Revenue

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue

3. 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 three and nine months ended September 30, 2024 and 2023, respectively:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Subscription services	$	60,897	$	62,568	$	184,645	$	180,358
Professional services		1,800		2,757		5,269		5,125
Total revenue	$	62,697	$	65,325	$	189,914	$	185,483

Deferred Contract Costs

A summary of the activity impacting the deferred contract costs for the nine months ended September 30, 2024 and the year ended December 31, 2023 is presented below:

(in thousands)	Nine Months Ended September 30, 2024			Twelve Months Ended December 31, 2023
Balance at beginning of period	$	30,810		$	24,983
Costs amortized		(11,463	)		(12,963	)
Additional amounts deferred		8,275			18,790
Balance at end of period		27,622			30,810
Classified as:
Current		13,486			13,490
Non-current		14,136			17,320
Total deferred contract costs (deferred commissions)	$	27,622		$	30,810

Contract Liabilities

A summary of the activity impacting deferred revenue balances during the nine months ended September 30, 2024 and for the year ended December 31, 2023 is presented below:

(in thousands)	Nine Months Ended September 30, 2024			Twelve Months Ended December 31, 2023
Balance at beginning of period	$	97,386		$	99,928
Revenue recognized		(189,914	)		(251,415	)
Additional amounts deferred		178,768			248,873
Balance at end of period	$	86,240		$	97,386

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 invoiced and 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. 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)	September 30, 2024		December 31, 2023
Current	$	163,692	$	187,331
Non-current		81,181		89,636
Total	$	244,873	$	276,967