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Revenue and Deferred Revenue
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue and Deferred Revenue

NOTE 4. REVENUE AND DEFERRED REVENUE

Disaggregation of Revenue

In the following tables, revenue is disaggregated by primary geographical market, type of revenue, and SmartRent Solution.

 

 

 

For the years ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Revenue by geography

 

 

 

 

 

 

 

 

 

United States

 

$

235,553

 

 

$

165,795

 

 

$

108,072

 

International

 

 

1,285

 

 

 

2,026

 

 

 

2,565

 

Total revenue

 

$

236,838

 

 

$

167,821

 

 

$

110,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the years ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Revenue by type

 

 

 

 

 

 

 

 

 

Hardware

 

$

137,201

 

 

$

87,372

 

 

$

69,629

 

Professional services

 

 

35,473

 

 

 

32,301

 

 

 

22,732

 

Hosted services

 

 

64,164

 

 

 

48,148

 

 

 

18,276

 

Total revenue

 

$

236,838

 

 

$

167,821

 

 

$

110,637

 

 

 

 

For the years ended December 31,

 

 

2023

 

 

2022

 

 

2021

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SmartRent Solutions

Hardware

 

Professional Services

 

Hosted Services

 

Total 2023

 

 

Hardware

 

Professional Services

 

Hosted Services

 

Total 2022

 

 

Hardware

 

Professional Services

 

Hosted Services

 

Total 2021

 

Smart Communities Solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Smart Apartments

$

130,894

 

$

30,546

 

$

49,696

 

$

211,135

 

 

$

82,799

 

$

30,419

 

$

37,605

 

$

150,823

 

 

$

64,393

 

$

22,082

 

$

17,458

 

$

103,933

 

 Access Control

 

3,607

 

 

3,527

 

 

912

 

 

8,047

 

 

 

3,440

 

 

1,799

 

 

316

 

 

5,555

 

 

 

1,967

 

 

342

 

 

30

 

 

2,339

 

 Community WiFi

 

395

 

 

996

 

 

688

 

 

2,078

 

 

 

179

 

 

44

 

 

257

 

 

480

 

 

 

657

 

 

273

 

 

13

 

 

943

 

 Other

 

2,305

 

 

404

 

 

1,534

 

 

4,243

 

 

 

954

 

 

39

 

 

1,537

 

 

2,529

 

 

 

2,612

 

 

35

 

 

775

 

 

3,422

 

Smart Operations Solutions

 

-

 

 

-

 

 

11,334

 

 

11,334

 

 

 

-

 

 

-

 

 

8,433

 

 

8,433

 

 

 

-

 

 

-

 

 

-

 

 

-

 

 Total Revenue

$

137,201

 

$

35,473

 

$

64,164

 

$

236,838

 

 

$

87,372

 

$

32,301

 

$

48,148

 

$

167,821

 

 

$

69,629

 

$

22,732

 

$

18,276

 

$

110,637

 

 

Remaining Performance Obligations

Advance payments received from customers are recorded as deferred revenue and are recognized upon the completion of related performance obligations over the period of service. Advance payments for non-distinct Hub Devices were recorded as deferred revenue and recognized over their average in-service life. Advance payments received from customers for subscription services are recorded as deferred revenue and recognized over the term of the subscription. A summary of the change in deferred revenue is as follows.

 

 

For the years ended December 31,

 

 

 

2023

 

 

2022

 

Deferred revenue balance as of January 1

 

$

139,948

 

 

$

95,597

 

Revenue recognized from balance of deferred revenue
      at the beginning of the period

 

 

(47,919

)

 

 

(25,934

)

Revenue deferred during the period

 

 

71,243

 

 

 

111,861

 

Revenue recognized from revenue originated
     and deferred during the period

 

 

(40,112

)

 

 

(41,576

)

Deferred revenue balance as of December 31

 

$

123,160

 

 

$

139,948

 

 

As of December 31, 2023, the Company expects to recognize 56% of its total deferred revenue within the next 12 months, 21% of its total deferred revenue between 13 and 36 months, 20% between 37 and 60 months, and the remainder is expected to be recognized beyond five years. Contracts may contain termination for convenience provisions that allow the Company, customer, or both parties the ability to terminate for convenience, either at any time or upon providing a specified notice period, without a substantive termination penalty. Included in deferred revenue as of December 31, 2023 and 2022 are $39,195 and $39,932, respectively, of prepaid fees related to contracts with termination for convenience provisions which are refundable at the request of the customer. Based on the Company's historical experience, customers do not typically exercise their termination for convenience rights.

Deferred cost of revenue includes all direct costs included in cost of revenue that have been deferred to future periods.