Revenue, Deferred Revenue, Contract Balances and Performance Obligations

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue, Deferred Revenue, Contract Balances and Performance Obligations

Revenue, Deferred Revenue, Contract Balances and Performance Obligations

The Company sells to customers based in the United States. Starting January 1, 2020, the effective date of the Anthem enterprise license agreement, the Company began treating Anthem as a direct health plan customer rather than a channel partner. As a result, substantially all of the Company's revenues are generated through direct sales.

Deferred revenue as of March 31, 2020 and December 31, 2019 was $14.3 million and $10.7 million, respectively. Contract assets as of March 31, 2020 and December 31, 2019 were $2.7 million and $0.4 million, respectively. The increase in contract assets is primarily due to the Anthem enterprise license agreement.

Revenue of $6.5 million and $11.2 million was recognized during the three months ended March 31, 2020 and 2019, respectively, that was included in the Company’s deferred revenue balances at the beginning of the respective periods.

The Company recorded favorable cumulative catch-up adjustments to revenue of $1.7 million and $1.4 million during the three months ended March 31, 2020 and 2019, respectively, arising from changes in estimates of transaction price.

The aggregate balance of remaining performance obligations from non-cancelable contracts with customers as of March 31, 2020 was $229.2 million. The Company expects to recognize approximately 50% of this balance over the next 12 months, with the remaining balance recognized thereafter. Remaining performance obligations are defined as deferred revenue and amounts yet to be billed for the non-cancelable portion of contracts.