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Revenue Recognition
 3 Months Ended
Mar. 31, 2024
Revenues [Abstract]  
Revenue Recognition
7.
Revenue Recognition

Geographic Net Revenue

The Company sells its products in the Americas (North and South America), EMEA (Europe, Middle East, and Africa), and APAC (Asia-Pacific) regions.

The following table summarizes net revenue by major geographic region (in millions):

 

 

 

Three Months Ended March 31,

 

 (in thousands)

 

2024

 

 

2023

 

EMEA

 

$

5,789

 

 

$

40,259

 

Americas

 

 

2,738

 

 

 

6,981

 

APAC

 

 

1,275

 

 

 

2,818

 

Total net revenue

 

$

9,802

 

 

$

50,058

 

Deferred Revenue

Deferred revenue or contract liabilities consists of payments received from customers in advance of revenue recognition for the Company’s products and service. The current portion of deferred revenue represents the unearned revenue that will be earned within 12 months of the balance sheet date. Correspondingly, noncurrent deferred revenue represents the unearned revenue that will be earned after 12 months from the balance sheet date.

The following table summarizes the changes in deferred revenue:

 

 

 

Three Months Ended March 31,

 

 (in thousands)

 

2024

 

 

2023

 

Balance at the beginning of the period

 

$

801

 

 

$

1,122

 

Deferral of revenue

 

 

1,666

 

 

 

12,198

 

Recognition of unearned revenue

 

 

(1,416

)

 

 

(11,712

)

Balance at the end of the period

 

$

1,051

 

 

$

1,608

 

 

As of March 31, 2024, the Company expects to recognize $1.1 million from remaining performance obligations over a weighted average term of 3.7 years.

The Company recognized approximately $0.2 million and $0.7 million in revenue that was included in the beginning contract liabilities balance during the three months ended March 31, 2024, and 2023, respectively.

Product Warranty

The Company estimates the cost of its warranty obligations based on several key estimates: the warranty period (which vary from 5 to 25 years depending on the product), its historical experience of known product failure rates, use of materials to repair or replace defective products and parts, and service delivery costs incurred in correcting product failures. In addition, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. Should the actual experience relative to these factors differ from the estimates, the Company may be required to record additional warranty reserves. Product warranty costs are recorded as expense to cost of revenue based on customer history, historical information and current trends.

The following table summarizes the changes in product warranty liability:

 

 

 

Three Months Ended March 31,

 

 (in thousands)

 

2024

 

 

2023

 

Warranty liability, beginning of the period

 

$

5,632

 

 

$

4,351

 

Provision for warranty issued during period

 

 

138

 

 

 

796

 

Benefit from changes in estimate

 

 

(197

)

 

 

(431

)

Settlements

 

 

(94

)

 

 

(90

)

Warranty liability, end of the period

 

$

5,479

 

 

$

4,626