UCaaS Provider Crexendo Announces Public Offering

Crexendo, Inc., a 25-year-old cloud-based unified communications-as-a-service (UCaaS) company, has seen some significant growth this year. The company was praised earlier this year by Simply Wall Street for its commitment to running the business in growth mode.

“Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return,” wrote Simply Wall Street analysts. “This of course has caused the company to see substantial growth in its earnings.”

Now, the company is expanding, having recently launched a registered underwritten public offering of 3,500,000 shares of its common stock. The offering is expected to include 1,750,000 shares to be issued and sold by Crexendo and 1,750,000 shares to be sold by certain existing stockholders. In addition, Crexendo intends to grant the underwriters a 30-day option to purchase up to 525,000 additional shares of common stock from the company. The company will not receive any net proceeds from the sale of common stock by the selling stockholders.

In its filing, Crexendo noted that it plans to use the funds for general corporate purposes, including working capital, sales and marketing activities, product development, general and administrative matters, and capital expenditures.

The cloud hosting industry has been forecasted to reach $235 billion by 2027, and there’s plenty of room for growth. According to one study, only 30 percent penetration has been achieved to date. The same study found that the unified communication-as-a-service market is projected to expand at a compound annual growth rate (CAGR) of about 36 percent from 2019 to 2027. Much of the growth, according to analysts, is being fueled by the increasing demand for enterprise mobility and mobile workforce.

Crexendo has been lauded in the past by analysts for its ability to simultaneously achieve both growth and profitability.