Annual report pursuant to Section 13 and 15(d)

Contract Assets and Liabilities

v3.24.1
Contract Assets and Liabilities
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Contract Assets and Liabilities
5. Contract Assets and Liabilities
The components of contract assets and contract liabilities consisted of the following:
December 31, December 31,
2023 2022
(in thousands)
Contract assets - current:
Unbilled revenue $ 15,213  $ 5,706 
Total contract assets - current $ 15,213  $ 5,706 
Contract assets - long-term:
Unbilled revenue - long-term $ 8,150  $ 1,287 
Contract assets - long-term 610  681 
Total contract assets - long-term(1)
$ 8,760  $ 1,968 
Contract liabilities - current:
Deferred revenue - current $ 3,670  $ 6,783 
Total contract liabilities - current $ 3,670  $ 6,783 
Contract liabilities - long-term:
Other contract liabilities - long-term $ 169  $ 109 
Total contract liabilities - long-term $ 169  $ 109 
(1) Total contract assets - long term is included in other assets in the consolidated balance sheets.
Contract liabilities include payments received and billings made in advance of the satisfaction of performance obligations under the contract and are realized when the associated revenue is recognized under the contract. Contract assets include (i) unbilled revenue, which is the amount of revenue recognized in excess of the amount billed to customers, where the rights to payment are not just subject to the passage of time; and (ii) costs incurred incremental to the contract and to fulfill contract obligations. Other contract assets and other contract liabilities primarily relate to contract commissions on customer contracts.
Changes in short-term and long-term contract assets and contract liabilities for the year ended December 31, 2023 were as follows:
Contract Assets Contract Liabilities
(in thousands)
Balance as of January 1, 2023 $ 7,674  $ 6,892 
Billings or revenue recognized that was included in the beginning balance (3,063) (6,191)
Changes in contract assets or contract liabilities, net of reclassification to receivables 18,854  2,512 
Cumulative catch-up adjustment arising from changes in estimates to complete 595  225 
Cumulative catch-up adjustment arising from contract modifications (16) 341 
Changes in costs to fulfill and amortization of commission costs (71) — 
Changes in contract commission costs —  60 
Balance as of December 31, 2023 $ 23,973  $ 3,839