Revenue recognition

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue recognition

3. Revenue recognition

Deferred revenue— Revenue recognized for the three months ended March 31, 2024, from amounts included in deferred revenue as of December 31, 2023, was $143.2 million. Revenue recognized for the three months ended March 31, 2023, from amounts included in deferred revenue as of December 31, 2022, was $134.6 million.

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

	March 31,		December 31,		December 31,
	2024		2023		2022
Deferred revenue:
Enterprise	$	255,886	$	220,127	$	219,030
Consumer	62,017		62,287		59,249
Total deferred revenue	$	317,903	$	282,414	$	278,279

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 deferred revenue as well as 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 March 31, 2024, the aggregate transaction price for remaining performance obligations was $555.3 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
Three Months Ended March 31, 2024	$	74,374	$	18,081	$	(14,041)	$	78,414
Three Months Ended March 31, 2023	$	65,645	$	17,302	$	(10,508)	$	72,439