REVENUE

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Platform solutions(1)	$	172,052	$	147,148	$	333,671	$	287,765
Services(2)	18,387		15,067		33,944		28,637
Total revenue	$	190,439	$	162,215	$	367,615	$	316,402

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(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 June 30, 2021, the Company had contract assets of $92.8 million of which $69.5 million was included in accounts receivable, $8.9 million was included in prepaid expenses and other current assets, and $14.4 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 June 30, 2021, the Company had contract liabilities of $22.8 million, which is included in deferred revenue on the consolidated balance sheet and presented net of contract assets of $11.6 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 contract assets of $11.4 million. Revenue recognized during the three and six months ended June 30, 2021 that was included in the deferred revenue balance at the beginning of the year was $5.8 million and $15.9 million, respectively.

Costs to Obtain a Contract

The Company had a deferred commissions balance of $21.0 million and $18.9 million as of June 30, 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.