Annual report pursuant to Section 13 and 15(d)

Revenue

v3.22.1
Revenue
 12 Months Ended
Dec. 31, 2021
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
For the years ended December 31, 2021, 2020 and 2019, the Company recognized revenue of $22.9 million, $16.1 million and $8.1 million, respectively, that was included in the corresponding deferred revenue balance at the beginning of the period.
Costs to Obtain a Contract
The following table summarizes the activity of deferred contract acquisition costs (thousands):
Year Ended December 31,
2021 2020 2019
Beginning balance $ 13,386  $ 10,578  $ 5,792 
Capitalization of contract costs 12,828  9,670  8,927 
Amortization of deferred contract acquisition costs (9,410) (6,862) (4,141)
Ending balance $ 16,804  $ 13,386  $ 10,578 
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, 2021, 2020 and 2019:
Year Ended December 31,
2021 2020 2019
Subscription and payment processing $ 108,841  $ 74,182  $ 42,838 
Onboarding 3,687  3,095  745 
Hardware (embedded lease) 3,343  2,619  2,163 
Total revenue $ 115,871  $ 79,896  $ 45,746