Revenue

12 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

Revenue Disaggregation

The following table summarizes our revenue by geographic location of our customers:

	Year ended September 30,
($ in thousands)	2022		2021		2020
North America, primarily the United States	$	302,409	$	227,923	$	213,487
Europe, Middle East & Africa	53,612		46,024		40,076
Rest of world	32,204		34,685		25,708
Total revenue	$	388,225	$	308,632	$	279,271

The following table summarizes our revenue by the timing of revenue recognition:

	Year ended September 30,
($ in thousands)	2022		2021		2020
Transferred at a point in time	$	302,535	$	274,960	$	253,371
Transferred over time	85,690		33,672		25,900
Total revenue	$	388,225	$	308,632	$	279,271

Contract Balances

Contract Assets

Contract assets consist of subscriber assets.  These subscriber assets relate to fees in certain contracts that we charge our customers so they can begin using equipment. In these cases, we retain the ownership of the equipment that the customer uses. The total net book value of subscriber assets of $16.5 million and $1.9 million as of September 30, 2022 and September 30, 2021, respectively, are included in property, equipment and improvements, net. The September 30, 2022 balance includes $14.7 million acquired in the acquisition of Ventus. Depreciation expense for these subscriber assets, which is included in cost of sales, was $3.2 million and $1.9 million for the year ended September 30, 2022 and September 30, 2021, respectively. We depreciate the cost of this equipment over its useful life.

11. REVENUE (CONTINUED)

.Contract Liabilities

The timing of revenue recognition may differ from the timing of invoicing to customers. Customers are invoiced for subscription services on a monthly, quarterly or annual basis. Contract liabilities consist of unearned revenue related to annual or multi-year contracts for subscription services and related implementation fees, as well as product sales that have been invoiced, but not yet fulfilled.

Our contract liabilities were $21.6 million and $15.5 million at September 30, 2022 and 2021, respectively. The September 30, 2022 balance includes $2.1 million assumed from the Ventus acquisition completed in November 2021.

Of the $15.5 million and $9.3 million balances as of September 30, 2021 and 2020, Digi recognized $13.2 million and $7.5 million in the year ended September 30, 2022 and 2021, respectively.

Remaining Transaction Price

Transaction price allocated to the remaining performance obligations represents contracted revenue that has not been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. As of September 30, 2022 approximately $21.6 million of revenue is expected to be recognized from remaining performance obligations for subscriptions contracts. We expect to recognize revenue on approximately $19.8 million of remaining performance obligations over the next twelve months. Revenue from the remaining performance obligations we expect to recognize over a range of two years to five years.