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Revenue Recognition
6 Months Ended
Jun. 30, 2020
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 (in thousands):

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

Primary Geographic Markets

 

2020

 

 

2019

 

 

2020

 

 

2019

 

United States

 

$

51,017

 

 

$

36,591

 

 

$

97,966

 

 

$

70,675

 

International

 

 

14,360

 

 

 

11,814

 

 

 

26,311

 

 

 

20,549

 

Total

 

$

65,377

 

 

$

48,405

 

 

$

124,277

 

 

$

91,224

 

 

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

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Subscription services

 

$

59,506

 

 

$

42,331

 

 

$

113,317

 

 

$

82,806

 

Professional services

 

 

4,653

 

 

 

3,222

 

 

 

9,134

 

 

 

5,566

 

Software licenses and other

 

 

1,218

 

 

 

2,852

 

 

 

1,826

 

 

 

2,852

 

Total revenues

 

$

65,377

 

 

$

48,405

 

 

$

124,277

 

 

$

91,224

 

 

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, which is not material.  

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 $11.2 million and $9.9 million as of June 30, 2020 and December 31, 2019, respectively. Noncurrent deferred costs, which primarily consist of deferred sales commissions, were $14.1 million and $14.2 million as of June 30, 2020 and December 31, 2019, respectively. During the three months ended June 30, 2020 and 2019, amortization expense for the deferred costs was $2.8 million and $2.0 million, respectively. During the six months

ended June 30, 2020 and 2019, amortization expense for the deferred costs was $5.7 million and $3.6 million, respectively. There was no impairment loss in relation to the costs capitalized for the six months ended June 30, 2020 and the year ended December 31, 2019, respectively.

Deferred Revenue

$51.2 million and $35.0 million of subscription services revenue was recognized during the three months ended June 30, 2020 and 2019, respectively, and was included in the deferred revenue balances at the beginning of the respective period. $83.0 million and $62.9 million of subscription services revenue was recognized during the six months ended June 30, 2020 and 2019, respectively, and was included in the deferred revenue balances at the beginning of the respective period. $3.9 million and $5.4 million of professional services revenue was recognized during the three and six months ended June 30, 2020, respectively, and was included in the deferred revenue balance at the beginning of the period. Professional services revenue recognized during the three and six months ended June 30, 2019 from deferred revenue balances at the beginning of the respective period was not material.

As of June 30, 2020, approximately $311.1 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 $176.0 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.      

As of June 30, 2020, approximately $7.6 million of revenue is expected to be recognized from remaining performance obligations for professional services contracts. The Company expects to recognize revenue on approximately $6.2 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.