Revenue and Deferred Revenue

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue and Deferred Revenue

NOTE 4. REVENUE AND DEFERRED REVENUE

Disaggregation of Revenue

In the following tables, revenue is disaggregated by primary geographical market and type of revenue.

	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Revenue by geography
United States	$	52,627	$	41,933	$	117,560	$	78,380
International		775		476		921		1,388
Total revenue	$	53,402	$	42,409	$	118,481	$	79,768
	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Revenue by type
Hardware	$	27,788	$	20,895	$	65,113	$	43,009
Professional services		10,050		9,123		22,819		16,032
Hosted services		15,564		12,391		30,549		20,727
Total revenue	$	53,402	$	42,409	$	118,481	$	79,768

Remaining Performance Obligations

Advance payments received from customers are recorded as deferred revenue and are recognized upon the completion of related performance obligations over the period of service. Advance payments for non-distinct Hub Devices are recorded as deferred revenue and recognized over their average in-service life. Advance payments received from customers for subscription services are recorded as deferred revenue and recognized over the term of the subscription. A summary of the change in deferred revenue is as follows.

	For the six months ended June 30,
	2023			2022
Deferred revenue balance as of January 1	$	139,948		$	95,597
Revenue recognized from balance of deferred revenue       at the beginning of the period		(14,505	)		(6,864	)
Revenue deferred during the period		19,593			30,247
Revenue recognized from revenue originated      and deferred during the period		(2,067	)		(2,208	)
Deferred revenue balance as of March 31		142,969			116,772
Revenue recognized from balance of deferred revenue       at the beginning of the period		(11,896	)		(11,051	)
Revenue deferred during the period		16,954			23,879
Revenue recognized from revenue originated      and deferred during the period		(5,191	)		(4,155	)
Deferred revenue balance as of June 30		142,836			125,445

As of June 30, 2023, the Company expects to recognize 58% of its total deferred revenue within the next 12 months, 19% of its total deferred revenue between 13 and 36 months, 19% between 37 and 60 months, and the remainder is expected to be recognized beyond five years. Contracts may contain termination for convenience provisions that allow the Company, customer, or both parties the ability to terminate for convenience, either at any time or upon providing a specified notice period, without a substantive termination penalty. Included in deferred revenue as of June 30, 2023 and 2022 are $39,725 and $31,275, respectively, of prepaid fees related to contracts with termination for convenience provisions which are refundable at the request of the customer. Based on the Company's historical experience, customers do not typically exercise their termination for convenience rights.

Deferred cost of revenue includes all direct costs included in cost of revenue that have been deferred to future periods.