Company: CXDO
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001654954-25-005149
Chunk: 71

Company: Crexendo, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 71
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 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  PercentChange Cost of service revenue $3,487  $3,109  $378   12%

The increase in cost of service revenue was primarily related to an increase in third-party telecommunications charges of $135, an increase in salaries, benefits, bonuses, and share-based compensation of $71, an increase in contract labor costs to assist with the migration of our customers to our new VIP platform of $55, an increase in software costs of $43, an increase in data center hosting costs of $41, and an increase in other cost of service revenue of $33.

Cost of Product Revenue

Cost of product revenue consists of the costs associated with desktop phone devices and third-party equipment. The following table reflects our cost of product 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 Cost of product revenue $599  $730  $(131)  (18)%

The decrease is directly related to a decrease in product revenue for the quarter.

 35Table of Contents

Selling and Marketing

Selling