Company expects AI-related revenue to become meaningful in 2027
Overview
U.S. cloud communications provider's Q2 revenue rose 49% yr/yr, slightly missing analyst expectations
Adjusted net income and adjusted EBITDA for Q2 beat analyst estimates
Company cites new customer wins and ESI acquisition as drivers of revenue growth
Result drivers
New customer wins - Co said it secured eleven new platform customers in Q2, up from two a year earlier, which it expects will drive recurring revenue as customers migrate and expand usage
ESI acquisition - Co said the ESI acquisition improved revenue, strengthened the customer base, and exceeded initial sales expectations
Margin and cash flow improvement - Co said margin improvement and higher operating cash flow provided greater financial flexibility
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Crexendo Inc is $11.00, about 52.4% above its August 3 closing price of $7.22
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago
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