v3.25.1
Revenue
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue
Note 5. Revenue
Disaggregation of Revenue
The following tables present a disaggregation of our revenue from contracts with customers by revenue recognition pattern and geographical market:
Three months ended
March 31,
20252024
(in thousands)
By pattern of recognition (timing of transfer of services):
Point in time$2,608 $3,128 
Over time139,665 134,724 
Total$142,273 $137,852 
By geographical market:
United States$127,130 $118,861 
International15,143 18,991 
Total$142,273 $137,852 
Contract Balances
Supplemental balance sheet information related to contracts from customers as of:
March 31,December 31,
20252024
(in thousands)
Accounts receivable, net$32,356 $31,090 
Contract assets$11,115 $12,839 
Deferred revenue$22,122 $22,107 
Customer deposits$11,857 $11,382 
Long-term deferred revenue$423 $512 
Accounts receivable, net: Accounts receivable, net of allowance for expected credit losses, represent rights to consideration in exchange for products or services that have been transferred by us, when payment is unconditional and only the passage of time is required before payment is due.
Contract assets: Contract assets represent rights to consideration in exchange for products or services that have been transferred (i.e., the performance obligation or portion of the performance obligation has been satisfied), but payment is conditional on something other than the passage of time. These amounts typically relate to contracts with the suppliers within our group purchasing programs for which payment is received at least one quarter in arrears from the service period. They also relate to contracts that include on-premise licenses and professional services where the right to payment is not present until completion of the contract or achievement of specified milestones and the fair value of products or services transferred exceed this constraint.
Contract liabilities: Contract liabilities, or deferred revenue, represent our obligation to transfer products or services to a customer for which consideration has been received in advance of the satisfaction of performance obligations. Long-term deferred revenue is included within other non-current liabilities on the unaudited condensed consolidated balance sheets. Revenue recognized from the contract liability balance at December 31, 2024 was $16.3 million for the three months ended March 31, 2025.
Customer deposits: Customer deposits relate to payments received in advance for contracts, which allow the customer to terminate a contract and receive a pro rata refund for the unused portion of payments received to date.
Accounts Receivable
Activity in our allowance for expected credit losses is as follows as of:
March 31,
20242023
(in thousands)
Allowance for expected credit losses, beginning of year
$2,283 $3,328 
Bad debt expense322 492 
Write-offs, net of recoveries(552)(1,025)
Disposition of Fitness Solutions
— (96)
Transfer to held for sale
— (53)
Allowance for expected credit losses, end of period$2,053 $2,646 
Remaining Performance Obligations
Remaining performance obligations represent the transaction price of unsatisfied or partially satisfied performance obligations within contracts with an original expected contract term that is greater than one year for which fulfillment of the contract has started as of the end of the reporting period. Contracts that include 30-day termination rights are considered to be contracts with a term of one month and are therefore excluded from remaining performance obligations. Remaining performance obligations generally relate to those which are stand-ready in nature, as found within the subscription revenue streams. The aggregate amount of transaction consideration allocated to remaining performance obligations as of March 31, 2025 was $19.1 million. The Company expects to recognize approximately 61% of its remaining performance obligations as revenue within the next year, 29% of its remaining performance obligations as revenue the subsequent year, 8% of its remaining performance obligations as revenue in the third year, and the remainder during the two-year period thereafter.
Cost to Obtain and Fulfill a Contract
Assets resulting from costs to obtain contracts are included within prepaid expenses and other current assets for short-term balances and other non-current assets for long-term balances on the Company’s unaudited condensed consolidated balance sheets. The costs to obtain contracts are amortized over five years, which corresponds with the useful life of the related technology. Short-term assets were $9.2 million and $8.9 million at March 31, 2025 and December 31, 2024, respectively, and long-term assets were $15.9 million and $16.0 million at March 31, 2025 and December 31, 2024, respectively. The Company recorded amortization expense within sales and marketing on the unaudited condensed consolidated statements of operations and comprehensive loss of $1.4 million and $1.3 million for the three months ended March 31, 2025 and 2024, respectively. The Company recorded amortization expense within cost of revenues on the unaudited condensed consolidated statements of operations and comprehensive loss of $0.9 million and $0.7 million for the three months ended March 31, 2025 and 2024, respectively.