Company: CXDO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001654954-25-012585
Chunk: 102

Company: Crexendo, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 2
Chunk 102
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      Software solutions RPO's as of July 1, 2024 $19,478 Software solutions RPO's as of September 30, 2024 $24,408 

Cost of Software Solutions Revenue

Cost of software solutions revenue consists primarily of salaries, benefits, bonuses, and share-based compensation, amortization expense for developed technologies intangible assets, cost of data center hosting, third-party software, annual user group meeting costs, and outsourced services required to install and support software solutions. The following table reflects our cost of service revenue for the three months ended September 30, 2025, compared to the three months ended September 30, 2024:

  Three Months Ended September 30,   2025  2024  Dollar Change  Percent Change Cost of software solutions revenue $1,924  $1,686  $238   14%

The increase in cost of software solutions revenue is primarily related to an increase in salaries, benefits, bonuses, share-based compensation, and headcount of $175 and an increase in third-party hosting service costs of $63.

Selling and Marketing

Selling and marketing expenses consist primarily of sales and marketing salaries, benefits, bonuses, commissions, share-based compensation, travel expenses, lead generation services, trade shows, third-party marketing services, the production of marketing materials, annual user group meeting costs, and sales support software. The following table reflects our selling and marketing expenses for the three months ended September 30, 2025, compared to the three months ended September 30, 2024:

  Three Months Ended September 30,   2025  2024  Dollar Change  Percent Change Selling and marketing $1,307  $1,245  $62   5%

The increase in selling and marketing expense is primarily related to an increase in commission expense of $106 directly related to the increase in revenue, offset by a decrease in salaries, benefits, bonuses, share-based compensation, and headcount of $42 primarily from an allocation of resources to the Cloud Telecommunications services segment, and a decrease in other selling and marketing costs of $2.

General and Administrative

General and administrative expenses consist of salaries and benefits for executives, administrative personnel, amortization of intangible assets, legal, rent, equipment, accounting and other professional services, and other administrative corporate expenses. The following table reflects our general and administrative expenses