REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 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 June 30,
	2020						2019
	North America		International		Total		North America		International		Total
Information and analytics
CoStar Suite	$	157,793	$	7,260	$	165,053	$	145,910	$	6,915	$	152,825
Information services	25,022		5,514		30,536		18,659		2,118		20,777
Online marketplaces
Multifamily	145,541		—		145,541		120,488		—		120,488
Commercial property and land	56,006		23		56,029		49,505		165		49,670
Total revenues	$	384,362	$	12,797	$	397,159	$	334,562	$	9,198	$	343,760

	Six Months Ended June 30,
	2020						2019
	North America		International		Total		North America		International		Total
Information and analytics
CoStar Suite	$	315,128	$	14,881	$	330,009	$	286,883	$	13,643	$	300,526
Information services	50,712		12,206		62,918		35,250		4,377		39,627
Online marketplaces
Multifamily	283,001		—		283,001		234,756		—		234,756
Commercial property and land	112,968		110		113,078		96,910		366		97,276
Total revenues	$	761,809	$	27,197	$	789,006	$	653,799	$	18,386	$	672,185

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	(52,125)
New deferrals, net of amounts recognized in the current period	65,628
Effects of foreign currency	(773)
Balance at June 30, 2020(1)	$	83,350
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⁽¹⁾ Deferred revenue is comprised of $80 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 June 30, 2020.

Contract Assets

The Company had contract assets of $7 million and $4 million as of June 30, 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 $2 million and $3 million from contract assets for the three and six months ended June 30, 2020, respectively.

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 and six months ended June 30, 2020 and 2019 was as follows (in thousands). The Company determined that no deferred commissions were impaired as of June 30, 2020:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Commissions incurred	$	21,174	$	23,844	$	43,611	$	42,395
Commissions capitalized in the current period	(15,599)		(19,668)		(32,122)		(33,397)
Amortization of deferred commissions costs	14,915		13,143		29,662		25,550
Total commissions expense	$	20,490	$	17,319	$	41,151	$	34,548

Unsatisfied Performance Obligations

Remaining contract consideration for which revenue has not been recognized due to unsatisfied performance obligations was approximately $281 million at June 30, 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.