Revenue Recognition

12 Months Ended

Dec. 31, 2021

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):

	Year Ended December 31,
Primary Geographic Markets	2021		2020		2019
United States	$	253,941	$	201,458	$	157,039
International		114,492		69,683		43,843
Total	$	368,433	$	271,141	$	200,882

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

	Year Ended December 31,
	2021		2020		2019
Subscription services	$	327,047	$	242,651	$	179,934
Professional services		26,022		20,410		17,187
Software licenses and other		15,364		8,080		3,761
Total	$	368,433	$	271,141	$	200,882

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 $15.8 million and $14.5 million as of December 31, 2021 and 2020, respectively. Noncurrent deferred costs, which primarily consist of deferred sales commissions, were $17.0 million and $15.9 million as of December 31, 2021 and 2020, respectively. During the years ended December 31, 2021, 2020 and 2019, amortization expense for the deferred costs was $14.4 million, $12.6 million and $8.0 million, respectively. There was no impairment loss in relation to the costs capitalized.

Deferred Revenue

For the years ended December 31, 2021, 2020 and 2019, $157.6 million, $123.3 million and $86.2 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, 2021, 2020 and 2019, $8.6 million, $6.6 million and $6.0 million, respectively, of professional services revenue was recognized and was included in the deferred revenue balance at the beginning of the period.

As of December 31, 2021, approximately $425.3 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 $263.6 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.     

As of December 31, 2021, approximately $15.7 million of revenue is expected to be recognized from remaining performance obligations for professional services contracts. The Company expects to recognize revenue on approximately $13.4 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.