Company: CXDO
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001654954-25-005149
Chunk: 74

Company: Crexendo, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 74
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 support is ongoing and provides for software updates and improvements, support for add-on modules, bug fixes, and other general maintenance items. Professional services and other revenues consist of professional services such as the installation of software and integration of other modules, training and implementation as well as custom mobile branding. 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 Software solutions revenue $6,868  $5,146  $1,722   33%

The increase in software solutions revenue is primarily related to an increase in perpetual software license revenue of $1,064 and an increase in recurring software license and maintenance and support subscriptions of $676, offset by a decrease in professional services and other revenue of $18.

Remaining Performance Obligations

Remaining Performance Obligations (RPOs) represents the total contract value of all contracts signed, less revenue recognized from those contracts as of March 31, 2025 and 2024. RPOs increased 41%, or $7,971 to $27,266 as of March 31, 2025, as compared to $19,295 as of March 31, 2024. Below is a table which displays the Software solutions segment remaining performance obligations as of January 1, 2025 and 2024, and March 31, 2025 and 2024, which we expect to recognize as revenue within the next thirty-six to sixty-months (in thousands):

Software solutions RPOs as of January 1, 2025 $30,262 Software solutions RPOs as of March 31, 2025 $27,266      Software solutions RPOs as of January 1, 2024 $19,122 Software solutions RPOs as of March 31, 2024 $19,295 

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 three months ended March 31, 2025,