Company: CXDO
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001654954-25-005149
Chunk: 66

Company: Crexendo, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 66
---
 2024:

  Three Months Ended March 31,   2025  2024  DollarChange  PercentChange Total revenue $16,057  $14,286  $1,771   12%

The increase in total revenue is due to an increase in software solutions revenue of $1,722 and an increase in service revenue of $337, offset by a decrease in product revenue of $288.

Income/(loss) Before Income Tax

The following table reflects our income/(loss) before income tax 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 Income/(loss) before income tax $1,215  $461  $754   164%

The increase in income before income taxes is primarily related to an increase in revenue of $1,771 and an increase in other income of $87, offset by an increase in operating expenses of $1,104. The increase in revenue is related to organic growth from existing customers and new customers. The increase in operating expenses is primarily related to an increase in salaries, benefits, bonuses, and share-based compensation of $532, an increase in commission expenses of $337, an increase in third-party telecommunications charges of $135, and an increase in other operating expense of $100. The increase in other income is primarily related to an increase in interest income of $83 and a decrease in interest expense of $4.

Income Tax Benefit/(Provision)

The following table reflects our income tax benefit/(provision) 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 Income tax benfit/(provision) $(44) $(27) $(17)  (63)%

The increase in income tax provision is due to minimum state tax increases as a result of increased revenue.

Use of Non-GAAP Financial Measures

To evaluate our business, we consider and use non-generally accepted accounting principles (“Non-GAAP”) net income and Adjusted EBITDA as a supplemental measure of operating performance. These measures include the same adjustments that management takes into account when it