Company: CXDO
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001654954-25-005149
Chunk: 52

Company: Crexendo, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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, and a decrease in interest expense of $4.

 36Table of Contents

Operating Results of our Software Solutions segment (in thousands):

  Three Months EndedMarch 31, Software Solutions 2025  2024 Software solutions revenue $6,868  $5,146 Operating expenses:        Cost of software solutions revenue  1,490   1,392 Selling and marketing  1,437   1,231 General and administrative  1,581   1,138 Research and development  1,391   980 Total operating expenses  5,899   4,741 Income/(loss) from operations  969   405 Other income/(expense), net  (16)  (17)Income/(loss) before income tax  $953  $388 

Three months ended March 31, 2025 compared to three months ended March 31, 2024

Software Solutions Revenue

Software solutions revenue consists primarily of software license fees, subscription maintenance and support, professional services, and annual 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 three months ended March 31, 2025, compared to the three months ended March 31, 2024:

  Three Months Ended March 31,   2025  2024  DollarChange  PercentChange Software solutions revenue $6,868  $5,146  $1,722   33%

The increase in software solutions revenue is primarily related to an increase in perpetual software license revenue of $1,064 and an increase in recurring software license and maintenance and support subscriptions of $676, offset by a decrease in professional services and other revenue of $18.

Remaining Performance Obligations

Remaining Performance Obligations (RPOs) represents the total contract value of all contracts signed, less revenue recognized from those contracts as of March 31, 2025 and 2024. RPOs increased 41%, or $7,971 to