Annual report pursuant to Section 13 and 15(d)

Revenue, Accounts Receivable and Significant Customers

v3.24.1
Revenue, Accounts Receivable and Significant Customers
 12 Months Ended
Dec. 31, 2023
Revenue From Contract With Customer, Accounts Receivable, And Concentration Risk [Abstract]  
Revenue, Accounts Receivable and Significant Customers Revenue, Accounts Receivable and Significant Customers
The Company derives nearly all of its revenue through a recurring subscription model. The Company enters into contracts with its customers typically with an initial term of one year. Most customers are invoiced in advance and must generally pay an upfront implementation fee. The upfront implementation fee is deferred and recognized over the initial contract term and any customer prepayments are deferred and included in the accompanying consolidated balance sheets in deferred revenue. Revenues are recognized over time as we provide our services to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services.
Changes in the contract liability, which solely includes deferred revenue, were as follows:
Years Ended
December 31,
2023 2022
Balance, beginning of year $ 7,254  $ 6,238 
Deferral of revenue $ 42,846  31,949 
Recognition of unearned revenue $ (41,137) (30,933)
Balance, end of year $ 8,963  $ 7,254 
Accounts receivable, net from customers was $8.6 million and $6.4 million as of December 31, 2023 and 2022, respectively.
Deferred revenues consist of billings or payments received in advance of revenue recognized for the Company’s services, as described above, and are recognized as revenue when earned. The Company has an unconditional right to payment under a non-cancellable contract before it transfers services to its customer.
The Company’s accounts receivable are derived from contracts with customers located in the U.S. Significant customers generating more than 10% of the Company's revenue during the period indicated or for which accounts receivable balance was more than 10% of the total accounts receivable balance were as follows:
Percent of Revenue for year ended December 31,
2023 2022
Customer A 23  % 18  %
Customer B 11  % 16  %
Customer C 13  % 12  %
Percent of Accounts Receivable as of December 31,
2023 2022
Customer A 35  % 19  %
Customer C 11  % n/a
Customer D n/a 10  %
Customer E 10  % n/a
The Company capitalizes sales commission costs to obtain a revenue contract and amortizes such costs over 12 to 24 months. The Company amortized $601 thousand and $277 thousand of sales commissions in sales and marketing expense during the years ended December 31, 2023 and 2022, respectively. The unamortized capitalized sales commission included in other current asset was $494 thousand and $462 thousand as of December 31, 2023 and 2022, respectively. The unamortized capitalized sales commission included in other asset was $153 thousand and $68 thousand as of December 31, 2023 and 2022, respectively.