Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The Company accounts for revenue in accordance with 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
For the years ended December 31, 2023, 2022 and 2021, the Company recognized revenue of $34.1 million, $29.5 million and $22.9 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):
Year Ended December 31,
2023 2022 2021
Beginning balance $ 18,027  $ 16,804  $ 13,386 
Capitalization of contract costs 13,313  12,343  12,828 
Amortization of deferred contract costs (12,171) (11,120) (9,410)
Ending balance $ 19,169  $ 18,027  $ 16,804 
Performance Obligations
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:
Software services;
Cloud-based phone services;
Payment services;
Onboarding/Installation services (pre-configured applications and phone hardware); and
Phone equipment.
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, 2023, 2022 and 2021:
Year Ended December 31,
2023 2022 2021
Subscription and payment processing $ 162,715  $ 136,592  $ 108,841 
Onboarding 3,232  1,288  3,687 
Hardware (embedded lease) 4,521  4,237  3,343 
Total revenue $ 170,468  $ 142,117  $ 115,871