Now presenting President and Chief Operating Officer Doug Gaylor for Crexendo. Crexendo. Crexendo, excuse me. Thank you very much. Thanks, everybody, for joining us, and we'll dive right into the presentation here. A safe harbor statement that I'm sure you'll see quite a few times today. What is Crexendo? Who are we? What do we do? Crexendo is a unified communication as a service provider, but we're kind of unique in the industry in the fact that we offer our solutions in two different flavors. We have a retail offering and a wholesale offering. Why is that important? There's a lot of catalysts going on in our industry right now, and as I go through the presentation, we'll talk about four of those main catalysts that are really driving a lot of opportunity for us at the moment. When we think about unified communication as a service, it's cloud communications, business telephone services using the internet as a backbone. What do we do specifically in the two different areas? On the wholesale side, we provide a platform to other telecom providers that use that platform to provide their own UCaaS services. In that area, we are the third-largest platform provider in the country, behind Cisco, who bought Broadsoft about six years ago, and Microsoft, who bought Metaswitch about four years ago. I talked about a couple of catalyst moments. Microsoft bought Metaswitch four years ago to get into the platform side of the business. That acquisition did not quite work out the way that they were hoping it to. At the beginning of last year, around this time last year in 2024, they announced end of life on that Metaswitch platform. They did a complete 180 at the end of the year and just decided to divest of that division completely and sold that division off to a company called Alianza out of Salt Lake. Why is that a major item for us? One, when they announced the end of life of that Metaswitch platform, we estimate that Microsoft had about 800 licensees using that platform out there to run their business. All of those licensees were automatically looking for a new alternative. As the third-largest platform provider out there, we were the perfect solution for them. In fact, last year, we brought on seven Microsoft Metaswitch licensees that left Microsoft at the time and moved over to Crexendo. We see a tremendous opportunity. Even with the sale of the division, we see a tremendous opportunity for more of those licensees to look for alternatives, and we're going to be in the catbird seat when that happens. That's the first catalyst. The second catalyst is the fact that Cisco, who's the number one provider there, they bought Broadsoft about six years ago. Cisco's had some challenges there as well, not really embracing their community out there. We estimate that Cisco's got about 1,200 licensees using the Broadsoft platform to run their business. Last year, we brought on three Cisco licensees that moved over to Crexendo because Cisco's raised their prices, they've cut their support, and the two largest players in our segment right there are having some major challenges with their direction there. One, Microsoft's selling their division. Two, Cisco's not sure what they want to do with their division, and we've been able to really pick up a lot of steam. The wholesale side of our house increased 30% from a revenue perspective last year alone, and primarily due to the opportunity that was created with Cisco and Microsoft's disruptions there. That's one side of the house. The second side of the house is the retail side of the house. On the retail side of the house, that's where we sell our UCaaS solution directly to end-user businesses, small and mid-sized businesses. On that side of the equation, you'll recognize a lot of the names up here that we compete against, companies like RingCentral, 8x8, Vonage, and others. Those are the cloud providers. Then you've got a lot of the legacy providers. The legacy providers provide the traditional PBXs and key systems out there. Those legacy providers, names that you'd recognize: Mitel, Avaya, NEC. The second or third catalyst that we're seeing out there is that those companies, the legacy premise providers, are going through major challenges themselves. Just in the last five years, Avaya has declared bankruptcy twice in the last five years, and Mitel, the second-largest premise provider, just declared bankruptcy about three weeks ago. We're seeing a lot of opportunity there on the premise side of the house because the two largest players, Avaya and Mitel, have had some serious, serious financial challenges. The third-largest platform provider, or third-largest premise provider out there, NEC, has also had their share of challenges and have pulled out of the U.S. market. We're seeing tremendous opportunity on the retail side because the largest premise providers are really struggling there. That's, again, another great opportunity for us to pick up business from both sides of those equations. If we think about the two segments of our business, last year we finished right just a little shy of $61 million in total revenue. About 40% of that came from the wholesale side. That's what we call our software solution segment. Again, that's our fastest-growing segment. It grew at 30% organically last year. On that side of the equation, we've got about 235 licensees that use our platform to run their business. These are 235 telecom companies, managed service providers, that have our platform powered by Crexendo running their whole business. That's the foundation of their business. That's a very, very sticky customer. I'll get into some of the KPIs here on that segment, but when we talk about these platform providers, when they buy our platform and put it in, you know, they're long-term customers. A lot of our licensees have been with us for, you know, a dozen years, if not longer, because they put our platform in and they grow their business using our platform. On the retail side of the house, that's about 60% of our revenue. That comes from the retail side of the equation, selling small and mid-sized businesses. Again, if you look at that part of the equation, we're selling that through reseller agents and also a direct and inside sales team directly. That's about 60% of our business. Combined between the two sides of the equation, we currently support over 6 million users on the Crexendo platform. That 6 million number is a significant number because we announced 5 million users on our platform in August of last year. We're adding about 100,000 users a month on our platform. Now, granted, the majority of those are on the wholesale side of the house, but when you combine the wholesale and the retail side of the house, we're the fastest-growing UCaaS company in the United States, as highlighted by Frost and Sullivan last year. How does that equate to financials? When you think about how the company is doing, I talked about the fact that we had 30% organic growth on the wholesale side. We had 14% total organic growth within the company. We finished just shy of $61 million last year. We're extremely proud of the fact that when we look at that number, we're one of the few telecom companies out there not only growing but growing profitably. We had $2 million in GAAP income for the year, six consecutive quarters of GAAP income, 26 consecutive quarters of non-GAAP net income. Non-GAAP net income, $7.7 million, adjusted EBITDA $8.2 million. Almost 14% adjusted EBITDA margin. Again, tremendous growth within the organization. If you look at it, 217% revenue growth just over the course of the last three years. When we talk about revenue, revenue's an important factor for us, but you'll always hear us talk about remaining performance obligation. When we sign customers up, whether it's on the wholesale side of the house or the retail side of the house, we're signing all these customers up for typically a 36- or a 60-month contract. It's a very sticky customer, both on the retail and the wholesale side of the house. Why is that important? That number continues to grow from our remaining performance obligation at $85.6 million. That's up 34% year over year. That $85 million is guaranteed contracted revenue that we'll recognize over the course of the next five years. If you look at the right side of the scale up here, $38 million of that is already scheduled for revenue for 2025. As we look at that recurring revenue model, almost 75% of our revenue is on a monthly recurring basis. It's a very, very sticky customer base. Some important KPIs for you to consider. We break these KPIs out on two sides of the equation. On the wholesale side, again, those 235 licensees that we have using our platform today, they pay us on a sessions, not a seat basis. Why is that important? Our two largest competitors that I mentioned on the wholesale side, Cisco and Microsoft, they historically have charged on a per-seat basis. What that means is that if you've got Doug's Telephone Company in Boise, Idaho, and you're supporting 20,000 desktops, you pay Cisco and Microsoft 20,000 seat licenses each and every month. When we came out with our platform, we came out with a very disruptive pricing model. We came out with a model that pays or charges on a session basis, not a seat basis. If I've got that same telephone company in Boise with 20,000 desktops, instead of paying Crexendo 20,000 seat licenses, I pay for concurrent uses. I pay for sessions, not seats. For 20,000 desktops, I might be able to get by with 1,000 sessions. It is a very, very cost-attractive model. Those seven Microsoft Metaswitch licensees that moved over to Crexendo last year, those three Cisco Broadsoft licensees that moved over to Crexendo last year, they're saving on average 45%-50% on their monthly telecom expenses by moving over to our very disruptive pricing model because now they're paying for usage, not for seats. Great, great differentiator there. Our average licensee, those 235 licensees, our average licensee pays us about $6,198 per month. You know, that's a pretty significant number. Again, very, very consistent monthly recurring revenue. About 70% of the revenue on that side of the house is on a monthly recurring basis. Very little churn. Last year, we had, of the 235 licensees, our churn was just a little bit more than 1%. When we look at that churn on an annual basis, that one churn that we had was a licensee that got acquired by another licensee. When they put our platform in, you know, they're locked in. They're golden with us for a long time to come. Gross margins on that side of the house, extremely strong, 72%. Again, we own that technology. Owning the technology is critical here because if you think about it, you know, we're putting that platform in, we're developing that platform on an ongoing basis. It's really important for us to have a platform that continues to grow. By owning that technology, our gross margins continue to increase. That 72% is up from 69% in the year prior. Great growth on the gross margin side of the house. On the retail side of the house, that's our telecom solutions segment. When we talk about our telecom services segment, our average revenue per user, about $20 per user per month. Our average account out there on the direct side of the house is about 18 stations. That's where we come up with that $356 per month on a monthly recurring basis on a revenue per account. Again, very, very consistent monthly recurring revenue. 80% of our revenue on the telecom services side of the house is on a monthly recurring basis. Gross margins there are a little bit lower because of an acquisition that we did about two years ago. The gross margins on the telecom services side of the house, 57% last year. That number is tweaked a little bit by an acquisition that we did two years ago. They have a managed services component of their business, so they do a lot of data support. They do a lot of data hardware. That's a lower margin business. If I strip that acquisition out, our telecom services gross margins have consistently been in the 67%-69% range. Again, very, very strong there. Churn on the retail side, a little bit higher because you're dealing with small and mid-sized businesses. You've got businesses that get acquired, go out of business. That churn is at about 1% on an average monthly basis. A little bit higher than we'd like to see. That's up from about 0.76% the prior year. That churn was affected by a large customer that decided to leave last year and take their business in-house. We expect that number to come back down into the 0.7-0.8% range again relatively quickly. When you think about Crexendo, we're not that household name. When I talked about the Ciscos and the Microsofts, and I talked about the RingCentrals and the 8x8s and the Vonages, you know, we're not that household name. We've got to do a better job out there of supporting our customers. That's where we really excel. We're the number one leading provider of telecom equipment for retail businesses. We consistently rank number one from a customer service perspective. If you think about how we get viewed from customers, we go out there and we sell customers on the fact that we're going to take good care of them. We give them that white glove treatment. Compared to companies like RingCentral and 8x8 and Vonage, that really pale in comparison. We rank number one in 29 different categories, satisfaction categories on G2.com. G2.com is really the industry standard for third-party verified surveys for technology and software companies. Really proud of the fact that we lead with customer service and support all of the time. Great growth to this point. How do we continue that growth? I'm confident that we can get to a $100 million run rate by the end of 2026. How do we do that? We do that through organic growth and inorganic growth. If we think about our growth today for 2024, 30% organic growth on the software solutions on the wholesale side of the house, 7% organic growth on the retail side of the house, the telecom services side of the house. Continuing to have double-digit organic growth is a great benchmark to get us to that $100 million. We can't get there just through organic growth within that short time period. We've got to layer in inorganic opportunities. The reason that that's critical is that we've got what I call a stocked fishing pond. We've got 235 licensees out there that use our platform. That's what we call our community. It's our ecosystem. These guys have been licensees of ours for, again, sometimes more than a dozen years. They know us extremely well. We know them extremely well. We've told them that, hey, as you look at an exit strategy for your business, look at Crexendo because we've got that relationship already. The last acquisition we did was one of our licensees. We did that acquisition a little bit over two years ago, about a $10 million acquisition revenue-wise. We did that acquisition for less than one time's revenue. When we look at these acquisitions, they're very accretive for us. We're buying basically a revenue stream. We're buying a customer base, and we're converting that from a wholesale customer to a retail side of the house. It's a great acquisition strategy for us. We paused acquisitions over the last year and a half or so just to get all of the synergies out of the previous acquisitions that we've done. You can see from our financials that we've gotten all the synergies out of that. Now we're focused on, again, inorganic opportunities. At any given time, with 235 licensees, you know, I've got a half a dozen discussions going on with these licensees about what their exit strategy is. So, extremely confident that we'll be able to have one, if not two acquisitions done, you know, in a relatively soon time period. On top of that growth, we're seeing tremendous opportunity internationally. So, international revenue for us grew at 39% organically last year. The international opportunities typically coming from the European market, the Pacific Rim as well. So, we're seeing great opportunities on the international side of the house. Again, I mentioned we brought on 17 new logos last year. Of that, seven from Microsoft, three from Cisco. Great opportunities there. And we're seeing some of those opportunities also coming to us from the Mitel and the Avaya world as those guys continue to have challenges as well. Why is it such a great opportunity in our segment? Only about 40% of the business, or only about 60% of the businesses in the U.S. are currently on the cloud. About 40% of the businesses are still using older legacy premise-based equipment. There is still a tremendous amount of runway for us to take advantage of continued growth. We see that opportunity not only here in the domestic U.S. market, but internationally, it is even bigger. If you look at the adoption of cloud communications internationally, it is even a smaller percentage. We see tremendous opportunity there. The other great opportunity for growth is technology. Why are businesses moving to UCaaS? Why are businesses moving to the new technology? A lot of that is being driven by AI. You're going to hear a lot about AI through presentations over the next day or two. We're really focused on AI because it's a deliverable for us today. When we talk about artificial intelligence, we're delivering products today that help businesses, small and mid-sized businesses, using AI very affordably. Just to give a few examples of how we're using that live today, you know, we've got some great opportunities out there using AI. Our Crexendo Video AI Studio, if you've done Zoom meetings before, where it records your meeting and gives you a call summation, we've got that same capability on our video solutions today. Our Crexendo Video AI Studio allows us to have a video conversation, gets all of the recording on that, gives me a summary of the recording, gives me sentiment analysis on that recording. Great opportunities there. That's a deliverable today. Our Crexendo Voice AI Studio allows us to have automated messages. If you decide that you want your business to be on Crexendo Solution, as soon as we put that solution in for you, our AI bots go out, scrub your website, build an auto attendant script for you, build a marketing on hold script for you. These are basic functions, but these are functions that businesses today spend a lot of money for. If you've got a marketing on hold message for your business, you might be spending $200 or $300 a month. With our AI solutions, we do that automatically for you on our solutions. When we go out and talk to a small and mid-sized business that's got 20 or 30 phones, you know, they love the technology because we're giving them these tools to help their business. Our AI call recording, AI call recording, just like we do for video, we do the same for voice calls. When we make a voice call for a customer on a small or mid-sized business, we can record all their conversations, give them summary reports, and do triggered actionable commands based on what that customer is hearing or saying on a call. What does that mean? That means that if I've got a conversation that's going on between a sales rep and a potential prospect, the system is recording that call, and AI is looking at that call and saying, "Hey, if I ever hear key words, I know I've got a triggerable action that I need to do." In a car dealership environment, if I'm talking to a sales representative and I say, "Hey, I'm really interested in an electric vehicle," if I'm talking to a sales rep that's not the electric vehicle specialist, as soon as the system hears electric vehicle, the AI bot can say, "Hey, this is an electric vehicle call. I need to bring in the sales manager that's an EV specialist." While the prospect is still talking to the sales rep, the supervisor, the sales manager can come on to that call automatically. It is a great, great tool for us. Again, it is an actionable tool that is part of our system today. The last item on AI is conversational AI. When we talk about contact centers, we have two versions of contact centers on our platform. One with omnichannel capabilities, which means I can have text, I can have SMS chat, I can have web interactions, all in that same contact center. The nice part about AI with our contact center is now I can handle a lot of redundant, repetitive type questions through an AI chatbot. Those are great technologies today. I use an example that we have in Arizona of a 15-person AC company. In Arizona, you know, in another month or so, when it gets to triple digits and stays there for four months, AC companies cannot get enough business. I mean, they're just every single day, multiple calls, more than they can handle. This particular instance, we put an AI bot out there that allows them to schedule appointments. Now this 15-person AC company can do three times the business using AI technology to schedule appointments and allow customers to be able to schedule appointments and reschedule appointments at their will without human intervention. It's a great tool for us. That's the fourth catalyst. When we think about all of these catalysts in our industry, there's a lot of opportunities that are providing growth for us. That growth is evident with what we continue to be recognized for. We continue to be recognized for our growth and our deliverables out there, continuing to win Product of the Year awards. We just won the Deloitte Fast Technology 500 award at the end of last year for the fastest growing telecom companies or technology companies out there in the industry. Extremely, extremely excited about what we bring to the table. Finally, the last two slides and we'll open up for a couple of questions. Long-term financial goals, continuing our improvement on gross margins. Our gross margins, as I mentioned, continue to grow. We continue to see those opportunities for growth on the gross margins. We continue to see great cash flow. Pristine balance sheet, $18.2 million cash at the end of the year, no debt. We put $8 million worth of free cash flow to the bottom line last year. Those inorganic acquisition opportunities, great opportunities there. Last summary, just great growth. Again, managing to the fundamentals. I'm here with Ron Vincent, our CFO. We manage to the fundamentals. Ron, I've been working together for 13 plus years now. Our CEO, Jeff Korn, has been part of the team for 20 years. When we look at the three of us, we manage the business for growth, but profitable growth. With that, I'll open it up to questions. We've got about two or three minutes left. Questions. Yes. Talk about the GM expansion. What do you do about pricing with non-only contracts? Like inflation riders or how does that, how do you price on your own? Yeah, great question. Obviously when customers add equipment or add anything, and I'll answer that question on two sides of the equation. On the wholesale side, all of our licensees, we have a cost of living increase variable in our contract that allows us to increase our cost to them on an annual basis. It's about a 2% increase. When they come up for renewal on their contracts, since it is a very sticky customer, it allows us to increase their cost for maintenance and support over the time period. That gives us that opportunity. We see a lot of opportunity for growth there. Growth margin improvement. We continue to see growth margin improvement because we're closing down our three data centers and moving everything to Oracle Cloud Infrastructure. As we do that, we'll see that growth margin impact here over the course of the next six to nine months as we shut down physical data centers and move everything to Oracle's cloud. Any other questions? I think we've got about one minute left. Yes. Talk a little bit about your capital allocation strategy moving forward. Yeah, so if you look at the $18 million cash that we've got on the balance sheet today, really looking at deploying that from an acquisition perspective, we talked about our inorganic growth opportunities. We feel like our average licensee out there is doing about $10 million in revenue. So, if I can buy one or two of those a year, I can do that with a combination of cash and equity. The last deal that we did was a combination of cash, equity, and seller finance note. That's the only debt that we've got on our balance sheet today of about $500,000. Obviously that acquisition strategy is part of the capital and then reinvesting back into the platform. The best part about our platform today is that it's very open. Those 235 licensees that we have, they have development staff on their teams, okay? That development staff is developing applications for our product. When they develop applications, we sell them through our marketplace to all of our other vendors and get a revenue share off of that. We do not have to deploy a lot of our capital for engineering because we have 235 licensees that have their own engineering staff developing product as well. We are developing product as well as our partners. Yes. With your disruptive pricing, what are the reasons you think more clients are not migrating from the legacy platforms to you? Great question. Last question, then we can wrap it up because I am getting the thumb there. When we talk about our disruptive pricing model, if you are on Cisco or Microsoft, you have probably had that platform for 10 or 12 years. It is a migration strategy that they have to adopt for that. All of them look at that cost savings very eagerly to say, "Hey, I'd love to have the cost savings," but it is a heavy lift for them to move. We will continue to see a lot of migrations from the big two over to Crexendo over the next year. Okay, we're getting the thumb here. Thank you, appreciate it. We will be at booth 400. If you've got any questions, feel free to drop by throughout today.