Disaggregation of Revenue
The Company provides disaggregation of revenue based on geographic region in Note 12 and based on the subscription versus professional services and other classification on the consolidated statements of operations, as it believes these best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Deferred Revenue
Deferred revenue is recorded upon establishment of unconditional right to payment under non-cancellable contracts and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in advance in monthly, quarterly, semi-annual and annual installments. The deferred revenue balance is influenced by several factors, including the compounding effects of renewals, invoice duration, timing and size.
The balance of deferred revenue, including current and non-current balances, as of December 31, 2025 and 2024 were $206.4 million and $179.7 million, respectively. For the year ended December 31, 2025, the additions to our deferred revenue balance were due to $480.0 million of additional invoicing and $4.2 million of deferred revenue acquired from the NewsWhip acquisition, which was offset by $457.5 million of revenue recognized during the same period. Deferred revenue during the year ended December 31, 2024, increased $38.2 million as a result of $444.1 million of additional invoicing, which was offset by $405.9 million of revenue recognized during the same period. The amount of revenue recognized during the years ended December 31, 2025 and 2024 that was included in deferred revenue at the beginning of each period was $175.8 million and $137.9 million, respectively.
As of December 31, 2025, including amounts already invoiced and amounts contracted but not yet invoiced, $404.0 million of revenue is expected to be recognized from remaining performance obligations, of which 70% is expected to be recognized in the next 12 months, with the remainder thereafter.
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.