Crexendo (CXDO) Surpasses Q3 Earnings and Revenue Expectations

Crexendo, Inc. CXDO has reported impressive quarterly financial results, exceeding market expectations. For the quarter ended September 2023, CXDO posted earnings of $0.12 per share, a significant increase from the $0.02 per share predicted by the Zacks Consensus Estimate. This performance indicates an earnings surprise of 500%, favorably contrasted with the company's earnings a year prior, which were $0.03 per share. Notably, CXDO's latest earnings results have been adjusted to exclude any non-recurring items.

Revenue Growth Highlights

Continuing its strong financial trend, CXDO's revenues reached $13.87 million for the reported quarter, marking a notable beat against the Zacks Consensus Estimate by 9.16%. When compared to the same quarter of the previous year, which recorded revenues of $9.11 million, CXDO has demonstrated significant year-over-year revenue growth. These consistent revenue beats have occurred across the last four quarters, indicating the company's growing financial strength.

Earnings Consistency and Stock Performance

The consistency in beating consensus EPS estimates is evident, as CXDO has surpassed projections three times out of the last four quarters. However, CXDO shares have not mirrored this financial performance in the stock market, revealing a decrease of approximately 10.5% since the beginning of the year, compared to a 14.2% gain in the S&P 500 index. This divergence highlights the complexity of stock performance in relation to earnings results and market dynamics.

Future Outlook for CXDO

Focusing on the future, investors are keen to understand the trajectory of CXDO in light of its recent outperformance. A pivotal factor in this appraisal is the company's earnings outlook, which incorporates both current consensus earnings expectations and the manner in which these forecasts have shifted recently. The stock’s future movements tend to correlate with trends in earnings estimate revisions, an area where CXDO has shown a favorable pre-earnings release trend.

Prior to the earnings announcement, the estimate revisions trended positively, which resulted in CXDO obtaining a Zacks Rank #2 (Buy). This ranking suggests a potential outperformance in the market in the near term. Post-earnings, the revisions in these estimates will be significant to watch, especially in the context of industry performance. The Internet - Services industry, to which CXDO belongs, is currently well-positioned within the top 28% of Zacks-ranked industries, signalling better than average industry prospects.

As a business providing cloud communication, unified communications as a service, call center solutions, and collaboration services mainly in North America, CXDO is well placed in a dynamic sector. The company’s base in Tempe, Arizona, supports its international service delivery. With the recent earnings report showing favorable results and surpassing expectations, the question on investors' minds will be whether CXDO will continue this trajectory and what the upcoming quarters will reflect for the company's stock.

Crexendo, Earnings, Revenue, Stocks, Financials