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Revenue
12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue
4.
Revenue

The Company disaggregates revenue from its arrangements with customers by type of service as it believes these categories best depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

The following table represents a disaggregation of revenue from arrangements with customers for the years ended December 31, 2022, 2021 and 2020.

 

 

Year Ended December 31,

 

(in thousands)

 

2022

 

 

2021

 

 

2020

 

Subscription services

 

$

217,024

 

 

$

164,564

 

 

$

117,080

 

Professional services

 

 

5,629

 

 

 

1,590

 

 

 

1,237

 

Total revenue

 

$

222,653

 

 

$

166,154

 

 

$

118,317

 

The opening and closing balances of the Company’s receivables, deferred contract costs and contract liabilities from contracts with customers are as follows:

 

(in thousands)

 

December 31,
2022

 

 

December 31,
2021

 

Accounts receivable, net

 

$

58,799

 

 

$

43,336

 

Deferred contract costs

 

 

10,387

 

 

 

6,880

 

Long-term deferred contract costs

 

 

14,596

 

 

 

11,667

 

Deferred revenues

 

 

99,928

 

 

 

84,023

 

Deferred Contract Costs

A summary of the activity impacting the deferred contract costs during the years ended December 31, 2022 and 2021 is presented below:

 

(in thousands)

 

December 31,
2022

 

 

December 31,
2021

 

Balance at beginning of year

 

$

18,547

 

 

$

8,899

 

Costs amortized

 

 

(8,816

)

 

 

(4,792

)

Additional amounts deferred

 

 

15,252

 

 

 

14,440

 

Balance at end of year

 

 

24,983

 

 

 

18,547

 

Classified as:

 

 

 

 

 

 

Current

 

 

10,387

 

 

 

6,880

 

Non-current

 

 

14,596

 

 

 

11,667

 

Total deferred contract costs (deferred commissions)

 

$

24,983

 

 

$

18,547

 

 

Contract Liabilities

A summary of the activity impacting deferred revenue balances during the years ended December 31, 2022 and 2021

is presented below:

 

(in thousands)

 

December 31,
2022

 

 

December 31,
2021

 

Balance at beginning of year

 

$

84,023

 

 

$

61,200

 

Revenue recognized

 

 

(222,653

)

 

 

(166,154

)

Additional amounts deferred

 

 

238,558

 

 

 

188,977

 

Balance at end of year

 

$

99,928

 

 

$

84,023

 

Remaining Performance Obligations

Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to remaining performance obligations is influenced by several factors, including seasonality, the timing of renewals, and disparate contract terms. Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and backlog. The Company’s backlog represents installment billings for periods beyond the current billing cycle. The majority of the Company’s noncurrent remaining performance obligations will be recognized in the next 13 to 36 months.

The remaining performance obligations consisted of the following:

 

(in thousands)

 

December 31,
2022

 

 

December 31,
2021

 

Current

 

$

183,527

 

 

$

155,134

 

Non-current

 

 

93,464

 

 

 

95,354

 

Total

 

$

276,991

 

 

$

250,488