Revenue and Deferred Revenue

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue and Deferred Revenue

Revenue and Deferred Revenue

Deferred revenue relates to performance obligations for which payments have been received from the customer prior to revenue recognition. Deferred revenue primarily consists of deferred subscription-based services. Deferred revenue also includes amounts allocated from the sale of a connected machine to the unspecified upgrades and enhancements and the Company’s cloud-based services. The Company had no material contract assets.

The following table summarizes the changes in the deferred revenue balance for the six months ended June 30, 2022 and 2021:

	Six Months Ended June 30,
	2022		2021
(in thousands)
Deferred revenue, beginning of period	$	35,405	$	26,276
Recognition of revenue included in beginning of period deferred revenue	(23,938)		(18,805)
Revenue deferred, net of revenue recognized on contracts in the respective period	23,707		22,930
Deferred revenue, end of period	$	35,174	$	30,401

As of June 30, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was equal to the deferred revenue balance.

The Company expects the following recognition of deferred revenue as of June 30, 2022:

	Year Ended December 31,
	2022 (remainder of year)		2023		2024		2025		Total
(in thousands)
Revenue expected to be recognized	$	25,314	$	7,847	$	1,884	$	129	$	35,174

The Company’s revenue from contracts with customers disaggregated by major product lines, excluding sales-based taxes, are included in Note 16 under the heading “Segment Information.”

Revenue recognized during the three and six months ended June 30, 2022 related to performance obligations satisfied or partially satisfied in prior periods was $0.3 million and $0.7 million, respectively.

The following table presents the total revenue by geography based on the ship-to address for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
(in thousands)
North America*	$	159,479	$	306,173	$	367,784	$	596,510
International	24,278		28,320		60,756		61,805
Total revenue	$	183,757	$	334,493	$	428,540	$	658,315

*North America revenue consists of revenues from the United States and Canada.