Following the success of the other research groups, StoryTrading has opened the CXDO Research Group moderated by Room Leader, Mike Munson. The below is an overview of the CXDO opportunity written by Mike. Visit our Groups Page to join the CXDO Research Group before it fills up!
Crexendo: Introducing the best kept secret in UCaaS.
- A Fast Growing Technology Leader in the Cloud Communications and UCaaS (Unified Communications as a Service) space
- Tremendous Industry Experienced Company – Exec Mgmt. Team With Over 150 Years Combined Experience
- Designers of a world class, patented cloud based telecom system with in- house engineering staff that appeals to businesses with 5 to 5000 handsets
- Award Winning Platform – 2019 Unified Communications Product of the Year, 2019 Communications Solutions Product of the Year, 2018 Internet Telephony Product of the Year, 2017 Internet Telephony Excellence Award
What makes this company a compelling investment now? It’s is at an inflection point, turning to GAAP profitability in Q1 2019 and following through in Q2. The top and bottom lines are growing (as well as backlog) at 70% margins. Monthly recurring revenue and a sticky customer base.
- 25% increase in telecom revenues in Q2 2019 over Q2 2018. 21% increase from 2017 to 2018
- Nearly 100% of customers on long term contracts
- Inflection Point – Net Income of $577,000 or $0.04 per share for the 6months ended June 30, 2019
- Positive cash flow of $567K for 2018 and $659K for the 6 month period ended June 30, 2019
- High growth + Recurring revenue + Strong cash flow = Higher multiples!
- Stable cost structure + Experienced, cost conscious management team
- Cash in the bank and no debt.
The numbers speak for themselves. I’ve spent many hours researching the management team and have no reservations in stating the CEO is world class. He built his first telecom business from scratch and sold it for nearly a billion dollars. He also owns 10 million of the 14 million shares.
That’s just to scratch the surface. Not every investment is right for everyone. The biggest downside here is a very low flow OTC stock with a wide bid/ask and low liquidity. Q3 Earnings are Tuesday November 5th after hours.
Inside the CXDO Research Group there is much more to share and I look forward to discussing and collaborating with the StoryTrading community.