Quarterly report pursuant to Section 13 or 15(d)

REVENUE RECOGNITION

v3.24.3
REVENUE RECOGNITION
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
Disaggregated Revenue

The table below sets forth a summary of revenue by major service line and product category:
Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2024 2023 2024 2023
Services:
IoT Connectivity (1)
$ 55,416  $ 54,217  $ 166,656  $ 145,161 
IoT Solutions 2,788  2,787  8,506  9,941 
$ 58,204  $ 57,004  $ 175,162  $ 155,102 
Products:
Hardware (2)(3)
$ 10,716  $ 11,629  $ 37,601  $ 49,042 
Total $ 68,920  $ 68,633  $ 212,763  $ 204,144 

(1) Includes connectivity-related revenue from IoT Connectivity and IoT Solutions.
(2) Includes hardware-related revenue from IoT Connectivity and IoT Solutions.
(3) Includes $0.9 million and $2.1 million of bill-and-hold arrangements for the three months ended September 30, 2024 and 2023, respectively, and $3.7 million and $6.6 million for the nine months ended September 30, 2024 and 2023, respectively.

The table below sets forth a summary of revenue by geographic area:

Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2024 2023 2024 2023
United States $ 58,201  $ 56,163  $ 179,003  $ 162,924 
Other countries (1)
10,719  12,470  33,760  41,220 
Total $ 68,920  $ 68,633  $ 212,763  $ 204,144 

(1) No single country in “other countries” exceeded 10% of the total revenue for the three months ended September 30, 2024 and 2023, and the nine months ended September 30, 2024 and 2023.

Contract Assets

The following table sets forth the change in contract assets, or unbilled receivables:

(in thousands) September 30, 2024 December 31, 2023
Beginning balance $ 2,173  $ — 
Revenue recognized during the period but not billed (1)
2,626  2,173 
Amounts reclassified to accounts receivable (1,349) — 
Ending balance $ 3,450  $ 2,173 

(1) Net of financing component of $0.5 million and $0.3 million as of September 30, 2024 and December 31, 2023, respectively.

Contract Liabilities

The table below sets forth the change in contract liabilities, or deferred revenue:

(in thousands) September 30, 2024 December 31, 2023
Beginning balance $ 9,044  $ 7,817 
Amounts billed but not recognized as revenue 7,794  9,041 
Revenue recognized from balances held at the beginning of the period (9,044) (7,817)
Foreign exchange —  3 
Ending balance $ 7,794  $ 9,044 

Remaining Performance Obligations
Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations that are unsatisfied, or partially unsatisfied, at the end of the reporting period. Remaining performance obligations estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustments for revenue that have not materialized, and adjustments for currency. As of September 30, 2024 the Company had approximately $20.6 million of remaining performance obligations on contracts with an original duration of one year or more. The Company expects to recognize approximately 31% of these remaining performance obligations in 2024, with the remaining balance recognized thereafter.

The Company has variable consideration of approximately $2.8 million that was constrained revenue and excluded from the transaction price for the period ended September 30, 2024. There were no material instances where variable consideration was constrained and not recorded at the initial time of sale for the period ended September 30, 2023.

Costs to Obtain and Fulfill a Contract

The Company did not have material costs related to obtaining a contract, or fulfilling a contract that are not addressed by other accounting standards, with amortization periods greater than one year for the three and nine months ended September 30, 2024 and 2023.