Revenue from Contracts with Customer

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customer

Revenue From Contracts with Customers

Revenue

The Company derives revenue from subscription fees and related professional services. The Company sells subscriptions for its cloud-based solutions directly to customers and indirectly through channel partners through arrangements that are non-cancelable and non-refundable. The Company’s subscription arrangements do not provide customers with the right to take possession of the software supporting the solutions and, as a result, are accounted for as service arrangements. The Company records revenue net of sales or value-added taxes.

Disaggregation of Revenues

The following table summarizes revenue by the Company’s service offerings (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Subscription services	$	94,312	$	64,258	$	257,827	$	171,869
Professional services	2,302		1,929		7,715		4,789
Total revenue	$	96,614	$	66,187	$	265,542	$	176,658

Deferred Revenue and Remaining Performance Obligations

Deferred revenue consists of customer billings in advance of revenue being recognized from the Company’s subscription and professional services arrangements.

Revenue recognized during the three months ended September 30, 2021 and 2020 from amounts included in deferred revenue at the beginning of these periods was $61.6 million and $38.9 million, respectively. Revenue recognized during the nine months ended September 30, 2021 and 2020 from amounts included in deferred revenue at the beginning of these periods was $95.6 million and $63.5 million, respectively.

The aggregate balance of remaining performance obligations as of September 30, 2021 was $199.0 million. The Company expects to recognize $159.3 million of the balance as revenue in the next 12 months and the remainder thereafter. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods.

Deferred Contract Acquisition Costs

The change in the balance of deferred contract acquisition costs during the periods presented is as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Balance at beginning of the period	$	23,604	$	14,851	$	18,273	$	11,610
Add: Contract costs capitalized during the period	6,032		3,307		17,032		9,936
Less: Amortization of contract costs during the period	(3,416)		(1,986)		(9,085)		(5,374)
Balance at end of the period	$	26,220	$	16,172	$	26,220	$	16,172