Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Unsatisfied Performance Obligations

As of June 30, 2023, the aggregate amount of transaction price allocated to the unsatisfied performance obligations was $147.1 million. The Company expects to recognize this revenue over the remaining contract term of the individual projects, with remaining contract terms generally ranging from one month to 5.1 years. The amount of unsatisfied performance obligations is lower than the potential contractual revenue since it excludes revenue that is constrained. Revenue amounts excluded due to constraints include those amounts under contracts that (i) are wholly unperformed in which the customer has a unilateral right to cancel the arrangement, or (ii) require the Company to undertake numerous activities to fulfill the performance obligations, including various activities that are outside of the Company’s control.

Timing of Billing and Performance

During the three and six months ended June 30, 2023, the Company recognized approximately $1.2 million and $4.5 million of revenue, respectively, that was included in the deferred revenue balance at the beginning of the periods. During the three and six months ended June 30, 2023, revenue recognized from performance obligations partially satisfied in previous periods was $1.1 million and $4.0 million, respectively. These cumulative catch-up adjustments primarily related to contract modifications executed in the current period, which resulted in changes to the transaction price and changes in estimates such as estimated total costs.

Accounts Receivable, Unbilled Services, and Deferred Revenue

Accounts receivable and unbilled services (including contract assets) consisted of the following:

(In thousands)	June 30, 2023		December 31, 2022
Accounts receivable	$	11,928	$	8,235
Unbilled services	4,123		3,555
Total accounts receivable and unbilled services	16,051		11,790
Allowance for doubtful accounts	(1,219)		(798)
Total accounts receivable and unbilled services, net	$	14,832	$	10,992

As of June 30, 2023 and December 31, 2022, contract assets of $4.1 million and $3.6 million, respectively, were included in unbilled services.

Deferred revenue as of June 30, 2023 and December 31, 2022 was $7.0 million and $8.3 million, respectively. Changes in the Company’s accounts receivable, unbilled services and deferred revenue balances were impacted by timing differences between the Company’s satisfaction of performance obligations under its contracts, achievement of billing milestones, and customer payments.

Revenue by Geography

Substantially all of the Company’s revenue for the three and six months ended June 30, 2023 and 2022 was derived from services performed within the United States. No other country represented more than 10% of total revenue for these periods.

Concentration of Credit Risk

Financial assets that subject the Company to credit risk primarily consist of cash and cash equivalents, accounts receivable and unbilled services. Based on the short-term nature and historical realization of the financial assets, as well as the reputable credit ratings of the financial institutions holding the deposits, the Company believes it bears minimal credit risk. Certain balances exceed Federal Deposit Insurance Corporation (FDIC) insured limits or are invested in money market accounts with investment banks that are not FDIC insured.

For both the three months ended June 30, 2023 and 2022, two customers individually (totaling 27.5% and 29.6% of revenues, respectively) accounted for greater than 10% of revenue. For the six months ended June 30, 2023 and 2022, three and two customers, respectively, individually (totaling 34.5% and 32.4% of revenues, respectively) accounted for greater than 10% of revenue.

As of June 30, 2023 and December 31, 2022, five and two customers, respectively, individually (totaling 69.3% and 39.1% of accounts receivable, net, respectively) accounted for greater than 10% of accounts receivable, net.