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

Company: Crexendo, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 25
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 table which displays the software solutions 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):

Software solutions RPO's as of January 1, 2025 $30,262 Software solutions RPO's as of June 30, 2025 $27,077      Software solutions RPO's as of January 1, 2024 $19,122 Software solutions RPO's as of June 30, 2024 $19,478 

Cost of Software Solutions Revenue

Cost of software solutions revenue consists primarily of salaries, benefits, bonuses, and share-based compensation, amortization expense for developed technologies intangible assets, cost of data center hosting, third-party software, annual user group meeting costs, and outsourced services required to install and support software solutions. 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 software solutions revenue $3,303  $2,837  $466   16%

The increase in cost of software solutions revenue is primarily related to an increase in salaries, benefits, bonuses, share-based compensation, and headcount of $286, an increase in software costs of $156, an increase in outsourced services of $102, and an increase in other cost of software solutions revenue of $25, offset by a decrease in third-party hosting service costs of $103 related to the renegotiation of our third-party hosting service contract.

Selling and Marketing

Selling and marketing expenses consist primarily of sales and marketing salaries, benefits, bonuses, commissions, share-based compensation, travel expenses, lead generation services, trade shows, third-party marketing services, the production of marketing materials, annual user group meeting costs, and sales support software. The following table reflects our selling and marketing expenses 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 Selling and marketing $2,