XML 22 R12.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Revenue Recognition
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
3.
Revenue Recognition

Remaining performance obligations

As of June 30, 2024, the aggregate amount of the transaction price in our contracts allocated to the remaining unsatisfied performance obligations (“RPO”) was approximately $278 million and excludes consideration from contracts that have an original duration of one year or less. Approximately $264 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. Our contracts vary in length and generally have terms of two to ten years. We expect to recognize approximately 21% of our connectivity and entertainment service RPO within the next year, approximately 43% in one to five years and the remaining 36% in five to ten years. The remaining $14 million of the RPO represents future equipment revenue that is expected to be recognized primarily within the next three years as equipment is shipped.

Disaggregation of revenue

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

 

 

 

For the Three Months
Ended June 30,

 

 

For the Six Months
Ended June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Service revenue

 

 

 

 

 

 

 

 

 

 

 

 

Connectivity

 

$

80,613

 

 

$

77,799

 

 

$

160,971

 

 

$

155,045

 

Entertainment and other

 

 

1,316

 

 

 

1,263

 

 

 

2,631

 

 

 

2,516

 

Total service revenue

 

$

81,929

 

 

$

79,062

 

 

$

163,602

 

 

$

157,561

 

Equipment revenue

 

 

 

 

 

 

 

 

 

 

 

 

ATG

 

$

17,196

 

 

$

20,327

 

 

$

36,543

 

 

$

35,883

 

Narrowband satellite

 

 

2,228

 

 

 

2,158

 

 

 

3,922

 

 

 

4,809

 

Other

 

 

706

 

 

 

1,674

 

 

 

2,314

 

 

 

3,565

 

Total equipment revenue

 

$

20,130

 

 

$

24,159

 

 

$

42,779

 

 

$

44,257

 

Customer type

 

 

 

 

 

 

 

 

 

 

 

 

Aircraft owner/operator/service provider

 

$

81,929

 

 

$

79,062

 

 

$

163,602

 

 

$

157,561

 

OEM and aftermarket dealer

 

 

20,130

 

 

 

24,159

 

 

 

42,779

 

 

 

44,257

 

Total revenue

 

$

102,059

 

 

$

103,221

 

 

$

206,381

 

 

$

201,818

 

Contract balances

Our current and non-current contract asset balances totaled $15.7 million and $16.6 million as of June 30, 2024 and December 31, 2023, respectively. Contract assets represent the aggregate amount of revenue recognized in excess of billings and recoverable contract costs primarily for certain sales programs.

Our current and non-current deferred revenue balances totaled $1.9 million and $1.0 million as of June 30, 2024 and December 31, 2023, respectively. Deferred revenue includes, among other things, prepayments for equipment and subscription connectivity products.