Revenue and Related Matters

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue and Related Matters

Note 5 - Revenue and Related Matters

Disaggregated Revenue

The Company disaggregates revenue as set forth in the following table (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Revenues by Type:	2022		2021		2022		2021
Subscription and transaction fees	$	37,617	$	29,072	$	71,719	$	59,255
Services and other	2,983		2,517		5,930		5,453
Subscription, transaction, and services	$	40,600	$	31,589	$	77,649	$	64,708

Contract Assets and Liabilities

There were no contract assets as of June 30, 2022 or December 31, 2021.

Deferred Revenue

Amounts billed to clients in excess of revenue recognized are contract liabilities (referred to as deferred revenue on the Condensed Consolidated Balance Sheets). Deferred revenue primarily relates to implementation fees for new customers or for new services and subscription fees billed in advance.

During the three months ended June 30, 2022 and 2021, the Company recognized $5.7 million and $4.9 million of revenue, respectively, related to its deferred revenue balance at the beginning of each such period. During the six months ended June 30, 2022 and 2021, the Company recognized $11.2 million and $11.5 million, respectively, related to its deferred revenue balance at the beginning of each such period. To determine revenue recognized in each period, the Company first allocates revenue to the deferred revenue balance outstanding at the beginning of each period, until the revenue equals that balance.

The amount of revenue recognized in the six months ended June 30, 2021 included $2.5 million related to the acceleration of previously paid and deferred revenue from a customer that terminated its contract in the first quarter of 2021.

Remaining Performance Obligations

As of June 30, 2022, the Company had approximately $40.6 million of remaining performance obligations, primarily from multi-year contracts for the Company's services, which includes both the deferred revenue balance and amounts that will be invoiced and recognized as revenue in future periods. The Company expects to recognize revenue for approximately 94% of this amount during the next 36 months, and the remainder thereafter.

Deferred Commissions and Implementation Costs

The current and non-current portions of deferred implementation and commission costs on the Condensed Consolidated Balance Sheets are as follows (in thousands):

	June 30,		December 31,
	2022		2021
Current portion of deferred costs:
Deferred commissions, current	$	3,044	$	2,997
Deferred implementation costs, current	1,986		2,063
Deferred implementation and commission costs, current portion	$	5,030	$	5,060
Non-current portion of deferred costs:
Deferred commissions, net of current portion	$	6,803	$	6,392
Deferred implementation costs, net of current portion	2,437		2,846
Deferred implementation and commission costs, net of current portion	$	9,240	$	9,238

Amortization of commissions was $0.8 million and $0.6 million during the three months ended June 30, 2022 and 2021, respectively, and $1.5 million during both the six months ended June 30, 2022 and 2021. Amortization of implementation costs was $0.7 million and $0.8 million during the three months ended June 30, 2022 and 2021, respectively, and $1.4 million and $2.0 million during the six months ended June 30, 2022 and 2021, respectively.

The Company evaluates the recoverability of deferred commissions and implementation costs at each balance sheet date and there were no impairments recorded during the six months ended June 30, 2022 or 2021.