Revenue

9 Months Ended

Sep. 30, 2023

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 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):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Enterprise Solutions
Transaction and usage-based	$	39,783	$	32,620	$	113,337	$	90,928
Subscription		2,123		2,280		7,354		6,517
Other		345		966		1,513		2,298
Total Enterprise Solutions revenue		42,251		35,866		122,204		99,743
SMB Solutions
Transaction and usage-based		15,927		11,349		46,657		33,613
Subscription		39,289		31,216		110,821		85,493
Other		265		365		891		1,171
Total SMB Solutions revenue		55,481		42,930		158,369		120,277
Total revenue	$	97,732	$	78,796	$	280,573	$	220,020

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 September 30, 2023 or December 31, 2022.

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 subscription 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 $9.1 million and $8.2 million as of September 30, 2023 and December 31, 2022, respectively. Non-current deferred revenue was $0.3 million as of September 30, 2023 and December 31, 2022. During the nine months ended September 30, 2023, the Company recognized revenue of $7.9 million from the deferred revenue balance as of December 31, 2022. During the nine months ended September 30, 2022, the Company recognized revenue of $6.5 million from the deferred revenue balance as of December 31, 2021.

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. 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.