Crexendo, Inc. (CXDO): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Crexendo, Inc. (CXDO) achieved a remarkable 31% revenue surge to $52.2 million in 2023 amidst the competitive cloud communications landscape? This provider of cutting-edge UCaaS and CCaaS solutions isn't just growing; it's strategically expanding, marked by acquisitions and achieving significant milestones like $4.0 million in Non-GAAP net income for the year. Are you curious about the engine driving this performance and how Crexendo translates its innovative technology into tangible financial success? Dive deeper to uncover the history, ownership structure, and operational mechanics defining CXDO's journey.

Crexendo, Inc. (CXDO) History

Crexendo's Founding Timeline

Understanding Crexendo's journey requires looking back at its origins and the strategic shifts that defined its path.

Year established

The company traces its roots back to 1995, initially founded under the name StoresOnline, Inc.

Original location

StoresOnline was originally based in Orem, Utah.

Founding team members

The original founding team of StoresOnline is distinct from the later leadership that pivoted the company. Steven G. Mihaylo became CEO in 2007 and was instrumental in the transformation into Crexendo.

Initial capital/funding

StoresOnline initially operated through direct sales and seminar models. Funding details from the 1995 launch are typical of private ventures of that era; the significant strategic and financial restructuring occurred later under new leadership, leading to its public listing and subsequent capital raises.

Crexendo's Evolution Milestones

The company's evolution involved significant changes in focus, branding, and strategy, particularly after 2007.

Crexendo's Transformative Moments

Strategic Pivot to UCaaS

The most fundamental shift was the move away from the StoresOnline web services model around 2007-2011. Rebranding as Crexendo and focusing squarely on the burgeoning cloud communications market set the stage for future growth. This wasn't just a name change; it was a complete overhaul of the business strategy and target market.

The NetSapiens Acquisition

Acquiring NetSapiens in 2021 was a game-changer. It instantly elevated Crexendo from primarily a UCaaS provider to a significant player in the CPaaS space as well. This provided a powerful new engine for growth through licensing its platform to other service providers, complementing its direct sales efforts. Understanding who holds stakes after such moves is crucial. Exploring Crexendo, Inc. (CXDO) Investor Profile: Who’s Buying and Why?

Embracing M&A for Scale

The company deliberately adopted a strategy of complementing organic growth with strategic acquisitions, like NetSapiens and Allegiant Networks. This approach allows Crexendo to rapidly increase its user base, enter new markets, and acquire technology or talent, accelerating its path to scale in a competitive landscape. This M&A activity reflects a clear intent to consolidate market share and enhance shareholder value, a common theme in the rapidly evolving cloud communications sector witnessed through 2024.

Crexendo, Inc. (CXDO) Ownership Structure

Crexendo, Inc. operates as a publicly traded entity, meaning its shares are available for purchase on the open market, leading to a diverse ownership base comprising institutional investors, company insiders, and the general public.

Crexendo, Inc.'s Current Status

As of the end of the 2024 fiscal year, Crexendo, Inc. (CXDO) is listed and actively traded on the Nasdaq stock exchange. This public status subjects it to regulatory oversight by the Securities and Exchange Commission (SEC) and requires regular financial disclosures.

Crexendo, Inc.'s Ownership Breakdown

The distribution of ownership provides insight into the major stakeholders influencing the company's direction. Based on filings around the close of the 2024 fiscal year, the ownership structure is approximately as follows:

Crexendo, Inc.'s Leadership

The strategic direction and day-to-day operations of Crexendo are overseen by its executive leadership team. This team is responsible for executing the company's strategy and driving towards its goals, as outlined in the Mission Statement, Vision, & Core Values of Crexendo, Inc. (CXDO). Key members leading the company as of the end of 2024 include:

• Steven G. Mihaylo - Chairman & Chief Executive Officer
• Douglas W. Gaylor - President & Chief Operating Officer
• Ronald Vincent - Chief Financial Officer
• Jeffrey G. Korn - Chief Legal Officer & Secretary

Crexendo, Inc. (CXDO) Mission and Values

Crexendo's operational philosophy centers on delivering reliable, innovative communication solutions, underpinned by strong customer support and technological advancement in the UCaaS space. This focus shapes their interactions with customers and guides their strategic direction, influencing decisions explored in Exploring Crexendo, Inc. (CXDO) Investor Profile: Who’s Buying and Why?.

Crexendo's Core Purpose

While not always articulated through distinct, formal mission and vision statements publicly, Crexendo's purpose revolves around empowering businesses with seamless and effective communication tools.

Official mission statement

An explicit, publicly stated mission statement is not readily available from primary corporate sources. However, their actions and market positioning suggest a mission focused on providing superior cloud communication services with unmatched reliability and support.

Vision statement

Similarly, a formal vision statement isn't prominently featured. The company's vision can be inferred as aiming to be a leading provider in the cloud communications sector, continuously innovating its platform and expanding its market reach through both organic growth and strategic acquisitions.

Company slogan

Crexendo often utilizes the slogan associated with its VIP platform: Ride the Wave.

Core Values (Inferred)

Based on company communications and operational priorities, key values appear to include:

• Reliability: Emphasized by their 100% Uptime Guarantee for their core platform.
• Innovation: Continuous development of their proprietary software and communication features.
• Customer Focus: Providing dedicated support and solutions tailored to business needs.
• Integrity: Building trust through transparent operations and dependable service delivery.
• Growth: Pursuing market expansion and enhancing shareholder value through strategic initiatives.

Crexendo, Inc. (CXDO) How It Works

Crexendo operates primarily as a cloud communications Software as a Service (SaaS) provider, delivering unified communications and contact center solutions predominantly through a recurring revenue model. The company develops, sells, and supports its proprietary platforms designed for businesses of various sizes.

Crexendo's Product/Service Portfolio

Crexendo's Operational Framework

Crexendo's operations revolve around its proprietary technology infrastructure, enabling the delivery of cloud-based communication solutions. Customer acquisition involves both direct sales teams and an expanding network of channel partners. Value creation is driven by continuous software development, maintaining high service availability, and providing customer support. As of Q3 2024, service revenue constituted approximately 89.5% of total revenue, highlighting the strong recurring nature of its SaaS model which reached $12.8 million for that quarter. The company focuses on scaling its user base efficiently while managing infrastructure costs to maintain profitability.

Crexendo's Strategic Advantages

Crexendo possesses several strategic advantages that bolster its market position. Its proprietary, patent-protected technology platform offers differentiation and control over product development and margins; service gross margin stood at 60.2% in Q3 2024. The company benefits from a high percentage of recurring revenue, providing predictable cash flow. Strategic acquisitions have historically fueled growth and expanded market reach. Furthermore, its robust channel partner program significantly extends sales capabilities. Understanding who finds these advantages compelling is key; you might find insights by Exploring Crexendo, Inc. (CXDO) Investor Profile: Who’s Buying and Why?

• Proprietary technology stack.
• Strong focus on high-margin recurring SaaS revenue.
• Growing network of channel partners amplifying sales reach.
• Proven ability to integrate strategic acquisitions effectively.
• Scalable cloud infrastructure supporting user growth.

Crexendo, Inc. (CXDO) How It Makes Money

Crexendo generates revenue primarily through selling cloud-based communication software subscriptions (UCaaS) and related hardware products. Its model focuses on recurring monthly revenue from business customers seeking integrated communication solutions.

Crexendo, Inc.'s Revenue Breakdown

Based on fiscal year 2023 results, which inform the trends extending into 2024, the primary revenue drivers are clear.

Crexendo, Inc.'s Business Economics

The company operates on a Software-as-a-Service (SaaS) model, emphasizing predictable, recurring subscription fees. Pricing is typically tiered based on features and user count. Key economic drivers include:

• Customer Acquisition Cost (CAC): Investments in sales and marketing to attract new subscribers. Managing this effectively is crucial for profitable growth.
• Customer Lifetime Value (LTV): The total revenue expected from a single customer account. High LTV, driven by strong retention and upselling, justifies the CAC.
• Gross Margins: Software solutions inherently offer higher gross margins compared to hardware sales. In 2023, the overall gross margin was approximately 52%, with software margins being higher.
• Churn Rate: Minimizing customer attrition is vital for sustaining the recurring revenue base.

Acquisitions also play a role, adding customers and technology but requiring integration efforts and potentially impacting short-term costs.

Crexendo, Inc.'s Financial Performance

Financial health is assessed through revenue growth, profitability metrics, and cash flow. For fiscal year 2023, total revenue reached $51.6 million, a significant increase of 34% year-over-year, demonstrating strong top-line momentum carried into 2024. While the company reported a net loss of approximately $3.8 million in 2023, this reflects ongoing investments in growth and acquisitions. Improving operating leverage and scaling the high-margin software segment are key focuses for achieving sustained profitability. Understanding who invests in companies navigating this growth phase can be insightful; Exploring Crexendo, Inc. (CXDO) Investor Profile: Who’s Buying and Why? provides further context on market perception and shareholder dynamics. Key performance indicators watched closely include Annual Recurring Revenue (ARR) growth and progress towards positive operating cash flow.

Crexendo, Inc. (CXDO) Market Position & Future Outlook

As of early 2025, Crexendo operates as a focused player within the expansive Unified Communications as a Service (UCaaS) market, leveraging its proprietary platform and strategic acquisitions to target primarily small to medium-sized businesses (SMBs). The company's outlook hinges on continued execution of its acquisition integration strategy and expanding its partner channel amidst a highly competitive landscape.

Competitive Landscape

The UCaaS market is crowded, featuring large incumbents and numerous smaller providers. Crexendo differentiates through its technology platform and focus on the underserved SMB segment, although it faces significant competition from larger players with greater brand recognition and resources.

Opportunities & Challenges

Navigating the dynamic communications technology sector presents both significant growth avenues and potential hurdles for the company.

Industry Position

Crexendo has carved out a niche in the competitive UCaaS market by concentrating on the needs of SMBs and developing its own technology stack, further bolstered by acquisitions like the NetSapiens platform. This strategy allows it to offer flexible and potentially more cost-effective solutions compared to some larger competitors focused on enterprise clients. Its position is that of a growth-oriented player, actively consolidating smaller entities and expanding its service offerings. Continued success depends on successfully integrating these acquisitions, scaling its operations efficiently, and maintaining service quality. Based on 2024 financial performance, the company demonstrated significant top-line growth, often exceeding 20% year-over-year, though profitability metrics reflect ongoing investments in growth and integration. Understanding the company's core principles is also key; explore the Mission Statement, Vision, & Core Values of Crexendo, Inc. (CXDO). The company aims to solidify its standing as a key UCaaS provider for the SMB segment through both organic growth and strategic M&A activity heading deeper into 2025.