Quarterly report pursuant to Section 13 or 15(d)

Contract Assets and Liabilities

v3.24.3
Contract Assets and Liabilities
 9 Months Ended
Sep. 30, 2024
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:
September 30, December 31,
2024 2023
(in thousands)
Contract assets - current:
Unbilled revenue $ 26,736  $ 15,213 
Total contract assets - current $ 26,736  $ 15,213 
Contract assets - long-term:
Unbilled revenue - long-term $ 1,321  $ 8,150 
Other contract assets - long-term 1,049  610 
Total contract assets - long-term(1)
$ 2,370  $ 8,760 
Contract liabilities - current:
Deferred revenue - current $ 4,224  $ 3,670 
Total contract liabilities - current $ 4,224  $ 3,670 
Contract liabilities - long-term:
Other contract liabilities - long-term $ 620  $ 169 
Total contract liabilities - long-term(2)
$ 620  $ 169 
(1) Total contract assets - long term is included in other assets in the unaudited condensed consolidated balance sheets.
(2) Total contract liabilities - long term is included in other liabilities in the unaudited condensed 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 nine months ended September 30, 2024 were as follows:
Contract Assets Contract Liabilities
(in thousands)
Balance as of January 1, 2024 $ 23,973  $ 3,839 
Billings or revenue recognized that was included in the beginning balance (9,938) (3,252)
Changes in contract assets or contract liabilities, net of reclassification to receivables 14,359  3,751 
Cumulative catch-up adjustment arising from changes in estimates to complete 273  66 
Cumulative catch-up adjustment arising from contract modifications —  (11)
Changes in costs to fulfill and amortization of commission costs 439  — 
Changes in contract commission costs —  451 
Balance as of September 30, 2024 $ 29,106  $ 4,844