NOTE 3: REVENUES FROM CONTRACTS WITH CUSTOMERS
The following tables present disaggregated revenue by category:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, 2024 |
| | Enterprise, Education and Technology | | Media and Telecom |
| | Amount | | Percentage of revenue | | Amount | | Percentage of revenue |
| | | | | | | | |
| Subscription | | $ | 124,215 | | | 96.5 | % | | $ | 43,466 | | | 86.9 | % |
| Professional services | | 4,489 | | | 3.5 | % | | 6,547 | | | 13.1 | % |
| | | | | | | | |
| | $ | 128,704 | | | 100 | % | | $ | 50,013 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, 2023 |
| | Enterprise, Education and Technology | | Media and Telecom |
| | Amount | | Percentage of revenue | | Amount | | Percentage of revenue |
| | | | | | | | |
| Subscription | | $ | 120,600 | | | 96.4 | % | | $ | 42,150 | | | 84.3 | % |
| Professional services | | 4,554 | | | 3.6 | % | | 7,868 | | | 15.7 | % |
| | | | | | | | |
| | $ | 125,154 | | | 100 | % | | $ | 50,018 | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, 2022 |
| | Enterprise, Education and Technology | | Media and Telecom |
| | Amount | | Percentage of revenue | | Amount | | Percentage of revenue |
| | | | | | | | |
| Subscription | | $ | 113,551 | | | 94.5 | % | | $ | 38,929 | | | 80.1 | % |
| Professional services | | 6,639 | | | 5.5 | % | | 9,692 | | | 19.9 | % |
| | | | | | | | |
| | $ | 120,190 | | | 100 | % | | $ | 48,621 | | | 100 | % |
Contract Balances
Contract liabilities consist of deferred revenue. Revenue is deferred when the Company invoices in advance of performance under a contract. The current portion of the deferred revenue balance is recognized as revenue during the 12-month period after the balance sheet date.
The noncurrent portion of the deferred revenue balance is recognized as revenue following the 12-month period after the balance sheet date.
Substantially all the revenue that was included in the deferred revenue, current as of January 1, 2024, was recognized as revenue during 2024.
Remaining Performance Obligations
Remaining performance obligations represent the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and contracted amounts that will be invoiced and recognized as revenue in future periods. As of December 31, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $203,379, which consists of both billed consideration in the amount of $63,190 and unbilled consideration in the amount of $140,189 that the Company expects to recognize as revenue and was not yet recognized on the balance sheet. The Company expects to recognize 58% of its remaining performance obligations as revenue in the year ending December 31, 2025, and the remainder over the next four years.
Costs to Obtain a Contract
The following table represents a roll forward of costs to obtain a contract:
| | | | | | | | | | | | | | | | | | | | |
| | December 31, |
| | 2024 | | 2023 | | 2022 |
| | | | | | |
| Beginning balance | | $ | 24,210 | | | $ | 26,928 | | | $ | 26,274 | |
| Additions to deferred contract acquisition costs during the period | | 8,142 | | | 7,237 | | | 10,037 | |
| Amortization of deferred contract acquisition costs | | (10,149) | | | (9,955) | | | (9,383) | |
| | | | | | |
| Ending balance | | $ | 22,203 | | | $ | 24,210 | | | $ | 26,928 | |
| | | | | | |
| Deferred contract acquisition costs, current | | $ | 9,770 | | | $ | 9,063 | | | $ | 8,979 | |
| Deferred contract acquisition costs, noncurrent | | 12,433 | | | 15,147 | | | 17,949 | |
| | | | | | |
| Total deferred costs to obtain a contract | | $ | 22,203 | | | $ | 24,210 | | | $ | 26,928 | |
Costs to Fulfill a Contract
The following table represents a roll forward of costs to fulfill a contract:
| | | | | | | | | | | | | | | | | | | | |
| | December 31, |
| | 2024 | | 2023 | | 2022 |
| | | | | | |
| Beginning balance | | $ | 3,740 | | | $ | 5,522 | | | $ | 5,426 | |
| Additions to deferred costs to fulfill a contract during the period | | — | | | — | | | 1,578 | |
| Amortization of deferred costs to fulfill a contract | | (1,573) | | | (1,782) | | | (1,482) | |
| | | | | | |
| Ending balance | | $ | 2,167 | | | $ | 3,740 | | | $ | 5,522 | |
| | | | | | |
| Deferred fulfillment costs, current | | $ | 995 | | | $ | 1,573 | | | $ | 1,780 | |
| Deferred fulfillment costs, noncurrent | | 1,172 | | | 2,167 | | | 3,742 | |
| | | | | | |
| Total deferred costs to fulfill a contract | | $ | 2,167 | | | $ | 3,740 | | | $ | 5,522 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.