Company: CXDO
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001654954-25-012585
Chunk: 65

Company: Crexendo, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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 increased 11%, or $6,030 to $58,993 as of September 30, 2025 as compared to $52,963 as of September 30, 2024. Below is a table which displays the Cloud Telecommunications 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):

Cloud Telecommunications RPO's as of January 1, 2025 $55,369 Cloud Telecommunications RPO's as of September 30, 2025 $58,993      Cloud Telecommunications RPO's as of January 1, 2024 $44,810 Cloud Telecommunications RPO's as of September 30, 2024 $52,963 

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, customer support salaries, benefits, bonuses, and share-based compensation. The following table reflects our cost of 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 Cost of service revenue $10,707  $9,691  $1,016   10%

The increase in cost of service revenue was primarily related to an increase in third-party telecommunication charges of $417, an increase in contract labor costs to assist with the migration of our customers to our new VIP platform of $412, an increase in data center hosting costs of $111, an increase in software costs of $73, and an increase in other cost of service revenue of $3.

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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 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 Cost of product revenue $2,174  $2,507