Deferred revenue and remaining performance obligations

3 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Deferred revenue and remaining performance obligations

Deferred revenue and remaining performance obligations

Deferred revenue

Deferred revenue, which is a contract liability, consists primarily of payments received in advance of revenue recognition under our contracts with customers and is recognized upon transfer of control. Changes in the balance of total deferred revenue (current and non-current) during the three months ended September 30, 2020 were as follows (in thousands):

Beginning balance, June 30, 2020	$	138,943
Revenue recognized that was included in beginning balance	(18,986)
Amount billed, net of revenue recognized that was not included in beginning balance	13,573
Ending balance, September 30, 2020	$	133,530

The cumulative adjustment as a result of changes in the estimate of the transaction price of customer contracts during the three months ended September 30, 2020 was a net increase in revenue recognized of $591,000. In addition, the amount of revenue recognized in the three months ended September 30, 2020 from performance obligations satisfied or partially satisfied in previous periods was $591,000.

Remaining performance obligations

Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that are expected to be invoiced and recognized as revenue in future

periods. As of September 30, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $61.3 million, which is expected to be recognized over a remaining period of approximately 0.2 to 6.3 years. This amount excludes the variable consideration that falls under the exemption for usage-based royalties promised in exchange for a license of intellectual property.