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Revenue Recognition
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
12. Revenue Recognition
Transaction price allocated to the remaining performance obligations
As of September 30, 2024, approximately $1.2 billion of revenue under contract is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 55% 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 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, 2024 and December 31, 2023 were insignificant. Our closing balances of deferred revenue were as follows:
(in thousands)September 30,
2024		December 31,
2023
Total deferred revenue$413,259 $394,927 
The increase in deferred revenue during the nine months ended September 30, 2024 was primarily due to the impact of our contract pricing initiatives within the Social Sector, as well as a seasonal increase in customer contract billings and 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, 2024 that was included in the deferred revenue balance at the beginning of the period was approximately $321 million. The amount of revenue recognized during the nine months ended September 30, 2024 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:
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Nine months ended
September 30,
(dollars in thousands)
2024
2023
2024
2023
United States$238,661 $237,877 $718,601 $688,290 
United Kingdom29,846 25,694 85,955 79,976 
Other countries18,220 14,055 48,707 42,155 
Total revenue$286,727 $277,626 $853,263 $810,421 
The Social Sector and Corporate Sector market groups comprised our go-to-market organizations as of September 30, 2024. 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)
2024
2023
2024
2023
Social Sector$255,210 $239,512 $751,818 $696,790 
Corporate Sector
31,517 38,114 101,445 113,631 
Total revenue$286,727 $277,626 $853,263 $810,421 
The following table presents our recurring revenue by type:
Three months ended
September 30,
Nine months ended
September 30,
(dollars in thousands)
2024
2023
2024
2023
Contractual recurring$194,798 $189,174 $579,195 $548,012 
Transactional recurring85,220 79,827 253,717 236,127 
Total recurring revenue$280,018 $269,001 $832,912 $784,139