Revenue, Deferred Revenue, and Deferred Costs and Other

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue, Deferred Revenue and Deferred Costs and Other

Revenue, Deferred Revenue and Deferred Costs and Other

Deferred Revenue

Deferred revenue activity is as follows (in thousands):

	Three Months Ended March 31,
	2020			2019
Balance at beginning of period	$	4,599		$	2,051
Amounts billed but unrecognized	3,140			1,378
Revenue recognized	(1,640		)	(1,309		)
Assumed from business combination	—			1,407
Balance at end of period	$	6,099		$	3,527

Balance at the end of period (in thousands):

	March 31,		December 31,
	2020		2019
Deferred revenue, current	$	5,351	$	3,945
Deferred revenue, noncurrent	748		654
Total deferred revenue	$	6,099	$	4,599

We expect to recognize $5.4 million of revenue in the next 12 months and $0.7 million of revenue thereafter, related to future performance obligations that were unsatisfied or partially satisfied as of March 31, 2020.

Accrued Rebates

Accrued rebates represent the amounts in client contracts that are subject to pricing adjustments based on various performance metrics, such as member satisfaction scores, cost savings guarantees and health outcome guarantees, which if not met typically require us to refund a portion of the per participant per month fee paid. We defer an estimate of the amount of consideration that we expect to refund to our clients from the monthly per participant per month fee until the performance metric is met. As of March 31, 2020 and December 31, 2019, accrued rebates of $1.7 million and $1.2 million, respectively, were recorded within accrued expenses and other current liabilities on our condensed consolidated balance sheets.

The activity is as follows (in thousands):

	Three Months Ended March 31,
	2020			2019
Balance at beginning of period	$	1,152		$	609
ASC 606 adoption date impact adjustment	—			(222		)
Amount deferred	776			193
Revenue recognized	(198		)	(2		)
Payments	—			(45		)
Balance at end of period	$	1,730		$	533

Deferred Costs and Other

Deferred costs and other activity is as follows (in thousands):

	Three Months Ended March 31, 2020
	Deferred Device Costs			Deferred Contract Costs			Deferred Execution Credits			Total
Balance at beginning of period	$	18,579		$	2,988		$	184		$	21,751
Additions	17,144			174			418			17,736
Revenue recognized	—			—			(130		)	(130		)
Cost of revenue recognized	(5,973		)	—			—			(5,973		)
Sales and marketing expenses recognized	—			(294		)	—			(294		)
Balance at end of period	$	29,750		$	2,868		$	472		$	33,090

	Three Months Ended March 31, 2019
	Deferred Device Costs			Deferred Contract Costs			Deferred Execution Credits			Total
Balance at beginning of period	$	8,469		$	—		$	—		$	8,469
ASC 606 adoption date impact adjustment	—			3,692			771			4,463
Additions	8,495			—			112			8,607
Revenue recognized	—			—			(245		)	(245		)
Cost of revenue recognized	(2,598		)	—			—			(2,598		)
Sales and marketing expenses recognized	—			(254		)	—			(254		)
Balance at end of period	$	14,366		$	3,438		$	638		$	18,442

Balance at the end of period (in thousands):

	March 31, 2020
	Deferred Device Costs		Deferred Contract Costs		Deferred Execution Credits		Total
Deferred costs, current	$	20,961	$	1,162	$	472	$	22,595
Deferred costs, noncurrent	8,789		1,706		—		10,495
Total deferred costs	$	29,750	$	2,868	$	472	$	33,090

	December 31, 2019
	Deferred Device Costs		Deferred Contract Costs		Deferred Execution Credits		Total
Deferred costs, current	$	14,746	$	1,121	$	184	$	16,051
Deferred costs, noncurrent	3,833		1,867		—		5,700
Total deferred costs	$	18,579	$	2,988	$	184	$	21,751