Crexendo Inc (CXDO) 2024 Q3 法說會逐字稿

Good day and welcome to the Crexendo Third Quarter 2024 Earnings Call. At this time, all participants are on a listen-only mode. After management's prepared remarks, there will be a question-and-answer session.

大家好，歡迎參加 Crexendo 2024 年第三季財報電話會議。此時，所有參與者都處於只聽模式。在管理階層發表準備好的發言後，將有一個問答環節。

I would now like to turn the floor over to CEO and Chairman Jeff Corn. The floor is yours.

現在，我想把發言權交給執行長兼董事長傑夫康（Jeff Corn）。現在請您發言。

Thank you, Kelly, and good afternoon everyone. Welcome to the Crexendo Q3 2024 conference call.

謝謝你，凱利，大家下午好。歡迎參加 Crexendo 2024 年第三季電話會議。

I’m as Kelly just told you Jeff Korn, Chairman of the Board and CEO. 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, Jon will read our Safe Harbor statement. After that, I will give some brief comments on our performance for Q3. Ron will then provide more detail on the numbers before handing over the call to Doug to provide a business and sales update. After that, we will open the call up to questions.

正如凱利剛才告訴你的那樣，我就是董事會主席兼執行長傑夫·科恩。今天與我一起通話的有我們的總裁兼營運長 Doug Gaylor；我們的財務長 Ron Vincent；我們的 CRO Jon Brinton；以及我們的 CSO Anand Buch。一會兒，喬恩就會宣讀我們的安全港聲明。之後，我將對我們第三季的表現做一些簡短的評論。然後，Ron 將提供有關這些數字的更多細節，然後將電話交給 Doug 提供業務和銷售更新資訊。此後，我們將開始回答問題。

Jon, would you please read the Safe Harbor?

喬恩，你能讀《安全港》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》所定義的前瞻性陳述。1995 年《私人證券訴訟改革法》為此類前瞻性聲明提供了安全港。本次電話會議中所做的所有陳述（歷史事實陳述除外）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 these discussed here today.

前瞻性陳述包括但不限於相信、期望、預期、估計、將等詞語以及其他識別前瞻性陳述的類似的預期陳述。投資者應意識到，任何前瞻性陳述均基於假設，並受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. 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提交給美國證券交易委員會的文件中進行了詳細說明，包括截至 2023 年 12 月 31 日的財政年度的 10-K 表和提交的 10-Q 表。Crexendo 不承擔因新資訊、未來事件或其他原因而公開更新或修改任何前瞻性聲明的義務。

I’d now like to turn the call back to Jeff. Jeff?

現在我想把電話轉回給傑夫。傑夫？

Thank you, John.

謝謝你，約翰。

I'm pleased and excited to report that crescendo again delivered exceptionally strong financial results for the third quarter of 2024. This reflects our commitment to providing Premier Cloud communication, software and services and continuing our organic growth trajectory. Consolidated rate, consolidated revenue grew 13% year-over-year, driven by a remarkable 25% growth in our software division.

我很高興也很激動地報告，crescendo 在 2024 年第三季再次取得了異常強勁的財務業績。這反映了我們致力於提供一流的雲端通訊、軟體和服務以及延續我們的有機成長軌蹟的承諾。綜合成長率、綜合收入年增 13%，這得益於軟體部門顯著成長 25%。

Our year-to-date numbers are equally strong, well ahead of internal and external expectations, and I am excited about the momentum we are seeing. This performance reflects the dedication of our entire team to deliver the best cloud communication software and customer service in the industry. Our scalable software platform and relentless focus on meeting the rising demand for comprehensive cloud solutions continues to drive our growth.

我們今年迄今的業績同樣強勁，遠遠超出內部和外部的預期，我對我們所看到的勢頭感到非常興奮。這項表現體現了我們整個團隊致力於提供業界最佳雲端通訊軟體和客戶服務的決心。我們可擴展的軟體平台和對滿足全面雲端解決方案日益增長的需求的不懈關注繼續推動我們的成長。

I am also proud to mention that we maintained our streak of GAAP profitability now for the fifth consecutive quarter and non-GAAP net income for the 24th consecutive quarter. G2 continues to rank us number one in 18 customer satisfaction categories in G2 Spring 2024 Reports, marking the fifth consecutive quarter that Crexendo has led in multiple satisfaction categories. This is a very competitive advantage to us as we tend to rank much higher than our competitors and our customers know that support is exceptionally important to us and they were putting our resources behind the support, so we are there when our customers need us.

我還很自豪地提到，我們連續第五個季度保持了 GAAP 盈利能力，並連續第 24 個季度保持了非 GAAP 淨收入。G2 在 2024 年春季 G2 報告中繼續將我們評為 18 個客戶滿意度類別中的第一名，這是 Crexendo 連續第五個季度在多個滿意度類別中領先。這對我們來說是一個非常有競爭力的優勢，因為我們的排名往往比我們的競爭對手高得多，我們的客戶知道支援對我們來說非常重要，他們把我們的資源投入到支援中，所以當客戶需要我們時，我們就在那裡。

Our focus on customer service should be a strong growth driver now and into the future. This quarter’s financial results includes revenue of $15.6 million, up 13% year-over-year, GAAP profitability of $1.2 million, and non-GAAP net income of $5.7 million for the nine months ended September 30, 2024 or $0.22 basic common share reflects our focus on regularly delivering profitable growth and creating value for our shareholders. As we look ahead, we continue to reinvest in Crexendo to drive our future growth and efficiency. We’ve increased our headcount in engineering, service and support. We’ve made substantial investments in Oracle Cloud Infrastructure, OCI, which is already providing us with a significant competitive advantage, particularly in Europe where we are seeing robust growth.

我們對客戶服務的關注應該成為現在和未來強勁的成長動力。本季度的財務結果包括截至 2024 年 9 月 30 日的九個月的收入 1560 萬美元，同比增長 13%，GAAP 盈利 120 萬美元，非 GAAP 淨收入 570 萬美元或基本普通股 0.22 美元，反映了我們專注於定期實現盈利增長盈利和為股東創造盈利。展望未來，我們將繼續對 Crexendo 進行再投資，以推動我們未來的成長和效率。我們增加了工程、服務和支援部門的員工數量。我們對 Oracle 雲端基礎架構 (OCI) 進行了大量投資，它已經為我們提供了顯著的競爭優勢，特別是在我們實現強勁成長的歐洲。

Thanks to our partnership with OCI. We have the flexibility to launch instances in days, not months, and can deploy servers in any country as needed and ensure that our security protocols are current and in full compliance with local standards. This capability allows us to be highly responsive to customer demand and enhances our competitive edge around the world and in Europe where we anticipate substantial growth in the near future. We are continuing to work on completing the migration of Crexendo Classic customers to our cutting-edge VIP system while at the same time migrating all of our hosted customers to OCI.

感謝我們與 OCI 的合作。我們可以在幾天內（而不是幾個月內）靈活地啟動實例，並且可以根據需要在任何國家/地區部署伺服器，並確保我們的安全協定是最新的且完全符合當地標準。這種能力使我們能夠高度回應客戶需求，並增強我們在全球和歐洲的競爭優勢，我們預計在不久的將來我們將在歐洲實現大幅成長。我們將繼續致力於將 Crexendo Classic 客戶遷移到我們先進的 VIP 系統，同時將所有託管客戶遷移到 OCI。

When completed, we expect to close our six data centers which will result in substantial cost savings. We will also be able to redeploy employees whose job function is to maintain our classic system and the data centers and move them into other parts of our business which will mean additional savings and less required new hires to support this prog progress. We're implementing an advanced accounting system to streamline our financial closings and provide real time insights allowing for agile data driven business decisions.

專案完成後，我們預計將關閉我們的六個資料中心，這將節省大量成本。我們還可以重新部署負責維護我們的經典系統和資料中心的員工，並將他們轉移到我們業務的其他部分，這意味著額外的節省和更少的新員工來支援這項進程。我們正在實施先進的會計系統，以簡化我們的財務結算並提供即時見解，從而實現敏捷的數據驅動業務決策。

We are now in the position to make the necessary investments in our future, but it is my intention to continue to do that while remaining profitable while I am excited of our continued streak of GAAP profitability. Once we start making new acquisitions that may change as intangible costs associated with acquisitions will make continued GAAP profitability difficult with that said, however, I believe we can and will find acquisitions that are accretive within a quarter or two and they will add to EBIDA even if there are intangible costs which need to be written down.

我們現在有能力為我們的未來進行必要的投資，但我打算繼續這樣做，同時保持盈利，同時我對我們持續的 GAAP 盈利能力感到興奮。一旦我們開始進行新的收購，情況可能會發生變化，因為與收購相關的無形成本將使持續的 GAAP 盈利能力變得困難，但我相信我們能夠並將會找到在一兩個季度內實現增值的收購，即使有需要減記的無形成本，它們也會增加 EBIDA。

Now with all of the positive momentum I discussed, there are things we are still working on our margins need to be to remain higher and we are working on that.

現在，有了我所討論的所有積極勢頭，我們仍在努力保持我們的利潤率，我們正在為此而努力。

We always work on increasing sales and that is an ongoing process, and we regularly tweak responsibilities and direction to make sure we're getting the most operational efficiencies and the best use of our tremendous talent.

我們一直致力於提高銷售額，這是一個持續的過程，我們會定期調整職責和方向，以確保我們獲得最高的營運效率並充分利用我們的優秀人才。

We recently hosted our most successful user group meeting or what we call our UGM, where we presented the latest applications from our second code fest, many of which leverage AI. These applications will soon be available to our licenses through our platform opening additional revenue sharing opportunities to us and enterprise level applications that will be available to all our licensees.

我們最近舉辦了我們最成功的用戶組會議，或者我們稱之為 UGM，我們在會上展示了第二次代碼盛會的最新應用程序，其中許多都利用了人工智慧。這些應用程式很快就會透過我們的平台提供給我們的許可證，為我們帶來額外的收益分享機會，並且所有許可證持有者都可以使用企業級應用程式。

It always amazes me the combined energy of our team and our licensees together. The energy is unstoppable and an unbeatable combination. The excitement of our licensees as to the progress we have made, and the support of our future initiatives was off the charts at the UGM.

我們團隊和授權商的共同努力總是令我驚嘆不已。這種能量是不可阻擋的，也是不可戰勝的組合。我們的授權商對於我們所取得的進展感到興奮，並且對我們未來計劃的支援在 UGM 上達到了空前的水平。

Last year my first time as CEO at the UGM was marked by people telling me what we should do better, asking for improvements and investments. This year it was just thanks and congratulations. And I know this change in attitude is due to the hard work and the dedication of the entire Crexendo team, many of whom are here with me and many more who report to the people who are in the room with me. I am very, very proud of the work our team has done and how they’ve pulled together over the past year and a half since I’ve become CEO.

去年，我第一次擔任 UGM 的首席執行官，人們告訴我我們應該做得更好，要求改進和投資。今年只表達感謝和祝賀。我知道這種態度的轉變歸功於整個 Crexendo 團隊的辛勤工作和奉獻精神，其中許多人和我一起在這裡，還有更多的人向與我一起在會議室裡的人匯報工作。自從我擔任執行長以來，我為我們團隊所做的工作以及他們在過去一年半中如何齊心協力感到非常自豪。

In that time we’ve gone from burning $100,000 a month in cash to being substantially cash flow positive, GAAP positive, and substantially increased our EBITDA. We’ve made necessary investments to keep us on the cutting edge and now we are in a much stronger financial position and we are starting to fire on all cylinders. The team did the work but I couldn’t be more proud and pleased.

在此期間，我們從每月燒掉 10 萬美元現金到實現現金流基本上為正、GAAP 為正，並且大幅提高了我們的 EBITDA。我們進行了必要的投資以保持我們處於領先地位，現在我們的財務狀況更加強勁，我們開始全力以赴。雖然團隊完成了工作，但我還是感到無比自豪和快樂。

In the software telecom sector, we continue to benefit from the instability amongst our main competitors. Our strategic efforts to attract Cisco and Microsoft customers have been fruitful, highlighted by a recent webinar for concerned Microsoft users which drew an impressive 180 attendees. Former Microsoft clients who have since transitioned to Crexendo shared their substantially positive experiences, underscoring the benefits of our solutions and positioning us well for continued growth.

在軟體電信領域，我們持續受益於主要競爭對手的不穩定性。我們吸引思科和微軟客戶的策略努力已卓有成效，最近為關心微軟的用戶舉辦的網路研討會吸引了 180 名與會者，令人印象深刻。已經轉向 Crexendo 的前微軟客戶分享了他們非常積極的體驗，強調了我們解決方案的優勢並為我們持續成長做好了準備。

The ongoing industry shift presents a substantial growth driver for us. Being the number three platform provider puts us in a competitive landscape working to our advantage as we continue to stay focused on delivering top tier telecom software and services.

正在進行的行業轉變為我們提供了巨大的成長動力。作為第三大平台供應商，我們在競爭中佔據優勢，我們將繼續專注於提供頂級電信軟體和服務。

While other companies may be leveraging multi lines of business, Crexendo is laser-focused on telecom solutions and we excel in that space. Our team comes to work every day with the singular goal of making our platform the best in the industry and we are confident that this focused dedication gives us a distinct edge.

儘管其他公司可能正在利用多條業務線，但 Crexendo 專注於電信解決方案，並且我們在該領域表現出色。我們的團隊每天工作都帶著一個目標：讓我們的平台成為業界最好的，我們相信，這種專注的奉獻精神會為我們帶來獨特的優勢。

In conclusion, I want to reiterate our expectation for double digit organic growth. I am confident in our ability to deliver outstanding results through the end of 2024 and into 2025. The future looks bright and we could not be more excited.

最後，我想重申我們對兩位數有機成長的預期。我相信我們有能力在 2024 年底和 2025 年取得優異的成績。未來一片光明，我們非常興奮。

With that, I will turn the call over to Ron, who will provide additional details and commentary on the numbers. Ron?

說完這些，我將把電話轉給羅恩，他將提供有關這些數字的更多細節和評論。羅恩？

Thank you, Jeff. Good afternoon, everyone.

謝謝你，傑夫。大家下午好。

I'll go through our financial results. For the third quarter, total revenue for the quarter increased 13% to $15.6 million compared to $13.9 million for the third quarter of the prior year. Service revenue for the third quarter increased 6% to $8 million compared to $7.5 million for the third quarter of the prior year.

我將介紹我們的財務結果。第三季度，總營收較去年同期的 1,390 萬美元成長 13% 至 1,560 萬美元。第三季的服務收入較去年同期的 750 萬美元成長 6%，達到 800 萬美元。

Our software solutions revenue for the quarter increased 25% to $5.9 million compared to $4.7 million for the third quarter of the prior year.

本季我們的軟體解決方案營收與去年同期的 470 萬美元相比成長了 25%，達到 590 萬美元。

Product revenues for the quarter increased 9% to $1.8 million compared to $1.7 million.

本季產品營收從 170 萬美元成長 9% 至 180 萬美元。

Consolidated gross margins for the quarter were 61%, consistent with 61% for the third quarter of the prior year.

本季綜合毛利率為 61%，與去年同期的 61% 一致。

Software solutions gross margins for the quarter were 71% consistent with 71% for the third quarter of the prior year.

本季軟體解決方案毛利率為 71%，與去年同期的 71% 一致。

Our Telecom Services segment gross margins of 55% were consistent with 55% for the third quarter of the prior year. Service revenue margins were 58% consistent with 58% for the third quarter of the prior year and our product margins decreased to 40% compared to 45% in the third quarter of the prior year.

我們電信服務部門的毛利率為 55%，與去年同期的 55% 一致。服務收入利潤率為 58%，與去年同期第三季的 58% 一致，產品利潤率從去年同期的 45% 下降至 40%。

Operating expenses for the quarter increased 15% to $15.5 million compared to $13.5 million for the third quarter of the prior year. And that’s due to the investment in our employees added headcount, additional investments in Oracle cloud infrastructure and our investment in our accounting system implementation.

本季營運費用為 1,350 萬美元，較去年同期的 1,350 萬美元成長 15% 至 1,550 萬美元。這是因為我們在員工人數增加、Oracle 雲端基礎設施額外投資以及我們的會計系統實施上進行了投資。

Net income of $148,000 for the quarter or $0.01 per basic common share and breakeven per diluted common share. That’s compared to net income of $1.7 million or $0.07 per basic common share and $0.06 per diluted common share for the third quarter of the prior year. And I’ll highlight that during the third quarter of the prior year we recognized a gain on the sale of our corporate office building of approximately $1.5 million. Excluding the gain, net income is only down $97,000, primarily related to the additional investment in headcount that I mentioned earlier.

本季淨收入為 148,000 美元，或每股基本普通股 0.01 美元，每股稀釋普通股盈虧平衡。相比之下，去年同期的淨收入為 170 萬美元，即每股基本普通股 0.07 美元，每股稀釋普通股 0.06 美元。我要強調的是，去年第三季度，我們出售公司辦公大樓獲得收益約 150 萬美元。除去收益，淨收入僅下降了 97,000 美元，這主要與我之前提到的額外員工投資有關。

Non-GAAP net income of $1.7 million for the quarter or $0.06 per basic and diluted common share compared to a non-GAAP net income of $3.3 million or $0.13 per basic common share and $0.12 per diluted common share for the third quarter of the prior year.

本季度非公認會計準則淨收入為 170 萬美元，或每股基本普通股和稀釋普通股 0.06 美元，而去年同期非公認會計準則淨收入為 330 萬美元，或每股基本普通股 0.13 美元和每股稀釋普通股 0.12 美元。

EBITDA for the quarter was $1 million as compared to $1.2 million for the third quarter of the prior year. And adjusted EBITDA came in at $1.7 million as compared to $2.1 million for the third quarter of the prior year.

本季的 EBITDA 為 100 萬美元，而去年同期的第三季為 120 萬美元。調整後的 EBITDA 為 170 萬美元，而去年同期第三季為 210 萬美元。

Our cash and cash equivalents at September 30 was $15.5 million, that’s compared to $10.3 million at December 31, 2023.

截至 9 月 30 日，我們的現金和現金等價物為 1,550 萬美元，而 2023 年 12 月 31 日為 1,030 萬美元。

Cash provided by operating activities for the nine month period was $4.1 million, that’s compared to $887,000 for the same period as the prior year. Cash provided by investing activities was annealed for the nine-month period, that’s compared to $3.8 million for the same period as prior year. Cash provided by financing activities for the nine-month period of $1 million, compared to cash used for investing activities of $2.3 million for the same period as the prior year. Now that’s primarily related to $1.4 million in net cash received from stock option exercises offset by $340,000 in no payable repayments.

前九個月經營活動提供的現金為 410 萬美元，而去年同期為 887,000 美元。前九個月投資活動提供的現金有所減少，而去年同期為 380 萬美元。前九個月融資活動提供的現金為 100 萬美元，而去年同期投資活動所用現金為 230 萬美元。現在，這主要與股票選擇權行使收到的 140 萬美元淨現金減去 34 萬美元的無需支付的還款有關。

With that, I’ll turn it over to Doug Gaylor, Our President and COO, for additional comments on sales and operations.

接下來，我將把主題交給我們的總裁兼營運長 Doug Gaylor，請他針對銷售和營運發表更多評論。

Thanks Ron. Q3 was another strong quarter for Crexendo and I’m very pleased with our results for the quarter and for the first nine months of 2024.

謝謝羅恩。第三季度對 Crexendo 來說又是一個強勁的季度，我對本季以及 2024 年前九個月的業績非常滿意。

Our organic growth of 13% year-over-year in Q3 and 14% organic growth for the first nine months of the year, along with our five consecutive GAAP profitable quarters, are the direct result of our focus on growing the top line organically and managing the fundamentals of the business.

我們第三季的有機成長率達到 13%，今年前九個月的有機成長率達到 14%，並且連續五個季度根據 GAAP 實現盈利，這些都是我們專注於有機成長營收和管理業務基本面的直接結果。

Our GAAP net income of $148,000 for the quarter or $0.01 a share and our non-GAAP net income of $1.7 million for the quarter or $0.06 per share highlight that we are executing on our business plans extremely well. We are reinvesting back into the business with recent hires and customer support, engineering and sales during the quarter, so we can continue enhancing our product development and support but do so profitably. This was our 24th consecutive quarter with non-GAAP net income and our results for the quarter continue to highlight our improvements in processes, procedures and sales as well as our success in managing cost and maximizing synergies from all of our business segments.

本季我們的 GAAP 淨收入為 148,000 美元或每股 0.01 美元，本季我們的非 GAAP 淨收入為 170 萬美元或每股 0.06 美元，這突顯出我們正在非常出色地執行我們的業務計劃。本季度，我們將透過新的招聘、客戶支援、工程和銷售等方式重新投資於業務，以便我們能夠繼續加強我們的產品開發和支持，同時實現盈利。這是我們連續第 24 個季度實現非 GAAP 淨收入，本季的業績繼續凸顯了我們在流程、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 increase to $15.5 million which is up 200% year-over-year and 13% from the prior quarter.

這些強勁的業績也促進了我們本季強勁的正現金流，使我們的現金部位增加至 1,550 萬美元，年成長 200%，較上季成長 13%。

We continue to see strong organic growth in both segments of our business. What’s particularly exciting is that our Software Solutions segment had another great quarter with 25% organic growth and we have seen a 28% organic growth so far this year, year-to-date in Software Solutions segment. The 25% organic growth in our Software Solutions segment for the quarter helped propel us past the five million user mark on our platform that we announced during Q3 and we are averaging over 100,000 new users added to our platform monthly.

我們的兩個業務部門繼續實現強勁的有機成長。尤其令人興奮的是，我們的軟體解決方案部門又度過了一個出色的季度，實現了 25% 的有機增長率，今年迄今為止，軟體解決方案部門的有機增長率已達到 28%。本季度，軟體解決方案部門實現了 25% 的自然成長，推動我們平台用戶數突破第三季宣布的 500 萬大關，並且平均每月新增用戶超過 10 萬。

The rapid growth we are experiencing on our platform is a combination of our existing licensees continuing their strong growth using our platform for the foundation for their business, together with our success in adding new logos coming on board. Many of these new logos are leaving our two largest competitors, Cisco and Microsoft. We sold eight new logos on our platform during the quarter and have seen a tremendous amount of interest from Microsoft MetaSwitch licensees, as Jeff had mentioned, after our 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. These moves by Microsoft have fueled many opportunities for Crexendo and in fact we have secured four Microsoft MetaSwitch wins in the last four months and had an overwhelming turnout for a recent webinar highlighting the benefits of MetaSwitch licensees moving to Crexendo.

我們平台的快速成長得益於我們現有的授權商利用我們的平台作為其業務的基礎，繼續實現強勁成長，以及我們成功吸引新合作夥伴。許多新標誌都來自我們最大的兩個競爭對手思科和微軟。我們在本季度在我們的平台上銷售了八個新標識，並且正如 Jeff 提到的那樣，在微軟最近宣布其 MetaSwitch Max UC 平台的生命週期終止並且通過最近削減其 MetaSwitch 部門表示將退出其平台業務之後，我們看到了微軟 MetaSwitch 許可證持有者的極大興趣。微軟的這些舉措為 Crexendo 帶來了許多機會，事實上，我們在過去四個月中已四次贏得 Microsoft MetaSwitch 許可，並且在最近的一次網絡研討會上獲得了壓倒性的出席率，該研討會強調了 MetaSwitch 許可證持有者轉向 Crexendo 的好處。

Our Software Solutions segment also continues to see great success internationally as well. We recently had two press releases on major wins in Australia and just had our first win in Africa.

我們的軟體解決方案部門在國際上也持續取得巨大成功。我們最近發布了兩份關於在澳洲取得重大勝利的新聞稿，並且剛剛在非洲取得了第一場勝利。

The international opportunities where cloud communications currently has a much lower adoption rate than here in the U.S. have us very excited about our continued growth in that part of the business.

目前，雲端通訊的國際採用率遠低於美國，這讓我們對該部分業務的持續成長感到非常興奮。

Our Crexendo licensees, as well as our reseller agents, continue to benefit from the rapid migration by small, and mid-size and enterprise level businesses to the cloud. And in addition, affordable technology enhancements, many of them utilizing artificial intelligence, are generating more demand from the SMB market as our technology can help these two businesses do a lot more with a lot less.

我們的 Crexendo 授權持有者以及經銷商代理商繼續受益於小型、中型和企業級業務向雲端的快速遷移。此外，價格合理的技術改進（其中許多利用了人工智慧）正在從中小企業市場產生更多需求，因為我們的技術可以幫助這兩家企業用更少的資源做更多的事情。

Our Telecom Services segment, including product revenue, grew at 6% organically for the quarter. We continue to see strong demand for our offerings from our channel partners and saw an 8% growth rate in sales for the quarter over the prior year from our channel reseller partners. Our channel partners sell our services to their prospects and customers on a revenue share basis, and like the full service offering, they really truly like the full service offering we provide their customers.

我們的電信服務部門（包括產品收入）本季有機成長率為 6%。我們持續看到通路夥伴對我們產品的強勁需求，本季來自通路經銷商合作夥伴的銷售額比上年同期成長率為 8%。我們的通路夥伴以收入分成的方式向他們的潛在客戶和客戶銷售我們的服務，就像我們提供的全方位服務一樣，他們真的很喜歡我們為他們的客戶提供的全方位服務。

We continue to differentiate our Telecom Services offerings from our competitors by highlighting our number one service rankings in 18 separate voice over IP service categories on the leading business software review website, G2.com.

我們繼續在領先的商業軟體評論網站 G2.com 上的 18 個獨立的 IP 語音服務類別中突出我們的第一服務排名，以此來使我們的電信服務產品與競爭對手區分開來。

Our telecom backlog continues to grow nicely, and it’s now at $77.4 million, an increase of 22% from Q3 of 2023 and up 9% from last quarter. And as a reminder, our backlog number is the sum of the remaining contract values of our Telecom Services and Software Solutions customers that will be recognized on a sliding scale over the next 60 months. And this number is a strong indicator of our future success. And in fact, the number for 2025 is now sitting at north of $29 million in backlog already queued up for next year.

我們的電信積壓訂單持續良好成長，目前為 7,740 萬美元，較 2023 年第三季成長 22%，較上一季成長 9%。提醒一下，我們的積壓訂單數量是我們電信服務和軟體解決方案客戶的剩餘合約價值的總和，這些價值將在未來 60 個月內按比例確認。這個數字有力地預示著我們未來的成功。事實上，2025 年的訂單積壓金額目前已超過 2,900 萬美元，等待明年完成。

Gross margins remained strong in our Software Solutions segment at 71%, and our Telecom Services gross margin was consistent at 58% year-over-year. Telecom Services gross margins continue to be affected by lower margins from our Allegiant acquisition that has lower margins on some of their MSP services.

我們的軟體解決方案部門的毛利率保持強勁，達到 71%，而我們的電信服務毛利率與去年同期相比穩定在 58%。電信服務毛利率持續受到我們收購 Allegiant 後利潤率下降的影響，部分 MSP 服務的利潤率較低。

We also continue to enhance our offerings with software updates and additions to our platform, and that helps us expand our product offerings. We announced our version 44.2 software release at our annual user group meeting in Nashville last month and had tremendous excitement and energy from our record attendance over the new features and capabilities being released on the platform.

我們也將繼續透過軟體更新和平台添加來增強我們的產品，這有助於我們擴大產品範圍。我們上個月在納許維爾舉行的年度用戶組會議上宣布了 44.2 版軟體的發布，創紀錄的出席率讓我們對該平台上發布的新功能和性能感到非常興奮，並充滿了活力。

Our user group meeting also featured new AI offerings being developed by many of our licensees and vendors that will make AI solutions readily available to any size business at affordable prices and that’s because of our open API 2.0 integration that allows for hundreds of third-party developers to build solutions that easily integrate onto our platform.

我們的用戶組會議還展示了許多授權商和供應商正在開發的新型 AI 產品，這些產品將使任何規模的企業都能以可承受的價格輕鬆獲得 AI 解決方案，這是因為我們的開放 API 2.0 集成允許數百名第三方開發人員構建可輕鬆集成到我們平台上的解決方案。

Our numbers for the quarter and for the first nine months of 2024 have been really strong, and we continue to see a lot of momentum and demand for products – for our products and our services. We continue to execute well on our business plan for organic growth, increasing our margins, positive cash flow and managing expenses.

我們本季和 2024 年頭九個月的業績非常強勁，我們繼續看到產品（我們的產品和服務）的巨大發展勢頭和需求。我們繼續順利執行我們的業務計劃，實現有機成長、提高利潤率、實現正現金流和管理費用。

Eclipsing 5 million end users on our platform and expecting to reach 6 million users in early 2025 highlights that there is still great opportunity for growth, and I couldn’t be more excited about our direction and our ability to continue to deliver the best solutions for our customers and the best returns for our shareholders.

我們的平台終端用戶已超過 500 萬，預計到 2025 年初將達到 600 萬，這表明我們仍有巨大的成長機會，我對我們的方向和繼續為客戶提供最佳解決方案、為股東帶來最佳回報的能力感到無比興奮。

With that, I will now turn it back over to Jeff for any further comments.

說完這些，我現在將話題交還給傑夫，以便他可以發表進一步的評論。

Thank you, Doug. I actually don't have any comments at this time. So, Kelly, I'd like to open the call to questions.

謝謝你，道格。我目前實際上還沒有任何評論。那麼凱利，我想開始提問。

Certainly, the floor is now open for questions. (Operator Instructions)

當然，現在可以開始提問了。（操作員指令）

If you have any questions or comments, please press star one on your phone at this time. We ask that while posing your question, you please pick up your handset. If listening on a speaker phone to provide optimum sound quality, please hold just a moment while we pull for questions.

如果您有任何問題或意見，請立即按下手機上的星號鍵。我們要求您在提出問題時拿起聽筒。如果使用揚聲器電話收聽以獲得最佳音質，請稍等片刻，我們會回答您的問題。

The first question is coming from Mike Latimore with Northland Capital Markets. Please pose your question. Your line is live.

第一個問題來自 Northland Capital Markets 的 Mike Latimore。請提出您的問題。您的線路處於通電狀態。

Thank you.

謝謝。

Hey, very good. Very good. Thank you. So, the quarter was great. Backlog growth looked really, really nice. Interesting on the new logo. You said eight new logos? I believe that was double sequentially, I believe. How did the, how did, how are expansions, how many number of expansions that you have in the quarter?

嘿嘿，非常好。非常好。謝謝。因此，本季表現非常好。積壓訂單成長看起來確實非常好。新標誌很有趣。你說的是八個新標誌？我相信這是連續雙倍的，我相信。擴張情況如何，本季擴張了多少次？

Great question, Mike. So eight new logos for the quarter was significant for us. We, on top of that, had five expansions from our existing licensees, so overall on the software solutions side, again, just another stellar quarter. Nice to see all the new logos coming on Board, but also nice that we had five strong upgrades from our existing partners as well.

很好的問題，麥克。因此，本季的八個新標誌對我們來說意義重大。除此之外，我們還從現有的授權商那裡獲得了五個擴展，因此，總體而言，從軟體解決方案來看，這又是一個出色的季度。很高興看到董事會採用所有新標識，同時也很高興我們從現有合作夥伴那裡獲得了五項強有力的升級。

All right, great.

好的，太好了。

And then I, I know you've been working on some tools to help manage service providers, accelerate their migration off of Microsoft and BroadSoft to you guys. Can you kind of give a status on those tools and the benefits that you see?

然後我知道你們一直在研究一些工具來幫助管理服務供應商，加速他們從微軟和 BroadSoft 向你們的遷移。您能否介紹一下這些工具的現況以及您所看到的好處？

Mike. I'm going to let Anand give you some details on that. Go ahead.

麥克風。我將讓阿南德向您詳細介紹這一點。前進。

Sure. Hi Mike, I think the progress continues. We’ve actually added a partner who actually does significant kind of work in terms of automating those migrations. It’s two-fold, right, for folks that are moving over, some that are doing cap and grows and some that want to accelerate even further.

當然。嗨，麥克，我認為進展還在繼續。我們實際上已經增加了一個合作夥伴，他在自動化遷移方面做了大量工作。對吧，對於正在轉變的人來說，這是雙重的，有些人正在實現上限和成長，而有些人則希望進一步加速。

And then there’s probably a pipeline of a couple more partners as well that are in that space that are helping facilitate the migration off of some of these other platforms. So overall, it’s going quite well.

然後可能還有其他一些合作夥伴正在努力幫助促進從其他一些平台的遷移。整體來說，一切進展順利。

Excellent, excellent. And then just last on the kind of the application ecosystem. You know, it was interesting to see all the companies at your user conference. Lots of interesting, you know, new applications there. Can you just elaborate a little bit on, you know, the progress over the last year and sort of building up that portfolio? And then how do you think about the potential financial impact here in terms of, you know, win, win rates and upsells and revenue share?

非常好，非常好。最後談談應用生態系的類型。你知道，看到這麼多公司參加用戶大會真是有趣。你知道，那裡有很多有趣的新應用。您能否稍微詳細說明一下過去一年的進展以及該投資組合的建立？那麼，您如何看待這在贏利、贏利率、追加銷售和收入份額方面帶來的潛在財務影響？

Sure, sure, sure. I think a couple of things. Obviously, I won’t touch on the revenue because I don’t think we go with guidance on stuff like that because some of the stuff is seeds that we’re planting. The applications that you see across the Board are anywhere from automation applications to customer experience-related chatbots that are being built on the platform.

當然，當然，當然。我想有幾件事。顯然，我不會談到收入，因為我認為我們不會遵循這類東西的指導，因為其中一些東西是我們正在種植的種子。您在 Board 上看到的應用程式包括從自動化應用程式到在平台上建立的與客戶體驗相關的聊天機器人等各種應用程式。

AI usage of customized prompts for unified communications, and then also verticalized applications that are going into the different vertical markets that our service providers go after. In terms of the ecosystem itself, we probably had 50-plus vendors at our user group meeting. We look to probably continue to grow that.

人工智慧使用客製化提示進行統一通信，然後還使用垂直化應用程式進入我們的服務提供者追求的不同垂直市場。就生態系統本身而言，我們的用戶小組會議上可能有 50 多家供應商。我們希望這一趨勢能夠繼續發展。

We have 10 to 15 that are being onboarded at the moment with respect to revenue shares and things of that nature that will add to the revenue line as we go forward. But the applications are across the Board. And step one is just the retention that we get and the stickiness and the differentiation that our providers get when they’re competing against the biggest players in the marketplace, and we’re seeing a lot of success there.

目前，我們已經與 10 到 15 家公司進行了收入分成等合作，隨著我們的發展，這些公司的收入將會增加。但申請範圍卻是全面性的。第一步是我們獲得的保留率以及我們的供應商在與市場上最大的參與者競爭時獲得的黏性和差異化，我們看到了很多成功。

Great. Thanks very much. Best of luck for the rest of the year.

偉大的。非常感謝。祝您今年餘下的時間好運。

Thank you, Mike.

謝謝你，麥克。

Your next question is coming from Eric Martinuzzi with Lake Street. Please pose your question. Your line is life.

您的下一個問題來自 Lake Street 的 Eric Martinuzzi。請提出您的問題。你的路線就是生命。

Good afternoon, Eric. Hope you are doing well.

下午好，埃里克。祝你一切順利。

Good afternoon. I hope you're doing well on the solid quarter. Had a question regarding the – just kind of the macro environment here. The UCaaS revenue, the services revenue was up positive. It was up 6%. But I saw that it was essentially flat sequentially. I’m just wondering, is there a macro issue at play here? Or was there some unique circumstances on that services revenue sequentially in Q3?

午安.我希望你們在這個季度一切順利。我有一個關於這裡的宏觀環境的問題。UCaaS 收入、服務收入呈現正向成長。上漲了 6%。但我發現它基本上是連續持平的。我只是想知道，這裡是否有宏觀問題？或者第三季服務收入的環比成長是否存在一些特殊情況？

No, not a macro issue. We had a little bit of an escalation in churn during the quarter from one national account, but that impacted revenue a little bit. And then overall, the makeup between service versus product, and in the prior quarter, we had strong product. And so just from quarter-to-quarter, the top line on Telecom Services, whether or not it’s coming from our service line item or our product line item, that mix changes from quarter-to-quarter. So we’re still seeing strong sales channel, big funnel, and everything is moving in the right direction.

不，這不是宏觀問題。本季度，我們的一個國家帳戶的客戶流失率略有增加，這對收入產生了一點影響。整體而言，服務與產品的組成，在上一季度，我們的產品很強大。因此，從季度來看，電信服務的營收，無論來自我們的服務項目或產品項目，其組合都每季都在變化。因此，我們仍然看到強大的銷售管道，巨大的漏斗，一切都朝著正確的方向發展。

Okay. I'm not looking for a specific number in Q4. But would we expect the services revenue to be up sequentially in Q4?

好的。我並不是尋找第四季的具體數字。但我們是否預期第四季的服務收入將較上季成長？

And we don't, we don't give guidance, but yes, it's similar to current quarter or sequential growth.

我們沒有給出指導，但是是的，它與本季度或連續的增長相似。

Okay. All right. And then you talked about some of the investments that you’ve made in headcount. I did see the operating expenses there at around $15.5 million. The GAAP operating expenses at $15.5 million. That includes the cost of service and cost of software solutions revenue as well as the cost of product. But as far as the expectation, are we at kind of a run rate? Maybe let’s just talk kind of SG&A and R&D. Are those at kind of a run rate or is there a ramp that we should kind of bump that up?

好的。好的。然後您談到了在員工人數方面所做的一些投資。我確實看到那裡的營運費用約為 1550 萬美元。根據美國通用會計準則 (GAAP)，營業費用為 1,550 萬美元。其中包括服務成本、軟體解決方案收入成本以及產品成本。但就預期而言，我們是否達到了某種運行速度？也許我們只談銷售、一般及行政費用和研發費用。這些是否處於某種運行率，或者是否存在我們應該提高的上升速度？

Eric, on a macro basis, there will be the continued expense on both OCI and the Oracle accounting system. There will be some additional headcount. I’m trying to defer additional headcount as much as we can, considering the fact I discussed that once we’re on the – once we’re on OCI, we will have a number of employees whose functions we can move. And so we can – we’re trying to defer hiring as long as we can to move those people into the open positions we have. But we will make the necessary investments.

Eric，從宏觀角度來看，OCI 和 Oracle 會計系統都會持續產生費用。將會有一些額外的員工。我正在盡可能地推遲增加員工人數，因為我討論過，一旦我們進入 OCI，我們就會有一些員工的職能可以轉移。因此我們可以——我們正在嘗試盡可能推遲招聘，以便將這些人安排到我們現有的空缺職位上。但我們將進行必要的投資。

Got it. And then lastly, you touched on the competitive landscape and I was just curious from the NetSapiens user group meeting, just – the key takeaways, do you feel like versus a year ago that, I guess, the pipeline of people interested or maybe even just showing up at the user group meeting. Were there new faces there or is it kind of more enthusiastic response from people who’ve come in the past years?

知道了。最後，您談到了競爭格局，我對 NetSapiens 用戶組會議感到很好奇，關鍵的一點是，您是否覺得與一年前相比，對用戶組會議感興趣的人或只是出席的人的數量有所減少。那裡有新面孔嗎？

Eric, it was both. We had the largest UGM we ever had. We had new faces, we had new logos and we had more people coming from people who’ve been there before. And as I said, the difference between last year’s UGM and this year’s UGM was just amazing.

埃里克，兩者都有。我們擁有有史以來最大的 UGM。我們有新面孔、新標誌，還有更多曾經來過的人。正如我所說，去年的 UGM 和今年的 UGM 之間的差異真是令人驚訝。

I’ll just add a little bit to it, Eric, about over 30% of our attendees were first time attendees. One thing about that conference that you must be a licensee to attend. So it’s not a prospect event, but it from a community and enthusiasm level, like Jeff said. We had records across the board on every metric tons of first time attendees and just excellent feedback overall.

艾瑞克，我只想補充一點，大約超過 30％ 的與會者是首次參加。關於該會議有一件事是你必須獲得許可才能參加。所以這不是預期活動，而是從社區和熱情層面進行的活動，就像傑夫所說的。我們對首次參加的每一位參與者進行了全面記錄，並且總體而言獲得了非常好的回饋。

I think what we get the most out of that user group meeting, Eric, is that the excitement in the room is because everybody else is seeing that same level of excitement in their business and seeing increases in sales and opportunities. And so it really is an area for us to share best practices. And so when they get with the other members of the community and they talk about what’s working in Florida or what’s working in Idaho or what’s working in Texas, they can share best practices with all the other vendors and all the other licensees and then they go back and implement that and when their sales pick up, our sales pick up. And we did have attendees from eight countries and four continents this year, so it is becoming more of an international event as well.

艾瑞克，我認為我們從那個用戶組會議中獲得的最大收穫是，房間裡的興奮是因為其他每個人都在他們的業務中看到了同樣程度的興奮，看到了銷售額和機會的增長。所以這確實是我們分享最佳實踐的地方。因此，當他們與社區的其他成員會面並討論佛羅裡達州、愛達荷州或德克薩斯州的有效做法時，他們可以與所有其他供應商和所有其他被許可人分享最佳實踐，然後他們回去實施這些實踐，當他們的銷售額回升時，我們的銷售額也會回升。今年我們的與會者來自八個國家、四大洲，因此它也越來越成為國際盛事。

Well, Eric, last year I felt like I had to hide. This year I was thrilled to go talk to anybody who wanted to talk to me.

嗯，艾瑞克，去年我感覺我必須躲起來。今年我很高興與任何想與我交談的人交談。

I understand it's nice to see that reversal. Thanks for taking my questions.

我知道看到這種逆轉是件好事。感謝您回答我的問題。

Thank you, Eric. You have a great afternoon.

謝謝你，埃里克。祝你下午愉快。

Your next question is coming from Ryan Kunz with Needham and Company. Please pose your question. Your line is live.

您的下一個問題來自 Needham and Company 的 Ryan Kunz。請提出您的問題。您的線路處於通電狀態。

Hi Ryan, how are you?

嗨，Ryan，你好嗎？

I’m doing great guys. How are you?

我做得很好，夥計們。你好嗎？

Wonderful, thanks.

非常好，謝謝。

Super great quarter. With regards to the expense of the migration and kind of double paying for private cloud and public cloud migration. Can you quantify the gross margin headwind on COGS that you’re feeling this year or this quarter?

非常棒的季度。關於遷移的費用以及私有雲和公有雲遷移的雙重付費。您能否量化今年或本季您感受到的銷貨成本（COGS）所帶來的毛利率阻力？

Ron, you want to take a shot at that?

羅恩，你想嘗試嗎？

Yes. So right now we’re in the process of continuing to migrate our legacy customer base to the VIP platform powered by NetSapiens. Once we get that completed, which we expect to be complete at the end of Q1 of next year, then we will be able to shut down data centers and start to see that cost savings which we expect to be 1%, 1.5% of those costs of – sorry, as far as quantifying as percentage of revenue, I think, we got about a 1.5% savings.

是的。因此，目前我們正在繼續將我們的傳統客戶群遷移到由 NetSapiens 提供支援的 VIP 平台。一旦我們完成這項工作，我們預計將在明年第一季末完成，然後我們將能夠關閉資料中心並開始看到成本節省，我們預計節省的將是這些成本的 1% 到 1.5% - 抱歉，就量化為收入百分比而言，我認為，我們節省了大約 1.5%。

Okay, great. It’s about 100, 150 bps. That’s great. And with regards to the great results on the software solutions business, can you speak a little bit about where you’re seeing the most near-term traction there and remind me of your go to market approach? I assume that’s mostly U.S. rural. You’re seeing the most traction or where would that be coming from in terms of markets?

好的，太好了。大約是 100 到 150 個基點。那太好了。關於軟體解決方案業務的出色業績，您能否談談您認為近期最有發展前景的業務，並讓我了解一下您的行銷策略？我認為這些主要是美國農村。您看到了最大的吸引力，或從市場角度來看，吸引力來自哪裡？

Yes. We did have – we’ve had good international growth. We had three new licensees internationally, but we are seeing very thought – we always have a community of vendors that we take partners from. Nobody starts their first UCaaS offer with our platform, but we did see excellent growth in partners converting from the Metaswitch partner community last quarter and we’re continuing to see that. So, of that new logo growth, the single largest chunk of them were customers that have a Metaswitch platform and they’re looking for a new home in a new long-term strategy for their business. But overall, we have several that we have shared donation from. We have good geographic coverage in that, also in our international business, Doug mentioned we had our first licensee actually in continental Africa last quarter. So, we’re continuing to see good growth and expansion.

是的。我們確實——我們取得了良好的國際成長。我們在國際上獲得了三個新的授權商，但我們看到的是，我們始終擁有一個供應商社區，可以從中吸收合作夥伴。沒有人會先在我們的平台上提供 UCaaS 產品，但是上個季度我們確實看到從 Metaswitch 合作夥伴社群轉化而來的合作夥伴數量出現了顯著增長，而且這種趨勢還在持續。因此，在新的標誌成長中，最大的一部分是擁有 Metaswitch 平台的客戶，他們正在為其業務的新長期策略尋找新歸宿。但總的來說，我們已經分享了幾個捐贈。我們的地理覆蓋範圍很廣，在我們的國際業務中也是如此，道格提到，上個季度我們實際上在非洲大陸獲得了第一個許可證。因此，我們繼續看到良好的成長和擴張。

Got it. Great. And remind me these are these are private label partners that are bringing solutions to market to go after Metaswitch instances.

知道了。偉大的。提醒我一下，這些都是自有品牌合作夥伴，他們正在將解決方案推向市場以應對 Metaswitch 實例。

These are people that are licensing our software and either having us host it for them or hosting it in their own infrastructure. So in many cases, they’re telecommunications carriers, MSPs or others, but they take the software. Think of the Nvidia inside in a computer stack, they take our software, deploy it in their infrastructure, put their own branding on it, have a billing engine behind it or have us host it for them. So we’re kind of the inside technology that’s operating their UCaaS offer.

這些人獲得了我們軟體的授權，然後讓我們為他們託管或將其託管在他們自己的基礎設施中。因此在很多情況下，他們是電信業者、MSP 或其他方，但他們會接受軟體。想像一下電腦堆疊內部的 Nvidia，他們採用我們的軟體，將其部署在他們的基礎設施中，在其上貼上他們自己的品牌，在其背後安裝計費引擎或讓我們為他們託管。因此，我們是營運其 UCaaS 產品的內部技術人員。

Sure. And these customers are your channel to the end users themselves.

當然。這些客戶就是您面向最終使用者的管道。

Yes. They own the relationships with the end users.

是的。他們與最終用戶建立了良好的關係。

Perfect. Got it. Like a traditional operator. Great. And then on the service revenue side, any changes in the competitive landscape there? I mean we’ve seen – it feels like we’ve seen the U.S. market slow a bit here and teams certainly strong at the high end. Can you kind of touch on the competitive landscape and sounds like you’re making some inroads internationally. Maybe touch on it from that perspective, both U.S. and international. Thanks.

完美的。知道了。就像傳統的操作員一樣。偉大的。那麼在服務收入方面，競爭格局有什麼改變嗎？我的意思是我們已經看到——感覺我們已經看到美國市場在這裡放緩，而高端團隊肯定表現強勁。您能否簡單談談競爭格局？也許可以從美國和國際的角度來談談這個問題。謝謝。

YYeah. And then telecom services, we only do telecom services on the U.S. side, so we don’t do direct retail offerings internationally. So just on the wholesale side is the international offering. So on the direct side, very competitive out there. We continue to see competition from RingCentral and 8x8, Vonage and then all of the licensees that are using BroadSoft and Metaswitch and even sometimes the Crexendo platform. But overall, I mean, our biggest competitors out there, we win way more often than we lose to them, because of our offering and our customer service and support. We highlighted the number one rankings in 18 different categories on G2.com, that’s significant.

是的。然後是電信服務，我們只在美國提供電信服務，因此我們不提供國際直接零售服務。因此，僅在批發方面才提供國際產品。因此從直接角度而言，競爭非常激烈。我們繼續看到來自 RingCentral 和 8x8、Vonage 的競爭，以及所有使用 BroadSoft 和 Metaswitch 甚至有時是 Crexendo 平台的許可證持有者的競爭。但總的來說，我的意思是，與我們最大的競爭對手相比，我們贏得的次數比輸給他們的次數多得多，這要歸功於我們的產品以及我們的客戶服務和支援。我們重點介紹了 G2.com 上 18 個不同類別中的第一名，這意義重大。

And most of our bigger competitors really are way down the list on the rankings on that. So a lot of – two years ago, Ryan, 80%, 85%, 90% of our customers were coming from legacy. Today, it’s probably maybe about 60% coming from legacy and 40% coming from other cloud providers. So as other cloud providers continue to struggle with good service and support, that creates opportunity for us. So the competitive landscape right now on both the wholesale and retail side are very favorable for us because we’ve got a lot of unhappy customers on both sides of the equation that are looking for alternatives. And when they’re looking for alternatives, Crexendo is the best solution for them.

而我們大多數較大的競爭對手在這個排名上確實排得很後面。所以很多——兩年前，Ryan，我們的 80%、85%、90% 的客戶都來自傳統客戶。如今，大概 60% 來自傳統雲端供應商，40% 來自其他雲端供應商。因此，當其他雲端提供者繼續努力提供良好的服務和支援時，這為我們創造了機會。因此，目前批發和零售的競爭格局對我們非常有利，因為雙方都有許多不滿意的客戶，他們正在尋找替代品。當他們尋找替代方案時，Crexendo 就是他們的最佳解決方案。

Great. Thanks for the questions. Appreciate it.

偉大的。感謝您的提問。非常感謝。

Thanks Ryan.

謝謝瑞安。

Your next question is coming from Matthew Mass with B Riley. Please put your question. Your line is live.

您的下一個問題來自 B Riley 的 Matthew Mass。請提出您的問題。您的線路處於通電狀態。

Hi, Matthew.

你好，馬修。

Hi, this is Matthew filling in for Josh Nichols. Thanks for taking my question. So yeah, I just have one quick question.

你好，我是馬修，代替喬許·尼科爾斯。感謝您回答我的問題。是的，我只想問一個簡單的問題。

Yeah. Thank you. So how does the company think about balancing direct sales versus leveraging the reseller channel?

是的。謝謝。那麼公司如何考慮平衡直接銷售和利用經銷商通路呢？

I'll let Joh answer that.

我讓約翰來回答這個問題。

Yes, Matthew, we think of what we do through our direct sales and the Crexendo VIP brand is kind of the company store where we really interact with end customers and are able to sell them directly, get great customer feedback. But we’re looking, we, our plan is to have balanced growth across both businesses and obviously take advantage of driving our software solutions business wherever possible because of its high margin profile. Our ability to deploy that to service providers, this opportunity we’ve had in the Metaswitch community specifically is just we’re investing in that significantly.

是的，馬修，我們考慮透過直銷來做的事情，而 Crexendo VIP 品牌就像是一家公司商店，我們可以在這裡真正與最終客戶互動，能夠直接向他們銷售產品，獲得很好的客戶回饋。但我們的計劃是實現兩項業務的平衡成長，並且顯然會盡可能地利用軟體解決方案業務的優勢來推動其發展，因為該業務的利潤率較高。我們將其部署給服務提供者的能力，以及我們在 Metaswitch 社群中所擁有的這個機會，正是我們正在對此進行大量投資。

It’s an area where we can grow at a higher rate than the market. So from that perspective, I would say we have a balanced approach. We measure results tightly across every one of the go-to-markets within our business. But we’re investing heavily in growing our software solution sales because it does have ultimately the best margin profile and the highest software value for us overall.

在這個領域，我們的成長速度可以高於市場。因此從這個角度來看，我認為我們採取了一個平衡的方法。我們嚴格衡量我們業務中每一個市場進入階段的成果。但我們正投入巨資來增加我們的軟體解決方案銷售，因為它最終對我們來說具有最佳的利潤率和最高的軟體價值。

Great. Thanks for taking my question. That was all for me.

偉大的。感謝您回答我的問題。對我來說這就是全部了。

Thank you, Matthew.

謝謝你，馬修。

Your next question is coming from John Mc Colligan with breakout investments. Please put your question. Your line is life.

您的下一個問題來自約翰·麥克科里根 (John Mc Colligan)，他談到突破性投資。請提出您的問題。你的路線就是生命。

Hi John, how are you?

嗨，約翰，你好嗎？

It’s actually Sam here. Sam McColgan from Breakout Investors. Yes, I had a lot of my questions answered already, but perhaps just one last one is I was wondering, you had a webinar that was aimed at Metaswitch customers who are kind of going through their own transitions. I wondered if you can kind of provide any qualitative feedback you got through that session or after that session or any outcomes or things that happened thereafter?

事實上，我是 Sam。Breakout Investors 的 Sam McColgan。是的，我的許多問題已經得到解答，但也許最後一個問題是，我想知道，您是否舉辦過一次針對正在經歷轉型期的 Metaswitch 客戶的網路研討會。我想知道您是否可以提供透過該會議或會議之後獲得的任何定性回饋，或者此後發生的任何結果或事情？

Yes, as I mentioned, we had 180 people on the webinar, a number of customers who’ve migrated over to us who told everybody what a great job we have done and what impressive service we provide. There was a lot of excitement there. We have some of those in our queue to try and sell and we have almost all of them we’re working with. A lot of these are enterprise level solutions and those sales take a long-time, as do platform sales. But we are highly excited about the possibility and the probability, I would say of getting a number of them onto the NetSapiens platform, but I’ll let John give you a little more detail.

是的，正如我所提到的，網路研討會上有 180 人參加，其中許多客戶都是遷移到我們這裡的，他們告訴大家我們所做的工作多麼出色，我們所提供的服務多麼令人印象深刻。那裡非常熱鬧。我們已經在等待出售其中一些產品，並且幾乎已經與所有這些產品進行了合作。其中許多是企業級解決方案，這些銷售需要很長時間，平台銷售也是如此。但我們對於將其中一些產品納入 NetSapiens 平台的可能性和機率感到非常興奮，不過我會讓約翰給你更詳細的資訊。

I will just fill in that. On that webinar three of the panelists that we had are actually Metaswitch partners who have deployed the NetSapiens platform. Now is the direction of the future for their platform and we continue to add more. We’ve added more partners from that community in this quarter. And our sequel [ph] webinar coming up is the Metaswitch Migration Playbook on November 19th, where we’ll have a couple more partners who have legacy Metaswitch experience and a couple Anand mentioned our ecosystem, a couple vendors in our ecosystem that help those folks to migrate to our technology. So we’re going to continue to drive that.

我只需填寫即可。在這個網路研討會上，我們的三位小組成員實際上是部署了 NetSapiens 平台的 Metaswitch 合作夥伴。現在是他們平台未來的方向，我們會繼續添加更多內容。本季我們增加了來自該社區的更多合作夥伴。我們即將舉行的後續 [ph] 網路研討會是 11 月 19 日的 Metaswitch 遷移手冊，屆時我們將有更多擁有傳統 Metaswitch 經驗的合作夥伴和一些 Anand 提到的我們的生態系統，我們生態系統中的一些供應商將幫助這些人遷移到我們的技術。因此我們將繼續推動這一點。

You’ll see more releases, information about partners who have come over to us from that specific community. So this is – we’re going to drive this theme hard, like I said before, because it’s an underserved community that are looking for alternatives and we’re having great success in becoming the alternative that they choose for the future.

您將會看到更多發佈內容，以及來自該特定社群的合作夥伴的資訊。所以這就是——正如我之前所說的，我們將大力推動這個主題，因為這是一個服務不足的社區，他們正在尋找替代方案，而我們在成為他們為未來選擇的替代方案方面取得了巨大的成功。

That’s it for me. Congratulations again on a great quarter. Yes, thanks very much.

對我來說就是這樣了。再次恭喜您本季的優異成績。是的，非常感謝。

Your next question is from John Roy with Water Tower Research. Please pose your question. Your line is live.

您的下一個問題來自 Water Tower Research 的 John Roy。請提出您的問題。您的線路處於通電狀態。

Hi, John, how are you?

嗨，約翰，你好嗎？

I’m doing good, doing quite good, actually.

我做得很好，實際上做得很好。

So there’s been a lot of discussion about the uncertainty that Microsoft has created on the platform side. If you could take a step back and maybe give us an idea, how big do you think this opportunity could work out to be for you guys?

因此，關於微軟在平台方面造成的不確定性的討論很多。如果你可以退一步考慮並給我們一個想法，你認為這個機會對您來說有多大？

Well, there’s a number of ways to answer it. So let me say I think the possibility is as large as Microsoft. Now, obviously we’re not the only as long as Microsoft’s platform. Obviously we’re not the only platform provider who is trying to get people to move, but I think we’re the most advanced and in the best position to do so. Now understand, just because Microsoft end of life something doesn’t mean it’s end of service, so people don’t immediately have to move from that date.

嗯，有很多種方法可以回答這個問題。所以我認為可能性和微軟一樣大。現在，顯然我們不是唯一一家擁有微軟平台的公司。顯然，我們並不是唯一一家試圖讓人們採取行動的平台供應商，但我認為我們是最先進的，並且最有能力做到這一點。現在要明白，僅僅因為微軟終止了某些產品的生命週期並不意味著服務終止，所以人們不必從該日期起立即轉移。

But I am very, very excited by the number of people who are looking at us and considering us. Some are going to move and move all of their people immediately. Some are going to move under a cap and grow circumstance where they will continue to put new people on and slowly migrate the people onto the platform and we will lose some of them. But the possibility and the probability of getting a large proportion of those I think is very high and we all here are very excited about that.

但我對關注我們、考慮我們的人的數量感到非常興奮。有些人要搬家，並立即遷移所有人員。有些人會在限制和發展的情況下離開，他們會繼續招募新人，並慢慢將人們遷移到平台上，而我們將會失去其中一些。但我認為獲得大部分支持的可能性和機率非常高，我們所有人都對此感到非常興奮。

But I can have Jon give you some more detail.

但我可以讓喬恩提供更多細節給你。

Yes. I would just say that opportunity is – the audience that we’re selling to in many cases are local exchange carriers or service providers that that market can have a very long sales cycle, but we’re excited about the funnel. We have the opportunities. Another anecdote I would give you is one of the Metaswitch partners that recently came to us had actually been in our sales funnel from becoming a marketing qualified lead for five years when they actually ended up purchasing. Others have purchased in three to six months. So this is a very long tail opportunity. There’s components of this solution that go end of life in April of 26. There’s other components that go end of life in 2029, and we’re just going to continue to work this and grow – grow our share of that market.

是的。我只想說，機會是——在很多情況下，我們銷售的受眾是本地交換運營商或服務提供商，這個市場可能有一個非常長的銷售週期，但我們對這個管道感到興奮。我們有機會。我想告訴你的另一個軼事是，最近找到我們的一位 Metaswitch 合作夥伴實際上已經在我們的銷售管道中待了五年，從行銷合格的潛在客戶變成最終購買的對象。其他人則在三到六個月內購買。所以這是一個非常長尾的機會。此解決方案的某些組件將於 4 月 26 日終止使用。還有其他組件將於 2029 年終止使用，我們將繼續努力並擴大我們在該市場的份額。

Great, thank you so much.

太好了，非常感謝。

Now I kind of switching maybe directions a little bit. Yes, I really do appreciate that you eliminated dividends so you can invest more in the company, and there’s been a lot of talk of investments. Maybe if you could just wrap it all up for us. What are your biggest investments that you’re going to be making over the next year, do you think?

現在我可能要稍微改變一下方向。是的，我真的很感激你們取消了股息，這樣你們就可以在公司投入更多資金，而且我們也談論了很多關於投資的事情。也許你可以幫我們把一切都說完。您認為明年您將進行的最大投資是什麼？

Well, thank you, John. Our biggest investments and I think the best use of our proceeds are threefold. Obviously we are spending money on OCI, which is going to be a huge driver for us going forward. As I mentioned before, I mean especially as we’re trying to migrate Cisco and Microsoft customers onto us, we can turn up an instance in a couple of days so we can move as quickly as somebody wants to move. So that’s a huge competitive advantage to us. So we will continue to invest in that. We’re continuing to invest in the Oracle accounting system, which will funnel and enable us to grow as fast as we need to and have a county keep up with what we’re doing.

好吧，謝謝你，約翰。我們最大的投資和我認為的最佳收益用途有三方面。顯然，我們在 OCI 上投入了資金，這將成為我們未來前進的巨大動力。正如我之前提到的，我的意思是，特別是當我們試圖將思科和微軟客戶遷移到我們這裡時，我們可以在幾天內啟動一個實例，這樣我們就可以按照某人想要遷移的速度迅速行動。所以這對我們來說是一個巨大的競爭優勢。因此我們將繼續在這方面進行投資。我們將繼續投資於 Oracle 會計系統，這將引導我們以所需的速度發展，並讓整個縣都能跟上我們的步伐。

Third, we continue to look at acquisitions. As you probably are aware, when I first took over as CEO, I stopped looking at acquisitions because we needed to do a good job of completing the transformation of the company into one company and getting all of the efficiencies out of the organizations. Now, while that’s always an ongoing process because there’s always more efficiencies you can get, we’ve gotten to the point where I think we’re ready to begin in earnest to look at substantial acquisitions next year. So having the amount of cash we have is very valuable for doing that.

第三，我們持續關注收購。您可能知道，當我剛擔任執行長時，我停止考慮收購，因為我們需要做好將公司轉變為一家公司的轉變，並從組織中獲取所有效率。現在，儘管這是一個持續的過程，因為總是可以獲得更高的效率，但我們已經到了我認為我們已準備好開始認真考慮明年進行大規模收購的階段。因此，我們擁有的大量現金對於實現這一目標非常有價值。

I mean, we used to look at certain opportunities and we couldn’t even get a seat at the table because they wanted to know how we were going to pay for it. And other than perhaps issuing cash, we now have sufficient cash that we can get a seat at any table to discuss an acquisition. So that’s a very important thing for us to have and to continue to have.

我的意思是，我們曾經尋找過某些機會，但我們甚至無法參與其中，因為他們想知道我們將如何支付費用。除了發行現金以外，我們現在有足夠的現金，可以坐在任何談判桌上討論收購事宜。所以這對我們來說是一件非常重要的事情，並且會繼續擁有它。

Great and congrats on the quarter. Thanks so much.

非常好，恭喜本季取得佳績。非常感謝。

Thank you, sir. Thanks.

謝謝您，先生。謝謝。

John.

約翰。

Once again, if there are any remaining questions or comments, please press star one on your phone at this time. Please hold a moment while we pull for any additional questions or comments.

再次強調，如果還有任何問題或意見，請此時按下手機上的星號鍵。請稍等片刻，我們會回答您的其他問題或意見。

We have a question coming from Laurie Vasquez with crescendo. Please post your question. Your line is up.

我們收到了來自 Laurie Vasquez 的一個問題，這個問題問得越來越激烈。請發布您的問題。您的線路已接通。

No, I didn't have one. I'm sorry.

不，我沒有。對不起。

Okay, that's okay. I wasn't going to let you ask it anyway. So it didn't really matter. Thank you.

好的，沒關係。無論如何我都不會讓你問這個問題。所以這並不重要。謝謝。

There are no questions in Q at this time. I would now like to turn the floor back over to Jeff Corn for any closing remarks.

目前 Q 還沒有問題。現在我想將發言權交還給傑夫·康來做結束語。

Thank you, Kelly. And thank you everybody for their attention and for listening to the call. I know many of you were up late last night watching financial results, so I appreciate you managing – election results, excuse me, and I appreciate you taking the time to join us. We’re very excited about this quarter and we’re very excited about Q4. We look forward to sharing that with you in March of next year and putting out press release is as is necessary. So thank you for your time and attention and we will see you soon.

謝謝你，凱利。感謝大家的關注與聆聽電話。我知道很多人昨晚熬夜關注財務結果，所以我很感謝你們管理選舉結果，對不起，也很感謝你們抽出時間加入我們。我們對本季感到非常興奮，對第四季也感到非常興奮。我們期待在明年三月與您分享這一消息，並在必要時發布新聞稿。感謝您的時間和關注，我們很快就會見到您。

Thank you. Bye.

謝謝。再見。

Thank you, everyone. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

謝謝大家。今天的電話會議到此結束。此時您可以斷開電話線並享受美好的一天。感謝您的參與。