Quarterly report pursuant to Section 13 or 15(d)

Revenue (Notes)

v3.19.3
Revenue (Notes)
9 Months Ended
Sep. 30, 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
 September 30,
 
Nine Months Ended
 September 30,
 
2019
 
2018
 
2019
 
2018
Software licenses and appliances
$
1,962

 
$
985

 
$
3,656

 
$
4,303

Service
 
 
 
 
 
 
 
Subscription, maintenance and support
4,166

 
4,091

 
13,883

 
12,251

Professional services and other
543

 
577

 
1,595

 
1,556

Total service
4,709

 
4,668

 
15,478

 
13,807

Total revenues
$
6,671

 
$
5,653

 
$
19,134

 
$
18,110

 
Three Months Ended
 September 30,
 
Nine Months Ended
 September 30,
 
2019
 
2018
 
2019
 
2018
North America
$
4,916

 
$
3,766

 
$
12,416

 
$
11,593

Europe
1,505

 
1,618

 
5,650

 
4,693

Asia
250

 
269

 
1,068

 
1,824

Total
$
6,671

 
$
5,653

 
$
19,134

 
$
18,110


Contract Balances
The Company’s balances for contract assets totaled $1.3 million and $485,000 as of September 30, 2019 and December 31, 2018, respectively. The Company’s balances for contract liabilities, which are included in deferred revenue, totaled $10.8 million and $11.3 million as of September 30, 2019 and December 31, 2018, respectively.
During the three and nine months ended September 30, 2019, the Company recognized $3.4 million and $8.3 million, respectively, of revenue that was included in the deferred revenue balance at the beginning of the period. During the three and nine months ended September 30, 2018, the Company recognized $3.8 million and $7.3 million, respectively, 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 $19.4 million as of September 30, 2019, of which the Company expects to recognize $11.1 million of revenue over the next 12 months and the remainder thereafter. During the three and nine months ended September 30, 2019 and 2018, no revenue was recognized from performance obligations satisfied in previous periods.