Why did CXDO's EPS surprise analysts in 2024?

Crexendo's EPS of $0.02 for the fourth quarter of 2024 exceeded analysts' expectations, which was a positive surprise. This was due to several key factors: 1. **Strong Revenue Growth**: Crexendo reported a 15% increase in quarterly revenue, reaching $16.2 million, surpassing the estimated $15.64 million. This growth was driven by a 32% rise in revenue from software solutions and a 4% increase in service revenue. 2. **Software Solutions Segment Success**: The software solutions segment experienced significant growth, contributing substantially to the overall revenue increase. This segment's revenue increased by 32% for the year, reaching $23.4 million. The remarkable success of this segment reflects Crexendo's effective market penetration and strong demand for its software offerings. 3. **International Expansion**: Crexendo reported a 39% organic increase in international revenues, indicating the success of its strategic focus on global markets. This expansion likely contributed to the company's better-than-expected financial performance. In summary, Crexendo's EPS surprise was due to strong revenue growth, particularly in its software solutions segment, and successful international expansion. These factors, combined with effective cost management, enabled the company to deliver robust financial results that exceeded analysts' expectations.