Revenue Recognition

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

(15) Revenue Recognition

During 2022, the Company updated the following geographic market presentation. Prior period has been recast to conform to the current presentation. North America includes United States and Canada and International aggregates international revenues excluding Canada. The majority of the Company's North America revenue is generated in the United States. The following table disaggregates the Company’s revenue by geography which provides information as to the major source of revenue (in thousands):

	Year Ended December 31,
Primary Geographic Markets	2022		2021		2020
North America	$	318,348	$	276,677	$	211,254
International		113,544		91,756		59,887
Total	$	431,892	$	368,433	$	271,141

The following table presents the Company’s revenues disaggregated by revenue source (in thousands):

	Year Ended December 31,
	2022		2021		2020
Subscription services	$	384,617	$	327,047	$	242,651
Professional services		29,252		26,022		20,410
Software licenses and other		18,023		15,364		8,080
Total	$	431,892	$	368,433	$	271,141

Contract Assets

The Company does not have material amounts of contract assets since revenue is recognized as control of goods is transferred or as services are performed. There are a small number of professional services that may occur over a period of time, but that period of time is generally very short in duration. Any contract assets that may arise are recorded in other assets in the Company’s consolidated balance sheet net of an allowance for credit losses.

Contract Liabilities

The Company’s contract liabilities consist of advance payments and deferred revenue. The Company’s contract liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. The Company classifies advance payments and deferred revenue as current or noncurrent based on the timing of when it expects to recognize revenue. Generally, all contract liabilities are expected to be recognized within one year and are included in deferred revenue in the Company’s consolidated balance sheet. The noncurrent portion of deferred revenue is included and separately disclosed in the Company’s consolidated balance sheet.

Deferred Costs

Current deferred costs, which primarily consist of deferred sales commissions, were $16.2 million and $15.8 million as of December 31, 2022 and 2021, respectively. Noncurrent deferred costs, which primarily consist of deferred sales commissions, were $21.4 million and $17.0 million as of December 31, 2022 and 2021, respectively. During the years ended December 31, 2022, 2021 and 2020, amortization expense for the deferred costs was $18.3 million, $14.4 million and $12.6 million, respectively. There was no impairment loss in relation to the costs capitalized.

Deferred Revenue

For the years ended December 31, 2022, 2021 and 2020, $214.8 million, $157.6 million and $123.3 million, respectively, of subscription services, license and other revenue was recognized and was included in the deferred revenue balances at the beginning of the respective period.

For the years ended December 31, 2022, 2021 and 2020, $6.8 million, $8.6 million and $6.6 million, respectively, of professional services revenue was recognized and was included in the deferred revenue balance at the beginning of the period.

Remaining Performance Obligations

As of December 31, 2022, approximately $484.2 million of revenue is expected to be recognized from remaining performance obligations for subscription and other contracts. The Company expects to recognize revenue on approximately $294.4 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.

As of December 31, 2022, approximately $14.5 million of revenue is expected to be recognized from remaining performance obligations for professional services contracts. The Company expects to recognize revenue on approximately $13.0 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.