Revenue recognition

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue recognition

3. Revenue recognition

Deferred revenue— Revenue recognized for the three months ended September 30, 2023, from amounts included in deferred revenue as of June 30, 2023 was $143.4 million. Revenue recognized for the three months ended September 30, 2022, from amounts included in deferred revenue as of June 30, 2022 was $122.5 million.

Revenue recognized for the nine months ended September 30, 2023, from amounts included in deferred revenue as of December 31, 2022 was $242.9 million. Revenue recognized for the nine months ended September 30, 2022, from amounts included in deferred revenue as of December 31, 2021 was $187.4 million.

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

	September 30,		December 31,		December 31,
	2023		2022		2021
Deferred revenue:
Enterprise	$	224,096	$	219,030	$	148,966
Consumer	58,070		59,249		61,588
Total deferred revenue	$	282,166	$	278,279	$	210,554

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 primarily relate to unearned and unbilled revenue from multi-year Enterprise subscription contracts with future installment payments, as well as unearned revenue from Consumer single course purchases and subscriptions at the end of any given period. As of September 30, 2023, the aggregate transaction price for remaining performance obligations was $516.9 million, of which 72% is expected to be recognized over the next twelve months and the remainder thereafter.

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

	Balance at Beginning of Period		Additions		Amortization Expense		Balance at End of Period
Nine Months Ended September 30, 2023	$	65,645	$	45,205	$	(34,482)	$	76,368
Nine Months Ended September 30, 2022	$	44,545	$	40,203	$	(22,558)	$	62,190