Revenue Recognition

3 Months Ended

Mar. 31, 2023

Revenue Recognition [Abstract]

Revenue Recognition

REVENUE RECOGNITION

Contract Balances

Contract assets and liabilities were as follows:

	March 31, 2023		December 31, 2022		January 1, 2022
Contract assets:
Billed accounts receivable, net of allowance for credit losses	$	56,562	$	45,337	$	22,286
Unbilled accounts receivable	11,637		8,397		12,110
Total contract assets	$	68,199	$	53,734	$	34,396
Contract liabilities:
Deferred revenue	$	134,161	$	118,777	$	98,488
Total contract liabilities	$	134,161	$	118,777	$	98,488

Revenue recognized during the three months ended March 31, 2023 and 2022 that was included in the corresponding deferred revenue balance at the beginning of each year was $58,733 and $47,160, respectively.

Remaining Performance Obligations

Remaining performance obligations represent future revenue that is under non-cancelable contracts but has not yet been recognized. As of March 31, 2023, we had remaining performance obligations of $316,500 and expect to recognize approximately 65% as revenue over the next 12 months and the remainder thereafter.

Costs to Obtain and Fulfill Contracts

During the three months ended March 31, 2023 and 2022, we capitalized $2,972 and $2,493, respectively of commissions and related payroll tax expenditures, and amortized $2,681 and $2,744, respectively, to sales and marketing expense. As of March 31, 2023 and December 31, 2022, the amount of deferred commissions and related payroll tax expenditures included in deferred costs and in other assets was $10,387 and $13,300, and $13,630 and $10,426, respectively.

During the three months ended March 31, 2022, we recognized an impairment loss of $1,886 on deferred partner fees that we do not expect to recover associated with content from Russian educator partners whose content we removed from our platform. The impairment loss was recorded within general and administrative expenses in the unaudited condensed consolidated statements of operations. No impairment loss was recognized during the three months ended March 31, 2023.