Revenue Recognition

6 Months Ended

Jun. 30, 2022

Revenue Recognition [Abstract]

Revenue Recognition

3. REVENUE RECOGNITION

Contract Balances—The Company’s contract assets and liabilities were as follows:

	As of
	June 30, 2022		December 31, 2021		January 1, 2021
Contract assets:
Billed accounts receivable, net of allowance for doubtful accounts	$	52,940	$	22,286	$	39,976
Unbilled accounts receivable		4,478		12,110		745
Total contract assets	$	57,418	$	34,396	$	40,721
Contract liabilities:
Deferred revenue	$	118,246	$	98,488	$	80,642
Total contract liabilities	$	118,246	$	98,488	$	80,642

Revenue recognized during the six months ended June 30, 2022 and 2021 that was included in the deferred revenue balances at the beginning of the year was $70,323 and $56,001, respectively.

Remaining Performance Obligations—Remaining performance obligations represent future promises to transfer goods or services under noncancelable contracts for which revenue has not yet been recognized and we do not yet have the right to bill. As of June 30, 2022, the Company had remaining performance obligations of $276,148 and expects to recognize approximately 65% as revenue over the next 12 months and the remainder thereafter.

Costs to Obtain and Fulfill a Contract—During the three months ended June 30, 2022 and 2021, the Company capitalized $4,606 and $3,400, respectively, of commissions and related payroll tax expenditures and amortized $3,003 and $1,884, respectively, to sales and marketing expense. During the six months ended June 30, 2022 and 2021, the Company capitalized $7,099 and $5,692, respectively, of commissions and related payroll tax expenditures and amortized $5,747 and $3,550, respectively, to sales and marketing expense. As of June 30, 2022 and December 31, 2021, the amount of deferred commissions and related payroll tax expenditures included in deferred costs and in other assets was $11,107 and $8,823, and $9,761 and $8,817, respectively.

During the three and six months ended June 30, 2022, the Company recognized an impairment loss of $0 and $1,886, respectively, relating to deferred partner fees associated with content from Russian educator partners that the Company does not expect to recover. This was recorded within general and administrative expenses in the unaudited condensed consolidated statements of operations.