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Revenue Recognition
 9 Months Ended
Sep. 30, 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:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 (in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

EMEA

 

$

8,639

 

 

$

10,241

 

 

$

21,426

 

 

$

105,595

 

Americas

 

 

2,940

 

 

 

3,576

 

 

 

8,512

 

 

 

21,776

 

APAC

 

 

2,658

 

 

 

3,287

 

 

 

6,802

 

 

 

8,617

 

Total net revenue

 

$

14,237

 

 

$

17,104

 

 

$

36,740

 

 

$

135,988

 

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 September 30,

 

 

Nine Months Ended September 30,

 

 (in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Balance at the beginning of the period

 

$

979

 

 

$

623

 

 

$

801

 

 

$

1,122

 

Deferral of revenue

 

 

1,732

 

 

 

4,673

 

 

 

6,347

 

 

 

27,842

 

Recognition of unearned revenue

 

 

(1,481

)

 

 

(4,840

)

 

 

(5,918

)

 

 

(28,508

)

Balance at the end of the period

 

$

1,230

 

 

$

456

 

 

$

1,230

 

 

$

456

 

 

As of September 30, 2024, the Company expects to recognize $1.2 million from remaining performance obligations over a weighted average term of 3.9 years.

The Company recognized approximately $0.1 million and $0.6 million in revenue that was included in the beginning contract liabilities balance during the three and nine months ended September 30, 2024, respectively. The Company did not recognize any revenue that was included in the beginning contract liabilities balance during the three months ended September 30, 2023. The Company recognized $0.9 million in revenue that was included in the beginning contract liabilities balance during the nine months ended September 30, 2023.

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 September 30,

 

 

Nine Months Ended September 30,

 

 (in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Warranty liability, beginning of the period

 

$

5,777

 

 

$

5,493

 

 

$

5,632

 

 

$

4,351

 

Provision for warranty issued during period

 

 

264

 

 

 

141

 

 

 

952

 

 

 

1,853

 

Changes in estimate

 

 

(233

)

 

 

319

 

 

 

(607

)

 

 

(43

)

Settlements

 

 

(101

)

 

 

(146

)

 

 

(270

)

 

 

(354

)

Warranty liability, end of the period

 

$

5,707

 

 

$

5,807

 

 

$

5,707

 

 

$

5,807