All set? Okay, we're going to kick it off here. We'll start with some introductions. We'll have about 15 minutes of fireside chat Q&A. We'll open it up to the floor. My name is Eric Martinuzzi. I'm a senior tech analyst at Lake Street Capital Markets. It's my pleasure to introduce Doug Gaylor. Doug is the President and Chief Operating Officer of Crexendo. He's been with the company since 2009. He started as VP of sales and worked his way up. As I said, I've got some prepared questions. We can open up to the audience. If there are no questions from the audience, I've got a long list here, Doug. Let's start with a description of your business, the industry that you serve, and the revenue segments of the business. Sure. Yeah. Crexendo is a Unified Communications as a Service company. We basically do Voice over IP telecom services for small and mid-sized businesses. We're kind of unique in the fact that our Unified Communication offerings, we sell in two different flavors. We sell it in a retail offering, where we sell it straight to direct end user businesses, small and mid-sized businesses. We also have our software platform, and we sell our software platform to other telecom providers. In that respect, we've got over 245 licensees that license our software application platform and use it for the foundation for their telecom solutions. We're pretty unique. If you look at the market as a whole out there, we're really one of the few that does a retail and a wholesale offering. On the wholesale side, we compete against our number one and number two competitors are Cisco, that owns the BroadSoft platform, and Metaswitch, which was just recently sold by Microsoft to a company called Alianza. We are the third-largest platform provider in the country for Unified Communications, and we're the fastest-growing. We're taking market share today away from Cisco and Metaswitch, which is a great accomplishment. On the retail side, we sell direct end to user customers, small and mid-sized businesses, and compete against companies that you may have heard of, like RingCentral, 8x8, Vonage, and others. Okay, let's start out with the Service UCaaS side. This is a business that I've been following the company for five, six years now. Historically, it's kind of grown in the 6%-9% range. In Q1, the Service UCaaS business had an 18% growth rate. Talk a little bit about what's driving that. Is this kind of a new baseline? Was there a pull forward, a log jam that had some specific impact on Q1? Great question. If you look at our business model today, we've got great growth both on both sides of the equation, the wholesale side and the retail side. Historically, the wholesale side has been growing. Last year, it grew at 28% organically last year. That slowed a little bit in Q1, mainly because we sold a lot of our pipeline at the end of last year. We had great momentum last year. That growth went to 12% on the wholesale side in Q1. In Q1, we also had, as Eric alluded to, a very nice increase in our retail organic growth. Our retail organic growth was about 15%, with a kind of not an anomaly, but we had a one-time sale of about $1 million that was non-recurring revenue. That jumped us into that double digits. Historically, we've been averaging about 7% organically on the retail side. That jumping up to 15% was a one-time thing. We do see the growth there, we expect to get to double-digit organic growth on the retail side here over the next. I wanted to press a little bit harder on that. You talked about the Technology Service Distributors being a bigger contributor to that. The partner bookings surged 51%. What's the balance really between kind of direct and indirect as far as channel sales go? On the retail side, we sell through two different formulas. We've got the direct sales team, we've got a channel team, the channel team is about 75, almost 80% of the sales. Basically, on the channel side, we've got resellers out there selling our solutions on a revenue share basis. We've got over 250 resellers out there. That number continues to grow. We added almost 50 new resellers in 2025. That number continues to grow. Eric talked about the TSDs. That's Technology Service Distributors. Previously, they were called master agents. They're basically independent agents that can go out there and sell any solutions out there through these larger TSDs. That area is extremely profitable for us and growing very rapidly. We had 51% improvement in sales just from that one particular part of the channel in Q1. We don't see that stopping. The best part about these TSDs is that a lot of them bring in much larger opportunities. On the retail side of the equation, our average customer today is about 18 stations. Our average customer today is paying us about $350 a month. These TSDs are bringing us opportunities that are in the 5,000, 200, 300 phone range. That's a much bigger contribution for us from a revenue perspective. Okay. Talking a little bit more about the software solution side. You mentioned the Cisco BroadSoft and Alianza Metaswitch. This was on the Q1 call. You talked about them actively testing in the NetSapiens sandbox. To the extent, how do you convert that interest into wins, and what's the pipeline look like? Yeah. As I mentioned earlier, we're the third-largest software platform provider in the country. Cisco bought BroadSoft about seven years ago. They're the largest. We think they've got roughly about 1,000 licensees using the BroadSoft platform. Metaswitch was previously owned by Microsoft. They sold it about a little bit over a year ago to a company called Alianza. We estimate they've got about 800 licensees using that platform. As I mentioned, we've got about 245 licensees using our platform. The biggest windfall that we've got right now is that Cisco, when they bought BroadSoft, it was a good piece of their business. Over the last few years, it's really become not their main core competency. It's not their focus. They've kind of alienated a lot of their licensees by not developing the product, not enhancing the product. We're seeing a lot of opportunities there. Microsoft owned Metaswitch. They bought Metaswitch about six years ago. About two years ago, they decided it wasn't really part of their core competency either. They end-of-lifed the product. They did a 180 and said, "Hey, instead of ending life of the product, we're going to go ahead and just sell it." They sold it off to a company in Salt Lake called Alianza. We estimate there's about 800 licensees with Metaswitch. Most of them are very unhappy because end-of-life kind of put a death march on that product. When Alianza bought it, Alianza said, "Hey, we're going to do all these great things to it." A year and a half later, not much has been done to it. We've got a lot of dissatisfied Metaswitch licensees looking for a change. In Q1, we brought on five new licensees onto our software solutions platform. Two of those came over from Metaswitch. Last year, we brought on 14 new licensees, and of those 14 new licensees, nine of them came over from a combination of Cisco and Metaswitch. We continue to take market share from number one and number two, and neither one of them are really doing a great job of developing their product. We're not losing any business. I haven't lost a deal to Metaswitch or BroadSoft in over seven years. We're not losing business to them. We're taking customers from them. The one caveat to that is that when you have all of your business built on a foundation, it's not just as easy to just snap your finger and make that change. As much as I'd like to say those 800 Metaswitch licensees could move over tomorrow, a lot of them have been embedded with that platform for sometimes 8, 10, 12 years. It's a tough decision for them to make to move. When they do, tremendous cost savings by moving to our platform. Okay. Let's talk a little bit about the backlog, and this is again from the Q1 results. The consolidated backlog was up 56% to $135.6 million. How should investors thinking about the conversion cadence of that massive backlog and what it implies for revenue visibility? Sure. That number is a very important number for us because that shows the future revenue stream that's already locked and loaded. That $135 million is what we have contractually obligated, both on the software and the retail side combined for our long-term contracts. When a software licensee signs up for a new platform, as I mentioned, we had five in Q1, those licensees typically lock in for a three-year agreement. Our average licensee on the wholesale side pays us about $7,500 a month. That's a very sticky monthly recurring revenue stream. When they sign up for a three-year agreement, we recognize that one month at a time. Three years of that goes into our backlog, our remaining performance obligation. That number of $135 million, about $46 million of that is slated for revenue in 2026, the next three quarters. About $42 million of that is slated for revenue in 2027. It flows out over the course of five years. That number grew substantially because we did an acquisition in March. When we acquired that customer base, all of those remaining performance obligations on those contracts added about $45 million to that number. That's why that number was such a large increase. At $135 million, that's a tremendous number for us that's guaranteed, locked and loaded future revenue stream. Okay. When you mentioned the Technology Service Distributors, you talked about those types of wins being in the 50 to 250 seats, where historically you've got a 20-seat customer base, I think is the historic range. Why would a Technology Service Distributor? Because they work with other UCaaS providers besides Crexendo. They work with RingCentral. They work with Zoom, 8x8. Why are they choosing to go with Crexendo? Yeah. The Technology Service Distributors are kind of an interesting group. They're all independent agents. As Eric just pointed out, they have multiple opportunities to basically bring anybody to the table. They can bring a Crexendo to the table when they've got a customer opportunity. They can bring a RingCentral. They can bring an 8x8. We really dominate with these guys now lately. Why we've seen such tremendous growth is because our competition continues to stub their toe. The reality is, if you're an independent agent, you're going to go recommend somebody, they better do a good job for you because if they don't, you're going to have egg on your face, and you're probably not going to recommend them again. RingCentral, 8x8, Vonage, historically over the last three or four years, has really concentrated on the enterprise. They really kind of forgot about the small and midsize market. A lot of these TSD agents have been burned by some of our competitors. Therefore they're looking for somebody they can hang a hat on and say, "Hey, I can propose Crexendo all the time, and I know I'm going to get a tremendous installation every single time." I'll pause it right there. We're seeing a tremendous opportunity there with these TSDs because we do a great job. We're ranked number one on g2.com in about 18 different telecom categories, where a company like RingCentral is averaging about 40 or 35 in their ranking. When we talk about ranking number one in 18 different categories, that's important to customers because when you're putting in a cloud-based system, you want to make sure that, one, it goes in correctly, and two, that you've got the customer support when you need it. These TSDs are really aligning with Crexendo. It's a lot of hard work. We've got to earn their confidence. Once we earn their confidence, it's a continued revenue stream that we continue to see from them. Okay. Let's shift over to M&A, and let's talk backward-looking M&A first, and then we'll get to forward-looking. You've recently acquired a company called Estech. That's ESI. That was an acquisition. I think it was closed March 1st. Is that right? Correct. Talk to us a little bit about how much it cost you, what was the currency you used, and what's the revenue and EBITDA contribution out of Estech? Yeah. If you follow the Crexendo story over the years, we've talked about our organic growth and our inorganic opportunities for acquisitions for future growth. We finished last year at $68 million. This year, we'll be close to $100 million because of organic growth and inorganic acquisitions. Those 245 licensees that I mentioned that are on the wholesale side, these are our software licensees. I refer to them as our stock fishing pond. Many of these guys have been part of our community for years and years and years. They've relied on our platform to run their business, and we've told them, "Hey, when you're looking for an exit strategy, we're the ones that you want to talk to." We did an acquisition on March 1st, a company called ESI Estech, out of Dallas, Texas. About $26 million in revenue. They've been a licensee of ours for 14 years. They've been a very loyal licensee of ours. Interesting story, we actually looked at them about three years ago from an acquisition perspective. Three years ago, they were losing money, they were top-heavy, and we said, "Hey, we'd love to try and make this acquisition happen. Right now, you're not an ideal candidate because you're upside down." We gave them some marching orders and said, "Hey, if you trim your staff, if you get your thing back to GAAP profitability, maybe we can make this happen." Three years later, the opportunity came up. The acquisition was $26 million in revenue. We got it for a great valuation. We got it for about 1.35x trailing revenue, about 1.25x future revenue. We bought it for $35 million. Of that $35 million, $27 million was cash on hand. $8 million was stock. Great accretive acquisition. Even with that acquisition, we did that acquisition in March. In Q1, we had one month worth of revenue from that acquisition. That's why you saw a 29% growth in Q1. That acquisition, even with the acquisition cost, we had $800,000 worth of acquisition cost, $400,000 worth of intangible amortization cost. Even with those factored in, we still ha d GAAP profitability for the quarter, our 11th consecutive GAAP profitable quarter. Okay. The balance sheet post that, let's just start with what was the balance sheet at the end of March? How much cash, how much debt did you have post the acquisition? Yeah, at the end of March, we've always run by the fundamentals. We had tremendous cash growth last year. We finished last year with $31 million cash on the balance sheet. We used $27 million of that for the acquisition. We've been virtually debt-free our entire existence. After we did the acquisition, just to have some more dry powder in case another acquisition opportunity came up, we did do a term debt loan with Wells Fargo for $5 million. We finished with about $12 million. Okay. As promised, I'm going to pause there and open it up to the floor. If anybody has any questions, please raise your hand or indicate, and I can shoot the mic over to you. I think I saw a note up there that we're supposed to show our disclosure statement. Okay. All right. I will continue with the list that I have. Let's pick it back up with the M&A. I would assume there's going to be a bit of a pause here while you digest the ESI. Once you've got that muscle memory now for what works for your business, what exactly, what's the ideal target look like from a revenue and EBITDA profile, as well as technology? Yeah. These 245 licensees that we have, they range in size anywhere from a couple of million dollars in revenue to our largest, which is actually larger than Crexendo. Our largest licensee is probably well over $100 million today. When we look at that pool of opportunities out there, 245 licensees, the average one is probably in that $5 million-$12 million range. From an acquisition perspective, our sweet spot is probably the next acquisition being in that $10 million-$25 million range. There's a lot of $5 million acquisition opportunities for us. Challenge with that is it takes five of them to equal the one that we just did. ESI was $26 million. It's a lot of work to do an acquisition. In many cases, it's as much work to do a $5 million acquisition as it is a $25 million acquisition. As much as I'd like the opportunities to be larger, we're pretty fortunate in the fact that we can be pretty selective with 245 opportunities out there. I don't have to pick the first one. Just like ESI, three years ago, I said, "Hey, you're not quite ready. Let's throw you back in the pond, let you grow a little bit, and then we'll pull you out of the pond when you're ready. Okay. Let's talk a little bit about the operations of the business. Historically, you kind of ran your own data center. Over the past year or so, you've talked about the Oracle Cloud Infrastructure migration. Where are we in that transition from kind of owned and operated Crexendo data center to using a third-party OCI? Yeah. If you think about these 245 licensees, when they buy our software platform, they can put it into their own data center if they choose to, or they can host it with us. Up until five years ago, every single one of them was facilities-based, meaning that they bought the software platform, and they put it into their own data center. About five years ago, we made that opportunity available to them for us to host it. We hosted it in our own data centers, which meant that we had to build out our own data centers, we had to continue to maintain and support those data centers. We're a tremendous software company, but we realized as we continued to grow, we had tremendous adoption for Providing it on a hosted basis. When you're running data centers, it's a whole different ballgame. Over the course of the last two years, we evaluated, as we grow, we can't continue to grow on our own data center model. We looked at options, we looked at AWS, we looked at Azure, and we partnered with Oracle Cloud Infrastructure. Tremendous decision on our part. That process took us about a year and a half to migrate all of our licensees that were hosting with us on our legacy hosted platform over to OCI. We completed that migration in Q1. We'll see a pickup of about $35,000 per month in cost savings just from that transition. You will notice that gross margins in Q1 for the software side, the software side has historically been about 72% gross margins. We saw the gross margins drop to about 68% in Q1 because we had dual data center costs. We were migrating everything over to OCI. OCI is a usage-based hosted infrastructure. We had our historical data center costs. That goes away after Q1, we'll see that cost pick up immediately. We should see those gross margins get back to that low 70% range right off the bat. All right. The pricing, you've talked about the competitive differentiator for NetSapiens, the selling sessions rather than seats. What does that mean? How does that resonate with service provider prospects today? Does AI change how you think about your pricing model? It does. There's a lot of catalysts out there. These legacy software providers that have BroadSoft or Metaswitch, they pay on a per seat basis. When we talk on a per seat basis, if they've got 20,000 users on a BroadSoft platform or 20,000 users on their Metaswitch platform, they pay for each and every one of those users. With us, we've got a very unique differentiated model. We charge on a sessions basis, not a seats basis. We charge on a concurrent use basis. If a licensee is moving from BroadSoft or moving from Metaswitch over to Crexendo, they can save upwards of 40% or 50% right off the bat. It's a tremendous cost savings for them. It's really our true differentiator between the number one and two players and us. When we go out to a BroadSoft or Metaswitch licensee, it's a pretty easy discussion. AI is going to continue to increase and be a catalyst in our industry. AI is something that has revolutionized the way people communicate. Just in short order, we're seeing great adoption there. We just released our Crexendo AI receptionist operator. We code-named that Cairo. Cairo is our AI receptionist that we introduced in January. We're selling that tremendously over the course of the last three months. We've seen great adoption there. The best part of that AI application is that when we start talking about AI applications, I mentioned earlier that our average retail customer pays us about $350 a month. With an AI receptionist, that add-on alone is about $150 a month. I can take that $350 customer and increase my average revenue per user by about 40%. We see that taking us to the next level. Okay. I've got time for just a couple more questions here. One of the things I wanted to ask you about is the ownership structure. Your Chairman Emeritus, Steve Mihaylo, was a recent seller, but he still owns about 29% of the total shares outstanding, which gives him significant control. What is the message that investors should be taking from those transactions recently from Steve Mihaylo? Yeah. I've been real fortunate. Steve's been a mentor and a friend and my boss for 38 years now, dating myself here. My first job out of college, I started working with Steve's previous company, and he's just been a tremendous mentor for me for all these years. Steve's 83, just retired three years ago from the CEO role, and is still on the board and is our Chairman Emeritus. Steve owned about 34% of the stock up until a recent transaction that he did a few weeks ago. To just give you just a ballpark, he owned about 11 million plus shares. Now he's down to a bit over 9 million shares. At 83, was doing a little estate planning. Had never taken any money off the table selling stock, decided after it got to a $10 price point, he was going to take a few chips off the table. Can't blame him. He's had 20 years investing in the company and bought most of his stock on the open market. I had dinner with him on Sunday night. He's doing fantastic. Steve has been a big supporter and extremely bullish on the future. At dinner on Sunday night, he says, "I can't wait till the stock gets to $100. Did he put a timeline on that? He did not. Okay. Big picture question, long-term vision, five years from now, what does Crexendo look like? Is this still a standalone growth story, a consolidation platform, or a potential strategic asset for a larger player? Yeah, I think it's a great question, and I think in honesty, I think the answer is all three. As I look at where we are today, our focus and our mission is to continue to grow and grow exponentially. If you look at it, we've been doing the Planet MicroCap conference and other MicroCap conferences for years now. I remember the first time we did a conference, we were doing $8 million in revenue and losing our butts. We've been telling the story that, hey, we're going to get to profitability. We organically up-listed from the OTC to Nasdaq. Everything we've committed to, we've done. As I look at it, two years ago, we talked about getting to a $100 million run rate by the end of 2026. We're there. Okay? We committed to that two years ago. We're there. I continue to see organic and inorganic growth opportunities to get us to hopefully $200 million here in the next three to four years. That's the story for inorganic and organic growth. At some point in time, does somebody take a look at us? We're not for sale, but as a public company, as you all know, the reality is that we're growing, we're printing cash, we're doing extremely well. We're going to be the diamond in somebody's eye at some point in time. Understand. Well, we have to leave it there. Doug Gaylor, thank you for your time.