Revenue

12 Months Ended

Dec. 31, 2021

Revenue From Contract With Customer [Abstract]

Revenue

3. Revenue

Revenue Disaggregated

The Company disaggregates revenue from contracts with customers by reportable segment and revenue type, as the Company believes it best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors and is consistent with the manner in which the Company operates the business. The Company generates a significant majority of its revenue in the Enterprise Solutions segment from transaction and usage-based revenue and a significant majority of its revenue in the SMB Solutions segment from subscription revenue.

The following table depicts disaggregated revenue by segment and revenue type (in thousands):

	Year Ended December 31,
	2021		2020
Enterprise Solutions
Transaction and usage-based	$	97,759	$	74,395
Subscription		7,636		6,969
Other		2,154		2,580
Total Enterprise Solutions revenue		107,549		83,944
SMB Solutions
Transaction and usage-based		33,360		17,957
Subscription		74,225		44,313
Other		1,146		343
Total SMB Solutions revenue		108,731		62,613
Total revenue	$	216,280	$	146,557

Contract Assets and Liabilities

Contract assets are rights to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditional on something other than the passage of time. Contract assets are transferred to accounts receivable once the rights become unconditional. The Company did not have contract assets as of December 31, 2021 or December 31, 2020.

Contract liabilities (deferred revenue) primarily consist of billings and payments received in advance of revenue recognition. The Company primarily bills and collects payments from customers for its services in advance on a monthly, quarterly or annual basis. Contract liabilities are recognized as revenue when services are performed and all other revenue recognition criteria have been met. Amounts expected to be recognized as revenue within 12 months of the balance sheet date are classified as current deferred revenue and amounts expected to be recognized as revenue beyond 12 months of the balance sheet date are classified as non-current deferred revenue. The Company had current deferred revenue of $6.8 million and $4.8 million as of December 31, 2021 and 2020, respectively. Non-current deferred revenue was $0.2 million as of December 31, 2021 and 2020. During the year ended December 31, 2021, the Company recognized revenue of $4.8 million from the deferred revenue balance as of December 31, 2020. During the year ended December 31, 2020, the Company recognized revenue of $4.0 million from the deferred revenue balance as of December 31, 2019.

Remaining Performance Obligations

ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations. As permitted by ASC 606, the Company has elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. As described in Note 2 - Summary of Significant Accounting Policies, for contracts greater than one year in length, the Company's most significant performance obligations consist of variable consideration. Such variable consideration meets the specified criteria for the disclosure exclusion; therefore, the majority of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied is variable consideration that is not required for this disclosure.

Incremental Costs of Obtaining a Contract with a Customer

The Company’s incremental costs of obtaining a contract consist of sales commissions paid to employees for new bookings and in certain situations, upon the go-live date for a new customer. Deferred commissions are classified as current or non-current assets based on the timing the expense will be recognized. The current and non-current portions of deferred commissions are included within prepaid expenses and other current assets and other assets, respectively, on the Company’s consolidated balance sheets. The following table summarizes the activity related to capitalized costs to obtain a contract for the years ended December 31, 2021 and 2020 (in thousands):

Capitalized costs to obtain a contract as of December 31, 2019	$	—
New capitalized costs		627
Amortization of capitalized costs		(28	)
Capitalized costs to obtain a contract as of December 31, 2020	$	599
New capitalized costs		1,059
Amortization of capitalized costs		(137	)
Capitalized costs to obtain a contract as of December 31, 2021	$	1,521

As of December 31, 2021, the Company had $0.2 million and $1.3 million in current and non-current deferred costs of obtaining contracts with customers, respectively. As of December 31, 2020, the Company had $0.1 million and $0.5 million within current and non-current deferred costs of obtaining contracts with customers, respectively. Amortization expense is included within sales and marketing expense on the consolidated statements of operations and comprehensive loss. During the years December 31, 2021 and 2020, there were no impairment losses recognized related to capitalized costs to obtain a contract.