Revenue and Deferred Revenue

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue and Deferred Revenue

Revenue and Deferred RevenueDeferred 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 has no material contract assets as of September 30, 2023 and December 31, 2022.

The following table summarizes the changes in the deferred revenue balance for the nine months ended September 30, 2023 and 2022:

	Nine Months Ended September 30,
	2023		2022
(in thousands)
Deferred revenue, beginning of period	$	38,658	$	35,405
Recognition of revenue included in beginning of period deferred revenue	(32,134)		(28,178)
Revenue deferred, net of revenue recognized on contracts in the respective period	33,951		25,671
Deferred revenue, end of period	$	40,475	$	32,898

As of September 30, 2023, 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 September 30, 2023:

	Year Ended December 31,
	2023 (remainder of year)		2024		2025		2026		Total
(in thousands)
Revenue expected to be recognized	$	22,852	$	15,659	$	1,651	$	313	$	40,475

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 nine months ended September 30, 2023 related to performance obligations satisfied or partially satisfied was $0.5 million and $1.7 million, respectively.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
(in thousands)
North America*	$	137,320	$	149,359	$	430,200	$	517,144
International	37,589		27,637		103,701		88,392
Total revenue	$	174,909	$	176,996	$	533,901	$	605,536
*North America revenue consists of revenues from the United States and Canada.