Crexendo retains unanimous Buy rating on Q1 revenue surge and Estech integration
Crexendo Inc (NASDAQ: CXDO) delivered $20.7 million in first-quarter revenue, driven by strong performance from its Estech Systems acquisition, prompting analysts to maintain a consensus Buy rating with a median target of $11.
Crexendo Inc (NASDAQ: CXDO) has secured a unanimous Buy rating from all six covering analysts, with a median price target of $11. The consensus follows the company’s first-quarter results, which showed a 29% year-on-year increase in consolidated revenue to $20.7 million and a GAAP net income of $0.6 million. The stock has surged 65.94% over the past year and jumped 49.17% year-to-date, reflecting strong investor appetite for the software technology provider.
On May 7, Lake Street analyst Eric Martinuzzi increased the price target on Crexendo to $11 from $9, maintaining a Buy rating. Martinuzzi cited the company’s positive first-quarter financial performance as the primary driver for the revision. The adjustment comes as Crexendo continues to be viewed as a key player in the small-cap data centre and cloud communication sector, with ratings compiled by CNN highlighting the firm’s consistent market outperformance.
Crexendo reported a GAAP net income of $0.6 million and a non-GAAP net income of $3.3 million for the first quarter. The company absorbed acquisition-related expenses related to Estech Systems (ESI) but extended its GAAP profitability streak to 10 consecutive quarters. This financial resilience underscores the firm’s ability to manage integration costs while maintaining bottom-line growth.
CEO Jeff Korn stated that the ESI acquisition is performing ahead of expectations, contributing meaningfully to revenue and operational momentum. He noted that integration is progressing well, with strong alignment across sales, operations, and engineering. Korn highlighted that the Q1 results included only one month of ESI contributions and expressed optimism about the impact expected from this significant acquisition as synergies are fully realised.
Crexendo is described as a software technology company providing cloud communication platforms, video collaboration, and managed IT services. The firm’s ability to deliver consistent profitability and revenue growth has solidified its position among analysts, despite broader market fluctuations. The unanimous Buy rating reflects confidence in the company’s strategic direction and its capacity to leverage recent acquisitions for long-term value creation.
