Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

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):

	Year Ended December 31,
	2021		2020		2019
Subscription services	$	360,506	$	242,879	$	168,682
Professional services	10,516		6,780		3,695
Total revenue	$	371,022	$	249,659	$	172,377

See Note 14 for revenue by geographic location.

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. The following table summarizes the changes in the balance of deferred revenue during the periods (in thousands):

	December 31,
	2021		2020		2019
Balance at beginning of the year	$	104,184	$	67,540	$	39,739
Add: Billings during the year	427,011		286,303		200,178
Less: Revenue recognized during the year	(371,022)		(249,659)		(172,377)
Balance at end of the year	$	160,173	$	104,184	$	67,540

Revenue recognized during the years ended December 31, 2021, 2020, and 2019 from amounts included in deferred revenue at the beginning of these periods was $103.8 million, $67.5 million, and $39.7 million, respectively.

The aggregate balance of remaining performance obligations as of December 31, 2021 was $230.8 million. The Company expects to recognize $178.4 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):

	December 31,
	2021		2020		2019
Balance at beginning of the year	$	18,273	$	11,610	$	6,069
Add: Contract costs capitalized during the year	24,218		14,344		9,579
Less: Amortization of contract costs during the year	(12,844)		(7,681)		(4,038)
Balance at end of the year	$	29,647	$	18,273	$	11,610