Company: CXDO
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001654954-25-005149
Chunk: 49

Company: Crexendo, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 49
---
, compared to the three months ended March 31, 2024:

 34Table of Contents

  Three Months Ended March 31,   2025  2024  DollarChange  PercentChange Product revenue $1,007  $1,295  $(288)  (22)%

Product revenue fluctuates from one period to the next based on 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. Product revenue is recognized when products have been installed and services commence. Additionally, product revenue can fluctuate due to the allocation of discounts or sales promotions across the performance obligations.

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. RPO’s increased 14%, or $6,602 to $54,683 as of March 31, 2025 as compared to $48,082 as of March 31, 2024. Below is a table which displays the Cloud Telecommunications 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):

Cloud Telecommunications RPOs as of January 1, 2025 $55,369 Cloud Telecommunications RPOs as of March 31, 2025 $54,683      Cloud Telecommunications RPOs as of January 1, 2024 $44,810 Cloud Telecommunications RPOs as of March 31, 2024 $48,081 

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, credit card processing fees, cost of data center hosting, software costs, customer support salaries, benefits, bonuses, and share-based compensation. The following table reflects our cost of 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