Crexendo (CXDO, Financial) is poised to join both the Russell 2000 Index, which caters to small-cap companies, and the broader Russell 3000 Index. This potential inclusion follows the release of FTSE Russell's preliminary addition list on May 23, 2025. The final decision is pending review and will become effective when the U.S. markets begin trading on June 27, 2025. Currently, Crexendo is part of the Russell Microcap Index, and this new development could potentially enhance its market visibility and investor interest.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Crexendo Inc (CXDO, Financial) is $8.17 with a high estimate of $10.00 and a low estimate of $7.50. The average target implies an upside of 47.15% from the current price of $5.55. More detailed estimate data can be found on the Crexendo Inc (CXDO) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Crexendo Inc's (CXDO, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Crexendo Inc (CXDO, Financial) in one year is $4.23, suggesting a downside of 23.78% from the current price of $5.55. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Crexendo Inc (CXDO) Summary page.
CXDO Key Business Developments
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Crexendo Inc (CXDO, Financial) reported a 12% year-over-year increase in total revenue, reaching $16.1 million.
- The software solutions revenue grew by 33%, with gross margins in this segment increasing by 500 basis points to 78%.
- The company achieved GAAP profitability for the seventh consecutive quarter, with a net income of $1.2 million.
- Crexendo Inc (CXDO) surpassed 6 million users on its software solutions platform, indicating strong demand.
- The company is strategically investing in innovation and infrastructure, including a migration to Oracle Cloud Infrastructure, expected to drive cost savings and margin expansion.
Negative Points
- Product revenue declined by 22% to $1.1 million compared to the previous year.
- Service revenue gross margin decreased by 3% quarter over quarter to 57%.
- The telecom market remains highly competitive, with some competitors engaging in unsustainable pricing practices.
- Operating expenses increased by 8% to $14.9 million, impacting overall profitability.
- There is uncertainty in the market due to macroeconomic factors, although Crexendo Inc (CXDO) has not yet seen a measurable weakening in demand.
