REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS    

Disaggregated Revenue

The Company provides information, analytics and online marketplaces to the commercial real estate industry and related professionals. Revenues by operating segment and type of service consist of the following (in thousands):

	Three Months Ended June 30,
	2021						2020
	North America		International		Total		North America		International		Total
Information and analytics
CoStar	$	167,845	$	9,134	$	176,979	$	157,793	$	7,260	$	165,053
Information services	28,096		7,061		35,157		25,022		5,514		30,536
Online marketplaces
Multifamily	171,357		—		171,357		145,541		—		145,541
Commercial property and land	96,476		364		96,840		56,006		23		56,029
Total revenues	$	463,774	$	16,559	$	480,333	$	384,362	$	12,797	$	397,159

	Six Months Ended June 30,
	2021						2020
	North America		International		Total		North America		International		Total
Information and analytics
CoStar	$	331,399	$	17,764	$	349,163	$	315,128	$	14,881	$	330,009
Information services	55,782		14,071		69,853		50,712		12,206		62,918
Online marketplaces
Multifamily	337,504		—		337,504		283,001		—		283,001
Commercial property and land	180,852		658		181,510		112,968		110		113,078
Total revenues	$	905,537	$	32,493	$	938,030	$	761,809	$	27,197	$	789,006

Deferred Revenue

Changes in revenue for the period were as follows (in thousands):

Balance at December 31, 2020	$	77,363
Revenue recognized in the current period from the amounts in the beginning balance	(61,486)
New deferrals, net of amounts recognized in the current period	78,720
Effects of foreign currency	144
Balance at June 30, 2021(1)	$	94,741
__________________________

(1) Deferred revenue is comprised of $93 million of current liabilities and $2 million of noncurrent liabilities classified within lease and other long-term liabilities on the Company’s condensed consolidated balance sheet as of June 30, 2021. This balance includes $1 million of net new deferrals recognized in connection with business acquisitions made in 2021. See Note 5 for details.

Contract Assets

The Company had contract assets of $9 million as of June 30, 2021 and December 31, 2020, which are generated when contractual billing schedules differ from revenue recognition timing. Contract assets represent a conditional right to consideration for satisfied performance obligations that becomes a receivable when the conditions are satisfied. Current contract assets are included in prepaid expenses and other current assets, and non-current contract assets are included in deposits and other assets on the Company's condensed consolidated balance sheets. The revenue recognized from contract assets for the three and six months ended June 30, 2021 was not material.

Commissions

Commissions expense is included in selling and marketing expense in the Company's condensed consolidated statements of operations. Commissions expense activity for the three and six months ended June 30, 2021 and 2020 was as follows (in thousands). The Company determined that no deferred commissions were impaired as of June 30, 2021:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Commissions incurred	$	27,299	$	21,174	$	53,646	$	43,611
Commissions capitalized in the current period	(16,844)		(15,599)		(31,922)		(32,122)
Amortization of deferred commissions costs	15,530		14,915		30,847		29,662
Total commissions expense	$	25,985	$	20,490	$	52,571	$	41,151

Unsatisfied Performance Obligations

Remaining contract consideration for which revenue has not been recognized due to unsatisfied performance obligations was approximately $277 million at June 30, 2021, which the Company expects to recognize over the next five years. This amount does not include contract consideration for contracts with a duration of one year or less.