Quarterly report pursuant to Section 13 or 15(d)

Revenue Related Disclosures

v3.20.2
Revenue Related Disclosures
9 Months Ended
Sep. 30, 2020
Revenue From Contract With Customer [Abstract]  
Revenue Related Disclosures

Note 3. Revenue Related Disclosures

As of December 31, 2019, the Company had total short-term and long-term deferred revenue of $27.0 million. During the three months ended September 30, 2020, the Company recognized $9.5 million in revenue from the beginning deferred revenue balance and $1.8 million from new billings and added $9.7 million to total short-term and long-term deferred revenue from new billings. During the nine months ended September 30, 2020, the Company recognized $22.8 million in revenue from the beginning deferred revenue balance and $10.2 million from new billings and added $26.6 million to total short-term and long-term deferred revenue from new billings.

As of December 31, 2018, the Company had total short-term and long-term deferred revenue of $24.2 million. During the three months ended September 30, 2019, the Company recognized $8.8 million in revenue from the beginning deferred revenue balance and $1.1 million from new billings and added $8.1 million to total short-term and long-term deferred revenue from new billings. During the nine months ended September 30, 2019, the Company recognized $20.0 million in revenue from the beginning deferred revenue balance and $9.7 million from new billings and added $26.8 million to total short-term and long-term deferred revenue from new billings.

As of September 30, 2020, the Company has estimated remaining performance obligations for contractually committed revenues of $10.7 million, $28.8 million, $8.3 million, and $3.1 million that will be recognized during the remainder of the year ending December 31, 2020, the years ending December 31, 2021, 2022, and the three-year period from 2023 through 2025, respectively. The timing of revenue recognition includes estimates of go-live dates for contracts not yet live. There is considerable uncertainty in the Company’s estimates of go-live dates as a result of the novel strain of coronavirus (COVID-19) pandemic and resulting disruption in the Company’s ability to deploy new go-live miles. See Note 12. Commitments and Contingencies. Contractually committed revenue includes deferred revenue as of September 30, 2020 and amounts under contract that will be invoiced after September 30, 2020. 

During the three months ended September 30, 2020, the Company recognized revenues of $11.2 million from customers in the United States, and $0.2 million from customers in the Bahamas and South Africa. During the nine months ended September 30, 2020, the Company recognized revenues of $32.6 million from customers in the United States, and $0.5 million from customers in the Bahamas and South Africa.

During the three months ended September 30, 2019, the Company recognized revenues of $9.8 million from customers in the United States and $0.2 million from customers in South Africa and the Bahamas. During the nine months ended September 30, 2019, the Company recognized revenues of $28.9 million from customers in the United States and $0.9 million from customers in South Africa and the Bahamas.

Accounts Receivable, net and Contract Asset

Accounts receivable, net consist of trade accounts receivable from the Company’s customers, net of allowance for doubtful accounts if deemed necessary. Accounts receivable are recorded as the invoiced amount. The Company does not require collateral or other security for accounts receivable. Contract asset consists of revenues recognized in advance of invoicing the customer.

The Company periodically evaluates the collectability of its accounts receivable and provides an allowance for potential credit losses based on the Company’s historical experience. At September 30, 2020, the Company had a provision against accounts receivable of $41,000. At December 31, 2019, the Company did not have a provision for potential credit losses as there were no estimated credit losses.