Revenues

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

As discussed in Note 1, Organization and Business, we deconsolidated UpHealth Holdings and its subsidiaries as of September 30, 2023; accordingly, the financial results of UpHealth Holdings and its subsidiaries for the three month ended March 31, 2023 are included in our unaudited condensed consolidated financial statements and the financial position of UpHealth Holdings as of March 31, 2024 and December 31, 2023 and the financial results of UpHealth Holdings and its subsidiaries for the three months ended March 31, 2024 are not included in our unaudited condensed consolidated financial statements.

Also, as discussed in Note 3 Discontinued Operations, on November 16, 2023 we agreed to sell 100% of the equity interest in Cloudbreak to Forest Buyer, LLC. The Sale closed on March 15, 2024. Accordingly, we have presented the financial position of Cloudbreak as of December 31, 2023 as held for sale and the results of operations of Cloudbreak for the period from January 1, 2024 to March 15, 2024 and for the three months ended March 31, 2023 as discontinued operations in the accompanying unaudited condensed consolidated financial statements.

Revenues by service offering consisted of the following: 

	Three Months Ended March 31,
(In thousands)	2024		2023
Services	$	—	$	13,613
Licenses and subscriptions	—		1,936
Products	—		9,138
Total revenues	$	—	$	24,687

Our revenues were entirely derived from the healthcare industry in the Americas. Revenue recognized over time was approximately 58% of total revenues during the three months ended March 31, 2023.

Contract Assets

There were no impairments of contract assets, consisting of unbilled receivables, during the three months ended March 31, 2024 and 2023, respectively.

The change in contract assets, consisting of unbilled receivables, was as follows: 

(In thousands)	March 31, 2024		March 31, 2023
Unbilled receivables, beginning of period	$	—	$	694
Reclassifications to billed receivables	—		(694)
Revenues recognized in excess of period billings	—		668
Unbilled receivables, end of period	$	—	$	668

Contract Liabilities

The change in contract liabilities, consisting of deferred revenue, was as follows:

(In thousands)	March 31, 2024		March 31, 2023
Deferred revenue, beginning of period	$	—	$	2,659
Revenues recognized from balances held at the beginning of the period	—		(1,442)
Revenues deferred from period collections on unfulfilled performance obligations	—		253
Deferred revenue, end of period	$	—	$	1,470

Revenue recognized ratably over time is generally billed in advance and includes SaaS internet hosting, subscriptions, and related consulting, implementation, services support, and advisory services.

Revenue recognized as delivered over time includes professional services billed on a time and materials basis, and fixed fee professional services and training classes that are primarily billed, delivered, and recognized within the same reporting period.

Approximately 5.8% of the revenue recognized during the three months ended March 31, 2023 was from the deferred revenue balance existing as of December 31, 2022.