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Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Contract Asset
Contract assets include amounts recognized as revenue prior to the Company’s contractual right to bill the customer. Amounts are billed in accordance with the agreed-upon contractual terms. The balance as of December 31, 2024 was $2.8 million of which the Company expects to bill 34% of the balance during 2025.
Contract Liability
Deferred revenue was $47.6 million and $61.5 million as of December 31, 2024 and 2023, respectively. The decrease in deferred revenue of $13.9 million is primarily driven by revenue recognized of $31.3 million that was included in the deferred revenue balance at the beginning of the year and a trend to move to monthly from annual billing arrangements. This was partially offset by cash payments received or due in advance of satisfying the Company’s performance obligations.
Revenue allocated to remaining performance obligations (“RPOs”) represents contract revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods but excludes variable consideration where the monthly invoicing is based on usage or where actual usage exceeds the minimum commitment. RPOs were $325.8 million as of December 31, 2024, and the Company expects to recognize as revenue 37% of this amount over the next 12 months and a large majority of the remainder over the two years thereafter.
Contract Costs
The Company capitalizes certain sales commissions related primarily to multi-year subscriptions and extended warranty support for which the expected amortization period is greater than one year. As of December 31, 2024 and 2023, the unamortized balance of deferred commissions was $17.9 million and $12.0 million, respectively. For the years ended December 31, 2024, 2023 and 2022, the amount of amortization was $8.9 million, $6.5 million and $4.0 million, respectively. There was no impairment loss in relation to the costs capitalized for these respective periods.
Concentration of Customer Risk
No customer accounted for more than 10% of the Company’s revenue for the years ended December 31, 2024, 2023 and 2022.
One customer represented 23% and 19% of the Company’s accounts receivable as of December 31, 2024 and 2023, respectively. Another customer represented 14% of the Company’s accounts receivable as of December 31, 2023.