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Revenue Recognition
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
2.
Revenue Recognition

Remaining performance obligations

As of March 31, 2023, the aggregate amount of the transaction price in our contracts allocated to the remaining unsatisfied performance obligations (“RPO”) was approximately $91 million and excludes consideration from contracts that have an original duration of one year or less. Approximately $74 million of the RPO primarily represents connectivity and entertainment service revenues which are recognized as services are provided, which is expected to occur through the remaining term of the contracts. The remaining $17 million of the RPO represents future equipment revenue that is expected to be recognized primarily within the next two years.

Disaggregation of revenue

The following table presents our revenue disaggregated by category (in thousands):

 

 

 

For the Three Months
Ended March 31,

 

 

 

2023

 

 

2022

 

Service revenue

 

 

 

 

 

 

Connectivity

 

$

77,246

 

 

$

69,495

 

Entertainment and other

 

 

1,253

 

 

 

1,172

 

Total service revenue

 

$

78,499

 

 

$

70,667

 

Equipment revenue

 

 

 

 

 

 

ATG

 

$

15,556

 

 

$

17,948

 

Narrowband satellite

 

 

2,651

 

 

 

3,206

 

Other

 

 

1,891

 

 

 

929

 

Total equipment revenue

 

$

20,098

 

 

$

22,083

 

Customer type

 

 

 

 

 

 

Aircraft owner/operator/service provider

 

$

78,499

 

 

$

70,667

 

OEM and aftermarket dealer

 

 

20,098

 

 

 

22,083

 

Total revenue

 

$

98,597

 

 

$

92,750

 

Contract balances

Our current and non-current contract asset balances totaled $19.3 million and $19.9 million as of March 31, 2023 and December 31, 2022, respectively. Contract assets represent the aggregate amount of revenue recognized in excess of billings primarily for certain sales programs.

Our current and non-current deferred revenue balances totaled $2.4 million and $3.4 million as of March 31, 2023 and December 31, 2022, respectively. Deferred revenue includes, among other things, prepayments for equipment and subscription connectivity products.

Major Customers

No customer accounted for more than 10% of revenue during the three-month periods ended March 31, 2023 and 2022 and no customer accounted for more than 10% of accounts receivable as of March 31, 2023 or December 31, 2022.