About Crexendo

Crexendo, Inc. (Crexendo) operates as a provider of cloud communication platform and services, video collaboration and managed IT services designed to provide enterprise-class cloud solutions to any size business. The company’s solutions support over three million end users globally. By providing a variety of comprehensive and scalable solutions, the company is able to cater to businesses of all sizes on a monthly subscription basis without the need for expensive capital investments, regardless of where their business is in its lifecycle. Segments The company operates through two segments, Cloud Telecommunications Services and Software Solutions. Cloud Telecommunications Services This segment transmits calls using Internet Protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud. Each of the company’s calling plans provides a number of basic features typically offered by traditional telephone service providers, plus a wide range of enhanced features that offer an attractive value proposition to its customers. This platform enables a user, via a single ‘identity’ or telephone number, to access and utilize services and features regardless of how the user is connected to the Internet or cloud, whether it’s from a desktop device or an application on a mobile device. The company generates recurring revenue from its cloud telecommunications services, broadband Internet services, managed IT services, software license sales, and infrastructure as a service. The company’s cloud telecommunications contracts typically have a thirty-six to sixty month term. It may also charge activation and flash fees and the company generally allocates a portion of the activation fees to the desktop devices, which is recognized at the time of the installation or customer acceptance, and a portion to the service, which is recognized over the contract term using the straight-line method. The company also charges other various contracted and non-contracted fees. The company generates product revenue, equipment financing revenue, and device as a service revenue from the sale and lease of its cloud telecommunications equipment. Revenues from the sale of equipment, including those from sales-type leases, are recognized at the time of sale or at the inception of the lease, as appropriate. Software Solutions This segment derives revenues from three primary sources: software licenses, software maintenance support and professional services. Software and services may be sold separately or in bundled packages. Generally, contracts with customers contain multiple performance obligations, consisting of software and services. For bundled packages, the company accounts for individual products and services separately if they are distinct – i.e. if a product or service is separately identifiable from other items in the bundled package and if a customer can benefit from it on its own or with other resources that are readily available to the customer. The consideration is allocated between separate products and services in a bundle based on their relative stand-alone selling prices. The stand-alone selling prices are determined based on the prices at which the company separately sells the software licenses and professional services. For items that are not sold separately (e.g. additional features) the company estimates stand-alone selling prices using the adjusted market assessment approach. When the company provides a free trial period, it does not begin to recognize recurring revenue until the trial period has ended and the customer has been billed for the services. The company generates software license revenue from the sale of perpetual software licenses, term-based software licenses that expire, and Software-as-a-Service (SaaS) based software which are referred to as subscription arrangements. The company does not recognize software revenue related to the renewal of subscription software licenses earlier than the beginning of the subscription period. The company generates subscription and maintenance support revenue from customer support and other supportive services. The company offers warranties on its products. The company also sells separately-priced maintenance service contracts, which qualify as service-type warranties and represent separate performance obligations. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. Subscription and maintenance support revenue is recognized ratably over the term of the customer support agreement, which is typically one year. The company generates professional services and other revenue from consulting, technical support, resident engineer services, design services and installation services. Revenue for professional services and other is recognized when the performance obligation is complete and the customer has accepted the performance obligation. Services and Products Cloud Telecommunications Services The company’s cloud telecommunications service offering includes hardware, software, and unified ng IP or cloud technology over any high-speed Internet connection. These services are rendered through a variety of devices and communication solutions for businesses using user interfaces, such as a Crexendo branded desktop phones and/or mobile and desktop applications. Some examples of mobile devices are Android cell phones, iPhones, iPads or Android tablets. These services enable the company’s customers to seamlessly communicate with others through phone calls that originate/terminate on its network or public switched telephone network (PSTN) networks. The company’s cloud telecommunications services are powered by its proprietary implementation of standards based Web and VoIP cloud technologies. The company’s services use its highly scalable complex infrastructure that it builds and manages based on industry standard best practices to achieve greater efficiencies, better quality of service (QoS) and customer satisfaction. The company’s infrastructure comprises compute, storage, network technologies, 3rd party products and vendor relationships. The company also develops end user portals for account management, license management, billing and customer support and adopt other cloud technologies through its partnerships. Crexendo’s cloud telecommunication service offers a wide variety of essential and advanced features for businesses of all sizes. Many of these features included in the service offering are: Business Productivity Features, such as dial-by extension and name, transfer, conference, call recording, Unlimited calling to anywhere in the U.S. and Canada, International calling, Toll free (Inbound and Outbound). Individual Productivity Features, such as Caller ID, Call Waiting, Last Call Return, Call Recording, Music/Message-On-Hold, Voicemail, Unified Messaging, Hot-Desking. Group Productivity Features, such as Call Park, Call Pickup, Interactive Voice Response (IVR), Individual and Universal Paging, Corporate Directory, Multi-Party Conferencing, Group Mailboxes, Web and mobile devices based collaboration applications. Call Center Features, such as Automated Call Distribution (ACD), Call Monitor, Whisper and Barge, Automatic Call Recording, One way call recording, Analytics. Advanced Unified Communication Features, such as Find-Me-Follow-Me, Sequential Ring and Simultaneous Ring, Voicemail transcription. Mobile Features, such as extension dialing, transfer and conference and seamless hand-off from WiFi to/from 3G and 4G, LTE, as well as other data services. These features are also available on Crexendo Mobile Application (CrexMo), an intelligent mobile application for iPhones and Android smartphones, as well as iPads and Android tablets. Traditional PBX Features, such as Busy Lamp Fields, System Hold. 16-48 Port density Analog Devices. Expanded Desktop Device Selection, such as Entry Level Phone, Executive Desktop, DECT Phone for roaming users. Advanced Faxing solution, such as Cloud Fax (cFax) allowing customers to send and receive Faxes from their Email Clients, Mobile Phones and Desktops without having to use a Fax Machine simply by attaching a file. Web based online portal to administer, manage and provision the system. Asynchronous communication tools like SMS/MMS, chat and document sharing to keep in pace with emerging communication trends. Many of these services are included in the company’s basic offering to its customers for a monthly recurring fee. Some of the advanced features, such as Automatic Call Recording and Call Center Features require additional monthly fees. Crexendo continues to invest and develop its technology and CPaaS offerings to make them more competitive and profitable. Software Solutions The company’s software solutions offering provides a comprehensive suite of unified communications (UC), video conferencing, collaboration & contact center solutions to over 215 service providers, servicing over three million users around the globe. The company’s platform enables service providers to customize packages with unprecedented levels of flexibility, profitability, and ease of use. The company’s software solutions offering are as follows: SNAPsolution – A comprehensive, IP-based platform that provides a broad suite of UC services, including hosted Private Branch Exchange (PBX), auto-attendant, call center, conferencing, and mobility. The platform includes a broad range of feature-sets, custom-built to provide unprecedented levels of flexibility, making the solution competitive with the market’s leading players. SNAPsolution includes a full suite of Voice over Internet Protocol (VoIP)/UC features with one low cost universal license, as opposed to pricing each feature individually. The company licenses its platform based on concurrent sessions, not per seat/per feature. This allows service providers to oversubscribe their networks, driving down the cost per seat as volume increases. As the service provider increases their customer base, they only have to ensure they have sufficient concurrent call licenses to support users across the network. SNAPaccel – a Software-as-a-Service (SaaS) based software license referred to as subscription arrangements. Subscription Maintenance and Support - The company sells separately-priced maintenance service contracts, which qualify as service-type warranties and represent separate performance obligations and customer support. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. Professional Services and Other - The company's professional services include consulting, technical support, resident engineer services, design services and installation services. Research and Development The company invested $3,955,000 in the research and development of its technologies and data center for the year ended December 31, 2022. Governmental Regulation As a provider of Internet communications services, the company is subject to regulation in the U.S. by the Federal Communication Commission (FCC). Some of these regulatory obligations include contributing to the Federal Universal Service Fund, Telecommunications Relay Service Fund and federal programs related to number administration; providing access to E-911 services; protecting customer information; and porting phone numbers upon a valid customer request. The company is also required to pay state and local 911 fees and contribute to state universal service funds in those states that assess Internet voice communications services. The company is a competitive local exchange carrier (CLEC) in forty-seven states. The company is subject to the same FCC regulations applicable to telecommunications companies, as well as regulation by the public utility commission in these states. History The company was incorporated as a Nevada corporation in 1995 and reincorporated under the laws of Delaware in 1999. The company was formerly known as Netgateway, Inc. and changed its name to iMergent, Inc. in 2002 and then to Crexendo, Inc. in 2011.