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Revenue
12 Months Ended
Dec. 31, 2022
Revenue Recognition [Abstract]  
Revenue

3. Revenue

Disaggregation of Revenue

The following table depicts the disaggregation of revenue according to categories consistent with how the Company evaluates its financial performance and economic risk. International revenue consists of international geo-targeted campaigns, which are campaigns targeted at an audience of members outside of North America.

 

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

North America

 

$

189,897

 

 

$

162,360

 

 

$

90,919

 

International

 

 

107,591

 

 

 

101,067

 

 

 

57,457

 

Total Revenue

 

$

297,488

 

 

$

263,427

 

 

$

148,376

 

 

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Revenue under short-term contracts

 

$

174,040

 

 

$

158,561

 

 

$

96,371

 

Revenue under longer-term contracts

 

 

123,448

 

 

 

104,866

 

 

 

52,005

 

Total

 

$

297,488

 

 

$

263,427

 

 

$

148,376

 

Contract liabilities

Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to the Company’s contracts with customers. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations. Contract liabilities on the accompanying Consolidated Balance Sheets were $27.1 million and $30.5 million at December 31, 2022 and December 31, 2021, respectively. Additionally, certain customers may receive credits, which are accounted for as a material right. The Company estimates these amounts based on the expected amount of future services to be provided to customers and allocates a portion of the transaction price to these material rights. The Company recognizes these material rights as the material rights are exercised. The resulting amounts included in contract liabilities on the accompanying Consolidated Balance Sheets were $1.9 million and $2.6 million at December 31, 2022 and December 31, 2021, respectively.

 

 

 

Contract Liabilities

 

Year-to-Date Activity

 

(in thousands)

 

Balance at January 1, 2020

 

$

4,335

 

Billings

 

 

19,769

 

Revenue Recognized

 

 

(8,415

)

Balance at December 31, 2020

 

 

15,689

 

Billings

 

 

278,230

 

Revenue Recognized

 

 

(263,427

)

Balance at December 31, 2021

 

 

30,492

 

Billings

 

 

294,082

 

Revenue Recognized

 

 

(297,488

)

Balance at December 31,2022

 

$

27,086

 

 

The Company elected to apply the following practical expedients:

 

Existence of a Significant Financing Component in a Contract. As a practical expedient, the Company has not assessed whether a contract has a significant financing component because the Company expects at contract inception that the period between payment by the customer and the transfer of promised goods or services by the Company to the customer will be one year or less. Payment terms and conditions vary by contract type, although terms generally include requirement of payment within 30 to 90 days. In addition, the Company has determined that the payment terms that the Company provides to its customers are structured primarily for reasons other than the provision of financing to the customer.

 

Costs to Obtain a Contract. The Company’s revenues are primarily generated from customer contracts that are for one year or less. Costs primarily consist of incentive compensation paid based on the achievements of sales targets in a given period for related revenue streams and are recognized in the month when the revenue is earned. As a practical expedient, for amortization periods which are determined to be one year or less, the Company expenses any incremental costs of obtaining the contract with a customer when incurred. For those customer contracts greater than one year, the Company capitalizes and amortizes the expenses over the period of benefit.

 

Revenues Invoiced. The Company has applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which the Company recognizes revenue in proportion to the amount it has the right to invoice for services performed.