CREXENDO INC Lytham Partners 2026 Consumer & Technology Investor Summit

All right. Great. Sanjiv and Bill, thank you so much for the discussion and for participating in the summit here today. Up next, I am going to sit down with Doug Gaylor for a fireside chat to discuss Crexendo. Please stick around. All right. Hello, everyone, and welcome to the Crexendo Fireside Chat. My name is Robert Blum, managing partner here at Lytham Partners, and up next, I will be moderating a Q&A discussion with Doug Gaylor, Crexendo's President and Chief Operating Officer. A reminder, Crexendo trades under ticker symbol CXDO on the Nasdaq. All right, let's get started. Doug, welcome. Thanks, Robert. Great to be here, and thanks for having me.

Fantastic. To begin, can you provide an overview of Crexendo, and tell us about your background as well?

Yeah, great. I appreciate it. Crexendo is a Unified Communications as a Service company, so we basically do cloud communications, listed on the Nasdaq under the symbol CXDO. This year, we are on a run rate of right at about $100 million. We just finished the last quarter with $24.6 million in revenue for the quarter, so right at that $100 million run mark right now. And we do cloud communications. We do it in two different flavors. We offer it through a software platform that we offer to other telecom companies on a wholesale basis, that they can now use our platform as the foundation for their telecom services. And we also offer it on a retail basis, that we sell direct to small and mid-size businesses. And so those two segments combine for the whole organization.

About 70% of our revenue comes from the retail side, and about 30% comes from the wholesale side. Tremendous business, lots of opportunity. A lot of catalysts going on in the industry that we will talk about through the conversation today, and I am real pleased to be leading the charge here. I have been with Crexendo now for 16 years. Been in the telecom industry for 36 years. I started with a company called Inter-Tel way back in the day and worked there for 20 years, and it was acquired by Mitel. I stayed on with Mitel as Senior VP of Sales for two years, and then came over to Crexendo in 2010 before we even had our first customer on the platform. Put our first customer on the Crexendo platform in 2012, and now we support, just announced last week, 8 million users on our platform.

We have gone from one user on the platform, that was our first user in 2012, to now supporting 8 million users across the Crexendo family.

Well, fantastic. Congratulations on the success and progress there. Let us dive in. You mentioned a little bit, you operate both the NetSapiens software platform and a direct cloud communications business. How do those two sides of the company sort of complement one another?

Yeah, great question. The NetSapiens platform is our platform that I was mentioning that we sell on the wholesale basis. We currently have 250 licensees that use that platform to run their business. We are the third-largest platform provider in the country. We are the fastest-growing platform provider in the country. The number one and number two platform providers are Cisco, that owns BroadSoft. They have got about 1,200 licensees on their platform. Metaswitch, that was previously owned by Microsoft and sold off about a year and a half ago to a company called Alianza. Metaswitch has got about 800 licensees on their platform. And we are the third largest, with 250 plus licensees on our platform. Fastest-growing because we are taking market share away from number one and two. Just in the first six months of this year, we have added 11 new logos to the platform.

That means 11 new companies that have invested in the Crexendo platform to be the foundation for their business. That part of the business is doing extremely well. The platform, extremely robust, extremely reliable, and very feature-rich. That same platform is what we use on the retail side of the house. Not only do we sell our platform to those 250 licensees out there, but we use the same platform in-house for our Crexendo VIP offering. Our Crexendo VIP offering is our retail offering that we sell to small and mid-size businesses, and that is a growing part of our business as well. We continue to grow the retail side of the house through organic growth and through acquisitions, and we will talk about one of those acquisitions coming up here in a little bit.

All right, very good. From your perspective, you have been around since the beginning, as you mentioned, what most clearly differentiates Crexendo's technology, your service model, and really your overall value proposition from the competition?

Yeah, so I will answer that on two ways because we have got the two different segments. When we look at our platform and our technology, our technology is extremely robust, as I mentioned earlier. The platform that we sell to all of our wholesale licensees, they buy that platform because of the feature-rich capabilities and because of the open architecture that we have designed around the platform. What the open architecture means is that the system has got APIs that allow anybody to write code and build applications for the platform. We have an EVP program, which is our ecosystem vendor program. We currently have 57 vendors that have joined into that program. It is kind of like the App Store for Apple. These vendors, these developers can develop applications and software solutions for our system, and it integrates through our open APIs.

When we look at the development of the platform, the platform has got just about every application, every feature that you would want. A lot of the features that are being developed now are AI related, so we are going to talk a lot about artificial intelligence and what it is doing for our future and for our offerings. That is what really sets ourselves apart from the platform perspective, is that our platform is very open and very constantly being developed. If you look at that compared to number 1 and number 2, Cisco bought BroadSoft, as I mentioned, 6 years ago. They really have not done much with the platform. Cisco is a huge company. BroadSoft is just a very small part of the organization. They have really kind of ignored that part of their business. There is not a lot of future development going on.

There's not a great roadmap for future development, and that's kind of alienated a lot of the licensees on the Cisco BroadSoft platform. Metaswitch, as I mentioned, was owned by Microsoft. Microsoft end-of-lifed the product 2 years ago, and then did a complete 180 and decided, "Well, instead of end-of-lifing it, we'll just go ahead and sell off that division." They sold off the division a year and a half ago to Alianza, and that announcement of end of life created a lot of uncertainty with the licensees out there. Here's a platform that's been around for 15 years, end-of-lifed and stopped developed 2 years ago, and there really hasn't been much development and much of a resurrection to the platform. Again, creating a lot of fear, uncertainty, and doubt with their licensees. That's driving a lot of opportunity.

Not only do we have a strong platform, but we've got tremendous customer service. We continually rank number one from a customer service and support perspective, and that's really what's driving the growth and the differential on the wholesale side of the house. On the retail side of the house, we use that same NetSapiens platform, as I mentioned, as our Crexendo VIP offering for retail. On the retail side, we compete against companies like your RingCentral and 8x8 and Vonage and others. In that respect, we compete primarily on the aspect that we've got the best customer service out there in the industry. That's not just a biased opinion that we tout out there, but it's actually a verified opinion out there. G2.com is the industry leader, third-party independently verified review site for technology companies and software companies.

We continually rank number one as the leading provider for customer service and support among telecom companies. So much so in that last quarter, we were number one in 18 different cloud communication categories. Competitors like the RingCentrals and 8x8s are down in the 30 and 40 range. That's really where we hang our hat, is that we feel like we've got a fantastic solution with the best customer service and support, white glove service and customer support. Our pricing model is very competitive out there. We bring a lot of the business in on the retail side from our resellers and our agents out there.