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Revenue Recognition
12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
17. Revenue Recognition
Transaction price allocated to the remaining performance obligations
As of December 31, 2023, approximately $1.2 billion of revenue is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 50% of these remaining performance obligations over the next 12 months, with the remainder recognized thereafter.
We applied the practical expedient in ASC 606-10-50-14 and have excluded the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less (one-time services); and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed (transactional revenue).
We also applied the practical expedient in ASC 606-10-65-1-(f)(3), whereby the transaction price allocated to the remaining performance obligations, or an explanation of when we expect to recognize that amount as revenue for all reporting periods presented before the date of the initial application, is not disclosed.
Contract balances
Our contract assets as of December 31, 2023 and December 31, 2022 were insignificant. Our closing balances of deferred revenue were as follows:
(in thousands)December 31,
2023
December 31,
2022
Total deferred revenue$394,927 $385,236 
The increase in deferred revenue during 2023 was primarily due to new subscription sales of our cloud solutions and progress in initiatives to bring our pricing in line with the market. Historically, due to the timing of customer budget cycles, we have an increase in customer contract renewals at or near the beginning of our third quarter. Generally, our lowest balance of deferred revenue during the year is at the end of our first quarter. The amount of revenue recognized during 2023 that was included in the deferred revenue balance at the beginning of the period was approximately $365 million. The amount of revenue recognized during 2023 from performance obligations satisfied in prior periods was insignificant.
Disaggregation of revenue
We sell our cloud solutions and related services in three primary geographical markets: to customers in the United States, to customers in the United Kingdom and to customers located in other countries. The following table presents our revenue by geographic area based on the address of our customers:
Years ended
December 31,
(dollars in thousands)
2023
2022
2021
United States$945,580 $896,116 $777,333 
United Kingdom100,833 101,026 89,688 
Other countries59,019 60,963 60,719 
Total revenue$1,105,432 $1,058,105 $927,740 
The Social Sector and Corporate Sector market groups comprised our go-to-market organizations as of December 31, 2023. The following is a description of each market group as of that date:
The Social Sector market group focuses on sales to customers and prospects in the social sector, such as nonprofits, foundations, education institutions, healthcare organizations and other not-for-profit entities globally, and includes JustGiving; and
The Corporate Sector market group focuses on sales to customers and prospects in the corporate sector globally, and includes EVERFI and YourCause.
The following table presents our revenue by market group:
Years ended
December 31,
(dollars in thousands)
2023
2022
2021
Social Sector
$954,845 $907,197 $889,755 
Corporate Sector
150,587 150,908 37,985 
Total revenue$1,105,432 $1,058,105 $927,740 
The following table presents our recurring revenue by type:
Years ended
December 31,
(dollars in thousands)
2023
2022
2021
Contractual recurring$738,351 $709,097 $601,397 
Transactional recurring333,169 302,636 279,453 
Total recurring revenue$1,071,520 $1,011,733 $880,850