Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.

Crexendo, Inc.

Akamai Technologies, Inc. AKAM has teamed up with LevelBlue to enhance web application and API (application programming interface) security with the launch of LevelBlue’s Managed Web Application and API Protection (WAAP) service. The new service delivers adaptive, always-on protection aimed at reducing risk and operational overhead, powered by Akamai’s App & API Protector technology. It integrates next-generation web application firewall (WAF), distributed denial-of-service (DDoS) mitigation, bot protection and core API security, backed by LevelBlue’s dedicated WAAP Operations team.
The launch comes as organizations worldwide accelerate their use of applications and APIs to support digital-first strategies. According to Enterprise Strategy Group, the average number of web apps per company is set to rise from 145 to more than 200 in two years, while API usage will grow dramatically, with 80% of organizations expected to have more than half their applications connected via APIs, up from 32%. This surge brings new challenges, including discovering app and API deployments, scaling protections, swiftly mitigating attacks and ensuring performance remains unaffected. Many companies also face staffing shortages and a growing skills gap, with half of midmarket organizations finding web app and API security harder now than two years ago.
Akamai Technologies, Inc. Price and Consensus
LevelBlue highlighted that by combining LevelBlue’s operational expertise with Akamai’s proven technology, it is offering a simplified, consolidated and predictable approach to protection, helping organizations stay ahead of threats and build cyber resilience.
LevelBlue Managed WAAP is available in two tiers—Essential and Advanced. The service offers 24/7 access to WAAP specialists, automated discovery and classification of critical web apps and APIs, AI-powered threat detection and streamlined security management aligned with DevOps workflows. The solution aims to help organizations automatically secure sensitive assets, adapt quickly to emerging attack vectors and reduce false positives through expert-led policy tuning.
Akamai is actively pursuing the opportunity. With the acquisitions of Neosec and Noname Security, Akamai has accelerated the advancement of its AI-powered API security solution. By leveraging AI capabilities, the solution effectively analyzes APIs, detects vulnerabilities and minimizes risks. With the growing use of APIs, the demand for such solutions is poised to rise among enterprises. These strategic initiatives are expected to drive commercial expansion and generate long-term benefits.
On July 29, 2025, Akamai announced that it formed a collaboration with Aqua Security. With this partnership, the companies aim to work on developing an integrated solution to ensure comprehensive protection for AI applications.
Recently, Akamai reported strong second-quarter 2025 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate. The company reported a top-line expansion year over year, driven by healthy demand trends in multiple end markets. Strong demand for the Guardicore platform, API security solutions and cloud infrastructure services is a key growth driver.
For 2025, Akamai expects revenues in the range of $4.135 billion to $4.2 billion. It expects a non-GAAP operating margin of 29%. Non-GAAP earnings are projected to be in the range of $6.60-$6.80 per share.
Zacks Rank & Share Price Performance
Akamai currently has a Zacks Rank #3 (Hold). Shares of AKAM have plunged 26.6% in the past year against the Internet – Services industry’s growth of 27.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Stocks to Consider From the Internet Services Space
Some better-ranked stocks from the broader technology space are Crexendo, Inc. CXDO, Sprout Social, Inc. SPT and HealthStream, Inc. HSTM. CXDO, SPT and HSTM carry a Zacks Rank #2 (Buy).
Crexendo’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 30.83%. In the last reported quarter, CXDO delivered an earnings surprise of 50%. Its shares have increased 17% in the past year.
Sprout Social’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 25.42%. In the last reported quarter, SPT delivered an earnings surprise of 20%. Its shares have plunged 56.6% in the past year.
HealthStream, Inc. (HSTM) earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with the average surprise being 20.35%. In the last reported quarter, HSTM delivered an earnings surprise of 12.5%. Its shares have decreased 4.1% in the past year.
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Akamai and LevelBlue Launch Managed Web App, API Protection Services

Unified Communication as a Service (UCaaS) is emerging as a leading network standard, fueled by the rise of the cloud business model. This model offers an affordable, scalable, and easily deployable unified collaboration communication solution, making it increasingly popular among large enterprises in 2025.
In 2025, the UCaaS market will experience deeper AI integration to improve communication, a move toward mobile-first platforms that prioritize smartphones and tablets, increased adoption of Web Real-Time Communication (WebRTC) for browser-based, real-time communication, and softphones for cost-effective, software-based calling, alongside a growing emphasis on security and compliance measures.
AI-powered capabilities, including virtual assistants that assist users by performing tasks and providing information, automated chatbots that simulate human conversation and respond to queries, and predictive intelligence that analyzes data to anticipate future trends and behaviors, further enhance communication efficiency and improve remote work experience.
The introduction of 5G networks has further transformed video and audio conferencing, meetings, and collaboration by enabling fast, low-latency communication. In 2025, advancements like 5G network slicing, which creates virtualized, dedicated network segments for specific applications, have improved video call quality by ensuring optimized performance even during network congestion.
The Department of Telecommunications has also launched the 5G Innovation Hackathon 2025 to accelerate the development of innovative 5G-powered solutions.
Key players in the market, including Ringcentral RNG, Cisco Systems CSCO and Crexendo CXDO, are well poised to benefit from the growing global UCaaS market. Per the Mordor Intelligence report, the Unified Communication-as-a-Service market size is projected to be $56.14 billion in 2025 and is expected to grow to $175.83 billion by 2030, registering a CAGR of 25.65% during the forecast period (2025-2030).
While RNG sports a Zacks Rank #1 (Strong Buy) at present, CSCO and CXDO carry Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
RingCentral Expands UCaaS Leadership With Key Partnerships
RingCentral has a strong position in the UCaaS market, particularly in providing cloud-based communication solutions for enterprises. The company has been recognized as a Leader in the 2024 Gartner Magic Quadrant for UCaaS, marking its tenth consecutive year in this position.
This dominant position is further enhanced by the company’s increasing focus on bolstering its product portfolio through strategic partnerships with companies like AT&T, Cox Communications, BT, and Vodafone, all of which are aiding its growth.
RingCentral and Cox Communications recently announced a new partnership to deliver advanced AI-powered communications solutions. This collaboration combines Cox Communications high-speed connectivity with RingCentral’s business communications platform, which is poised to provide enterprises with advanced solutions for enhanced connectivity and communication.
The Zacks Consensus Estimate for 2025 earnings is pegged at $4.20 per share, which has increased by a penny in the past 30 days.
Ringcentral, Inc. Price and Consensus
Ringcentral, Inc. price-consensus-chart | Ringcentral, Inc. Quote
Cisco Expands AI-Powered UCaaS Innovations With Webex
Cisco’s Systems presence in the UCaaS market through its Webex platform has been noteworthy.
Building on its strong market presence, the company has been recognized as a Leader in the 2024 Gartner Magic Quadrant for Unified Communications as a Service for the sixth consecutive year. This recognition highlights Cisco’s commitment to innovation and excellence in the UCaaS industry.
Further expanding its portfolio, Cisco introduced AI-powered innovations at WebexOne in 2024, including Cisco Spatial Meetings, Ceiling Microphone Pro, and the Cisco AI Assistant, which aim to enhance collaboration, productivity, and smart workspace management.
Continuing to enhance its offerings, Cisco also introduced AI-powered innovations at WebexOne, including Webex AI Agent, AI Agent Studio, and Cisco AI Assistant for Webex Contact Center to enhance customer interactions, streamline issue resolution, and improve satisfaction.
The Zacks Consensus Estimate for 2025 earnings is pegged at $3.72 per share, which has increased 1.92% over the past 30 days.
Cisco Systems, Inc. Price and Consensus
Cisco Systems, Inc. price-consensus-chart | Cisco Systems, Inc. Quote
Crexendo Launches AI Features for Better Communication
Crexendo has been actively expanding its presence in the UCaaS sector through its expanding portfolio.
Crexendo has won the prestigious Unified Communications Excellence Award for the fourth time, highlighting its leadership and innovation in delivering advanced UCaaS solutions through its NetSapiens Platform.
Crexendo’s recent launch of v44.2 of the NetSapiens Platform introduces AI-driven features, including Video AI Studio, advanced speech-to-text transcription, and intelligent meeting insights for enhanced business communication.
Crexendo’s NetSapiens Platform has also been selected by Popp Communications to replace their legacy Microsoft Metaswitch solution amid Microsoft’s end-of-life announcement and sale of its Metaswitch division. This reinforces Crexendo’s position as a leading UCaaS provider.
The Zacks Consensus Estimate for 2025 earnings is pegged at 28 cents per share, which has increased by 12% over the past 30 days.
Crexendo Inc. Price and Consensus
Crexendo Inc. price-consensus-chart | Crexendo Inc. Quote
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Top 3 Unified Communication as a Service Providers to Buy in 2025

Lyft (LYFT) came out with quarterly earnings of $0.30 per share, beating the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 30.44%. A quarter ago, it was expected that this ride-hailing company would post earnings of $0.20 per share when it actually produced earnings of $0.29, delivering a surprise of 45%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Lyft, which belongs to the Zacks Internet - Services industry, posted revenues of $1.55 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.15%. This compares to year-ago revenues of $1.22 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Lyft shares have added about 17.2% since the beginning of the year versus the S&P 500's gain of 3.1%.
What's Next for Lyft?
While Lyft has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Lyft: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.19 on $1.5 billion in revenues for the coming quarter and $1.05 on $6.7 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Services is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Crexendo (CXDO), has yet to report results for the quarter ended December 2024.
This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -16.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Crexendo's revenues are expected to be $15.66 million, up 10.6% from the year-ago quarter.
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Lyft (LYFT) Surpasses Q4 Earnings Estimates

Crexendo (CXDO) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this company would post earnings of $0.06 per share when it actually produced earnings of $0.07, delivering a surprise of 16.67%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Crexendo, which belongs to the Zacks Internet - Services industry, posted revenues of $15.63 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.70%. This compares to year-ago revenues of $13.87 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Crexendo shares have added about 20% since the beginning of the year versus the S&P 500's gain of 21.2%.
What's Next for Crexendo?
While Crexendo has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Crexendo: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.05 on $15.37 million in revenues for the coming quarter and $0.24 on $59.41 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Services is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Akamai Technologies (AKAM), is yet to report results for the quarter ended September 2024. The results are expected to be released on November 7.
This cloud services provider is expected to post quarterly earnings of $1.59 per share in its upcoming report, which represents a year-over-year change of -2.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Akamai Technologies' revenues are expected to be $1 billion, up 3.6% from the year-ago quarter.
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Crexendo (CXDO) Q3 Earnings and Revenues Top Estimates

For the quarter ended June 2024, Crexendo (CXDO) reported revenue of $14.69 million, up 15.9% over the same period last year. EPS came in at $0.07, compared to $0.04 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $14.18 million, representing a surprise of +3.60%. The company delivered an EPS surprise of +16.67%, with the consensus EPS estimate being $0.06.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Crexendo performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Service
: $8.07 million compared to the $7.99 million average estimate based on two analysts. The reported number represents a change of +10.4% year over year.
Revenue- Product
: $1.29 million versus the two-analyst average estimate of $1.33 million. The reported number represents a year-over-year change of -9.7%.
Revenue- Software solutions
: $5.33 million versus $4.86 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +35.5% change.
View all Key Company Metrics for Crexendo here>>>
Shares of Crexendo have returned +29.8% over the past month versus the Zacks S&P 500 composite's -6.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Compared to Estimates, Crexendo (CXDO) Q2 Earnings: A Look at Key Metrics

In a customer-friendly move, Uber Technologies UBER inked a deal with St. Louis-based Save A Lot, one of the largest discount grocers in the United States. Following the partnership, some selected Save A Lot grocery stores will be available through the Uber Eats app. Uber Eats is the online food ordering and delivery platform of UBER.
With UBER and Save A Lot joining forces, more than 150 of Save A Lot’s 600-plus independently owned grocery locations are offering Uber Eats as a delivery method. Another benefit is that Save A Lot shoppers can use their Health Benefit cards to buy multiple items via Uber Eats. Health Benefit cards boost the convenience of eligible individuals for purchasing groceries and over the counter drugs by utilizing their healthcare benefits.
Beryl Sanders, Uber’s director of U.S. Grocery & Retail partnerships said, "Many consumers are price-conscious, and we're excited to continue to partner with brands like Save A Lot to increase value for Uber Eats consumers." To promote Save A Lot's debut on Uber Eats, customers are being offered discounts subject to certain terms and conditions.
Uber’s grocery delivery business has exhibited steady growth since its launch in July 2020 and includes Albertsons Companies, Meijer, Kroger, SpartanNash and Hy-Vee to name a few.
Price Performance
UBER shares have performed impressively, surging 66.8% in a year compared with its industry’s 38.4% growth.
Image Source: Zacks Investment Research
Zacks Rank
UBER currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Investors interested in the same industry may consider some better-ranked stocks like Alphabet GOOGL and Crexendo (CXDO).
Alphabet, which currently sports a Zacks Rank #1 (Strong Buy), is being well-served by its a deepening focus on generative AI technology. Its robust cloud division is aiding substantial revenue growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for its 2024 earnings has moved north by 12.1% in the past 60 days and is currently pegged at $7.6 per share. Alphabet surpassed the Zacks Consensus Estimate for earnings in each of the past four quarters, the average beat being 11.34%.
Crexendo provides cloud communication platforms and services, as well as video collaboration and managed IT services. The stock carries a Zacks Rank #2 (Buy) presently.
The Zacks Consensus Estimate for its 2024 earnings has remained stable in the past 60 days and is currently pegged at 23 cents per share. CXDO surpassed the Zacks Consensus Estimate for earnings in three of the past four quarters (reporting in-line earnings once), the average beat being 212.5%.
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UBER Enters Into Partnership With Discount Grocer Save A Lot

Crexendo (CXDO) reported $14.29 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 14.4%. EPS of $0.06 for the same period compares to $0.02 a year ago.
The reported revenue represents a surprise of +1.36% over the Zacks Consensus Estimate of $14.1 million. With the consensus EPS estimate being $0.06, the company has not delivered EPS surprise.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Crexendo performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Service revenue: $7.85 million versus the two-analyst average estimate of $8 million. The reported number represents a year-over-year change of +9.6%.
Revenue- Product revenue: $1.30 million versus $1.26 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +5.7% change.
Revenue- Software solutions: $5.15 million compared to the $4.85 million average estimate based on two analysts. The reported number represents a change of +25.3% year over year.
View all Key Company Metrics for Crexendo here>>>
Shares of Crexendo have returned -6.3% over the past month versus the Zacks S&P 500 composite's -0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Here's What Key Metrics Tell Us About Crexendo (CXDO) Q1 Earnings

Uber Technologies UBER, a leading ride-hailing company, is set to report first-quarter 2024 results on May 8, before market open. Ahead of its earnings, investors may be deliberating on whether to purchase the stock before May 8 or wait for a better entry point.
Impressive Price Performance
Driven by its efforts to diversify and expand its ride-hailing and delivery businesses, the company has performed impressively on the bourses of late. The stock has appreciated 42.4% over the past six months, handily surpassing its industry’s 24.9% growth.
Image Source: Zacks Investment Research
Upbeat Gross Bookings Likely to Aid UBER’s Q1 Earnings
With economic activities returning to normal levels in the post-pandemic scenario, people are traveling to work and other places as before. UBER’s Mobility business has been seeing buoyant demand. With customer traffic picking up, gross bookings from the unit are likely to have been impressive, in turn aiding first-quarter results. We expect gross bookings from the Mobility segment in the March quarter to grow 27.4% on a year-over-year basis.
Uber’s Delivery business is also expected to have performed well in the to-be-reported quarter. We expect gross bookings from the Delivery segment in the March quarter to grow 13% on a year-over-year basis. Total trips are expected to soar 23.6% year over year in the March quarter, per our model.
Favorable Estimate Revisions & Style Score
The Zacks Consensus Estimate for first-quarter earnings has been revised 5% upward over the past 60 days, reflecting investors’ confidence in the stock.
The stock’s Momentum Score of A further highlights its attractiveness.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for UBER this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
UBER sports a Zacks Rank #1 at present but its Earnings ESP is -5.46%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Fundamental Strength
For long-term investors a single quarter’s results are not so important. They would rather base their investment decision on the underlying fundamentals. UBER scores impressively on that front, driven by its strong operating model.
Diversification is imperative for big companies to reduce risks and UBER has excelled in this area. It has engaged in numerous strategic acquisitions, geographic and product diversifications and innovations. Even though Uber’s primary business is ride-sharing, it has diversified into food delivery and freight over time.
Uber’s endeavors to expand into the international markets are commendable and provide it with the benefits of geographical diversification. Prudent investments enable it to extend services and solidify its comprehensive offerings. Its focus on disciplined spending and cost-cutting measures also bodes well as far as bottom-line growth is concerned.
Strong Growth Prospects
The Zacks Consensus Estimate for 2024 earnings is pegged at $1.23, indicating 41.4% growth from the 2023 actuals. The company’s long-term (3-5 years) earnings growth rate is an impressive 51.8%, higher than its industry’s 22.8%.
Thus, we believe investors should add UBER stock to their portfolios ahead of its earnings release on May 8 for healthy returns. Its current Zacks Rank supports our thesis.
Other Tech Stocks to Consider
Crexendo (CXDO) provides cloud communication platforms and services, as well as video collaboration and managed IT services. The stock sports a Zacks Rank #1.
The Zacks Consensus Estimate for 2024 earnings has moved 35.3% north in the past 60 days and is currently pegged at 23 cents per share. CXDO surpassed the Zacks Consensus Estimate for earnings in three of the past four quarters (missing the mark once), the average beat being 204.2%.
Alphabet GOOGL, which currently sports a Zacks Rank #1, is being well-served by its a deepening focus on generative AI technology. Its robust cloud division is aiding substantial revenue growth.
The Zacks Consensus Estimate for its 2024 earnings has moved north by 11.8% in the past 60 days and is currently pegged at $7.57 per share. Alphabet surpassed the Zacks Consensus Estimate for earnings in each of the past four quarters, with the average beat being 11.34%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Should You Add UBER to Your Portfolio Ahead of Q1 Earnings?

Paycom Software PAYC reported first-quarter 2024 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate and improved year over year.
The online payroll and human resource technology provider reported non-GAAP earnings of $2.59 per share in the first quarter, beating the Zacks Consensus Estimate of $2.43. The bottom line improved 5.28% from $2.46 per share reported in the year-ago quarter.
Paycom reported revenues of $499.9 million, beating the consensus mark of $495.9 million. The top line climbed 10.7% year over year. The top-line figure also surpassed management’s guidance of $494-$497 million, primarily driven by new logo wins.
Quarter in Detail
Paycom’s Recurring revenues (representing 98.4% of the total revenues) improved 9.7% to $491.9 million in the first quarter. Our estimate for the company’s Recurring revenues was pegged at $488.4 million.
The company’s revenues from the Implementation and Other segment improved to $7.98 million from $7.2 million in the year-ago quarter and contributed 1.6% to total sales. Our estimate for the segment’s revenues was pegged at $7.7 million.
Adjusted gross profits climbed 9.12% from the year-ago period to $424.2 million. However, the adjusted gross margin contracted 120 basis points (bps) on a year-over-year basis to 84.9%.
Paycom’s adjusted EBITDA increased 4.1% year over year to $229.5 million. The adjusted EBITDA margin contracted 290 bps to 45.9%.
Balance Sheet & Cash Flow
Paycom exited the first quarter with cash and cash equivalents of $371.3 million compared with $294 million recorded in the previous quarter. The company had no debt as of Mar 31, 2024, as it paid off all its long-term debt at the end of 2023.
In the first quarter of 2024, PAYC generated an operating cash flow of approximately $148.6 million, paid out $21.2 million in dividends and bought back $3.1 million worth of its common stock.
The company had $796 million remaining under its buyback authorization as of Mar 31, 2024. Paycom’s board has approved its upcoming quarterly dividend of 37.5 cents per share, payable in the middle of June 2024.
Guidance
For the second quarter of 2024, Paycom forecasts revenues in the range of $434-$438 million and expects adjusted EBITDA between $151 million and $155 million.
For 2024, PAYC forecasts revenues in the band of $1.860-$1.885 billion and expects adjusted EBITDA between $720 million and $730 million.
Zacks Rank and Stocks to Consider
Currently, Paycom carries a Zacks Rank #3 (Hold). Shares of the company have plunged 36.6% in the past year.
Some better-ranked stocks from the broader technology sector are Arista Networks ANET, Crexendo CXDO and Dell Technologies DELL. While ANET and CXDO sport a Zacks Rank #1 (Strong Buy) each, DELL carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANET's 2024 earnings per share has been revised upward by 3 cents to $7.49 in the past 30 days. Shares of the company have rallied 64.7% in the past year.
The Zacks Consensus Estimate for CXDO’s 2024 earnings per share has been revised upward by 6 cents to 23 cents in the past 60 days. Shares of the company have skyrocketed 202.2% in the past year.
The Zacks Consensus Estimate for DELL’s 2024 earnings per share has been revised upward by 17 cents to $7.64 in the past 60 days. Shares of the company have surged 191.4% in the past year.
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Paycom (PAYC) Q1 Earnings and Revenues Surpass Estimates

F5, Inc. FFIV reported mixed second-quarter fiscal 2024 results. This Seattle, WA-based company’s non-GAAP earnings of $2.91 per share beat the Zacks Consensus Estimate of $2.88 and increased 13.8% from the year-ago quarter’s $2.53.
The bottom line was at the higher end of management’s guidance range of $2.79-$2.91 per share. The robust bottom-line performance reflects the combined impact of gross margin improvement and disciplined operating expense management.
F5’s revenues of $681 million for the fiscal second quarter missed the consensus mark of $686.9 million and declined 3.1% on a year-over-year basis. However, revenues came within the company’s guidance range of $675-$695 million.
Top Line in Detail
Product revenues (44% of total revenues), which comprise the Software and Systems sub-divisions, decreased 12% year over year to $300.2 million. The decline in Product revenues was mainly due to lower Systems sales, partially offset by increased Software sales. The company’s reported non-GAAP Product revenues were lower than our estimate of $317.8 million.
Systems revenues plunged 32% year over year to $142 million, accounting for approximately 47% of the total Product revenues. The company revealed that the decline reflects a lower level of backlog-related shipments compared with prior quarters, while the demand shows some signs of stabilization. Our estimate for Systems revenues was pegged at $157.2 million.
The negative impacts of lower Systems sales were partially offset by the improved performance of Software. Software revenues climbed 20% year over year to $159 million in the fiscal second quarter, mainly driven by 28% growth in subscription software revenues. Software revenues mainly grew on the back of renewals. Our estimate was pegged at $160.6 million.
Global Service revenues (56% of the total revenues) grew 5% to $381 million. The robust growth was mainly driven by price increases introduced in fiscal 2022. Our estimate for Global Services revenues was pegged at $367.8 million.
F5 registered lower sales across the EMEA and APAC regions, witnessing a year-over-year decrease of 6% and 9%, respectively. However, revenues from the Americas region grew 1% on a year-over-year basis. Revenue contributions from the Americas, EMEA and APAC regions were 57%, 26% and 17%, respectively.
Customer-wise, Enterprises, Service providers and Government represented 69%, 13% and 19% of product bookings, respectively.
Margins
On a year-over-year basis, GAAP and non-GAAP gross margins expanded 140 basis points (bps) and 170 bps to 79.3% and 82.1%, respectively. The improvement was driven by price realization and ease in supply-chain constraints, as well as reductions in ancillary supply-chain costs.
The company’s fiscal second-quarter GAAP operating expenses declined 9.3% to $400.3 million, while non-GAAP operating expenses decreased 6.8% to $348.8 million. GAAP operating expenses as a percentage of revenues decreased to 58.8% in the second quarter of fiscal 2024 from 62.8% reported in the year-ago quarter. Meanwhile, non-GAAP operating expenses as a percentage of revenues declined to 53% from 51% in the year-ago quarter.
F5’s GAAP operating profit jumped 32.1% to $140 million, while the margin expanded 540 bps to 20.5%. Moreover, the non-GAAP operating profit jumped 9.94% year over year to $210 million, while the margin improved 370 bps to 30.9%. An increase in the non-GAAP operating margin was primarily driven by an improvement in the gross margin and lower operating expenses as a percentage of revenues.
Balance Sheet & Cash Flow
F5 exited the March-ended quarter with cash and short-term investments of $903.4 million compared with the previous quarter’s $826 million. The company generated an operating cash flow of $386.95 million in the fiscal second quarter.
During the fiscal second quarter, FFIV repurchased shares worth $100 million. As of Apr 29, 2024, F5 had $672 million remaining under its current authorized share repurchase program. The company is committed to using at least 50% of free cash flow for share repurchases.
Guidance
F5 projects non-GAAP revenues in the $675-$695 million band (midpoint of $685 million) and non-GAAP earnings per share (EPS) in the range of $2.89-$3.01 (midpoint of $2.95) for the third quarter of fiscal 2024. The non-GAAP gross margin is forecasted between 82% and 83%.
The company expects non-GAAP operating expenses between $340 million and $352 million for the fiscal third quarter. Share-based compensation expenses are anticipated in the range of $55-$57 million.
For fiscal 2024, F5 reaffirms revenue growth forecast of flat to a low-single-digit-percentage decline. Non-GAAP gross and operating margins are still anticipated in the ranges of 82-83% and 33-34%, respectively.
However, the company raised the non-GAAP EPS growth guidance range to 7-9% from 6-8% projected earlier. F5 now projects the effective tax rate for fiscal 2024 to be 20-22% from the 21-22% projected previously.
Moreover, FFIV still intends to return at least 50% of its fiscal 2024 free cash flow to shareholders through share buybacks.
Zacks Rank and Other Stocks to Consider
Currently, F5 carries a Zacks Rank #2 (Buy). Shares of the company have returned 35.7% in the past year.
Some other top-ranked stocks from the broader technology sector are Dell Technologies DELL, Arista Networks ANET and Crexendo CXDO, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DELL’s 2024 earnings per share has been revised upward by 54 cents to $7.64 in the past 60 days. Shares of DELL have surged 191.4% in the past year.
The Zacks Consensus Estimate for ANET's 2024 earnings per share has been revised upward by 3 cents to $7.49 in the past 30 days. Shares of ANET have gained 64.7% in the past year.
The Zacks Consensus Estimate for CXDO’s 2024 earnings per share has been revised upward by 6 cents to 23 cents in the past 60 days. Shares of CXDO have skyrocketed 202.2% in the past year.
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Crexendo, Inc.

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