Revenue

9 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

Revenue Disaggregation

The following table summarizes our revenue by geographic location of our customers (in thousands):

	Three months ended June 30,				Nine months ended June 30,
	2021		2020		2021		2020
North America, primarily the United States	$	56,965	$	52,603	$	167,406	$	157,513
Europe, Middle East & Africa	12,543		11,027		34,769		29,428
Rest of world	9,571		6,708		27,351		19,161
Total revenue	$	79,079	$	70,338	$	229,526	$	206,102

The following table summarizes our revenue by the timing of revenue recognition (in thousands):

	Three months ended June 30,				Nine months ended June 30,
	2021		2020		2021		2020
Transferred at a point in time	$	70,333	$	63,674	$	203,665	$	186,739
Transferred over time	8,746		6,664		25,861		19,363
Total revenue	$	79,079	$	70,338	$	229,526	$	206,102

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 $2.2 million and $2.2 million as of June 30, 2021 and September 30, 2020, respectively, are included in property, equipment and improvements, net. Depreciation expense for these subscriber assets, which is included in cost of sales, was $0.5 million and $0.4 million for the three months ended June 30, 2021 and June 30, 2020, respectively and $1.4 million and $1.1 million for the nine months ended June 30, 2021 and June 30, 2020, respectively. We depreciate the cost of this equipment over its useful life (typically three years).

Contract Liabilities

The timing of revenue recognition may differ from the timing of invoicing to customers. Customers are invoiced for subscription services in advance 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. These pertain to our IoT Solutions segment and our Digi Remote Manager® services in our IoT Products & Services segment.

Changes in unearned revenue were (in thousands):

	Three months ended June 30,				Nine months ended June 30,
	2021		2020		2021		2020
Unearned revenue, beginning of period	$	16,436	$	8,702	$	9,341	$	5,025
Billings	9,180		5,256		37,193		24,810
Revenue recognized	(10,775)		(7,530)		(31,693)		(23,407)
Unearned revenue, end of period	$	14,841	$	6,428	$	14,841	$	6,428

Remaining Transaction Price

Transaction price allocated to the remaining performance obligations represents contracted revenue that has not been recognized. This includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. As of

June 30, 2021, approximately $14.8 million of revenue is expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenue on approximately $13.0 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 to seven years.