Revenue recognition

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue recognition

Revenue recognition

Deferred revenue— Revenue recognized for the three months ended March 31, 2022 from amounts included in deferred revenue as of December 31, 2021 was $111.4 million. Revenue recognized for the three months ended March 31, 2021 from amounts included in deferred revenue as of December 31, 2020 was $85.3 million.

The below table presents a summary of deferred revenue balances by reportable segment (in thousands):

	March 31,		December 31,		December 31,
	2022		2021		2020
Deferred revenue:
Enterprise	$	171,780	$	148,966	$	84,241
Consumer	58,738		61,588		58,135
Total deferred revenue	$	230,518	$	210,554	$	142,376

Remaining performance obligations—Remaining performance obligations represent the aggregate amount of the transaction price in contracts for performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations relate to unearned revenue from Consumer single course purchase arrangements and unearned and unbilled revenue from multi-year Enterprise subscription contracts with future installment payments at the end of any given period. As of March 31, 2022, the aggregate transaction price for remaining performance obligations was $368.5 million, of which 72% is expected to be recognized during over the next twelve months and the remainder thereafter.

Deferred contract costs—The following table represents a rollforward of the Company’s deferred contract costs (in thousands):

	Balance at Beginning of Period	Additions	Amortization Expense	Balance at End of Period
Three Months Ended March 31, 2022	44,545	13,038	(6,582)	51,001
Three Months Ended March 31, 2021	25,838	7,956	(3,481)	30,313