Company: CXDO
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001654954-25-009071
Chunk: 107

Company: Crexendo, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 107
---
 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 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 product revenue $1,286  $1,426  $(140)  -10%

The decrease in cost of product revenue is directly related to