EXHIBIT 99.1

Crexendo Announces Second Quarter 2022 Results

PHOENIX, AZ - (Marketwired – August 9, 2022)

Crexendo, Inc. (NASDAQ: CXDO) is an award-winning premier provider of Unified Communications as a Service (UCaaS), Call Center as a Service (CCaaS), communication platform software solutions, and collaboration services with video designed to provide enterprise-class cloud communication solutions to any size business through our business partners, software licensees, agents and direct channels. Our solutions currently support over 2.5 million end users globally and was recently recognized as the fastest growing UCaaS platform in the United States. We provide our services through two divisions, our Telecommunications Division and our Software Division. Today, the Company reported financial results for the second quarter ended June 30, 2022.

Second Quarter Financial highlights:

Financial Results for the Second Quarter of 2022

Consolidated total revenue for the second quarter of 2022 increased 53% to $8.8 million compared to $5.8 million for the second quarter of 2021.

Consolidated service revenue for the second quarter of 2022 increased 5% to $4.6 million compared to $4.3 million for the second quarter of 2021.

Consolidated software solutions revenue for the second quarter of 2022 increased 256% to $3.6 million compared to $1.0 million for the second quarter of 2021. For comparison purposes, the three months ended June 30, 2021 only includes one month of activity from our June 1, 2021 acquisition of the software solutions segment.

Consolidated product revenue for the second quarter of 2022 increased 57% to $692,000 compared to $440,000 for the second quarter of 2021.

Consolidated operating expenses for the second quarter of 2022 increased 38% to $9.7 million compared to $7.0 million for the second quarter of 2021. For comparison purposes, the three months ended June 30, 2021 only includes one month of operating expenses from our June 1, 2021 acquisition of the software solutions segment.

The Company reported a net loss of $(896,000) for the second quarter of 2022, or a $(0.04) loss per basic and diluted common share, compared to a net loss of $(1.0) million, or $(0.05) loss per basic and diluted common share for the second quarter of 2021.

Non-GAAP net income of $512,000 for the second quarter of 2022, or $0.02 per basic and diluted common share, compared to non-GAAP net income of $37,000 or $0.00 per basic and diluted common share for the second quarter of 2021.

EBITDA loss for the second quarter of 2022 of $(232,000), compared to a $(983,000) loss for the second quarter of 2021. Adjusted EBITDA for the second quarter of 2022 of $626,000, compared to a loss of $(153,000) for the second quarter of 2021.

Financial Results for the six months ended June 30, 2022

Consolidated total revenue for the six months ended June 30, 2022 increased 65% to $17.0 million compared to $10.3 million for the six months ended June 30, 2021.

Consolidated service revenue for the six months ended June 30, 2022 increased 6% to $9.0 million compared to $8.5 million for the six months ended June 30, 2021.

Consolidated software solutions revenue for the six months ended June 30, 2022 increased 578% to $6.9 million compared to $1.0 million for the six months ended June 30, 2021. For comparison purposes, the six months ended June 30, 2021 only includes one month of activity from our June 1, 2021 acquisition of the software solutions segment.

Consolidated product revenue for the six months ended June 30, 2022 increased 47% to $1.2 million compared to $808,000 for the six months ended June 30, 2021.

Consolidated operating expenses for the six months ended June 30, 2022 increased 56% to $19.2 million compared to $12.4 million for the six months ended June 30, 2021. For comparison purposes, the six months ended June 30, 2021 only includes one month of operating expenses from our June 1, 2021 acquisition of the software solutions segment.

The Company reported net loss of $(2.1) million for the six months ended June 30, 2022, or $(0.09) loss per basic and diluted common share, compared to net loss of $(1.7) million, or $(0.09) loss per basic and diluted common share for the six months ended June 30, 2021.

Non-GAAP net income of $917,000 for the six months ended June 30, 2022, or $0.04 per basic and diluted common share, compared to non-GAAP net income of $345,000 or $0.02 per basic and diluted common share for the six months ended June 30, 2021.

EBITDA loss for the six months ended June 30, 2022 of $(1.0) million, compared to a loss of $(1.7) million for the six months ended June 30, 2021. Adjusted EBITDA for the six months ended June 30, 2022 of $928,000, compared to $92,000 for the six months ended June 30, 2021.

Total cash and cash equivalents at June 30, 2022 was $4.9 million compared to $7.5 million at December 31, 2021.

Cash used for operating activities for the six months ended June 30, 2022 of $(2.6) million compared to $(224,000) used for the six months ended June 30, 2021. Cash used for investing activities for the six months ended June 30, 2022 of $(40,000) compared to $(10.5) million used for the six months ended June 30, 2021. Cash used for financing activities for the six months ended June 30, 2022 of $(20,000) compared to cash provided by investing activities of $966,000 for the six months ended June 30, 2021.

Steven G. Mihaylo, Chief Executive Officer commented, “The results this quarter are very impressive, especially when you consider all of the economic headwinds we have been facing. I am particularly pleased that we have been able to increase total revenue 53% year-over-year to $8.8 million and continue to maintain profitability both on a Non-GAAP and Adjusted EBITDA basis. I am very favorably impressed with the Non-GAAP net income of $512,000 or $0.02 per basic and diluted common share and our Adjusted EBITDA of $626,000 for the quarter. We have also reduced our GAAP net loss during the quarter and I expect these positive trends to continue. While our results were very good, we never lose sight of our obligation to improve the business every day and work on improving shareholder value. We will work tirelessly to control expenses, I am undertaking a review of every discretionary expense we have, and fully expect the team to manage expenses deliberately and to watch every penny we spend.”

Mihaylo added ”We also continue to work on marketing and sales, I have been very pleased with the quality of partners and master agents we have added recently, and I expect those initiatives to accelerate our sales particularly on the telecom side of the business. I remain very optimistic on our future. We have built the business carefully and methodically and have done so without mortgaging our future with debt that is not sustainable, and in the long run it is what I am convinced will make us successful. I expect our growth to continue both organically and through potential accretive acquisitions we are carefully considering.”

Doug Gaylor, President, and Chief Operating Officer stated “ I want to join Steve in commending our team for the remarkable job they have done in coming together as a cohesive unit. The shared passion in serving our customer and developing the best products and services will be something that will continue to impress our customers, our employees and most importantly our shareholders. Our Management team is focused on these initiatives to continue to improve the business and grow our top and bottom lines. It is a very exciting time for Crexendo, and we are positioned well to continue executing our plans.”

Conference Call

The Company is hosting a conference call today, August 9, 2022, at 4:30 PM EDT. The dial-in number for domestic participants is 877-545-0320 and 973-528-0002 for international participants. Please dial in five minutes prior to the beginning of the call at 4:30 PM EDT and reference participant access code 716284. A replay of the call will be available until August 16, 2022, by dialing toll-free at 877-481-4010 or 919-882-2331 for international callers. The replay passcode is 46195.

About Crexendo

Crexendo, Inc. is an award-winning premier provider of Unified Communications as a Service (UCaaS), Call Center as a Service (CCaaS), communication platform software solutions, video conferencing and collaboration services with video designed to provide enterprise-class cloud communication solutions to any size business through our business partners, agents, and direct channels. Our solutions currently support over 2.5 million end users globally and was recently recognized as the fastest growing UCaaS platform in the United States.

Safe Harbor Statement  

This press release contains forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. The words "believe," "expect," "anticipate," "estimate," "will" and other similar statements of expectation identify forward-looking statements. Specific forward-looking statements in this press release include information about Crexendo (i) believing the results this quarter are very impressive, especially when you consider all of the economic headwinds and being particularly pleased with the increase total revenue and continuing to maintain profitability both on a Non-GAAP and Adjusted EBITDA basis; (ii) believing  these positive trends will continue; (iii)  never losing sight of its obligation to improve the business every day and work on improving shareholder value; (iv) undertaking a review of every discretionary expense and expecting the team to manage expenses deliberately and to watch every penny spent; (v) continuing to work on marketing and sales while being pleased with the quality of dealers and master agents; (vi) expecting those initiatives to accelerate sales particularly on the service side of the business; (vii) remaining very optimistic on its future; (viii) building the business carefully and methodically so without mortgaging its future with debt that is not sustainable and being convince of success of the business; (ix) expecting growth to continue both organically and through potential accretive acquisitions  carefully being considered; (x) having a shared passion in serving  customer  developing the best products and services which will be something that will continue to impress  customers, employees and shareholders; (xi) the management team being focused on initiatives to continue to improve the business and grow  top and bottom lines; and (xii) being well positioned  to continue executing its plans.

For a more detailed discussion of risk factors that may affect Crexendo’s operations and results, please refer to the company's Form 10-K for the year ended December 31, 2021, and quarterly Form 10-Qs as filed with the SEC. These forward-looking statements speak only as of the date on which such statements are made, and the company undertakes no obligation to update such forward-looking statements, except as required by law.

Contact

Crexendo, Inc.

Doug Gaylor

President and Chief Operating Officer

602-732-7990

[email protected]

CREXENDO, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share and share data)

CREXENDO, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

CREXENDO, INC. AND SUBSIDIARIES

Supplemental Segment Financial Data

(In thousands)

Use of Non-GAAP Financial Measures

To evaluate our business, we consider and use non-generally accepted accounting principles (“Non-GAAP”) net income and Adjusted EBITDA as a supplemental measure of operating performance. These measures include the same adjustments that management takes into account when it reviews and assesses operating performance on a period-to-period basis. We consider Non-GAAP net income to be an important indicator of overall business performance because it allows us to evaluate results without the effects of share-based compensation, acquisition related expenses, changes in fair value of contingent consideration and amortization of intangibles. We define EBITDA as U.S. GAAP net income/(loss) before interest income, interest expense, other income and expense, provision for income taxes, and depreciation and amortization. We believe EBITDA provides a useful metric to investors to compare us with other companies within our industry and across industries. We define Adjusted EBITDA as EBITDA adjusted for acquisition related expenses, changes in fair value of contingent consideration and share-based compensation. We use Adjusted EBITDA as a supplemental measure to review and assess operating performance. We also believe use of Adjusted EBITDA facilitates investors’ use of operating performance comparisons from period to period, as well as across companies.

In our August 9, 2022, earnings press release, as furnished on Form 8-K, we included Non-GAAP net income, EBITDA and Adjusted EBITDA. The terms Non-GAAP net income, EBITDA, and Adjusted EBITDA are not defined under U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in analytical tools, and when assessing our operating performance, Non-GAAP net income, EBITDA, and Adjusted EBITDA should not be considered in isolation, or as a substitute for net income/(loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Some of these limitations include, but are not limited to:

We compensate for these limitations by relying primarily on our U.S. GAAP results and using Non-GAAP net income, EBITDA, and Adjusted EBITDA only as supplemental support for management’s analysis of business performance. Non-GAAP net income, EBITDA and Adjusted EBITDA are calculated as follows for the periods presented.

Reconciliation of Non-GAAP Financial Measures

In accordance with the requirements of Regulation G issued by the SEC, we are presenting the most directly comparable U.S. GAAP financial measures and reconciling the unaudited Non-GAAP financial metrics to the comparable U.S. GAAP measures.