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Revenue
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Revenue    
Revenue

2. Revenue

Disaggregation of Revenue

Total revenues consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

March 31, 

 

 

    

2021

    

2020

 

Referral network revenue

 

$

11,024

 

$

9,128

 

Managed services revenue

 

 

4,644

 

 

4,135

 

Software and service subscription revenue

 

 

11,074

 

 

1,811

 

Total revenue

 

$

26,742

 

$

15,074

 

 

Management also evaluates revenue based upon when the Company’s customers avail themselves of the Company’s software, solutions or services. The first category, moving services relates to services that are typically provided to customers in connection with a home purchases and/or homeowner/renter moves. This includes revenue from insurance, moving, security systems and TV/internet services. The second category, post-move services, relates to services that are typically provided to customers post-move, such as home maintenance projects, repairs, remodeling and other services from professional contractors or service providers. Moving services represented 82 percent and 51 percent of total revenue in the three months ending March 31, 2021 and 2020, respectively. Post-move services represented 18 percent and 49 percent of total revenue the three months ending March 31, 2021 and 2020, respectively.

Revenue from Divested Businesses

Total revenue reported includes revenue from divested businesses of $0 and $2,540 in three months ending March 31, 2021 and 2020, respectively.

Disclosures Related to Contracts with Customers

Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to contracts with customers. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations. To the extent a contract exists, as defined by ASC 606, these liabilities are classified as deferred revenue. To the extent that a contract does not exist, as defined by ASC 606, these liabilities are classified as refundable customer deposits.

Contract Assets - Long-term Insurance Commissions Receivable

A summary of the activity impacting the contract assets during the year ended December 31, 2020 is presented below:

 

 

 

 

 

 

    

Contract Assets

Balance at December 31, 2020

 

$

3,529

Estimated lifetime value of insurance policies sold by carriers

 

 

1,805

Cash receipts

 

 

(435)

Balance at March 31, 2021

 

$

4,899

 

As of March 31, 2021, $151 of contract assets are expected to be collected within the next 12 months and therefore are included in current accounts receivable on the consolidated balance sheets. The remaining $4,748 of contract assets are expected to be collected in the following periods and are included in long-term insurance commissions receivable on the consolidated balance sheets.

Contract Liabilities — Refundable Customer Deposits

In September 2019, the Company entered into a Lead Buyer Agreement with a customer (“Buyer”) that provides residential security systems. Under the Lead Buyer Agreement, the Buyer pays the Company a referral fee for leads resulting in completed installations of certain residential security systems. At inception of this agreement, the Buyer made a prepayment of $7,000, which is to be credited over the term from October 2019 to September 2022, from earned referral fees for leads provided by the Company. This prepayment represents a contract liability since it is an advanced deposit for services the Company has yet to provide.

A summary of the activity impacting the contract liabilities during the three months ended March 31, 2021 is presented below:

 

 

 

 

 

 

Contract 

 

    

Liabilities

Balance at December 31, 2020

 

$

3,193

Additions to contract liabilities

 

 

 —

Additions to contract liabilities – significant financing component interest

 

 

66

Contract liabilities transferred to revenue

 

 

(837)

Balance at March 31, 2021

 

$

2,422

 

As of March 31, 2021,  $2,026 of contract liabilities are expected to be transferred to revenue within the next 12 months and therefore are included in current refundable customer deposits on the unaudited condensed consolidated balance sheets. The remaining $396 of contract liabilities are expected to be transferred to revenue over the remaining term of the contract and are included in refundable customer deposits, non-current on the unaudited condensed consolidated balance sheets.

Deferred Revenue

A summary of the activity impacting deferred revenue balances during the three months ended March 31, 2021 is presented below:

 

 

 

 

 

 

Deferred 

 

    

Revenue

Balance at December 31, 2020

 

$

5,208

Revenue recognized

 

 

(1,769)

Additional amounts deferred

 

 

407

Impact of acquisitions

 

 

500

Balance at March 31, 2021

 

$

4,346

 

Remaining Performance Obligations

Contracts with customers include amounts allocated to performance obligations that will be satisfied at a later date. These amounts primarily include performance obligations that are recorded in the consolidated balance sheets as deferred revenue. The amount of transaction price allocated to performance obligations to be satisfied at a later date, which is not recorded in the unaudited condensed consolidated balance sheets, is immaterial as of March 31, 2021 and December 31, 2020.

As permitted under the practical expedient available under ASC 606, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which the Company recognizes revenue at the amount which we have the right to invoice for services performed.

The Company applied the practical expedient under ASC 606 to exclude amounts related to performance obligations that are billed and recognized as they are delivered.

Note 2.   Revenue

Disaggregation of Revenue

Total revenues consisted of the following:

 

 

 

 

 

 

 

 

 

 

2020

 

 

 

 

 

(as restated)

    

2019

Referral network revenue

 

$

53,048

 

$

49,449

Managed services revenue

 

 

11,579

 

 

21,888

Software subscription revenue

 

 

7,672

 

 

6,258

Total revenue

 

$

72,299

 

$

77,595

 

Management also evaluates revenue based upon when our customers avail themselves of our software, solutions or services. The first category, moving services relates to services that are typically provided to customers in connection with a home purchase and/or homeowner/renter moves. This includes revenue from insurance, moving, security systems and TV/internet services. The second category, post-move services, relates to services that are typically provided to customers post-move such as home maintenance projects, repairs, remodeling and other services from professional contractors or service providers. Moving services represented 69 percent and 47 percent of total revenue in 2020 and 2019, respectively. Post-move services represented 31 percent and 53 percent of total revenue in 2020 and 2019, respectively.

Revenue from Divested Businesses

Total revenue reported includes revenue from divested businesses of $4,334 and $18,336 in 2020 and 2019, respectively.

Disclosures Related to Contracts with Customers

Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to contracts with customers. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations. To the extent a contract exists, as defined by ASC 606, these liabilities are classified as deferred revenue. To the extent that a contract does not exist, as defined by ASC 606, these liabilities are classified as refundable customer deposits.

Contract Assets — Long-term Insurance Commissions Receivable

A summary of the activity impacting the contract assets during the year ended December 31, 2020 is presented below:

 

 

 

 

 

 

    

Contract Assets

Balance at December 31, 2019

 

$

 —

Estimated lifetime value of insurance policies sold by carriers

 

 

4,313

Cash receipts

 

 

(784)

Balance at December 31, 2020

 

$

3,529

 

As of December 31, 2020, $164 of contract assets are expected to be collected within the next 12 months and therefore are included in current accounts receivable on the consolidated balance sheets. The remaining $3,365 of contract assets are expected to be collected in the following periods and are included in long-term insurance commissions receivable on the consolidated balance sheets.

 

Contract Liabilities — Refundable Customer Deposits

In September 2019, the Company entered into a Lead Buyer Agreement with a customer (“Buyer”) that provides residential security systems. Under the Lead Buyer Agreement, the Buyer pays the Company a referral fee for leads resulting in completed installations of certain residential security systems. At inception of this agreement, the Buyer made a prepayment of $7,000, which is to be credited over the term from October 2019 to September 2022, from earned referral fees for leads provided by the Company. This prepayment represents a contract liability since it is an advanced deposit for services the Company has yet to provide.

A summary of the activity impacting the contract liabilities during the years ended December 31, 2020 and 2019 is presented below:

 

 

 

 

 

 

 

Contract 

 

    

Liabilities

Balance at December 31, 2018

 

$

 —

Additions to contract liabilities - prepayment

 

 

7,000

Additions to contract liabilities – significant financing component interest

 

 

152

Contract liabilities transferred to revenue

 

 

(878)

Balance at December 31, 2019

 

 

6,274

Additions to contract liabilities

 

 

 —

Additions to contract liabilities – significant financing component interest

 

 

440

Contract liabilities transferred to revenue

 

 

(3,521)

Balance at December 31, 2020

 

$

3,193

 

As of December 31, 2020, $2,664 of contract liabilities are expected to be transferred to revenue within the next 12 months and therefore are included in current refundable customer deposits on the consolidated balance sheets. The remaining $529 of contract liabilities are expected to be transferred to revenue over the remaining period and are included in refundable customer deposits, non-current on the consolidated balance sheets.

Contract Liabilities — Deferred Revenue

A summary of the activity impacting deferred revenue balances during the years ended December 31, 2020 and 2019 is presented below:

 

 

 

 

 

 

 

Deferred 

 

    

Revenue

Balance at December 31, 2018

 

$

4,553

Adoption of ASC 606

 

 

(940)

Revenue recognized

 

 

(7,490)

Additional amounts deferred

 

 

6,686

Impact of acquisitions

 

 

670

Impact of divestitures

 

 

(146)

Balance at December 31, 2019

 

 

3,333

Revenue recognized

 

 

(4,923)

Additional amounts deferred (as restated)

 

 

6,602

Impact of acquisitions

 

 

196

Balance at December 31, 2020 (as restated)

 

$

5,208

 

Remaining Performance Obligations

Contracts with customers include amounts allocated to performance obligations that will be satisfied at a later date. These amounts primarily include performance obligations that are recorded in the consolidated balance sheets as deferred revenue. The amount of transaction price allocated to performance obligations to be satisfied at a later date, which is not recorded in the consolidated balance sheets, is immaterial as of December 31, 2020 and 2019.

As permitted under the practical expedient available under ASC 606, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which the Company recognizes revenue at the amount which we have the right to invoice for services performed.

The Company applied the practical expedient under ASC 606 to exclude amounts related to performance obligations that are billed and recognized as they are delivered.