|12 Months Ended|
Dec. 31, 2022
|Revenue from Contract with Customer [Abstract]|
The Company accounts for revenue in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts With Customers for all periods presented. See Note 2 for a description of the Company’s revenue recognition accounting policy.
For the years ended December 31, 2022, 2021 and 2020, the Company recognized revenue of $29.5 million, $22.9 million and $16.1 million, respectively, that was included in the corresponding deferred revenue balance at the beginning of the period.
Deferred Contract Costs
The following table summarizes the activity of deferred contract costs (in thousands):
Performance obligations promised in a contract are based on the services and products that will be transferred to the customer. They must be capable of being distinct and separately identifiable from other promises in the contract. The Company’s performance obligations consist of the following:
•Cloud-based phone services;
•Onboarding/Installation services (pre-configured applications and phone hardware); and
Disaggregation of Revenues
Revenue has been disaggregated into recurring and non-recurring categories to identify revenue and costs of revenue that are one-time in nature from those that are term-based and renewable.
The table below outlines revenue for our recurring subscription (software and phone services) and payment processing services, as well as for our onboarding services, and phone hardware (in thousands) for the years ended December 31, 2022, 2021 and 2020:
The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef