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Revenue Recognition
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
11. Revenue Recognition
Transaction price allocated to the remaining performance obligations
As of June 30, 2023, approximately $1.2 billion of revenue is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 50% 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 June 30, 2023 and December 31, 2022 were insignificant. Our closing balances of deferred revenue were as follows:
(in thousands)June 30,
2023		December 31,
2022
Total deferred revenue$438,151 $385,236 
The increase in deferred revenue during the six months ended June 30, 2023 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 six months ended June 30, 2023 that was included in the deferred revenue balance at the beginning of the period was approximately $252 million. The amount of revenue recognized during the six months ended June 30, 2023 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
June 30,
Six months ended
June 30,
(dollars in thousands)
2023
2022
2023
2022
United States$228,744 $223,128 $450,413 $437,522 
United Kingdom28,234 26,831 54,282 54,491 
Other countries14,064 14,968 28,100 30,038 
Total revenue$271,042 $264,927 $532,795 $522,051 
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 June 30, 2023. 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; and
•The Corporate Sector market group focuses on sales to customers and prospects in the corporate sector globally, and includes EVERFI and YourCause.
The following table presents our revenue by market group:
Three months ended
June 30,
Six months ended
June 30,
(dollars in thousands)
2023
2022(1)
2023
2022(1)
Social Sector$232,381 $227,756 $457,278 $447,751 
Corporate Sector
38,661 37,171 75,517 74,300 
Total revenue$271,042 $264,927 $532,795 $522,051 
(1)Due to the market group change discussed above, we have recast our revenue by market group for the three and six months ended June 30, 2022 to present them on a consistent basis with the current year.
The following table presents our recurring revenue by type:
Three months ended
June 30,
Six months ended
June 30,
(dollars in thousands)
2023
2022
2023
2022
Contractual recurring$181,235 $177,350 $358,838 $351,882 
Transactional recurring81,155 75,157 156,300 145,291 
Total recurring revenue$262,390 $252,507 $515,138 $497,173