Company: CXDO
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001654954-25-005149
Chunk: 48

Company: Crexendo, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 cost of service revenue, cost of software solution revenue, cost of product revenue, sales and marketing, research and development, and general and administrative expenses.

Operating Results of our Cloud Telecommunications Services Segment (in thousands):

  Three Months EndedMarch 31, Cloud Telecommunications Services 2025  2024 Service revenue $8,182  $7,845 Product revenue  1,007   1,295 Total revenue $9,189  $9,140 Operating expenses:        Cost of service revenue $3,487  $3,109 Cost of product revenue  599   730 Selling and marketing  2,852   2,796 General and administrative  1,938   2,158 Research and development  132   269 Total operating expenses  9,008   9,062 Income/(loss) from operations  181   78 Other income/(expense), net  81   (5)Income/(loss) before income tax $262  $73 

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

  Three Months Ended March 31,   2025  2024  DollarChange  PercentChange Service revenue $8,182  $7,845  $337   4%

The increase in service revenue is due to an increase in telecommunications services fees of $306, an increase in fees, commissions, and other, recognized over time of $98, and an increase in sales-type lease interest of $46, offset by a decrease in one-time fees, commissions and other of $113. A substantial portion of Cloud Telecommunications service revenue is generated through thirty-six to sixty month service contracts. 

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 three months ended March 31, 2025