Sometimes a couple of pictures tell more than a thousand words.Since the big jump late in FY23, the stock has mostly moved sideways although there is only a slight trend up:Shareholdersunite Essentials is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.This contrasts with growth and financials:And GAAP margins are healthy:With cash flow keeps improving:There are simple reasons for the company’s performance:It generates very good customer reviews (see G2) as it prioritizes customer service.It beats the larger competition Metaswitch (now owned by Alianza) and Cisco’s Webex UCaaS, often taking direct customers from these two.It has now nearly 9M users on its NetSapiens platform, up from 3.5M in September 2023.It has easy M&A targets, licensees who already use its platform so integration isn’t problematic and there are usually substantial synergies.It has a usage-based, rather than a seat-based pricing model, inoculating against Agentic AI undermining its business model.It uses AI for internal cost cutting and offering AI-based products which see rapid adoption and display a 35% ARPU uptake for those that do.We would argue that CXDO produces terrific risk/reward at these levels, see our free Primer for the moving parts. More detailed article coming up.Shareholdersunite Essentials is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.
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