Quarterly report pursuant to Section 13 or 15(d)

Revenue (Notes)

v3.19.1
Revenue (Notes)
3 Months Ended
Mar. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue
Revenue
The Company generates revenue through the sale of enterprise video content management software, hardware, maintenance and support, and professional and other services. Software sales may take the form of a perpetual software license, a cloud-hosted software as a service (SaaS) or a term software license. Software licenses and appliances revenue includes sales of perpetual software licenses and hardware. Service revenue includes SaaS, term software licenses, maintenance and support, and professional and other services.
Revenues by product category and geography
The Company combines its products and services into three product categories and three geographic regions, based on customer location, as follows (in thousands):
 
Three Months Ended
 March 31,
 
2019
 
2018
Software licenses and appliances
$
1,005

 
$
451

Service
 
 
 
Subscription, maintenance and support
5,563

 
4,038

Professional services and other
530

 
342

Total service
6,093

 
4,380

Total revenues
$
7,098

 
$
4,831

 
Three Months Ended
 March 31,
 
2019
 
2018
North America
$
4,308

 
$
2,810

Europe
2,241

 
1,610

Asia
549

 
411

Total
$
7,098

 
$
4,831


Contract Balances
The Company’s balances for contract assets totaled $1.7 million and $485,000 as of March 31, 2019 and December 31, 2018, respectively. The Company’s balances for contract liabilities, which are included in deferred revenue, totaled $11.0 million and $11.3 million as of March 31, 2019 and December 31, 2018, respectively.
During the three months ended March 31, 2019, the Company recognized $3.7 million of revenue that was included in the deferred revenue balance at the beginning of the period. All other activity in deferred revenue is due to the timing of invoices in relation to the timing of recognizable revenue as described above.
Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted but unsatisfied performance obligations were approximately $19.8 million as of March 31, 2019, of which the Company expects to recognize $11.3 million of revenue over the next 12 months and the remainder thereafter. During the three months ended March 31, 2019 and 2018, no revenue was recognized from performance obligations satisfied in previous periods.
Deferred Sales Commissions
Deferred commission costs included in prepaid expenses and other assets were $491,000 and $527,000 at March 31, 2019 and December 31, 2018, respectively. Deferred commission costs in other assets, non-current were $24,000 and $33,000 at March 31, 2019 and December 31, 2018, respectively. The Company recognized commissions expense of $555,000 and $226,000 during the three months ended March 31, 2019 and 2018, respectively.