XML 57 R17.htm IDEA: XBRL DOCUMENT v3.23.3
Revenue Recognition
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
11. Revenue Recognition
Transaction price allocated to the remaining performance obligations
As of September 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 September 30, 2023 and December 31, 2022 were insignificant. Our closing balances of deferred revenue were as follows:
(in thousands)September 30,
2023		December 31,
2022
Total deferred revenue$418,832 $385,236 
The increase in deferred revenue during the nine months ended September 30, 2023 was primarily due to a seasonal increase in customer contract billings/renewals, which includes impact from our recent pricing initiatives. 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, 2023 that was included in the deferred revenue balance at the beginning of the period was approximately $339 million. The amount of revenue recognized during the nine months ended September 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
September 30,
Nine months ended
September 30,
(dollars in thousands)
2023
2022
2023
2022
United States$237,877 $220,177 $688,290 $657,699 
United Kingdom25,694 26,858 79,976 81,349 
Other countries14,055 14,262 42,155 44,300 
Total revenue$277,626 $261,297 $810,421 $783,348 
The Social Sector and Corporate Sector market groups comprised our go-to-market organizations as of September 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
September 30,
Nine months ended
September 30,
(dollars in thousands)
2023
2022
2023
2022
Social Sector$239,512 $223,963 $696,790 $671,714 
Corporate Sector
38,114 37,334 113,631 111,634 
Total revenue$277,626 $261,297 $810,421 $783,348 
The following table presents our recurring revenue by type:
Three months ended
September 30,
Nine months ended
September 30,
(dollars in thousands)
2023
2022
2023
2022
Contractual recurring$189,174 $178,264 $548,012 $530,146 
Transactional recurring79,827 71,123 236,127 216,414 
Total recurring revenue$269,001 $249,387 $784,139 $746,560