Company: CXDO
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001654954-25-009071
Chunk: 18

Company: Crexendo, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 18
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igations (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 Telecommunications segment revenue remaining performance obligations as of January 1, 2025 and 2024, and June 30, 2025 and 2024, which we expect to recognize as revenue within the next thirty-six to sixty months (in thousands):

Cloud Telecommunications RPOs as of January 1, 2025 $55,369 Cloud Telecommunications RPOs as of June 30, 2025 $56,392      Cloud Telecommunications RPOs as of January 1, 2024 $44,810 Cloud Telecommunications RPOs as of June 30, 2024 $51,684 

Cost of Service Revenue

Cost of service revenue consists primarily of fees we pay to third-party telecommunications carriers, broadband Internet providers, software providers, costs related to installations, contract labor costs, third-party software, customer support salaries, benefits, bonuses, and share-based compensation. The following table reflects our cost of 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 Cost of service revenue $7,043  $6,355  $688   11%

The increase in cost of service revenue was primarily related to an increase in third-party telecommunications charges of $254, an increase in salaries, benefits, bonuses, share-based compensation, and headcount of $156, an increase in data center hosting costs of $83, an increase in contract labor costs to assist with the migration of our customers to our new VIP platform of $64, an increase in software costs of $56, an increase in bank and merchant processing fees of $19, and an increase in other cost of service revenue of $56.

Cost of Product Revenue

Cost of product revenue consists of the costs associated with desktop phone devices and third-party equipment. The following table reflects our cost of product revenue for the