Revenue Information
Contract Balances
Contract liabilities are recorded as deferred revenue when customer payments are received in advance of the Company meeting all the revenue recognition criteria under ASC 606. Deferred revenue includes prepaid subscription and performance-based revenue. Generally, the remaining performance obligations will be satisfied within one to twelve months after prepayment. The Company recognized $10.7 million, $12.8 million, and $19.5 million of revenue during the years ended December 31, 2025, 2024, and 2023, respectively, that were included in the deferred revenue balance as of December 31, 2024, 2023, and 2022, respectively.
As of December 31, 2025 and 2024, the Company had no contract assets.
Deferred Commissions
ASC 606 requires the deferral of the recognition of incremental costs to obtain a contract, which the Company has identified as certain of its sales commissions paid to internal sales representatives for the sale of the Company’s services. The Company amortizes deferred commissions over the expected period of benefit unless the amortization period is less than one year, in which case, the Company has elected to apply the practical expedient to expense those costs as incurred. The estimated period of benefit includes anticipated customer renewals. If the Company pays commissions on contract renewals that are commensurate with the initial commission, the amortization period is the initial contract term. If the renewal commission is not commensurate with the initial commission, commissions are deferred and subsequently amortized on a straight-line basis over the expected customer life. Prior to April 2025, the expected customer life had been estimated to be three years, based on an analysis of historical data and other qualitative factors, such as new product offerings, the seasonality of certain customer relationships and estimated useful life of the Company’s marketplace technology. In April 2025, the Company completed an assessment of the expected customer life and adjusted the expected customer life from three years to four years. This change in accounting estimate was effective beginning April 1, 2025, and resulted in an immaterial impact to the Company’s financial statements for the year ended December 31, 2025. Amortization expense is included within sales and marketing expense in the Consolidated Statements of Operations.
For the years ended December 31, 2025, 2024, and 2023, amortization expense for deferred sales commissions was $3.3 million, $5.6 million, and $5.5 million, respectively. There was no impairment to capitalized deferred commissions in the periods presented.
Disaggregation of Revenue
The Company disaggregates revenue into two streams: subscription revenue and performance-based revenue. The following table presents the Company’s revenue streams (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Subscription | $ | 345,155 | | | $ | 369,823 | | | $ | 508,384 | |
| Performance-based | 103,797 | | | 104,178 | | | 137,338 | |
| Total revenue | $ | 448,952 | | | $ | 474,001 | | | $ | 645,722 | |
Performance Obligations
No revenue was recognized during the year ended December 31, 2025 from performance obligations satisfied in previous periods. An immaterial amount of revenue was recognized during the year ended December 31, 2024 from performance obligations satisfied in previous periods. No revenue was recognized during the year ended December 31, 2023 from performance obligations satisfied in previous periods.
As of December 31, 2025, the Company did not have any material remaining performance obligations expected to be recognized in the future. Generally, any remaining performance obligations relate primarily to subscription services such as time-based job posting plans, upsell services, and resume database plans that will be invoiced in future periods, and exclude (i) contracts with an original expected term of one year or less and (ii) contracts for which the Company only recognizes revenue at the amount to which it has the right to invoice for services performed.