Company: CXDO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001654954-25-012585
Chunk: 104

Company: Crexendo, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 2
Chunk 104
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 user group meeting fees. Software licenses are billed by the number of concurrent sessions a customer has purchased or subscribes to. Subscription maintenance and support is ongoing and provides for software updates and improvements, support for add-on modules, bug fixes, and other general maintenance items. Professional services and other revenues consist of professional services such as the installation of software and integration of other modules, training and implementation as well as custom mobile branding. The following table reflects our service revenue for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024:

  Nine Months Ended September 30,   2025  2024  Dollar Change  Percent Change Software solutions revenue $21,364  $16,331  $5,033   31%

The increase in software solutions revenue is primarily related to an increase in recurring software license and maintenance and support subscriptions of $2,611 and an increase in perpetual software license revenue of $2,485, offset by a decrease in professional services and other revenue of $63.

Remaining Performance Obligations

Remaining Performance Obligations (RPOs) represents the total contract value of all contracts signed, less revenue recognized from those contracts as of September 30, 2025 and 2024. RPO’s increased 18%, or $4,480 to $28,888 as of September 30, 2025 as compared to $24,408 as of September 30, 2024. Below is a table which displays the software solutions segment revenue remaining performance obligations as of January 1, 2025 and 2024, and September 30, 2025 and 2024, which we expect to recognize as revenue within the next thirty-six to sixty months (in thousands):

Software solutions RPO's as of January 1, 2025 $30,262 Software solutions RPO's as of September 30, 2025 $28,888      Software solutions RPO's as of January 1, 2024 $19,122 Software solutions RPO's as of September 30, 2024 $24,408 

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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,