Revenue

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Disaggregation of Revenue

The Company disaggregates revenue from contracts with customers by geographic region, as the Company’s management believes it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

The following tables present revenue disaggregated by geography of the customer’s shipping location for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
United States	$	12,175	$	8,613	$	24,605	$	15,244
Greater China	20,042		11,142		39,284		20,259
Europe	8,696		3,601		12,494		7,654
Rest of North America	2,602		870		4,384		2,331
Rest of Asia Pacific	7,938		1,236		10,570		1,561
South America	655		293		1,223		705
Total revenue	$	52,108	$	25,755	$	92,560	$	47,754

Contract Balances

Certain assets or liabilities are recorded depending on the timing of revenue recognition, billings and cash collections on a contract-by-contract basis. Contract liabilities primarily relate to deferred revenue, including advance consideration received from customers for contracts prior to the transfer of control to the customer, and therefore revenue is recognized upon delivery of products and services or as the services are performed.

The following table presents the assets and liabilities associated with the engineering services contracts recorded on the condensed consolidated balance sheet as of June 30, 2023 and December 31, 2022:

	Balance Sheet Classification	June 30, 2023		December 31, 2022
Unbilled revenue	Prepaid expenses and other current assets	$	9,008	$	3,623
Contract liabilities	Accrued expenses and other current liabilities	$	1,467	$	1,739

During the three months ended June 30, 2023 and 2022, the Company recognized $405 and $619, respectively, of revenue related to amounts that were previously included in deferred revenue at the beginning of the period. During the six months ended June 30, 2023 and 2022, the Company recognized $1,242 and $965, respectively, of revenue related to amounts that were previously included in deferred revenue at the beginning of the period. Deferred revenue fluctuates over time due to changes in the timing of payments received from customers and revenue recognized for services provided.

Revenue related to remaining performance obligations represents the amount of contracted development arrangements that has not been recognized, which includes deferred revenue on the condensed consolidated balance sheet and unbilled amounts that will be recognized as revenue in future periods. As of June 30, 2023, the amount of performance obligations that have not been recognized as revenue was $21,630, of which approximately 85% is expected to be recognized as revenue over the next twelve months and the remainder thereafter. This amount excludes the value of remaining performance obligations for contracts with an original expected length of one year or less. Variable consideration that has been constrained is excluded from the amount of performance obligations that have not been recognized.

Concentrations

As identified below, some of our customers accounted for more than 10% of the Company’s total revenue for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Customer A	14.5	%	39.2	%	14.8	%	37.7	%

The loss of these customers would have a material impact on the Company’s condensed consolidated financial results.

The largest customers represented 22% and 14% of accounts receivable as of June 30, 2023 and the one largest customer represented 38% of accounts receivable as of December 31, 2022. No other individual customer represented more than 10% of accounts receivable at either June 30, 2023 or December 31, 2022.