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Revenue and Deferred Revenue
 3 Months Ended
Mar. 31, 2024
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 three months ended March 31,

 

 

 

2024

 

 

2023

 

Revenue by geography

 

 

 

 

 

 

United States

 

$

50,301

 

 

$

64,933

 

International

 

 

188

 

 

 

146

 

Total revenue

 

$

50,489

 

 

$

65,079

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended March 31,

 

 

 

2024

 

 

2023

 

Revenue by type

 

 

 

 

 

 

Hardware

 

$

29,077

 

 

$

37,325

 

Professional services

 

 

3,458

 

 

 

12,769

 

Hosted services

 

 

17,954

 

 

 

14,985

 

Total revenue

 

$

50,489

 

 

$

65,079

 

 

 

For the three months ended March 31,

 

 

2024

 

 

2023

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SmartRent Solutions

Hardware

 

Professional Services

 

Hosted Services

 

Total 2024

 

 

Hardware

 

Professional Services

 

Hosted Services

 

Total 2023

 

Smart Communities Solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Smart Apartments

$

27,429

 

$

2,713

 

$

14,072

 

$

44,214

 

 

$

36,392

 

$

11,691

 

$

11,570

 

$

59,653

 

 Access Control

 

1,015

 

 

561

 

 

349

 

 

1,925

 

 

 

778

 

 

1,051

 

 

153

 

 

1,982

 

 Community WiFi

 

137

 

 

16

 

 

180

 

 

333

 

 

 

5

 

 

-

 

 

156

 

 

161

 

 Other

 

496

 

 

168

 

 

492

 

 

1,156

 

 

 

150

 

 

27

 

 

372

 

 

549

 

Smart Operations Solutions

 

-

 

 

-

 

 

2,861

 

 

2,861

 

 

 

-

 

 

-

 

 

2,734

 

 

2,734

 

 Total Revenue

$

29,077

 

$

3,458

 

$

17,954

 

$

50,489

 

 

$

37,325

 

$

12,769

 

$

14,985

 

$

65,079

 

 

 

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 three months ended March 31,

 

 

 

2024

 

 

2023

 

Deferred revenue balance as of January 1

 

$

123,159

 

 

$

139,948

 

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

 

 

(8,656

)

 

 

(14,505

)

Revenue deferred during the period

 

 

7,075

 

 

 

19,593

 

Revenue recognized from revenue originated
     and deferred during the period

 

 

(2,010

)

 

 

(2,067

)

Deferred revenue balance as of March 31

 

 

119,568

 

 

 

142,969

 

 

As of March 31, 2024, the Company expects to recognize 59% of its total deferred revenue within the next 12 months, 20% of its total deferred revenue between 13 and 36 months, 19% 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 March 31, 2024 and 2023 are $31,178 and $39,656, 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.