Revenue recognition

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue recognition

3. Revenue recognition

Deferred revenue— Revenue recognized for the three months ended June 30, 2024, from amounts included in deferred revenue as of March 31, 2024, was $152.6 million. Revenue recognized for the three months ended June 30, 2023, from amounts included in deferred revenue as of March 31, 2023, was $135.2 million.

Revenue recognized for the six months ended June 30, 2024, from amounts included in deferred revenue as of December 31, 2023, was $213.6 million. Revenue recognized for the six months ended June 30, 2023, from amounts included in deferred revenue as of December 31, 2022, was $200.5 million.

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

	June 30,		December 31,		December 31,
	2024		2023		2022
Deferred revenue:
Enterprise	$	254,541	$	220,127	$	219,030
Consumer	57,685		62,287		59,249
Total deferred revenue	$	312,226	$	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 June 30, 2024, the aggregate transaction price for remaining performance obligations was $557.4 million, of which 73% 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
Six Months Ended June 30, 2024	$	74,374	$	32,734	$	(28,642)	$	78,466
Six Months Ended June 30, 2023	$	65,645	$	30,036	$	(21,829)	$	73,852