Company: CXDO
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001654954-25-009071
Chunk: 103

Company: Crexendo, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 103
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, the allocation of discounts or sales promotions across the performance obligations, and the timing of installations. Our typical customer installation is complete within 30-60 days. However, larger enterprise customers can take multiple months, depending on size and the number of locations. The decrease in product revenue is primarily related to a decrease in managed IT services and infrastructure as a service product revenue of $131, offset by an increase in product revenue related to our cloud telecommunications services of $41.

Remaining Performance Obligations 

Remaining Performance Obligations (RPOs) represents the total contract value of all contracts signed, less revenue recognized from those contracts as of June 30, 2025 and 2024. RPO’s increased 9%, or $4,708 to $56,392 as of June 30, 2025 as compared to $51,684 as of June 30, 2024. Below is a table which displays the Cloud Telecommunications segment revenue remaining performance obligations as of April 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 April 1, 2025 $54,683 Cloud Telecommunications RPOs as of June 30, 2025 $56,392      Cloud Telecommunications RPOs as of April 1, 2024 $48,081 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, customer support salaries, benefits, bonuses, and share-based compensation. The following table reflects our cost of service revenue for the three months ended June 30, 2025, compared to the three months ended June 30, 2024:

  2025  2024  Dollar Change  Percent Change Cost of service revenue $3,556  $3,246  $310   10%

The increase in cost of service revenue was primarily related to an increase in third-party telecommunications charges of $118, an increase in salaries, benefits, bonuses, share-based compensation, and headcount of $85, an increase in data center hosting costs of $43, an