Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.23.3
Revenue
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
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.
Contract Balances
The Company recognized revenue that was included in the corresponding deferred revenue balance at the beginning of the period of $18.1 million and $16.7 million for the three months ended September 30, 2023 and 2022, respectively, and $32.2 million and $29.3 million for the nine months ended September 30, 2023 and 2022, respectively.
Deferred Contract Costs
As discussed in Note 2, the Company capitalizes incremental costs of obtaining and fulfilling a contract. Amortization expense related to these costs was $3.0 million and $2.8 million for the three months ended September 30, 2023 and 2022, respectively, and $9.0 million and $8.2 million for the nine months ended September 30, 2023 and 2022, respectively.
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 three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Subscription and payment processing $ 41,601  $ 34,943  $ 118,989  $ 100,431 
Onboarding 757  278  2,408  859 
Hardware (embedded lease) 1,186  1,009  3,379  3,142 
Total revenue $ 43,544  $ 36,230  $ 124,776  $ 104,432