REVENUE

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

The Company primarily derives its revenues through the sale or subscription licensing of its platform solutions and services. The following table disaggregates revenue by offering (in thousands):

	Three Months Ended March 31,
	2021		2020
Platform solutions(1)	$	161,619	$	140,617
Services(2)	15,557		13,570
Total revenue	$	177,176	$	154,187

______________________________________

(1)Platform solutions include arrangements for technology-based offerings representing subscription-based cloud-based platform offerings, real-time accessibility of comprehensive patient-specific healthcare data and analytical insights through Inovalon DataStream™, and legacy platform solutions that are not cloud-based and not billed under a subscription-based contract structure.

(2)Services include advisory, implementation, and support services under time and materials, fixed price, or retainer-based contracts.

Contract Balances

As of March 31, 2021, the Company had contract assets of $73.1 million of which $55.3 million was included in accounts receivable, $6.8 million was included in prepaid expenses and other current assets, and $11.0 million was included in other assets on the consolidated balance sheets. As of December 31, 2020, the Company had contract assets of $63.0 million of which $40.2 million was included in accounts receivable, $7.6 million was included in prepaid expenses and other current assets, and $15.2 million was included in other assets on the consolidated balance sheets.

As of March 31, 2021, the Company had contract liabilities of $30.3 million, which is included in deferred revenue on the consolidated balance sheet and presented net of contracts assets of $14.8 million. As of December 31, 2020, the Company had contract liabilities of $22.3 million, which is included in deferred revenue on the consolidated balance sheet and presented net of contracts assets of $11.4 million. Revenue recognized during the three months ended March 31, 2021 that was included in the deferred revenue balance at the beginning of the year was $10.1 million.

Costs to Obtain a Contract

The Company had a deferred commissions balance of $19.9 million and $18.9 million as of March 31, 2021 and December 31, 2020, respectively. Short-term and long-term deferred commissions are classified as prepaid expenses and other current assets and other assets on the consolidated balance sheet, respectively.