acquisitions, allowing us to quickly leverage the opportunity to grow our business.

我們本季的業績繼續凸顯了我們在管理成本和認識到收購帶來的顯著協同效應方面的成功，使我們能夠快速利用這一機會來發展我們的業務。

Our entire team worked tirelessly together to improve business processes and make our company more efficient, and we believe we will continue to see more efficiencies and cost synergies as we continue our growth.

我們的整個團隊孜孜不倦地共同努力，以改進業務流程並使我們的公司更加高效，我們相信，隨著我們的不斷發展，我們將繼續看到更高的效率和成本協同效應。

We had significant organic growth in both segments of our business for the quarter.

本季我們的兩個業務部門都實現了顯著的有機成長。

Our software solutions segment achieved 25% organic growth year-over-year, while our telecom services segment saw a 9% organic growth rate for the quarter.

我們的軟體解決方案部門實現了 25% 的同比有機成長，而我們的電信服務部門本季的有機成長率為 9%。

The combined 14% organic growth rate highlights the growing demand for our products and services.

14% 的綜合有機成長率凸顯了對我們產品和服務不斷增長的需求。

The 25% organic growth rate in our software solutions segment allowed us to eclipse the 4.5 million users mark on our platform during the quarter.

我們的軟體解決方案部門 25% 的自然成長率使我們在本季度超越了平台上 450 萬用戶的大關。

The rapid growth we are experiencing on our platform was further highlighted by Frost and Sullivan awarding us their 2024 North American Strategy Leadership Award during the quarter and highlighting our outstanding 36% user surge in 2023, which was nearly double the industry average.

Frost and Sullivan 在本季度授予我們 2024 年北美策略領導獎，並強調我們在 2023 年的用戶激增 36%，幾乎是行業平均水平的兩倍，這進一步凸顯了我們在平台上經歷的快速增長。

Our Crexendo licensees and agents continue to benefit from the rapid migration by small and midsize and enterprise level businesses to the cloud, and our licensees continue to grow, and as they do, they need additional services and increase their spend with Crexendo.

我們的Crexendo 被授權人和代理商繼續受益於中小型和企業級企業向雲端的快速遷移，並且我們的被授權人不斷增長，隨著他們的成長，他們需要額外的服務並增加在Crexendo 上的支出。

Our telecom services segment grew at 9% organically, and we continue to see strong demand for our offerings from our channel partners and saw an 85% growth rate in our sales from our master agent partnerships compared to Q1 of 2023.

我們的電信服務部門有機成長了9%，我們繼續看到通路合作夥伴對我們的產品的強勁需求，並且與2023 年第一季相比，我們的主代理合作夥伴關係的銷售額增長了85% 。

Our channel partners sell our services to their prospects and customers on a revenue share basis, and we continue to see nice growth from our existing channel partners, who have great confidence in our solutions because of our 100% uptime guarantee and our best-in-class customer service and customer satisfaction results.

我們的通路夥伴在收入分成的基礎上向他們的潛在客戶和客戶出售我們的服務，我們繼續看到現有通路合作夥伴的良好成長，他們對我們的解決方案充滿信心，因為我們100% 的正常運作時間保證和我們的最佳解決方案一流的客戶服務和客戶滿意度結果。

And that was further highlighted by our 19 first place awards in Q1 from the leading industry review site, G2.com.

領先的產業評論網站 G2.com 在第一季榮獲 19 個第一名獎項，進一步凸顯了這一點。

Our backlog continues to grow and is now at $67.4 million, an increase of 41% from Q1 of 2023.

我們的積壓訂單持續成長，目前已達 6,740 萬美元，較 2023 年第一季成長 41%。

Our backlog number is the sum of the remaining contract values of our telecom services and our software solutions customers that will be recognized on a sliding scale over the next 60 months, and it's a strong indicator of our future revenue stream.

我們的積壓訂單數量是我們的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 個月內逐步確認，這是我們未來收入流的有力指標。

We continue to focus on improving our gross margins and saw a nice increase from 69% at the end of Q4 to 73% in Q1 gross margins in our software solutions segment.

我們繼續專注於提高毛利率，軟體解決方案領域的毛利率從第四季末的 69% 大幅成長至第一季的 73%。

And in our telecom service margins, they increased from 60% compared to 58% at the end of 2023.

我們的電信服務利潤率從 60% 增加到 2023 年底的 58%。

And the telecom services gross margins continue to be affected by the lower margins for our Allegion acquisition that really focuses on MSP services.

電信服務的毛利率持續受到我們收購真正專注於 MSP 服務的 Allegion 的較低利潤的影響。

But without that, we're still seeing nice growth in our gross margins.

但即便如此，我們的毛利率仍然有不錯的成長。

And our telecom services product margins were also up quarter over quarter from 44% compared to 40% at the end of last year.

我們的電信服務產品利潤率也逐季上升，從去年年底的 44% 上升到 40%。

We recently released our version 44.1 software on our platform that continues to enhance and expand our product offerings.

我們最近在我們的平台上發布了 44.1 版軟體，該軟體繼續增強和擴展我們的產品系列。

With our enhanced API integrations, we're seeing more and more artificial intelligence applications being developed and deployed on our platform.

透過增強的 API 集成，我們看到越來越多的人工智慧應用程式正在我們的平台上開發和部署。

With hundreds of third-party developers building solutions to integrate on our platform, we're on the leading edge in regards to delivering AI-type solutions that every end user and every end user business can use and afford.

數百名第三方開發人員正在建立可整合到我們平台上的解決方案，因此我們在提供每個最終用戶和每個最終用戶企業都可以使用並負擔得起的人工智慧型解決方案方面處於領先地位。

As we've mentioned previously, our past acquisitions have been remarkably successful, and we are proactively looking for our next synergistic acquisition to complement our organic growth.

正如我們之前提到的，我們過去的收購非常成功，我們正在積極尋找下一次協同收購，以補充我們的有機成長。

We're optimistic that our efforts will result in significant inorganic growth opportunities in the near future.

我們樂觀地認為，我們的努力將在不久的將來帶來重大的無機成長機會。

We started 2024 with a strong first quarter and had a lot of momentum, and I couldn't be more excited about the future direction and opportunity for Crexendo.

我們以強勁的第一季開始了 2024 年，勢頭強勁，我對 Crexendo 的未來方向和機會感到非常興奮。

We continue to execute well on our plan for organic and inorganic growth and increasing margins and managing expenses.

我們繼續良好地執行我們的有機和無機增長以及增加利潤和管理費用的計劃。

Our rapid end-user growth highlights that there is still great demand for our product offerings and solutions, and the future enhancements and developments around AI will ensure that that demand continues.

我們最終用戶的快速成長凸顯出對我們的產品和解決方案仍然有很大的需求，而未來圍繞人工智慧的增強和發展將確保這種需求持續存在。

We're also committed to delivering the best UCaaS, CCaaS, and CPaaS offerings in our sector to our customers and our partners and the best return to our shareholders, and that's evident by our continued growth and our continued success.

我們也致力於為客戶和合作夥伴提供業界最好的 UCaaS、CCaaS 和 CPaaS 產品，並為股東提供最佳回報，我們的持續成長和持續成功證明了這一點。

I'll now turn it back over to Jeff for any further comments.

我現在將把它轉回傑夫以徵求進一步的意見。

At this time, I don't have any further comments.

目前，我沒有任何進一步的評論。

So, Ali, I'd like to open the call up to questions, please.

所以，阿里，我想開始電話提問。

(Operator Instructions) Michael Latimore, Northland Capital Markets.

（操作員說明）Michael Latimore，Northland Capital Markets。

All right.

好的。

Great.

偉大的。

Great to see the strong results and also the growth in the backlog at the same time here.

很高興看到強勁的業績以及積壓訂單的成長。

Thank you, Mike.

謝謝你，麥克。

The service gross margin moved up nicely here sequentially.

服務毛利率持續大幅上升。

I guess, can you talk a little bit about what happened there and is that a sustainable level?

我想，你能談談那裡發生的事情嗎？

Well, historically, we've seen our gross margins in that segment anywhere from 66% was the low in Q4.

嗯，從歷史上看，我們在該領域的毛利率在第四季度的最低水準為 66%。

But typically, it bounces around 71%, 72%.

但通常情況下，它的反彈幅度約為 71%、72%。

So, at 73%, we had a strong quarter with the 25% growth.

因此，我們的季度成長率為 73%，成長 25%。

And it's very strong.

而且非常強。

But we think it is very maintainable in that 72%, 73% range.

但我們認為它在 72%、73% 的範圍內是非常容易維持的。

Great.

偉大的。

And then, you mentioned the -- I think it was 85% growth in the master agent channel.

然後，您提到了——我認為主代理管道增長了 85%。

I guess, can you talk about that a little bit?

我想，你能談談這個嗎？

These master agents, they have a pretty broad portfolio.

這些主要代理，他們擁有相當廣泛的投資組合。

You clearly are outperforming their mix there.

你的表現顯然優於他們的組合。

Like, maybe give a little highlight on kind of how you're working with those channels.

例如，也許可以重點介紹一下您如何使用這些管道。

Yeah, I'll start with a little bit of that and then I'll have Jon add a little bit more color.

是的，我將從其中的一個點開始，然後讓喬恩添加更多的顏色。

So, the master agents that we've worked with out there, we've got a couple of them that we work extremely, extremely close with.

因此，我們與我們合作過的主要特工中，有幾個我們的合作非常非常密切。

And you're right, Mike, there's a lot of competitive factors out there.

你是對的，麥克，那裡有很多競爭因素。

And so, we really believe that highlighting our customer satisfaction and our surveys out there on G2.com probably sets us apart from all of the other competitors out there.

因此，我們確實相信，強調我們的客戶滿意度和 G2.com 上的調查可能會讓我們從所有其他競爭對手中脫穎而出。

So, although these master agents have the choice to pick from anybody, if they're going to hang their hat on somebody's recommendation, they're going to highlight the fact that we've got the best customer satisfaction out there.

因此，儘管這些主代理可以從任何人中進行選擇，但如果他們要採納某人的推薦，他們就會強調這樣一個事實：我們擁有最好的客戶滿意度。

And so, that's really helped us improve those sales with those agents.

因此，這確實幫助我們提高了與這些代理商的銷售。

Takes a lot of work to get these agents to recognize the benefits of Crexendo over the competition.

需要做大量的工作才能讓這些代理商認識到 Crexendo 相對於競爭對手的優勢。

But once we get them hooked, then they're sold on Crexendo, and we see a lot of repeat business out of them.

但一旦我們讓他們著迷，他們就會在 Crexendo 上出售，我們看到他們帶來了許多回頭客。

So, Jon, do you want to add a little color on some of the success that we've seen over the course of the last year?

那麼，喬恩，您想為我們去年所取得的一些成功增添一點色彩嗎？

Yeah.

是的。

Hi, Mike.

嗨，麥克。

So, this is an area that, we've invested in a lot over the last couple of years.

因此，在過去幾年中，我們在這個領域投入了大量資金。

I would tell you we have a great team that supports this channel.

我想告訴你，我們有一支優秀的團隊來支持這個頻道。

And when you take that, some of the programs we've run, and as Doug mentioned, the G2 customer satisfaction ratings, it's just an area that we continue to see great growth in.

當你考慮到我們運行的一些計劃，正如 Doug 提到的，G2 客戶滿意度評級，這只是我們繼續看到巨大成長的一個領域。

And we're going to continue to drive for growth through this type of partner and this opportunity.

我們將繼續透過這種類型的合作夥伴和這個機會來推動成長。

So, we've expanded this program a bit.

因此，我們稍微擴展了這個程式。

We've got awesome people that are involved in supporting those partners, and we're excited to see the continued success there.

我們有優秀的人才參與支持這些合作夥伴，我們很高興看到他們的持續成功。

Great, great.

很棒很棒。

And just last one for me on the software business.

這是我關於軟體業務的最後一篇。

I think you talked about expecting kind of steady subscriber count growth there.

我想你談到了預計訂閱人數會穩定成長。

As you look forward, is it mostly coming from your base or are there going to be increasing kind of replacement opportunities here?

正如您所期望的那樣，它主要來自您的基地還是這裡會出現越來越多的替代機會？

Maybe just talk about, the source of that growth that you expect.

也許只是談談你所期望的成長的來源。

Mike, I'll let Anand answer that for you, but in general, it's both.

麥克，我會讓阿南德為你回答這個問題，但總的來說，兩者都是。

Yeah.

是的。

Hey, Mike.

嘿，麥克。

Yeah, that's exactly right.

是的，完全正確。

I mean, if you look at the 220 plus service providers that we have, they themselves are kind of growing at twice the industry average -- on average.

我的意思是，如果你看看我們擁有的 220 多家服務供應商，你會發現它們本身的成長速度是行業平均的兩倍。

And then at the same time, obviously, the new logos that we bring on, they have a variety of different strategies from cap and grow, or they're migrating people off pretty dramatically into our platform.

然後，顯然，與此同時，我們帶來的新徽標，他們有各種不同的策略，從上限到增長，或者他們正在將人們非常戲劇性地遷移到我們的平台。

So, the reality is it's actually both.

所以，現實情況是兩者兼具。

And we continue to see that.

我們繼續看到這一點。

Now, with the new logos, obviously, depending on what their strategy is, their ramp is a function of how they're migrating and or bringing on new providers.

現在，有了新徽標，顯然，根據他們的策略，他們的成長取決於他們如何遷移和/或引入新的提供者。

But the folks that are already in play that have been with us for multiple years are just steadily increasing pace.

但那些已經與我們合作多年的人正在穩步加快步伐。

Mike, hold on.

麥克，等一下。

Jon wants to add.

喬恩想補充一下。

And I'd just add to that, Mike.

我想補充一點，麥克。

We've talked before about really having good success and growth in the legacy Cisco BroadSoft and Microsoft Metaswitch partners who tend to have larger bases.

我們之前討論過，傳統的 Cisco BroadSoft 和 Microsoft Metaswitch 合作夥伴確實取得了良好的成功和成長，這些合作夥伴往往擁有更大的基礎。

And as Anand discussed, we see some of them now choosing to migrate customers to us over time.

正如阿南德所討論的，我們看到他們中的一些人現在選擇隨著時間的推移將客戶遷移到我們這裡。

So, there's the organic growth in the base of partners that we have, but there's some opportunity there for a share shift that is part of what the formula is that we're using there.

因此，我們擁有的合作夥伴基礎存在有機成長，但也有一些股權轉移的機會，這是我們在那裡使用的公式的一部分。

Do you think it'll skew more towards that share shift over time, or is the balance going to be similar?

您認為隨著時間的推移，份額的變化是否會更加傾斜，或者平衡是否會相似？

Well, we mentioned in the comments, Frost and Sullivan benchmarked us to growing at about double the rate of the market.

嗯，我們在評論中提到，Frost 和 Sullivan 將我們的成長速度設定為市場成長率的兩倍左右。

And we see us continuing to do that using that same formula of organic growth and then some migration from existing from legacy providers.

我們看到我們繼續使用相同的自然成長公式來做到這一點，然後從現有的傳統供應商進行一些遷移。

All right.

好的。

Thanks very much.

非常感謝。

Best of luck.

祝你好運。

Thank you, Mike.

謝謝你，麥克。

Thank you.

謝謝。

Joshua Nichols B. Riley Securities, Inc. - Analyst

Joshua Nichols B. Riley Securities, Inc. - 分析師

Afternoon.

下午。

Great to see another profitable quarter with some nice margin expansion.

很高興看到又一個獲利季度，利潤率也有不錯的成長。

I want to ask just because I think you touched on it really briefly on the call, the company's got back to consistent GAAP profitability.

我想問只是因為我認為你在電話會議上簡短地談到了這個問題，公司已經恢復到一致的公認會計準則盈利能力。

But are you thinking about maybe investing a little bit more to capitalize on some of these opportunities?

但您是否正在考慮進行更多投資以利用其中一些機會？

I know OpEx was down slightly year-over-year in the first quarter, but I'm just curious how you're thinking about balancing profitability versus growth for the remainder of the year.

我知道第一季的營運支出較去年同期略有下降，但我只是好奇你們如何考慮在今年剩餘時間平衡獲利能力與成長。

Well, it's a double -- it's a double-edged sword.

嗯，這是雙重的──這是一把雙面刃。

Obviously, if we start doing acquisitions, we will-- the intangible costs associated with that will knock us out of GAAP profitability.

顯然，如果我們開始進行收購，與之相關的無形成本將使我們失去公認會計原則的獲利能力。

While we are going to consistently make investments into the business, and that runs from quarter to quarter different investments we make, we would hope the investments would not challenge the GAAP profitability.

雖然我們將持續對業務進行投資，並且每個季度的投資都不同，但我們希望這些投資不會挑戰 GAAP 獲利能力。

But if there was something that we needed to do to make a game changer or to solidify our position, we would make that investment.

但如果我們需要做一些事情來改變遊戲規則或鞏固我們的地位，我們就會進行投資。

Thanks.

謝謝。

And then just looking at the margins here, overall, 63% plus growth margin, very healthy, supported by software, but also the services piece of the business, getting north of 60%.

然後看看這裡的利潤率，整體而言，63% 以上的成長利潤率，非常健康，得到軟體的支持，而且還有業務的服務部分，超過了 60%。

One is, do you think that that margin level is sustainable for the remainder of the year?

一是，您認為這項利潤水準在今年剩餘時間內可持續嗎？

And then two, if you could kind of elaborate a little bit on what kind of impact you think getting that one over to the NetSapiens VIP platform by the end of this year could have in terms of potential savings.

然後是兩個，如果您能詳細說明一下，您認為在今年年底之前將其轉移到 NetSapiens VIP 平台可能會對潛在節省產生什麼樣的影響。

So I'll speak to the margins.

所以我會談談邊緣。

So overall gross margins at 63% is nice improvement over the prior quarter.

因此，63% 的整體毛利率比上一季有了很大的改善。

If you look back to Q3, we were at 61%.

如果你回顧第三季度，我們的比例是 61%。

So we bounced around the 59% to 63%.

所以我們在 59% 到 63% 之間反彈。

We think the 60% plus is the right spot to be.

我們認為 60% 以上是適當的位置。

And we've seen margin expansion both in telecom services revenue, our product revenue, as well as software solutions.

我們看到電信服務收入、產品收入以及軟體解決方案的利潤率都在成長。

So we're seeing it across the board.

所以我們全面看到了這一點。

And that's why we think that's a sustainable amount, somewhere in that 60% range, low 60% range.

這就是為什麼我們認為這是一個可持續的數量，在 60% 範圍內，低 60% 範圍內。

And on the migration front, Josh, we're probably closing in on 80% of our Classic customers migrated over to our VIP platform.

在遷移方面，Josh，我們可能接近 80% 的 Classic 客戶遷移到我們的 VIP 平台。

And as we get to the final 20%, we anticipate, as Jeff said, being completely migrated by the end of the year.

正如 Jeff 所說，當我們達到最後 20% 時，我們預計將在今年年底前完全遷移。

And that'll pick up huge savings for us, because we won't have the dual cost of running two platforms, two data centers, the extra resources required to manage the data center here in our Phoenix office for our Classic system.

這將為我們節省大量成本，因為我們不會產生運行兩個平台、兩個資料中心的雙重成本，以及在鳳凰城辦公室管理經典系統資料中心所需的額外資源。

So we anticipate that migration continuing on track.

因此，我們預計遷移將繼續按計劃進行。

We've got great success going on with it right now.

我們現在已經取得了巨大的成功。

And when we get completely off of it, we'll see some significant cost pick up there.

當我們完全擺脫它時，我們會看到那裡的成本顯著上升。

Not to mention on top of that, we have staff and engineers that are working strictly on the Classic system, which we will be able to morph over to the VIP or hosted to.

更不用說最重要的是，我們有嚴格在經典系統上工作的員工和工程師，我們將能夠將其轉變為 VIP 或託管。

So it will give us better staff distribution on top of all the cost savings.

因此，除了節省成本之外，它還將為我們提供更好的人員分配。

So we're very excited about that.

所以我們對此感到非常興奮。

Great.

偉大的。

Thanks.

謝謝。

Appreciate it.

欣賞它。

(Operator Instructions) Eric Martinuzzi, Lake Street Capital Markets, LLC

（操作員說明）Eric Martinuzzi，Lake Street Capital Markets, LLC

Good afternoon, Eric.

下午好，埃里克。

Hey, good afternoon, guys.

嘿，下午好，夥計們。

Good quarter.

好季度。

I had a question.

我有一個問題。

You've talked about 2024 anticipating double digit growth.

您談到了 2024 年預計將實現兩位數成長。

I know sometimes quarter to quarter can be a little bit squirrelly, especially on the software solution side.

我知道有時季度與季度之間可能會有點奇怪，尤其是在軟體解決方案方面。

But is the expectation that Q2 would be up sequentially versus Q1 based on what you see in the pipeline?

但是，根據您在管道中看到的情況，預計第二季將比第一季連續成長嗎？

It's a little early in the quarter for us to answer that, to be perfectly honest.

老實說，現在這個季度我們回答這個問題還為時過早。

But as I said, we fully expect double digit growth over the year.

但正如我所說，我們完全預計今年將實現兩位數的成長。

As you're right, particularly on the software solution side, because that's a much longer sales cycle, we see some variance from quarter to quarter.

正如您所說，特別是在軟體解決方案方面，因為銷售週期要長得多，所以我們看到每個季度都有一些差異。

But looking at what we have in the pipeline for the year, I'm still quite confident of double digit growth.

但看看我們今年的計劃，我仍然對兩位數的成長充滿信心。

Okay.

好的。

And then I wanted to I didn't know that I completely understand the Oracle cloud relationship.

然後我想我不知道我完全理解了Oracle雲的關係。

What part of the business is this impacting?

這會影響業務的哪一部分？

And then what could we see as a potential benefit, whether it's gross margin or customer service?

那麼我們可以看到什麼是潛在的好處，無論是毛利率還是客戶服務？

Well, it shouldn't affect customer service.

嗯，應該不會影響客戶服務。

It's strictly on the software solution side of the business.

它嚴格屬於業務的軟體解決方案方面。

Essentially, they are going to be taking over all the hosting for us.

本質上，他們將接管我們的所有託管工作。

While there are some initial costs up front, this will be a substantial cost savings to us as we go over the cost as we go over the years.

雖然前期有一些初始成本，但隨著我們多年來的成本核算，這對我們來說將節省大量成本。

We have a large staff who are managing all the data centers we have.

我們擁有大量員工來管理我們擁有的所有資料中心。

We have to have them available to troubleshoot, to deal with things that like moving classic to VIP will enable us to move some of those staff to things or where they can be doing something much more customer facing and customer centric.

我們必須讓他們能夠排除故障，處理諸如將經典業務轉移到VIP 之類的事情，這將使我們能夠將其中一些員工轉移到一些地方，或者他們可以做更多面向客戶和以客戶為中心的事情。

So we expect it will be a game changer in that we will be providing completely reliable service.

因此，我們預計它將改變遊戲規則，因為我們將提供完全可靠的服務。

And some of the other benefits are they they're masters of security.

其他一些好處是他們是安全大師。

We have a staff who watches it.

我們有工作人員負責觀看。

We're good at it.

我們很擅長。

We're not as good as they are.

我們沒有他們那麼好。

They have other ancillary services they provide that they are better at than we are.

他們提供的其他輔助服務比我們更擅長。

So what we decided was a distribution of the work.

所以我們決定分配工作。

They're going to do what they're great at.

他們將做他們擅長的事情。

We're going to be we're going to be providing the rest of the platform and we're going to continue to be the top platform in the country and hopefully the world soon.

我們將提供平台的其餘部分，我們將繼續成為國內頂級平台，希望很快成為世界頂級平台。

Anand, do you want to add anything to that?

阿南德，你想補充什麼嗎？

Very scalable when we talk about the international markets.

當我們談論國際市場時，規模非常大。

We're seeing a lot of growth there in the international markets.

我們看到國際市場有很大的成長。

This allows us to penetrate international markets that we haven't even touched yet and be able to bring them up fairly quickly.

這使我們能夠滲透到我們尚未涉足的國際市場，並能夠相當快速地開拓它們。

Jon, do you want to add anything?

喬恩，你想補充什麼嗎？

No, I think I think Doug hit it right on the head.

不，我想道格擊中了我的要害。

I mean, I think expansion and scale is very, very important and to be able to do it very quickly and efficiently.

我的意思是，我認為擴張和規模非常非常重要，並且能夠非常快速有效地做到這一點。

I think that's a big driver for what we're doing based on the demand that we see from the marketplace.

我認為，根據我們從市場上看到的需求，這是我們正在做的事情的一個重要推動力。

Got it.

知道了。

Thanks for taking my questions.

感謝您回答我的問題。

Thanks, Eric.

謝謝，埃里克。

Thank you.

謝謝。

Chris Sakai, Singular Research.

克里斯·酒井，奇異研究公司。

Good afternoon.

午安.

Yes, good afternoon.

是的，下午好。

Just sort of wanted to comment and ask about the international expansion that that OCI will help with.

只是想評論一下並詢問 OCI 將幫助實現的國際擴張。

Where are you seeing the most potential for the international expansion and where is this being possibly already being used?

您認為哪些地方最有國際擴張的潛力？

So, Chris, where we see it, obviously, we already have data centers out in both Amsterdam and in London.

所以，克里斯，我們顯然已經在阿姆斯特丹和倫敦建立了資料中心。

We have customers out in Germany, in the UK.

我們在德國和英國都有客戶。

We also see footprint expansion.

我們也看到足跡的擴大。

I think we talked about this last time as well in Australian markets as well, and now into APAC and some of these other areas.

我想我們上次也在澳洲市場討論過這個問題，現在又討論了亞太地區和其他一些地區。

So, what Oracle allows us to do is, in essence, extend our existing infrastructure out very easily into those particular localized markets.

因此，本質上，Oracle 允許我們做的就是將我們現有的基礎設施非常輕鬆地擴展到那些特定的在地化市場。

Okay, great.

好的，太好了。

Thanks.

謝謝。

Thanks for the answers.

感謝您的回答。

And by the way, they will speed up the amount of time that we can do an installation in considerably because of all the services they provide.

順便說一句，由於他們提供的所有服務，他們將大大加快我們進行安裝的時間。

So, that will also be a beneficial game changer for us and particularly competing in Europe and other parts of the world.

因此，這對我們來說也將是一個有益的遊戲規則改變者，特別是在歐洲和世界其他地區的競爭。

Okay.

好的。

Thanks for that.

感謝那。

Thank you.

謝謝。

As we have no further questions on the lines at this time, I will hand it back over to Mr. Korn for any closing remarks he may have.

由於目前我們沒有進一步的問題，我將把它交還給科恩先生，讓他發表結束語。

Thank you, Ali.

謝謝你，阿里。

I just want to thank everybody for their time and attention.

我只想感謝大家的時間和關注。

We are very excited to have announced the results we did today.

我們很高興宣布今天的結果。

And as soon as we finish this call, we're all going to roll our sleeves up and get back to work and try and continue to keep this train running.

一旦我們完成這個電話，我們都會捲起袖子回去工作，並努力繼續保持這列火車的運行。

So, again, thank you very much.

所以，再次非常感謝你們。

And we look forward to talking to you when we announce our Q2 results.

我們期待在宣布第二季業績時與您交談。

Good afternoon, everybody.

大家下午好。

Thank you.

謝謝。

This concludes today's conference call.

今天的電話會議到此結束。

And you may disconnect your lines at this time.

此時您可以斷開線路。

We thank you for your participation.

我們感謝您的參與。