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Revenue, Performance Obligations and Contract Balances
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue, Performance Obligations and Contract Balances

3. Revenue, Performance Obligations and Contract Balances

Disaggregation of Revenue

The following table presents a disaggregation of revenue from contracts with customers (in thousands):

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Payment transaction processing revenue

 

$

126,373

 

 

$

100,384

 

 

$

359,846

 

 

$

284,029

 

 

Other

 

 

1,779

 

 

 

1,292

 

 

 

4,979

 

 

 

3,364

 

 

Total revenue

 

$

128,152

 

 

$

101,676

 

 

$

364,825

 

 

$

287,393

 

 

Remaining Performance Obligations

ASU Topic 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations. The purpose of this disclosure is to provide additional information about the amounts and expected timing of revenue to be recognized from the remaining performance obligations in our existing contracts.

As of September 30, 2022, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied was $4.0 million, of which the Company expects to recognize over 80% within the next four years. The timing of revenue recognition within the next year is largely dependent upon the go-live dates of the Company's contracts.

As of September 30, 2022, the Company has contractual rights under its commercial agreements to receive $61.0 million of fixed consideration related to the future minimum guarantees through 2026. As permitted, the Company has elected to exclude from this disclosure any variable consideration that meets specified criteria. Accordingly, the total unsatisfied or partially unsatisfied performance obligations related to processing services is significantly higher than the amount disclosed.

Contract Balances

The contract asset balances at September 30, 2022 and December 31, 2021 were $10.1 million and $5.6 million, respectively, of which $2.7 million and $1.7 million was included in prepaid expenses and other current assets and $7.4

million and $3.9 million was included in other long-term assets in the condensed consolidated balance sheets, respectively. The increase in the contract asset balance was primarily related to the addition of new warrants, see Note 11 for details. During the three months ended September 30, 2022 and 2021, the Company reduced revenue and the related contract assets by $0.5 million and $0.2 million, respectively and for the nine months ended September 30, 2022 and 2021, revenue and the related contract assets were reduced by $1.3 million and $0.4 million, respectively.

The Company recorded $4.0 million and $3.9 million of contract liabilities in the condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021, respectively, which relates to legacy contracts obtained from prior acquisitions associated with the Company’s insignificant other revenue stream and other payments the Company received in advance for services. The change in the contract liabilities is primarily related to timing differences between payment from the customer and the Company’s satisfaction of each performance obligation. Revenue recognized during the three months ended September 30, 2022 and 2021 that was included in the contract liabilities balance at the beginning of each of the periods was $0.5 million and $0.8 million, respectively. Revenue recognized during the nine months ended September 30, 2022 and 2021 that was included in the contract liabilities balance at the beginning of each respective period was $0.6 million and $1.5 million, respectively.