David Tzat-kin Wang, the Chief Technology Officer of Crexendo , Inc. (NASDAQ:CXDO), recently executed a series of stock transactions involving the company's common stock. The company, which has seen its shares surge over 63% in the past six months according to InvestingPro data, maintains a market capitalization of $136.32 million. According to a recent filing, Wang sold a total of 7,707 shares over two days, generating proceeds of approximately $39,723. The shares were sold at a weighted average price of $5.1542 per share, with individual transaction prices ranging between $5.15 and $5.16. The transaction occurred as the stock trades at a notably high P/E ratio of 110x.
In addition to the sales, Wang exercised options to acquire a total of 7,707 shares at a price of $0.91 per share. Following these transactions, Wang's direct ownership in Crexendo amounts to 443,079 shares. The company maintains a "GOOD" financial health rating on InvestingPro, with strong liquidity metrics and positive growth prospects.
In other recent news, Crexendo, Inc. reported a strong third quarter for the fiscal year 2024, with a 13% year-over-year increase in revenue, amounting to $15.6 million. The software division of the company played a significant role in this growth, experiencing a 25% increase. Despite higher operating expenses, Crexendo managed to maintain its profitability for the fifth consecutive quarter, with a GAAP net income of $148,000 and a non-GAAP net income of $1.7 million.
These recent developments also showed a robust increase in cash and cash equivalents to $15.5 million, a 200% improvement year-over-year. The company reported a telecom backlog of $77.4 million, a 22% increase from the previous year, and achieved 25% organic growth in its Software (ETR:SOWGn) Solutions segment.
However, it was noted that the GAAP net income for Q3 2024 declined from $1.7 million in Q3 2023, primarily due to a one-time gain from the previous year’s sale of a corporate office. Adjusted EBITDA also decreased to $1.7 million from $2.1 million year-over-year.
Despite these challenges, Crexendo is capturing market share from competitors and is strategically focusing on high-margin software solutions. The company expects to continue its double-digit organic growth and is exploring potential acquisitions, leveraging its improved cash position.
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