Company: CXDO
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001654954-25-005149
Chunk: 69

Company: Crexendo, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 69
---
13 Other, net  (74)  9 Income tax provision  44   27 EBITDA  1,921   1,323 Share-based compensation  726   728 Adjusted EBITDA $2,647  $2,051 

 33Table of Contents

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

In preparing our financial statements, we make estimates, assumptions and judgments that can have a significant impact on our revenue, operating income or loss and net income or loss, as well as on the value of certain assets and liabilities on our balance sheet.  Please see Note 1 of Part I, Item 1 of this quarterly report on Form 10-Q for a summary of significant accounting policies. In addition, the estimates, assumptions and judgments involved in our accounting policies described in critical accounting policies and estimates are disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

Segment Operating Results 

The Company has two operating segments, which consist of Cloud Telecommunications Services and Software Solutions. The information below is organized in accordance with our two reportable segments. Segment operating income is equal to segment net revenue less segment cost of service revenue, cost of software solution revenue, cost of product revenue, sales and marketing, research and development, and general and administrative expenses.

Operating Results of our Cloud Telecommunications Services Segment (in thousands):

  Three Months EndedMarch 31, Cloud Telecommunications Services 2025  2024 Service revenue $8,182  $7,845 Product revenue  1,007   1,295 Total revenue $9,189  $9,140 Operating expenses:        Cost of service revenue $3,487  $3,109 Cost of product revenue  599   730 Selling and marketing  2,852   2,796 General and administrative  1,938   2,158 Research and development  132   269 Total operating expenses  9,008   9,062 Income/(loss) from operations  181   78 Other income/(expense), net  81   (5)Income/(loss) before income tax $262  $73 

Three months ended March 31, 2025 compared to three months ended March 31, 2024

Service Revenue