Crexendo (CXDO) Continues to See Strong Buy Rating from Analysts

Crexendo, Inc. (NASDAQ:CXDO) is one of the 8 Best Small Cap Data Center Stocks to Buy. In the past year, the stock has surged 65.94% while it recorded a 49.17% jump year-to-date. Crexendo continues to receive a strongly positive consensus view, with all six analysts covering it rating it Buy, according to ratings compiled by CNN. The stock currently has a median price target of $11, an 11.22% upside from the current price of $9.89.

On May 7, TheFly reported that Lake Street analyst Eric Martinuzzi increased the price target on Crexendo to $11 from $9 while maintaining a Buy rating on the stock. The analyst attributed the price increase to the company’s positive first-quarter financial performance.

On May 6, Crexendo reported a 29% increase in consolidated total revenue for the first quarter of the year, to $20.7 million, up from $16.1 million in the same quarter a year ago. The company reported a GAAP net income of $0.6 million alongside non-GAAP net income of $3.3 million.

Crexendo CEO and Chairman Jeff Korn emphasized that the company was able to extend its GAAP profitability streak to 10 consecutive quarters, despite absorbing acquisition-related expenses related to Estech Systems (ESI). He added:

“The ESI acquisition is performing ahead of our expectations and is already contributing meaningfully to both revenue and operational momentum. Integration is progressing well, with strong alignment across sales, operations, and engineering, and we are beginning to see early synergies that we expect to build on overtime. Our Q1 results only included 1 month of ESI contributions and I am excited about the impact we will see going forward from this significant acquisition.”

Crexendo, Inc. (NASDAQ:CXDO) is a software technology company that provides a cloud communication platform and services, video collaboration, and managed IT services tailored to businesses of all sizes.

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