Crexendo Inc (CXDO) 2024 Q2 法說會逐字稿

Greetings, and welcome to the Crexendo, Inc. Second Quarter 2024 Earnings Call. (Operator Instructions) Please note, this conference is being recorded.

您好，歡迎參加 Crexendo, Inc. 2024 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。

I will now turn the conference over to your host, Mr. Jeff Korn, CEO of Crexendo, Inc. Sir, you may begin.

現在我將會議轉交給東道主 Crexendo, Inc. 執行長 Jeff Korn 先生。

Thank you, Ollie, and good afternoon, everyone. Welcome to Crexendo's Q2 2024 Conference Call. I'm, as Ollie just said, Jeff Korn Chairman of the Board and CEO of Crexendo. On the call with me today are Doug Gaylor, our President and COO; Ron Vincent, our CFO; Jon Brinton, our CRO; and Anand Buch, our CSO. In a moment, John will read our safe harbor statement.

謝謝奧利，大家下午好。歡迎參加 Crexendo 2024 年第二季電話會議。正如 Ollie 剛才所說，我是 Crexendo 董事會主席兼執行長 Jeff Korn。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；還有我們的 CSO Anand Buch。稍後，約翰將閱讀我們的安全港聲明。

After that, I will give some brief comments on our performance for Q2 and a discussion of what I see happening with the business. Ron will then provide more detail on the numbers before handing the call over to Doug to provide a business and sales update. After that, we will open the call up to questions. Jon, would you please read the safe harbor statement?

之後，我將對我們第二季的業績進行一些簡短的評論，並討論我所看到的業務情況。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。之後，我們將開放電話提問。喬恩，請您閱讀安全港聲明好嗎？

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

謝謝你，傑夫。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案》為此類前瞻性聲明提供了安全港。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. 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.

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。

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, 2023, and the Forms 10-Q as filed. 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.

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 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. Jeff?

我現在想把電話轉回傑夫。傑夫？

Thank you, Jon. I'm thrilled to share the outstanding results and strategic directions that highlight our most successful quarter yet as a technology telecom company. Let's dive right into our highlights. This quarter, we exceeded both our internal expectations as well as those of our analysts. I won't step on Ron's thunder, but our revenue number of $14.7 million, up 16% year-over-year, and our net income up 220% year-over-year is in a word, remarkable.

謝謝你，喬恩。我很高興與大家分享我們作為一家技術電信公司迄今為止最成功的季度的出色業績和策略方向。讓我們直接進入我們的亮點。本季度，我們超出了我們的內部預期以及分析師的預期。我不會踩到羅恩的風頭，但我們的收入為 1470 萬美元，同比增長 16%，淨利潤同比增長 220%，總而言之，非常了不起。

Crexendo maintained its streak of achieving GAAP profitability for the fourth consecutive quarter, which is only due to the hard work and dedication of everyone in the room with me as well as the entire Crexendo team. I cannot tell you how lucky I consider myself to work every day with this tremendously talented team.

Crexendo 保持了連續第四個季度實現 GAAP 盈利的勢頭，這歸功於與我一起在場的每個人以及整個 Crexendo 團隊的辛勤工作和奉獻精神。我無法告訴你我每天能與這個才華橫溢的團隊一起工作是多麼幸運。

Everyone at Crexendo is focused on driving shareholder value, but also making sure we have the world's best technology for our wonderful licensees and our direct customers. It's been a remarkable period of growth and achievement, signaling a bright future ahead.

Crexendo 的每個人都專注於推動股東價值，同時確保我們為優秀的被授權人和直接客戶提供世界上最好的技術。這是一個非凡的成長和成就時期，預示著光明的未來。

However, our philosophy remains rooted in continuous improvement. While it might be tempting to rest on our laurels, we recognize that satisfaction can breed complacency, and we are committed to putting the boundaries further. We have made significant strides in refining our teams and reporting structures.

然而，我們的理念仍植根於持續改善。雖然固步自封可能很誘人，但我們意識到滿足感會滋生自滿情緒，因此我們致力於進一步擴大界線。我們在完善團隊和報告結構方面取得了重大進展。

Through these enhancements in staffing, processes and responsibilities, our organization is becoming more agile and effective. This ongoing endeavor is crucial as we adapt to the evolving market demands.

透過人員配置、流程和職責方面的這些改進，我們的組織變得更加敏捷和有效。當我們適應不斷變化的市場需求時，這種持續的努力至關重要。

A key factor in this quarter's success has been the increased efficiency of our customer support team. We've seen improved installation and response time, and we remain committed to elevating our service levels even further. These enhancements directly contributed to our strong performance metrics this quarter. We work every day to improve our operations.

本季成功的關鍵因素是我們客戶支援團隊效率的提升。我們已經看到安裝和回應時間得到改善，並且我們仍然致力於進一步提高我們的服務水準。這些增強功能直接促成了我們本季強勁的業績指標。我們每天都致力於改善我們的營運。

We have done an excellent job of improving margins. Part of this is improvements in pricing and the mix of sales, particularly in the MSB market, and also deemphasizing low-margin high labor transactions. We also work very diligently on our top line revenue and the results in both of those speak for themselves.

我們在提高利潤率方面做得非常出色。部分原因是定價和銷售組合的改善，特別是在 MSB 市場，以及不再強調低利潤高勞動力交易。我們也非常努力地提高我們的營收，這兩個方面的結果都是不言而喻的。

On our technology front, our migration schedule from our Legacy Classic platform to the VIP platform has been slower than anticipated, as we are taking extraordinary measures to assure a smooth migration, particularly with our larger accounts. We have customers that have custom requirements and rightfully demand precision.

在我們的技術方面，我們從 Legacy Classic 平台到 VIP 平台的遷移進度比預期要慢，因為我們正在採取非常措施來確保順利遷移，特別是對於我們較大的帳戶。我們的客戶有客製化要求並理所當然地要求精度。

And while this has delayed some processes, ensuring these migrations are seamless is paramount for retaining such valuable customers. I think a reasonable timeline is that the migration should be completed during Q1 2025. However, there is no room forever, so completing it perfectly is the goal.

雖然這延遲了一些流程，但確保這些遷移順利進行對於留住如此有價值的客戶至關重要。我認為合理的時間表是遷移應在 2025 年第一季完成。然而，沒有永遠的空間，所以完美地完成它才是目標。

We have invested heavily in Oracle cloud infrastructure for our next-generation hosted services and NetSuite for our internal accounting needs. Make no mistake, these are long-term investments in our future. A more robust accounting system is necessary for our now almost completely integrated company and to integrate future acquisitions.

我們在 Oracle 雲端基礎架構上投入大量資金用於下一代託管服務，並在 NetSuite 上投入大量資金以滿足內部會計需求。毫無疑問，這些都是對我們未來的長期投資。對於我們現在幾乎完全整合的公司以及整合未來的收購來說，更強大的會計系統是必要的。

Using OCI is important as it provides the most advanced hosting infrastructure in the industry and will improve turn up times and deployment options for some of our larger customers and customers we are attempting to attract. OCI will also allow us to focus on what we do best, and that's developing our technology and services, rather than managing data centers.

使用 OCI 非常重要，因為它提供了業界最先進的託管基礎設施，並將改善我們的一些較大客戶和我們試圖吸引的客戶的啟動時間和部署選項。OCI 也將使我們能夠專注於我們最擅長的事情，即開發我們的技術和服務，而不是管理資料中心。

While these investments have a cost associated with them, without current corresponding savings, they are necessary for our evolution and long-term profitability. We are fully intending to remain GAAP profitable even while making these investments in our long-term future.

雖然這些投資有與之相關的成本，但目前沒有相應的節省，但它們對於我們的發展和長期盈利能力是必要的。即使在長期的未來進行這些投資，我們也完全打算維持 GAAP 獲利。

Our Software Solutions division is growing rapidly and should be poised for substantial growth. We are the third largest platform provider in the United States, and we are well-positioned to capitalize on market opportunities, particularly as the number one and two competitors, Cisco and Microsoft denigrate certain services and phase out other services.

我們的軟體解決方案部門正在迅速發展，並有望大幅成長。我們是美國第三大平台供應商，我們處於有利地位，可以利用市場機會，特別是當第一和第二競爭對手思科和微軟詆毀某些服務並逐步淘汰其他服務時。

However, we face stiff competition from other players. It is essential for our long-term success to continue to invest in the platform so that we can expand our services and be able to meet the needs of every customer from the SMB market to the enterprise market. The future is really tremendously exciting, and we must capitalize on these substantial opportunities.

然而，我們面臨著其他參與者的激烈競爭。繼續投資該平台對於我們的長期成功至關重要，以便我們能夠擴展我們的服務並能夠滿足從中小企業市場到企業市場的每位客戶的需求。未來確實非常令人興奮，我們必須充分利用這些巨大的機會。

Internationally, we continue to see significant potential, especially in Europe where cloud communications are less prevalent. Our London office is gaining traction, and we anticipate strong growth in both Europe and the Pacific Rim. I am genuinely very pleased with our results of the European operations and the strong pipeline of opportunities that we have there.

在國際上，我們繼續看到巨大的潛力，特別是在雲端通訊不太普及的歐洲。我們的倫敦辦事處正在獲得關注，我們預計歐洲和環太平洋地區都會強勁成長。我對我們在歐洲的業務成果以及我們在那裡擁有的強大機會感到非常滿意。

On the acquisition front, we remain cautious about high multiples driven by private equity but are constantly looking for strategic opportunities that align with our financial strategies and shareholders expectations. We will only do deals that make strategic sense and can be quickly accretive.

在收購方面，我們對私募股權驅動的高倍數保持謹慎態度，但不斷尋找符合我們財務策略和股東期望的策略機會。我們只會進行具有戰略意義且能夠快速增值的交易。

In conclusion, our future looks incredibly promising. I am more optimistic than ever about our prospects. With continued focus on strategic execution, we are poised to further enhance our market position and shareholder value. Thank you for your ongoing commitment and support. We look forward to continual growth and achievements.

總之，我們的未來看起來非常有希望。我對我們的前景比以往任何時候都更加樂觀。透過持續專注於策略執行，我們準備進一步提升我們的市場地位和股東價值。感謝您一直以來的承諾與支持。我們期待不斷的成長和成就。

And with that, I'll now turn the call over to Ron for more details on the financial numbers. Ron?

現在，我將把電話轉給羅恩，以了解有關財務數據的更多詳細資訊。羅恩？

Thank you, Jeff. Good afternoon, everyone. As Jeff mentioned, we had a wonderful quarter with total revenue for the quarter up 16% to $14.7 million compared to $12.7 million for the second quarter of the prior year. Our service revenue increased 10% to $8.1 million compared to $7.3 million in the second quarter of the prior year.

謝謝你，傑夫。大家下午好。正如傑夫所提到的，我們度過了一個精彩的季度，該季度的總收入增長了 16%，達到 1,470 萬美元，而去年第二季度的總收入為 1,270 萬美元。與去年第二季的 730 萬美元相比，我們的服務收入成長了 10%，達到 810 萬美元。

Software Solutions revenue for the quarter increased 35% to $5.3 million compared to $3.9 million for the second quarter of the prior year. Our product revenue decreased 10% to $1.3 million compared to $1.4 million for the second quarter of the prior year, as we continue to focus on higher gross margin product offerings.

本季軟體解決方案營收成長 35%，達到 530 萬美元，而去年第二季的營收為 390 萬美元。由於我們繼續專注於提供更高毛利率的產品，我們的產品收入從去年第二季的 140 萬美元下降了 10% 至 130 萬美元。

Consolidated gross margins for the quarter were 63% as compared to 58% for the second quarter of the prior year. Our Software Solutions gross margins for the quarter were 73%. That's compared to 67% for the second quarter of the prior year.

本季綜合毛利率為 63%，去年第二季為 58%。本季我們的軟體解決方案毛利率為 73%。相比之下，去年第二季這一比例為 67%。

Our Telecom Service segment gross margins for the quarter were 58%, that's compared to 55% in the second quarter of the prior year. That's driven by service revenue gross margins of 60%, that's up from 58% in the second quarter of the prior year. And our product margins increased to 46% from 38% in the second quarter of the prior year.

本季我們電信服務部門的毛利率為 58%，去年第二季為 55%。這是由 60% 的服務收入毛利率推動的，高於去年第二季的 58%。我們的產品利潤率從去年第二季的 38% 增加到 46%。

Operating expenses increased 7% to $14.1 million compared to $13.2 million for the second quarter of the prior year. To put this into perspective, we have added 12.5 FTEs and 10 outsourced resources compared to the second quarter of the prior year, so, as we continue to invest in our product and our services.

營運費用成長 7%，達到 1,410 萬美元，而去年第二季營運費用為 1,320 萬美元。從這個角度來看，與去年第二季相比，我們增加了 12.5 個 FTE 和 10 個外包資源，因此，我們繼續投資於我們的產品和服務。

Net income of $588,000 for the quarter. That's $0.02 per basic and diluted common share compared to a net loss of $544,000 and $0.02 loss per basic and diluted common share for the second quarter of the prior year. Non-GAAP net income was $2.1 million for the quarter.

該季度淨利潤為 588,000 美元。每股基本股和稀釋普通股為 0.02 美元，而去年第二季的淨虧損為 544,000 美元，每股基本股和稀釋普通股虧損為 0.02 美元。該季度非 GAAP 淨利潤為 210 萬美元。

That's $0.08 per basic and $0.07 per diluted common share, compared to a non-GAAP net income of $1.1 million or $0.04 per basic and diluted common share for the second quarter of the prior year. Our EBITDA for the quarter was $1.4 million as compared to $383,000 for the second quarter of the prior year. And our adjusted EBITDA for the quarter was $2.2 million. That's compared to $1.2 million for the second quarter of the prior year.

這相當於每股基本股 0.08 美元，每股稀釋普通股 0.07 美元，而去年第二季的非 GAAP 淨利潤為 110 萬美元，每股基本股和稀釋普通股 0.04 美元。我們本季的 EBITDA 為 140 萬美元，而去年第二季的 EBITDA 為 383,000 美元。本季調整後的 EBITDA 為 220 萬美元。相比之下，去年第二季的銷售額為 120 萬美元。

Our cash balance at June 30 was $13.6 million. That's compared to $10.3 million at December 31, 2023. Cash provided by operating activities for the 6-month period of $2.5 million compared to cash used for operating activities of $673,000 in the prior year.

截至 6 月 30 日，我們的現金餘額為 1,360 萬美元。相比之下，截至 2023 年 12 月 31 日，這一數字為 1,030 萬美元。6 個月期間經營活動提供的現金為 250 萬美元，而上一年經營活動使用的現金為 673,000 美元。

Cash used for investing activities for the 6-month period was nil for the period compared to $92,000 for the same period of the prior year. And cash provided by financing activities was $778,000 compared to cash used for investing activities of $486,000 for the same period of the prior year.

6 個月期間用於投資活動的現金為零，而去年同期為 92,000 美元。融資活動提供的現金為 778,000 美元，而去年同期用於投資活動的現金為 486,000 美元。

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

我現在將其轉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. Q2 was a great quarter for Crexendo, and I'm very pleased with our results for the quarter and for the first half of 2024. Our organic growth rate of 16% year-over-year in Q2 and 15% organic growth for the first half of the year, along with our fourth consecutive GAAP profitable quarter were the direct result of our focus on growing the top line organically and managing the fundamentals of the business.

謝謝，羅恩。第二季度對 Crexendo 來說是一個很棒的季度，我對該季度和 2024 年上半年的業績感到非常滿意。我們第二季度的有機成長率為 16%，上半年的自然成長率為 15%，加上我們連續第四個 GAAP 獲利季度，這些都是我們專注於有機成長營收和管理的直接結果。的基本面。

Our strong GAAP net income of $588,000 for the quarter or $0.02 a share, and our non-GAAP net income of $2.1 million for the quarter or $0.08 a share, highlight that we are executing on our business plans extremely well. This is our 23rd consecutive quarter with non-GAAP net income, and our results for the quarter continue to highlight our improvements in our processes, our procedures and sales, as well as our success in managing costs and maximizing synergies from all of our business segments.

我們本季的 GAAP 淨利潤為 588,000 美元，即每股 0.02 美元，非 GAAP 本季度淨利潤為 210 萬美元，即每股 0.08 美元，這突顯了我們非常出色地執行了我們的業務計劃。這是我們連續第 23 個季度實現非 GAAP 淨利潤，本季的業績繼續凸顯我們在流程、程序和銷售方面的改進，以及我們在管理成本和最大化所有業務部門協同效應方面的成功。

These strong results also contributed to our strong positive cash flow for the quarter, which saw our cash position increased 223% year-over-year and 23% from the prior quarter. We continue to see significant organic growth in both segments of our business for the quarter.

這些強勁的業績也為我們本季強勁的正現金流做出了貢獻，我們的現金部位年增了 223%，比上一季增加了 23%。我們繼續看到本季我們兩個業務部門的顯著有機成長。

What is particularly exciting is that our Software Solutions segment achieved 35% organic growth, which propelled us to a combined 16% organic growth rate for the quarter, providing a solid indication that the continued strong demand for our products and services continues. The 35% organic growth rate in our Software Solutions segment has us closing in on the 5 million user mark on our platform that I anticipate we should eclipse this quarter.

特別令人興奮的是，我們的軟體解決方案部門實現了 35% 的有機成長，這推動我們本季的有機成長率達到 16%，這有力地表明了對我們產品和服務的持續強勁需求。我們的軟體解決方案部門 35% 的自然成長率使我們的平台用戶數量接近 500 萬大關，我預計這個季度應該會超過這個數字。

The rapid growth we are experiencing on our platform is a combination of our existing licensees, continued success, together with strong new logos coming on board as they leave our largest two competitors, Cisco and Microsoft.

我們在平台上經歷的快速成長是我們現有的授權商、持續的成功以及強大的新標誌的結合，因為它們離開了我們最大的兩個競爭對手思科和微軟。

Microsoft recently announced end-of-life of their Metaswitch MaX UC platform and has signaled a retreat from their platform business with recent cuts in their Metaswitch division, fueling many opportunities for Crescendo. Our Crexendo licensees and agents continue to benefit from the rapid migration by small and midsize and enterprise level businesses to the cloud.

微軟最近宣布其 Metaswitch MaX UC 平台的生命週期結束，並透過最近削減 Metaswitch 部門來暗示退出其平台業務，為 Crescendo 帶來了許多機會。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。

And as our licensees continue to grow, they need additional services and increase their spend with Crescendo. As Jeff previously mentioned, we continue to see strong demand for our software solutions internationally as well, and added two more new logos out of our UK office during the quarter.

隨著我們的被授權人不斷成長，他們需要額外的服務並增加 Crescendo 的支出。正如傑夫之前提到的，我們繼續看到國際上對我們的軟體解決方案的強勁需求，並在本季度在我們的英國辦事處增加了兩個新徽標。

Our Telecom Services segment, including product revenue grew at 7% organically for the quarter. We've made a conscious effort to focus less on low-margin product revenue, and thus, our services portion for the segment reached double-digit growth at 10%, offset by the decline in product revenue growth.

我們的電信服務部門（包括產品收入）本季有機成長 7%。我們有意識地減少對低利潤產品收入的關注，因此，我們在該領域的服務部分達到了 10% 的兩位數增長，但被產品收入增長的下降所抵消。

We continue to see strong demand for our offerings from our channel partners and saw a 14% growth rate in sales for the quarter from our channel resellers highlighted by a 41% growth in sales from our telecom service brokers, also known as master agents and those numbers are up significantly compared to Q2 of 2023.

我們繼續看到通路合作夥伴對我們的產品的強勁需求，本季通路經銷商的銷售額成長了14%，其中電信服務經紀人（也稱為主代理商和其他代理商）的銷售額成長了41 %。

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.

我們的通路合作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，並且我們繼續看到現有通路合作夥伴的良好成長。

Our channel partners have strong relationships with us and have strong confidence in our solutions because of our 100% uptime guarantee and our best-in-class customer service and customer satisfaction results that continues to lead all of our competitors as the highest ranked VoIP provider in the industry on review sites like G2.com.

我們的通路合作夥伴與我們建立了牢固的關係，並對我們的解決方案充滿信心，因為我們提供100% 的正常運行時間保證以及我們一流的客戶服務和客戶滿意度結果，這些結果繼續領先於我們的所有競爭對手，成為全球排名最高的VoIP 供應商G2.com 等評論網站上的產業。

Our largest independent channel partner saw a 41% increase in sales year-over-year, and that's again due to our successful partnerships, enhancing their customer offerings.

我們最大的獨立通路合作夥伴的銷售額年增了 41%，這再次歸功於我們成功的合作夥伴關係，增強了他們的客戶服務。

Our backlog continues to grow and is now at $71.16 million, an increase of 39% from Q2 of 2023, which is a strong indicator of our future success. As a reminder, our backlog number is the sum of the remaining contract values for our telecom services and our software solutions customers that will be recognized on a sliding scale over the next 60 months.

我們的積壓訂單持續成長，目前已達到 7,116 萬美元，比 2023 年第二季成長了 39%，這是我們未來成功的有力指標。提醒一下，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 個月內按滑動比例予以確認。

Our gross margins remained strong in our Software Solutions segment at 73%, and our telecom service gross margins remained steady from Q1 at 58%. Telecom Services gross margins continue to be affected by lower margins from our Allegiant acquisition that has lower margins under MSP services. And as we have already mentioned, we're working on increasing those margins by being more selective on product sales there.

我們的軟體解決方案部門的毛利率仍然強勁，達到 73%，我們的電信服務毛利率與第一季相比保持穩定，為 58%。電信服務毛利率持續受到我們收購 Allegiant 帶來的較低利潤的影響，而 Allegiant 的 MSP 服務利潤率較低。正如我們已經提到的，我們正在努力透過更有選擇性地銷售產品來提高利潤。

We continue to enhance our offerings with software updates in addition to our platform that continues to expand our product offerings. We recently released new AI offerings that allow customers to automatically create marketing on hold messages, auto-attendant greetings, et cetera, using artificial intelligence or AI, replacing the need for expensive third-party services to perform the same functions.

除了繼續擴大產品範圍的平台之外，我們還繼續透過軟體更新來增強我們的產品。我們最近發布了新的人工智慧產品，讓客戶可以使用人工智慧或人工智慧自動建立行銷保留訊息、自動助理問候語等，取代昂貴的第三方服務來執行相同功能。

Our enhanced API 2.0 integration applications allow for more artificial intelligence applications to be developed and deployed on our platform. We have hundreds of third-party developers building solutions to integrate on our platform, and we are on the leading edge in regards to delivering AI solutions that every day end users can use on a daily basis, and they can implement those immediately.

我們增強的 API 2.0 整合應用程式允許在我們的平台上開發和部署更多人工智慧應用程式。我們有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，並且我們在提供最終用戶可以每天使用的人工智慧解決方案方面處於領先地位，並且他們可以立即實施這些解決方案。

As we have mentioned previously, our past acquisitions have been remarkably successful, and we are proactively looking for our next synergistic acquisition to complement our organic growth. We're optimistic that our efforts will result in significant inorganic growth opportunities in the future. The first half of 2024 has been really strong for us, and we continue to see a lot of momentum in demand for our products and services.

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。我們樂觀地認為，我們的努力將在未來帶來重大的無機成長機會。2024 年上半年對我們來說非常強勁，我們繼續看到對我們的產品和服務的需求強勁。

We continue to execute well on our business plans for organic growth and increasing our margins, positive cash flow and managing expenses. Our rapid end-user growth highlights that there is still great opportunity for our growth, and I'm very excited about our direction and the ability to continue to deliver the best solution to our customers and the best returns for our shareholders.

我們繼續良好地執行我們的業務計劃，以實現有機成長、提高利潤、正現金流和管理費用。我們最終用戶的快速成長凸顯出我們的成長仍然存在巨大的機會，我對我們的方向以及繼續為我們的客戶提供最佳解決方案和為我們的股東提供最佳回報的能力感到非常興奮。

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。

Thank you, Doug. And, Ollie, I don't have any further comments. Let's open the call up to questions.

謝謝你，道格。奧利，我沒有任何進一步的評論。讓我們開始提問。

Thank you. At this time, we will be conducting a question-and-answer session. (Operator Instructions)

謝謝。此時，我們將進行問答環節。（操作員說明）

Michael Latimore, Northland Capital Markets.

麥可‧拉蒂摩爾 (Michael Latimore)，北國資本市場。

Hi, Mike. How are you?

嗨，麥克。你好嗎？

Thanks a lot. Good evening. Congrats on the great results here. Cash flow from operations look great and organic growth is excellent. So, congrats on that. I guess I had a question around your software business. The growth rates accelerated from looks like 21% to 25% to 35% over the last few quarters.

多謝。晚安.在這裡祝賀取得的優異成績。營運現金流看起來不錯，有機成長也非常好。所以，恭喜你。我想我對你們的軟體業務有疑問。過去幾個季度，成長率從 21% 加速到 25%，再到 35%。

I guess can you frame that a little bit more? What are you seeing from new versus existing selling software versus subscription within there? Maybe some actions your own licensees are taking on their part and pricing? Just a little more kind of context would be great because that's a pretty big acceleration.

我想你能再多描述一下嗎？您從新的、現有的銷售軟體以及其中的訂閱中看到了什麼？也許您自己的被授權人正在採取一些行動並定價？只要有更多的背景就很好了，因為這是一個相當大的加速。

Mike, I'm going to give that to Jon and Anand to answer, we'll start with Jon.

麥克，我將把這個問題交給喬恩和阿南德來回答，我們將從喬恩開始。

Yeah. Mike, how are you doing today? Good. We are seeing continued growth and success in a couple of areas. I mean, one, when we talk about the compounding and the user growth, I think you really understand we're partnered with some great entrepreneurial companies and larger carriers that are driving at a great growth rate. They continue to excel, leveraging our software and that leads them to purchase upgrades and things like that from us in the future, and we've had a healthy funnel in that area. We are seeing an influx in interest, as Doug indicated from and Jeff indicated from both Cisco BroadWorks partners and Microsoft Metaswitch partners and others who have bases that they're concerned about the long-term future for them. So, they are looking at moving to our platform, and we're getting some traction with those type of partners. And we just continue to grow also in our ecosystem and the additional services that we can sell to our partners as well. So, just generally across that business, now there is a bit of lumpiness to that. So, I wouldn't like build that into the model necessarily for 35% software solutions growth, but we do believe we're going to continue to have strong double-digit growth in that part of the business. And I don't know, Anand, if you have anything you want to add to that.

是的。麥克，你今天過得怎麼樣？好的。我們在幾個領域看到了持續的成長和成功。我的意思是，第一，當我們談論複合和用戶成長時，我認為您確實了解我們與一些偉大的新創公司和大型營運商合作，這些公司正在以驚人的速度推動成長。他們繼續表現出色，利用我們的軟體，這導致他們將來從我們這裡購買升級和類似的東西，我們在該領域擁有一個健康的管道。我們看到了興趣的湧入，正如 Doug 和 Jeff 所表示的那樣，思科 BroadWorks 合作夥伴和 Microsoft Metaswitch 合作夥伴以及其他有基礎的人都擔心他們的長期未來。因此，他們正在考慮遷移到我們的平台，我們正在吸引這些類型的合作夥伴。我們的生態系統和附加服務也不斷發展，我們也可以向合作夥伴出售這些服務。所以，總的來說，整個產業現在都有些混亂。因此，我不希望將其納入軟體解決方案成長 35% 的模型中，但我們確實相信，我們將繼續在這部分業務中實現強勁的兩位數成長。我不知道阿南德，你是否還有什麼要補充的。

And Ron had a look of relief on his face when he told you not to build that into your model.

當羅恩告訴你不要將其構建到你的模型中時，他臉上露出瞭如釋重負的表情。

I mean, I think Jon nailed it pretty well. I think just to emphasize the other area, yeah, I think the idea is to -- and we've spoken about this before to Mike, is to kind of get a little bit more predictable with the shift from perpetual to licensing. It's a little lumpy like what Jon said, but we're also seeing quite a bit of growth in the ecosystem revenue that comes from all of the other services that we add on top of the platform. So, it's a bit across the board. And like Jeff said, I sighed a little bit of relief not to build that 35% into your model.

我的意思是，我認為喬恩做得很好。我想只是強調另一個領域，是的，我認為我們的想法是——我們之前已經和麥克談過這個問題，是為了從永久到許可的轉變變得更加可預測。就像喬恩所說的那樣，這有點不穩定，但我們也看到生態系統收入的大幅成長，這些成長來自我們在平台之上添加的所有其他服務。所以，這有點全面。正如傑夫所說，我鬆了一口氣，因為沒有將那 35% 建構到你的模型中。

We do, just as a follow-on, we do provide the breakdown on point in time versus recurring revenue in the Q. And if you look at that, you do see that the recurring has continued to build consistently quarter-over-quarter, and we're very pleased about that.

我們確實這樣做了，就像後續一樣，我們確實提供了Q中時間點與經常性收入的細分。高興。

That's great. Excellent. And the gross margin on the software business remained very healthy. Is that something that is fairly consistent going forward here, sustainable or will that move around a little bit?

那太棒了。出色的。軟體業務的毛利率仍然非常健康。這是否是相當一致的、可持續的，或者會發生一些變化？

The short answer is yes, but I'll let Ron give you more detail.

簡短的回答是肯定的，但我會讓羅恩為您提供更多細節。

Yes. Mike, as we focus on gross margin, we've been able to leverage our existing staff. And as I mentioned in my comments, compared to Q2 of the prior year between consultants that we use third-party resources for customer service and engineering-related work, as well as the addition of 12.5 FTEs, we've continued to invest in our team to leverage that team for this growth that we have been experiencing recently. But there is a very high margin business.

是的。麥克，由於我們專注於毛利率，因此我們能夠利用現有員工。正如我在評論中提到的，與去年第二季度顧問之間我們使用第三方資源進行客戶服務和工程相關工作以及增加 12.5 個 FTE 相比，我們繼續投資於團隊利用該團隊實現我們最近經歷的增長。但有一個利潤率非常高的業務。

Software is typically anywhere between 75% and 80% margins. And so coming in at 73% margin, we're starting to see that increase. Quarters ago, we were lagging, and we were in the low 60s, and now we're up to 73% margin. We think we can continue to improve on that.

軟體的利潤率通常在 75% 到 80% 之間。利潤率達到 73%，我們開始看到這種成長。幾個季度前，我們還處於落後狀態，處於 60 多歲的低水平，而現在我們的利潤率高達 73%。我們認為我們可以繼續改進這一點。

Yeah, that's fine. Okay, congrats again. Best of luck this year.

是的，沒關係。好吧，再次恭喜。祝今年好運。

Thanks Mike.

謝謝邁克。

Thank you, Mike.

謝謝你，麥克。

Josh Nichols, B. Riley Your line is.

喬許·尼科爾斯、B·萊利 你的台詞是。

Hi Josh, how are you doing?

嗨，喬希，你好嗎？

Doing great. And it's great to see such a strong report from top to bottom. One thing I just wanted to touch on just because this is like the biggest sequential increase I've seen in the backlog for a while going, I think did you say $71.2 million?

做得很好。很高興看到從上到下如此有力的報告。我只是想談一件事，因為這就像我一段時間以來在積壓訂單中看到的最大的連續增長，我想你是說 7120 萬美元嗎？

Yes, correct. $71.15 million.

是的，正確。 7115 萬美元。

Who's counting? But I'm kind of curious like what's driving such a rapid acceleration in the backlog growth? And if you could provide some context into that or the services that are building into that, that would be great.

誰在數？但我有點好奇是什麼推動了積壓訂單成長如此迅速？如果您可以提供一些相關背景或正在建立的服務，那就太好了。

Yeah. Obviously, as you know, the backlog number consists of all of our contractual obligations and most of our customers are on 36 or 60-month agreements. And so, as we continue to have strong sales, those numbers go into our backlog immediately.

是的。顯然，如您所知，積壓訂單數量包括我們的所有合約義務，而我們的大多數客戶都簽署了 36 或 60 個月的協議。因此，隨著我們繼續保持強勁的銷售勢頭，這些數字會立即進入我們的積壓訂單。

And so, that number just continues to compound because of the strong sales that we've got both on the Software Solutions segment and the Telecom Services segment. So that number, as we continue to grow that number, I think I said it was up 39% year-over-year. That's great growth, and that's because strong sales on both segments continue to add to that backlog number.

因此，由於我們在軟體解決方案部門和電信服務部門的強勁銷售，這個數字繼續複合。所以這個數字，隨著我們繼續增長這個數字，我想我說過它同比增長了 39%。這是巨大的成長，因為這兩個領域的強勁銷售繼續增加了積壓數量。

And then just curious, I appreciate the context about the software piece, healthy double-digit growth. I understand it's a little bit lumpy and the queue is not out yet, I think. But what's the breakdown in terms of recurring versus point in time for that, just trying to build in expectations for the future?

然後只是好奇，我很欣賞這個軟體的背景，健康的兩位數成長。我知道這有點混亂，而且隊列還沒結束，我想。但是，就重複性與時間點而言，只是試圖建立對未來的期望，那麼細分是什麼呢？

Yeah. So, on the Software Solutions side, 74% is recurring revenue versus our onetime.

是的。因此，在軟體解決方案方面，74% 是經常性收入，而不是一次性收入。

Appreciate it. Thank you, guys.

欣賞它。謝謝你們，夥計們。

\Ryan Koontz, Needham & Company.

\Ryan Koontz，尼達姆公司。

Hi, Ryan. How are you?

嗨，瑞安。你好嗎？

Hey, I'm great. Quick clarification if I could. I didn't hear your response to Mike's question about your growth in Software Solutions, if you saw more of that coming from customer expansions or new customer wins?

嘿，我很棒。如果可以的話請快速澄清。我沒有聽到您對麥克關於您在軟體解決方案方面的成長的問題的回答，您是否看到更多的成長來自於客戶擴展或新客戶的贏得？

It's actually both, but Ron can give you more detail on that.

實際上兩者都是，但羅恩可以為您提供更多詳細資訊。

Yeah. During the quarter, we had four new logos that were added to our partner, and we had eight upgrade orders.

是的。在本季度，我們為合作夥伴添加了四個新徽標，並且收到了八個升級訂單。

Nice. And on the step-up in gross margins, can you remind me kind of where you are in your migration over to Oracle there? What percentage is done? And it sounds like there's some further opportunities to see some gross margin lift on the solution side?

好的。關於毛利率的提高，您能提醒我您遷移到 Oracle 的進度如何嗎？完成了多少百分比？聽起來解決方案方面還有一些進一步提高毛利率的機會？

Ryan, it's a very small number at this point because we just started the integration with Oracle. We're putting a few new customers on it to make sure we understand their platform, and we can do it seamlessly. You really won't see much of a migration until Q1 or Q2 of next year.

Ryan，目前這個數字非常小，因為我們剛開始與 Oracle 整合。我們正在讓一些新客戶使用它，以確保我們了解他們的平台，並且我們可以無縫地做到這一點。在明年第一季或第二季之前，您確實不會看到太多遷移。

I see. Got it. And what's the competitive environment like there? Obviously, it's tilting very much in your favor with your success, I'm guessing. And how big is that Metaswitch installed base that you can go after, do you estimate?

我懂了。知道了。那裡的競爭環境如何？顯然，我猜這對你的成功非常有利。您估計您可以追求的 Metaswitch 安裝基礎有多大？

Fairly large. We think that there's probably 500 or so licensees out there on the Metaswitch platform. When Microsoft bought them four years ago, they spent about $270 million acquiring Metaswitch. So, it's a fairly decent sized organization. And Microsoft's announcement of retreating out of the telecom platform space, just creates opportunity for us.

相當大。我們認為 Metaswitch 平台上可能有 500 家左右的被授權者。當微軟四年前收購他們時，他們花了大約 2.7 億美元收購 Metaswitch。所以，這是一個規模相當不錯的組織。而微軟宣布退出電信平台領域，正是為我們創造了機會。

So, we're excited about it. I think we brought on in the last six or nine months, quite a few Metaswitch licensees that have migrated over to the Crexendo platform. So, we're extremely excited about their removal from that part of the business or they're retreat from that part of the business and the opportunities it's going to create for us.

所以，我們對此感到興奮。我認為我們在過去六、九個月內引進了相當多的 Metaswitch 被授權人，他們已經遷移到 Crexendo 平台。因此，我們對他們從這部分業務中撤出或從這部分業務撤出以及它將為我們創造的機會感到非常興奮。

Got it. Thanks. And can you remind me how much kind of technology and R&D synergy there is between the Software Solutions side and your subscription VoIP side. Is it all built on the same base? Or are you still kind of pulling together, what's that road map look like between the two sides of the business?

知道了。謝謝。您能否提醒我，軟體解決方案方面和您的訂閱 VoIP 方面之間存在多少技術和研發協同作用？都是建立在同一個基礎上的嗎？或者你們仍然齊心協力，業務雙方之間的路線圖是什麼樣的？

Yeah, it's all on the NetSapiens platform that is our software platform solution is also branded as our VIP platform for our direct end-user business. And we've got 90% of our customers that are on the VIP platform today. We still have some of our classic customers on our older platform that we're migrating over to the VIP platform, and we anticipate, as Jeff mentioned earlier, all of that migration to be complete by the end of Q1. So, when we look at that, we're just getting our last customers off of our classic platform and giving them the nice upgrade to the VIP platform, which gives them enhanced capabilities, enhanced features for the same price.

是的，這一切都在 NetSapiens 平台上，我們的軟體平台解決方案也被稱為我們直接最終用戶業務的 VIP 平台。如今，我們 90% 的客戶都在 VIP 平台上。我們的舊平台上仍然有一些經典客戶，我們正在將其遷移到 VIP 平台，正如傑夫之前提到的，我們預計所有遷移將在第一季末完成。因此，當我們考慮這一點時，我們只是讓最後的客戶離開我們的經典平台，並為他們提供 VIP 平台的良好升級，這為他們提供了增強的功能，以相同的價格增強了功能。

And the synergies between the two is not an unimportant thing that you mentioned. One of the things we like when we acquired NetSapiens was the fact that all of a sudden, our retail engineers would be working hand-in-hand with the wholesale engineers who really understand what drives market needs. So, it's been a very synergistic opportunity. We eat our own dog food. All of the Crexendo customers are going to be on the same platform, and that's why we work every day to make sure the platform is second to none.

你提到的兩者之間的協同作用並不是一件不重要的事。當我們收購 NetSapiens 時，我們喜歡的一件事是，突然之間，我們的零售工程師將與真正了解推動市場需求的因素的批發工程師攜手合作。所以，這是一個非常協同的機會。我們吃自己的狗糧。所有 Crexendo 客戶都將使用同一平台，這就是我們每天努力確保平台首屈一指的原因。

Perfect. Just one last housekeeping one. I kind of read between the lines in terms of your expanded backlog. It sounds like maybe your new contracts are kind of increasing in duration? Are you doing a little more five-year deals than threes, than you were previously maybe?

完美的。只是最後一次家事服務。我從字裡行間看出了你們擴大的積壓工作。聽起來你的新合約期限可能會延長？與之前相比，您的五年合約是否比三年期合約多一點？

Yeah. Most of our software solutions licensees are on three-year agreements, but the churn on that is almost negligible. So, very little churn on the licensee platform side of the house. On the direct end-user customers, on the retail customers, probably the higher majority of those customers are on 60-month contracts. That's where they get the best pricing terms with us. Secondarily to that would be 36-month contracts.

是的。我們的大多數軟體解決方案被授權人都簽訂了三年期協議，但其流失率幾乎可以忽略不計。因此，被授權平台方面的流失很少。在直接最終用戶客戶和零售客戶中，可能大多數客戶都簽訂了 60 個月的合約。這是他們與我們獲得最優惠定價條件的地方。其次是 36 個月的合約。

Great. Thanks for all that. That's really helpful. I'll jump off.

偉大的。感謝這一切。這真的很有幫助。我會跳下去。

Thank you.

謝謝。

Thanks, Ryan.

謝謝，瑞安。

Mark Hagan, Lake Street Capital.

馬克·哈根，湖街資本。

Hi, Mark, how are you doing?

嗨，馬克，你好嗎？

Hey, great. Thank you for taking my questions. I was just wondering if you could put any color around the legacy Phoenix data center and kind of where that's at. My understanding was it was going away, and with the OCI investments?

嘿，太棒了。感謝您回答我的問題。我只是想知道您是否可以在舊鳳凰城資料中心及其所在位置周圍添加任何顏色。我的理解是，隨著 OCI 的投資，它會消失嗎？

Well, it's a two-step process or it may morph to a one step, but we're moving everybody off of our classic platform onto our VIP platform, which is on our hosted one, which will be morphed over to hosted two. But as we said by the end of Q1, we do not expect to be running a separate legacy platform.

嗯，這是一個兩步驟過程，也可能會變成一步，但我們正在將每個人從我們的經典平台轉移到我們的VIP 平台上，該平台位於我們的託管平台上，該平台將轉變為託管兩步。但正如我們在第一季末所說，我們預計不會運行單獨的遺留平台。

Perfect. I thought I'd gotten the answer a little early, but I just want to make sure. Thanks for taking my question. Thanks.

完美的。我以為我已經得到了答案有點早，但我只是想確定一下。感謝您提出我的問題。謝謝。

Thank you.

謝謝。

Chris Sakai, Singular Research.

克里斯·酒井，奇異研究公司。

Hello Chris, Good afternoon.

你好克里斯，下午好。

Yes, hi. Good afternoon. Just wanted to get an idea about you've got Software Solutions revenue growth and margin growth. What what should we be expecting in the next quarter as far as that's concerned?

是的，嗨。午安.只是想了解您的軟體解決方案收入成長和利潤成長。就這一點而言，我們對下個季度應該期待什麼？

We expect continual growth, Chris, as Anand and John explained previously. We're not going to commit to 35% growth, but all trends look for continual strong growth in that market. I don't have a number for you, but it will be less than 35%, but it will be a damn good number.

克里斯，我們預計會持續成長，正如阿南德和約翰之前解釋的那樣。我們不會承諾 35% 的成長，但所有趨勢都希望該市場持續強勁成長。我沒有給你一個數字，但它會低於 35%，但這將是一個非常好的數字。

Do you foresee one day that software solutions would outpace telecom services?

您是否預見有一天軟體解決方案將超過電信服務？

Absolutely.

絕對地。

Yeah, if you look at the growth rate that we're seeing now, Software Solutions is growing at three times the rate of our retail division. So, there's just a lot of pent-up demand for service providers looking for a platform. So, we see that segment of the business continuing to grow. And so right now, it's close to 40% of the total revenue stream. Within a year or two, it could be the majority.

是的，如果你看看我們現在看到的成長率，軟體解決方案的成長率是我們零售部門的三倍。因此，對於尋找平台的服務提供者來說，存在著大量被壓抑的需求。因此，我們看到該業務部分持續成長。目前，它接近總收入的 40%。一兩年之內，它可能會成為大多數。

Okay. Interesting. And how is expansion in Australia going?

好的。有趣的。澳洲的擴張進展如何？

I'll let Anand answer that. It's a harder market for us, but we're making some great inroads.

我會讓阿南德回答這個問題。這對我們來說是一個更艱難的市場，但我們正在取得一些重大進展。

Yes. I mean, I think, as Jeff spoke to, our UK operation actually handled our international operation. We've actually added another resource on the Street, even in Australia because we continue to see some of our existing partners grow. We've had a handful of partners that were there.

是的。我的意思是，我認為，正如傑夫所說，我們的英國業務實際上處理了我們的國際業務。實際上，我們在華爾街甚至在澳洲增加了另一種資源，因為我們繼續看到一些現有合作夥伴正在成長。我們在那裡有一些合作夥伴。

And then a number of the logos that Ron referred to as well, do come from that region. There's a lot of interesting change. Any of these international markets have consumed the product ever so slightly differently. So, we have to keep an eye on that.

羅恩提到的許多徽標也確實來自該地區。有很多有趣的變化。這些國際市場對產品的消費方式都略有不同。所以，我們必須密切注意這一點。

But at the core, it's still the same core platform, the core licensing and whatnot. And then as Jeff mentioned as well, some of these larger service providers, we're also operating in those regions, larger platform providers, specifically folks like Cisco and BroadSoft.

但從本質上講，它仍然是相同的核心平台、核心授權等等。正如傑夫也提到的，我們也在這些地區經營一些較大的服務供應商，較大的平台供應商，特別是思科和 BroadSoft 等公司。

And we're seeing quite a bit of interest there. And you probably read some of the partners that have actually moved over from BroadSoft. So, we continue to see good progress in those areas.

我們在那裡看到了相當多的興趣。您可能會讀到一些實際上已從 BroadSoft 離職的合作夥伴。因此，我們繼續看到這些領域取得了良好進展。

Okay, great. Thanks.

好的，太好了。謝謝。

Thank you, Chris.

謝謝你，克里斯。

[Igor Tomecek], Freedom brokers. Your line is live.

[伊戈爾·托梅切克]，自由掮客。您的線路已上線。

Hi, Igor. How are you?

嗨，伊戈爾。你好嗎？

Fine, thanks. Just wanted to ask about your future plans. Maybe given your strong performance for the first half of the year. Maybe you can give us some guidance about your full year guidance.

很好，謝謝。只是想問一下你未來的計劃。也許考慮到你上半年的強勁表現。也許您可以給我們一些全年指導的指導。

I'm sorry, Igor, you were breaking up. Apparently, you don't have a Crexendo telephone. If you could repeat the question, we would appreciate it.

對不起，伊戈爾，你們要分手了。顯然，您沒有 Crexendo 電話。如果您能重複這個問題，我們將不勝感激。

So, I was talking about your full year guidance. Previously, you mentioned that you would expect double-digit organic revenue growth, maybe something changed?

所以，我正在談論您的全年指導。之前，您提到您預計有機收入將實現兩位數成長，也許情況發生了變化？

Nothing has changed, except I expect it will be more than the low double digits, more than 10%. We're not ready to give specific guidance, but nothing has changed in our expectation of double-digit or better growth.

什麼都沒有改變，只是我預計它會超過低兩位數，超過 10%。我們尚未準備好提供具體指導，但我們對兩位數或更好成長的預期沒有任何改變。

Okay, got it. And I also wanted to ask a little bit more details about your Oracle partnership. Maybe you can give some numbers on magnitude of cost benefits do you expect?

好的，明白了。我還想詢問有關您的 Oracle 合作夥伴關係的更多詳細資訊。也許您可以給出一些您期望的成本效益大小的數字？

Well, as I indicated before, we're testing and learning the process. We expect to move over the course of next year, all of our hosted customers over to the OCI platform so that we no longer have to maintain any data centers, which will be a huge cost savings for us.

嗯，正如我之前指出的，我們正在測試和學習這個過程。我們預計明年將所有託管客戶轉移到 OCI 平台，這樣我們就不再需要維護任何資料中心，這將為我們節省大量成本。

And as I said, it has ancillary benefits as it increases our response time and increases the amount of time in which we can set up the connection. So, it will be a win-win. But over the course of next year, we expect to be closing all the data centers and moving everything over to OCI.

正如我所說，它具有附帶的好處，因為它增加了我們的回應時間並增加了我們建立連結的時間。因此，這將是雙贏的。但在明年，我們預計將關閉所有資料中心並將所有內容轉移到 OCI。

Okay, thank you. I'm out of questions.

好的，謝謝。我沒有問題了。

Thank you, sir.

謝謝您，先生。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Sam McColgan, Breakout Investors.

薩姆·麥科根，突破投資者。

Hi, Sam, how are you?

嗨，山姆，你好嗎？

Yeah, yeah, very good, very good. Thank you. Yeah. Brilliant quarter, you guys are really killing it. Great improvement, revenue, gross margins, everything, lovely to see OpEx coming down, great cash flows, balance sheet. You're killing on all cylinders, I think.

是啊是啊，非常好，非常好。謝謝。是的。精彩的季度，你們真是太棒了。巨大的進步，收入，毛利率，一切，很高興看到營運支出下降，巨大的現金流，資產負債表。我認為你正在全力以赴。

Just one question for me on top of everything else that got asked, which is when you're looking at your backlog, I was just curious in terms of how it breaks down in terms of kind of domestic versus international, if you can give any color to that.

除了所有其他問題之外，還有一個問題要問我，那就是當你查看積壓的訂單時，我只是很好奇它在國內與國際方面是如何分解的，如果你能給出任何答案顏色到那個。

I'm not sure we have that handy, but I'll let Ron answer that.

我不確定我們是否有這個方便，但我會讓羅恩回答這個問題。

Yeah. Currently, we disclose our backlog by segment. We don't have a backlog disclosure by US versus international. I'll consider adding that to future reporting.

是的。目前，我們按部門揭露我們的積壓訂單。我們沒有美國與國際的積壓資訊揭露。我會考慮將其添加到未來的報告中。

As I mentioned prior, Sam, international has begun to become a material part of our business, which will trigger certain reporting requirements. So that one, not necessarily, but it is something that we will track and we should be able to start answering for you.

正如我之前提到的，Sam，國際已經開始成為我們業務的重要組成部分，這將觸發某些報告要求。因此，這一點不一定，但我們會追蹤這一點，我們應該能夠開始為您解答。

And to just give you a little color on that, Sam. So, at the halfway part of this year, we currently have $20.245 million in backlog remaining for this year, for 2024. For 2025, we already have $24 million in backlogs queued up for revenue for 2025.

山姆，只是給你一點顏色。因此，今年下半年，我們今年（即 2024 年）的積壓訂單目前還剩 2,024.5 萬美元。對於 2025 年，我們已經有 2,400 萬美元的積壓訂單等待著 2025 年的收入。

And then that number is $15.172 million for 2026, $8.589 million for 2027, and a little bit over $3 million for 2028. So, you can see how that backlog is critical for our future success, 2025 already having $24 million in revenue queued up for it.

2026 年這一數字為 1,517.2 萬美元，2027 年為 858.9 萬美元，2028 年略高於 300 萬美元。因此，您可以看到積壓的訂單對於我們未來的成功至關重要，到 2025 年，已經有 2,400 萬美元的收入在等待。

Yeah, those are brilliant numbers for the backlog. Thanks for sharing. I look forward to hearing the breakdown maybe in the future. Yeah, thanks again guys, well done. That's all from me.

是的，這些積壓的數字非常出色。感謝分享。我期待著將來可能聽到崩潰的聲音。是的，再次感謝大家，幹得好。這就是我的全部。

Thank you.

謝謝。

Michael Kaufman, MK Investments.

邁克爾·考夫曼，MK 投資公司。

Hello, Michael, how are you this afternoon,

你好，邁克爾，今天下午你好嗎？

How are you doing, Jeff?

你好嗎，傑夫？

I am doing great, thank you.

我做得很好，謝謝。

I want to really thank the team for an incredibly balanced attack on the business opportunity. And all of the metrics, as people have said before, seem to be perfectly aligned and running in the right direction. And two areas, this is the best kept secret in Wall Street, I think, in terms of the opportunity and how perfectly you're attacking it. And I'm wondering what you might be doing in terms of generating more outside exposure for the company in terms of investors.

我真的要感謝團隊對商業機會進行了令人難以置信的平衡攻擊。正如人們之前所說，所有指標似乎都完全一致並且朝著正確的方向運行。我認為，從機會和攻擊的完美程度來看，這是華爾街最保守的兩個領域。我想知道您可能會採取哪些措施來為公司帶來更多的投資者外部曝光。

And the other thing is that you were talking about some possible small tuck-in acquisitions now that really small companies in the financial environment. We really don't see an exit strategy, and there might be an opportunity, not the companies that think they're worth the moon, but really small companies were strategically either in the geography or somewhere else makes sense to just tack on.

另一件事是，您正在談論一些可能的小型收購，現在是金融環境中的小公司。我們確實沒有看到退出策略，而且可能存在機會，不是那些認為自己值得登月的公司，而是真正的小公司，無論是在地理上還是在其他有意義的地方，都可以繼續前進。

All right, Mike. First, let me thank you for the compliments to both me and the team. It is much appreciated. Secondarily, let me go with your last question regarding acquisitions. Even small tuck-in, as I mentioned in my comments, private equity at the moment is paying multiples that are just not supported by Wall Street Sanders in our field. So that's making it difficult. Now private equity does not have much of an interest in some of our smaller licensees in the $2 million to $5 million range.

好吧，麥克。首先，請允許我感謝您對我和團隊的讚美。非常感謝。其次，讓我回答你關於收購的最後一個問題。正如我在評論中提到的，即使是小額投資，私募股權目前也正在支付我們領域的華爾街桑德斯不支持的倍數。所以這讓事情變得困難。現在，私募股權公司對我們一些價值 200 萬至 500 萬美元的小型被授權人沒有太多興趣。

So, you would think that would make it a better multiple. But at the moment, even the small licensees are looking at what the larger licensees are being paid, and they have that multiple in their head. Eventually, all acquisitions in Wall Street become rational and we believe the market will come back to us and people will understand what a rational multiple is. We also have the advantage for somebody who wants to sell. We can make a portion of the purchase price and stock and they can ride with us in the future and to the acceleration we expect.

所以，你會認為這會使其成為更好的倍數。但目前，即使是小型被授權者也在關注大型被授權人的報酬，他們的腦中也有這樣的倍數。最終，華爾街的所有收購都會變得理性，我們相信市場會回到我們身邊，人們會理解什麼是理性倍數。對於想要出售的人來說，我們也有優勢。我們可以支付購買價格和庫存的一部分，他們可以在未來與我們一起並達到我們預期的加速。

But we're keeping our eyes open. And if we see the right tuck-in acquisition, we will grab it, but we are not going to do an acquisition for the sake of an acquisition, or get anything that is not going to be accretive or enhance our numbers or enhance our business.

但我們會保持警戒。如果我們看到正確的收購，我們就會抓住它，但我們不會為了收購而收購，也不會得到任何不會增加我們的數量或增強我們業務的東西。

And on the other part of the question, Mike, on getting our message out there. We continue to do investment conference after investment conference. We've got summertime. There's not as many investor conferences going on, but they're starting to get queued up over the course of the next two months. You'll see us up in New York City quite a few times with different investor conferences, telling our story to investors. And then over the course of the next couple of days, we've got quite a few virtual meetings lined up with a lot of retail sites that have picked up on Crexendo's story and are trying to get it out there to the masses. So, the more times we continue to tell the story, the more people will pick up on the fact that we are a diamond in the rough and appreciate you acknowledging that.

麥克，關於問題的另一部分，關於傳達我們的訊息。我們繼續舉辦一個又一個的投資會議。我們已經有暑假了雖然沒有那麼多投資者會議，但在接下來的兩個月裡，他們開始排隊。您會多次在紐約市的不同投資者會議上看到我們，向投資者講述我們的故事。在接下來的幾天裡，我們與許多零售網站舉行了相當多的虛擬會議，這些網站都了解了 Crexendo 的故事，並試圖將其傳播給大眾。因此，我們繼續講述這個故事的次數越多，就會有越多的人認識到我們是未經雕琢的鑽石，並感謝您承認這一點。

Best of luck. I'm sure you'll do a great job. And so far, you've exceeded all my expectations.

祝你好運。我相信你會做得很好。到目前為止，你已經超越了我的所有期望。

Well, if only I can get somebody to tell me that at home. But thank you, Michael.

好吧，要是我能在家裡找個人告訴我就好了。但謝謝你，麥可。

Good luck guys.

祝大家好運。

Thank you.

謝謝。

Thank you. As we have no further questions in the queue at this time, I will hand it back to Mr. Korn for any closing comments.

謝謝。由於目前隊列中沒有其他問題，我會將其交還給科恩先生以徵求結束意見。

I, again, want to thank everybody for joining us and for the questions and for your support. I, again, want to thank the team with me here in the room and the team in all of our offices who are working every day to make sure these results continue and that we make all of our investors and customers proud. So, we look forward to talking to you about our Q3 results, and have a great afternoon.

我要再次感謝大家加入我們並提出問題和支持。我要再次感謝在座的團隊以及我們所有辦公室的團隊，他們每天都在努力確保這些成果持續下去，並讓所有投資者和客戶感到自豪。因此，我們期待與您討論我們的第三季業績，並祝您度過一個愉快的下午。

Thanks, everybody. Bye-bye.

謝謝大家。再見。

Thank you. This concludes today’s call, and you may disconnect your lines at this time, and we thank you for your participation.

謝謝。今天的通話到此結束，此時您可以斷開線路，我們感謝您的參與。