Company: CXDO
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001654954-25-009071
Chunk: 106

Company: Crexendo, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 106
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 2024

Service Revenue

Cloud telecommunications service revenue consists primarily of fees collected for cloud telecommunications services, professional services, interest from sales-type leases, reselling broadband Internet services, managed IT service, and administrative fees. The following table reflects our service revenue for the six months ended June 30, 2025, compared to the six months ended June 30, 2024:

  Six Months Ended June 30,   2025  2024  Dollar Change  Percent Change Service revenue $16,556  $15,912  $644   4%

The increase in service revenue is due to an increase in telecommunications services fees of $638, an increase in fees, commissions, and other, recognized over time of $230, and an increase in sales-type lease interest of $90, offset by a decrease in one-time fees, commissions and other of $314.

Product Revenue

Product revenue consists primarily of fees collected from the sale of desktop phone devices, third-party equipment, and device as a service. The following table reflects our product revenue for the six months ended June 30, 2025, compared to the six months ended June 30, 2024:

  Six Months Ended June 30,   2025  2024  Dollar Change  Percent Change Product revenue $2,210  $2,588  $(378)  -15%

Product revenue fluctuates from one period to the next based on sales bookings, the allocation of discounts or sales promotions across the performance obligations, and the timing of installations. Our typical customer installation is completed within 30-60 days. However, larger enterprise customers can take multiple months, depending on size and the number of locations. The decrease in product revenue is primarily related to a decrease in managed IT services and infrastructure as a service product revenue of $400, offset by an increase in product revenue related to our cloud telecommunications services of $22.

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Remaining Performance Obligations

Remaining Performance Obligations (RPOs) represents the total contract value of all contracts signed, less revenue recognized from those contracts as of June 30, 2025 and 2024. RPO’s increased 9%, or $4,708 to $56,392 as of June 30, 2025 as compared to $51,684 as of June 30, 2024. Below is a table which displays the Cloud