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Revenue Recognition
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
13. Revenue Recognition
Transaction price allocated to the remaining performance obligations
As of September 30, 2022, approximately $1.0 billion of revenue is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 60% of these remaining performance obligations over the next 12 months, with the remainder recognized thereafter.
We applied the practical expedient in ASC 606-10-50-14 and have excluded the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less (one-time services); and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed (transactional revenue).
Contract balances
Our contract assets as of September 30, 2022 and December 31, 2021 were insignificant. Our closing balances of deferred revenue were as follows:
(in thousands)September 30,
2022		December 31,
2021
Total deferred revenue$396,599 $378,746 
The increase in deferred revenue during the nine months ended September 30, 2022 was primarily due to a seasonal increase in customer contract renewals. Historically, due to the timing of customer budget cycles, we have an increase in customer contract renewals at or near the beginning of our third quarter. Generally, our lowest balance of deferred revenue during the year is at the end of our first quarter. The amount of revenue recognized during the nine months ended September 30, 2022 that was included in the deferred revenue balance at the beginning of the period was approximately $303 million. The amount of revenue recognized during the nine months ended September 30, 2022 from performance obligations satisfied in prior periods was insignificant.
Disaggregation of revenue
We sell our cloud solutions and related services in three primary geographical markets: to customers in the United States, to customers in the United Kingdom and to customers located in other countries. The following table presents our revenue by geographic area based on the address of our customers:
Three months ended
September 30,
Nine months ended
September 30,
(dollars in thousands)
2022
2021
2022
2021
United States$220,177 $191,580 $657,699 $563,916 
United Kingdom26,858 25,351 81,349 72,142 
Other countries14,262 14,287 44,300 43,791 
Total revenue$261,297 $231,218 $783,348 $679,849 
During the third quarter of 2022, we reorganized our market groups. The Social Sector and Corporate Sector market groups comprised our go-to-market organizations as of September 30, 2022. The following is a description of each market group as of that date:
•The Social Sector market group focuses on sales to customers and prospects in the social sector, such as nonprofits, foundations, education institutions, healthcare organizations and other not-for-profit entities globally, and includes JustGiving from Blackbaud; and
•The Corporate Sector market group focuses on sales to customers and prospects in the corporate sector globally, and includes EVERFI from Blackbaud and YourCause from Blackbaud.
The following table presents our revenue by market group:
Three months ended
September 30,
Nine months ended
September 30,
(dollars in thousands)
2022
2021
2022
2021
Social Sector$223,809 $221,194 $672,182 $651,215 
Corporate Sector
37,334 8,596 111,634 27,275 
Other154 1,428 (468)1,359 
Total revenue$261,297 $231,218 $783,348 $679,849 
The following table presents our recurring revenue by type:
Three months ended
September 30,
Nine months ended
September 30,
(dollars in thousands)
2022
2021
2022
2021
Contractual recurring$178,264 $150,581 $530,146 $448,552 
Transactional recurring71,123 67,949 216,414 193,714 
Total recurring revenue$249,387 $218,530 $746,560 $642,266