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Revenue Recognition
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
17. Revenue Recognition
Transaction price allocated to the remaining performance obligations
As of December 31, 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).
We also applied the practical expedient in ASC 606-10-65-1-(f)(3), whereby the transaction price allocated to the remaining performance obligations, or an explanation of when we expect to recognize that amount as revenue for all reporting periods presented before the date of the initial application, is not disclosed.
Contract balances
Our contract assets as of December 31, 2022 and December 31, 2021 were insignificant. Our closing balances of deferred revenue were as follows:
(in thousands)December 31,
2022		December 31,
2021
Total deferred revenue$385,236 $378,746 
The increase in deferred revenue during 2022 was primarily due to new subscription sales of our cloud solutions and, to a lesser extent, progress in initiatives to bring our pricing in line with the market. The amount of revenue recognized during 2022 that was included in the deferred revenue balance at the beginning of the period was approximately $339 million. The amount of revenue recognized during 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:
Years ended
December 31,
(dollars in thousands)
2022
2021
2020
United States$896,116 $777,333 $772,188 
United Kingdom101,026 89,688 84,121 
Other countries60,963 60,719 56,910 
Total revenue$1,058,105 $927,740 $913,219 
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 December 31, 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:
Years ended
December 31,
(dollars in thousands)
2022
2021(1)
2020(1)
Social Sector
$907,197 $889,755 $873,878 
Corporate Sector
150,908 37,985 39,341 
Total revenue$1,058,105 $927,740 $913,219 
(1)Due to the market group changes discussed above, we have recast our revenue by market group for the years ended December 31, 2021 and 2020 to present them on a consistent basis with the current year.
The following table presents our recurring revenue by type:
Years ended
December 31,
(dollars in thousands)
2022
2021
2020
Contractual recurring$709,097 $601,397 $591,272 
Transactional recurring302,636 279,453 259,473 
Total recurring revenue$1,011,733 $880,850 $850,745