Revenue recognition

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue recognition

3. Revenue recognition

Deferred revenue—Revenue recognized for the fiscal year ended December 31, 2023, from amounts included in deferred revenue as of December 31, 2022 was $268.3 million. Revenue recognized for the fiscal year ended December 31, 2022, from amounts included in deferred revenue as of December 31, 2021 was $204.4 million. Revenue recognized for the fiscal year ended December 31, 2021, from amounts included in deferred revenue as of December 31, 2020 was $139.5 million.

The below table presents a summary of deferred revenue balances by reportable segment (in thousands):

	December 31,		December 31,		December 31,		December 31,
	2023		2022		2021		2020
Deferred revenue:
Enterprise	$	220,127	$	219,030	$	148,966	$	84,241
Consumer	62,287		59,249		61,588		58,135
Total deferred revenue	$	282,414	$	278,279	$	210,554	$	142,376

Remaining performance obligations— Remaining performance obligations represent the aggregate amount of the transaction price in contracts for performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations primarily relate to deferred revenue as well as unbilled revenue from multi-year Enterprise subscription contracts with future installment payments, as well as unearned revenue from Consumer single course purchases and subscriptions at the end of any given period. As of December 31, 2023, the aggregate transaction price for remaining performance obligations was $552.3 million, of which 70% is expected to be recognized over the next twelve months and the remainder thereafter.

Deferred contract costs— The following table represents a roll forward of the Company’s deferred contract costs (in thousands):

	Balance at Beginning of Period		Additions		Amortization Expense		Balance at End of Period
Fiscal Year Ended December 31, 2023	$	65,645	$	56,890	$	(48,161)	$	74,374
Fiscal Year Ended December 31, 2022	$	44,545	$	53,379	$	(32,279)	$	65,645
Fiscal Year Ended December 31, 2021	$	25,837	$	36,509	$	(17,801)	$	44,545