Revenue Recognition

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

(15) Revenue Recognition

The following table disaggregates the Company’s revenue by geography which provides information as to the major source of revenue. 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 (in thousands):

	Year Ended December 31,
Primary Geographic Markets	2023		2022		2021
North America	$	338,269	$	318,348	$	276,677
International		110,519		113,544		91,756
Total	$	448,788	$	431,892	$	368,433

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

	Year Ended December 31,
	2023		2022		2021
Subscription services	$	410,506	$	384,617	$	327,047
Professional services		24,677		29,252		26,022
Software licenses and other		13,605		18,023		15,364
Total	$	448,788	$	431,892	$	368,433

Contract Assets

Contract assets arise when the Company has earned revenue on a contract with a customer prior to billing. Any contract assets that may arise are recorded in other assets on the Company’s consolidated balance sheets 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 on the Company’s consolidated balance sheets. The noncurrent portion of deferred revenue is included and separately disclosed on the Company’s consolidated balance sheets.

Deferred Costs

Current deferred costs, which primarily consist of deferred sales commissions, were $20.0 million and $16.2 million as of December 31, 2023 and 2022, respectively. Noncurrent deferred costs, which primarily consist of deferred sales commissions, were $26.6 million and $21.4 million as of December 31, 2023 and 2022, respectively. During the years ended December 31, 2023, 2022 and 2021, amortization expense for the deferred costs was $19.6 million, $18.3 million and $14.4 million, respectively. There was no impairment loss in relation to the costs capitalized.

Deferred Revenue

For the years ended December 31, 2023, 2022 and 2021, $225.7 million, $214.8 million and $157.6 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, 2023, 2022 and 2021, $5.9 million, $6.8 million and $8.6 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, 2023, approximately $494.1 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 $305.0 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.

As of December 31, 2023, approximately $10.0 million of revenue is expected to be recognized from remaining performance obligations for professional services contracts. The Company expects to recognize revenue on approximately $9.3 million of these remaining professional services performance obligations over the next 12 months, with the balance recognized thereafter.