REVENUE FROM CONTRACTS WITH CUSTOMERS

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS    

Disaggregated Revenue

The Company provides information, analytics and online marketplaces to the commercial real estate industry and related professionals. The revenues by operating segment and type of service consist of the following (in thousands):

	Three Months Ended March 31,
	2020						2019
	North America		International		Total		North America		International		Total
Information and analytics
CoStar Suite	$	157,335	$	7,621	$	164,956	$	140,973	$	6,728	$	147,701
Information services	25,690		6,692		32,382		16,591		2,259		18,850
Online marketplaces
Multifamily	137,460		—		137,460		114,268		—		114,268
Commercial property and land	56,962		87		57,049		47,405		201		47,606
Total revenues	$	377,447	$	14,400	$	391,847	$	319,237	$	9,188	$	328,425

Deferred Revenue

Changes in deferred revenue for the period were as follows (in thousands):

Balance at December 31, 2019	$	70,620
Revenue recognized in the current period from the amounts in the beginning balance	(38,354		)
New deferrals, net of amounts recognized in the current period	56,602
Effects of foreign currency	(824		)
Balance at March 31, 2020(1)	$	88,044
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⁽¹⁾ Deferred revenue is comprised of $85 million of current liabilities and $3 million of noncurrent liabilities classified within lease and other long-term liabilities on the Company’s condensed consolidated balance sheet as of March 31, 2020.

Contract Assets

The Company had contract assets of $5 million and $4 million as of March 31, 2020 and December 31, 2019, respectively, which are generated when contractual billing schedules differ from revenue recognition timing. Contract assets represent a conditional right to consideration for satisfied performance obligations that becomes a receivable when the conditions are satisfied. Current contract assets are included in prepaid expenses and other current assets, and non-current contract assets are included in deposits and other assets on the Company's condensed consolidated balance sheets. The Company recognized revenue of $1 million from contract assets for the three months ended March 31, 2020.

Commissions

Commissions expense is included in selling and marketing expense in the Company's condensed consolidated statements of operations. Commissions expense activity for the three months ended March 31, 2020 and 2019 was as follows (in thousands). The Company determined that no deferred commissions were impaired as of March 31, 2020:

	Three Months Ended March 31,
	2020			2019
Commissions incurred	$	22,437		$	18,551
Commissions capitalized in the current period	(16,523		)	(13,729		)
Amortization of deferred commissions costs	14,747			12,407
Total commissions expense	$	20,661		$	17,229

Unsatisfied Performance Obligations

Remaining contract consideration for which revenue has not been recognized due to unsatisfied performance obligations was approximately $249 million at March 31, 2020, which the Company expects to recognize over the next five years. This amount does not include contract consideration for contracts with a duration of one year or less.