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Revenue, Deferred Revenue, and Deferred Costs and Other
12 Months Ended
Dec. 31, 2022
Revenue, Deferred Revenue, and Deferred Costs and Other  
Revenue, Deferred Revenue, and Deferred Costs and Other

Note 3. Revenue, Deferred Revenue, and Deferred Costs and Other

The Company generates access fees from Clients, as well as individual paying users, accessing its professional provider network, hosted virtual healthcare platform, and chronic care management platforms. Visit fee revenue is generated for general medical, expert medical service, and other specialty visits and is reported as a component of other revenue in the financial statements. Revenue associated with virtual healthcare device equipment sales included with the Company’s hosted virtual healthcare platform is also reported in other revenue. Access revenue accounted for approximately 87%, 86%, and 78% of the Company’s total revenue for the years ended December 31, 2022, 2021, and 2020, respectively.

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

Year Ended December 31,

    

    

2022

    

2021

    

2020

Revenue by Type

Access fees

$

2,103,814

$

1,740,170

$

847,255

Other

303,026

292,537

246,707

Total Revenue

$

2,406,840

$

2,032,707

$

1,093,962

Revenue by Geography

U.S. Revenue

$

2,101,015

$

1,774,024

$

913,720

International Revenue

305,825

258,683

180,242

Total Revenue

$

2,406,840

$

2,032,707

$

1,093,962

Deferred Revenue

For certain services, payment is required for future periods before the service is delivered to the member. The Company records deferred revenue when cash payments are received in advance of the Company’s performance obligation to provide services. Deferred revenue, current plus long-term, was $94.3 million at December 31, 2022 and $79.4 million at December 31, 2021. The net increase of $14.9 million and $24.6 million in the deferred revenue balance for the years ended December 31, 2022 and 2021, respectively, was primarily driven by increased cash payments received in advance of satisfying performance obligations primarily related to the services of the BetterHelp segment, and to a lesser extent, the Teladoc Health Integrated Care segment, offset by revenue recognized that was included in the deferred revenue balance at the beginning of the period. The Company anticipates that it will satisfy most of its performance obligation associated with the deferred revenue within the prospective fiscal year. Revenue recognized during the years ended December 31, 2022 and 2021 that was included in deferred revenue at the beginning of the periods was $73.7 million and $51.0 million, respectively.

The Company expects to recognize $90.1 million and $4.2 million of revenue in 2023 and 2024, respectively, related to future performance obligations that are unsatisfied or partially unsatisfied as of December 31, 2022.

Deferred Device and Contract Costs

Deferred device and contract costs are classified as a component of prepaid expenses and other current assets or other assets, depending on term, and consisted of the following (in thousands):

As of December 31,

As of December 31,

    

2022

2021

Deferred device and contract costs, current

$

29,956

$

22,304

Deferred device and contract costs, noncurrent

8,404

6,249

Total deferred device and contract costs

$

38,360

$

28,553

Deferred device and contract costs were as follows (in thousands):

    

Deferred Device and Contract Costs

Beginning balance as of December 31, 2021

$

28,553

Additions

51,201

Cost of revenue recognized

(41,394)

Ending balance as of December 31, 2022

$

38,360