CONTRACT ASSETS AND DEFERRED REVENUE

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

CONTRACT ASSETS AND DEFERRED REVENUE

CONTRACT ASSETS AND DEFERRED REVENUE

Contract assets exist when the Company has satisfied a performance obligation but does not have an unconditional right to consideration (e.g., because the entity first must satisfy another performance obligation in the contract before it is entitled to invoice the customer). Deferred revenue represents the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer.

Contract assets and deferred revenue consisted of the following:

	As of
(in thousands)	June 30, 2023		December 31, 2022
Contract assets	$	5,491	$	5,580
Deferred revenue	$	81,751	$	80,471

Contract assets and the non-current portion of deferred revenue are reported as components of “Prepaid expenses and other current assets” and “Other non-current liabilities,” respectively, on the condensed consolidated balance sheets.

Revenue recognized during the three months ended June 30, 2023 and July 1, 2022, that was included within the deferred revenue balance at January 1, 2023 and 2022 was $14.1 million and $11.3 million, respectively. Revenue recognized during the six months ended June 30, 2023 and July 1, 2022, that was included within the deferred revenue balance at January 1, 2023 and 2022 was $35.3 million and $34.8 million, respectively.

Remaining performance obligations represent contracted revenues that have not yet been recognized and include deferred revenue and unbilled amounts that will be recognized as revenue in the future. The aggregate balance of the Company’s remaining performance obligations as of June 30, 2023 was $663.8 million, a majority of which is expected to be recognized as revenue over the next 12 months and the remainder thereafter.

Refer to Note 10, “Segment Information” for disaggregated revenue information.