10-Q 1 cour-20220331.htm 10-Q 10-Q
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Table of Contents


 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission File Number: 001-40275

 

COURSERA, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

45-3560292

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

381 E. Evelyn Ave.

Mountain View, California

94041

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (650) 963-9884

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.00001 par value

 

COUR

 

The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

             ☐

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

As of April 28, 2022, the registrant had 144,051,175 shares of common stock, $0.00001 par value per share, outstanding.

 

 

 


Table of Contents


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Condensed Consolidated Financial Statements (Unaudited)

2

 

Condensed Consolidated Balance Sheets (Unaudited)

2

 

Condensed Consolidated Statements of Operations (Unaudited)

3

 

Condensed Consolidated Statements of Comprehensive Loss (Unaudited)

4

 

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Unaudited)

5

 

Condensed Consolidated Statements of Cash Flows (Unaudited)

6

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

7

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

17

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

30

Item 4.

Controls and Procedures

30

PART II.

OTHER INFORMATION

32

Item 1.

Legal Proceedings

32

Item 1A.

Risk Factors

32

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

68

Item 6.

Exhibits

69

Signatures

70

 

 


Table of Contents

 

PART I—FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (Unaudited)

COURSERA, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

(Unaudited)

 

 

March 31,
2022

 

 

December 31,
2021

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

361,315

 

 

$

580,658

 

Marketable securities

 

 

419,104

 

 

 

241,117

 

Accounts receivable, net of allowance for doubtful accounts of $195 and $105 as of March 31, 2022 and December 31, 2021, respectively

 

 

54,185

 

 

 

34,396

 

Deferred costs, net

 

 

20,031

 

 

 

19,666

 

Prepaid expenses and other current assets

 

 

23,269

 

 

 

16,494

 

Total current assets

 

 

877,904

 

 

 

892,331

 

Property, equipment, and software, net

 

 

26,403

 

 

 

24,725

 

Operating lease right-of-use assets

 

 

15,050

 

 

 

16,321

 

Intangible assets, net

 

 

9,703

 

 

 

10,091

 

Restricted cash

 

 

2,061

 

 

 

2,061

 

Other assets

 

 

15,743

 

 

 

13,381

 

Total assets

 

$

946,864

 

 

$

958,910

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Educator partners payable

 

$

53,897

 

 

$

49,206

 

Other accounts payable and accrued expenses

 

 

11,263

 

 

 

23,257

 

Accrued compensation and benefits

 

 

16,036

 

 

 

18,353

 

Operating lease liabilities, current

 

 

8,060

 

 

 

8,031

 

Deferred revenue, current

 

 

106,836

 

 

 

94,637

 

Other current liabilities

 

 

7,745

 

 

 

7,639

 

Total current liabilities

 

 

203,837

 

 

 

201,123

 

Operating lease liabilities, non-current

 

 

10,278

 

 

 

11,864

 

Deferred revenue, non-current

 

 

3,109

 

 

 

3,851

 

Other liabilities

 

 

955

 

 

 

559

 

Total liabilities

 

 

218,179

 

 

 

217,397

 

Commitments and contingencies (Note 12)

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.00001 par value—10,000,000 shares authorized as of March 31, 2022 and December 31, 2021; no shares issued and outstanding as of March 31, 2022 and December 31, 2021

 

 

 

 

 

 

Common stock, $0.00001 par value—300,000,000 shares authorized as of March 31, 2022 and December 31, 2021; 146,578,434 shares issued and 143,830,496 shares outstanding as of March 31, 2022, and 144,653,979 shares issued and 141,906,041 shares outstanding as of December 31, 2021

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

1,262,283

 

 

 

1,235,231

 

Treasury stock—at cost, 2,747,938 shares as of March 31, 2022 and December 31, 2021

 

 

(4,701

)

 

 

(4,701

)

Accumulated other comprehensive loss

 

 

(1,864

)

 

 

(252

)

Accumulated deficit

 

 

(527,034

)

 

 

(488,766

)

Total stockholders’ equity

 

 

728,685

 

 

 

741,513

 

Total liabilities and stockholders’ equity

 

$

946,864

 

 

$

958,910

 

See notes to unaudited condensed consolidated financial statements.

2


Table of Contents

 

COURSERA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Revenue

 

$

120,433

 

 

$

88,362

 

Cost of revenue

 

 

42,803

 

 

 

38,826

 

Gross profit

 

 

77,630

 

 

 

49,536

 

Operating expenses:

 

 

 

 

 

 

Research and development

 

 

37,955

 

 

 

22,140

 

Sales and marketing

 

 

51,667

 

 

 

32,613

 

General and administrative

 

 

25,178

 

 

 

13,144

 

Total operating expenses

 

 

114,800

 

 

 

67,897

 

Loss from operations

 

 

(37,170

)

 

 

(18,361

)

Interest income

 

 

335

 

 

 

80

 

Other expense, net

 

 

(425

)

 

 

(7

)

Loss before income taxes

 

 

(37,260

)

 

 

(18,288

)

Income tax expense

 

 

1,008

 

 

375

 

Net loss

 

$

(38,268

)

 

$

(18,663

)

Net loss per share—basic and diluted

 

$

(0.27

)

 

$

(0.45

)

Weighted average shares used in computing net loss per share—basic and diluted

 

 

143,026,907

 

 

 

41,218,355

 

 

See notes to unaudited condensed consolidated financial statements.

3


Table of Contents

 

COURSERA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Loss

(In thousands)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Net loss

 

$

(38,268

)

 

$

(18,663

)

Change in unrealized (loss) gain on marketable securities, net of tax

 

 

(1,612

)

 

 

3

 

Comprehensive loss

 

$

(39,880

)

 

$

(18,660

)

 

See notes to unaudited condensed consolidated financial statements.

4


Table of Contents

 

 

COURSERA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(In thousands, except share data)

(Unaudited)

 

 

 

Redeemable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

Convertible

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

Total

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Paid-In

 

 

Treasury Stock

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Shares

 

 

Amount

 

 

Income (Loss)

 

 

Deficit

 

 

Equity (Deficit)

 

Balance—December 31, 2021

 

 

 

 

$

 

 

 

144,653,979

 

 

$

1

 

 

$

1,235,231

 

 

 

(2,747,938

)

 

$

(4,701

)

 

$

(252

)

 

$

(488,766

)

 

$

741,513

 

Issuance of common stock upon exercise of options

 

 

 

 

 

 

 

 

1,728,006

 

 

 

 

 

 

6,450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,450

 

Vesting of restricted stock units

 

 

 

 

 

 

 

 

322,335

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax withholding on vesting of restricted stock units

 

 

 

 

 

 

 

 

(125,886

)

 

 

 

 

 

(2,625

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,625

)

Stock compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,227

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,227

 

Change in unrealized loss on marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,612

)

 

 

 

 

 

(1,612

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(38,268

)

 

 

(38,268

)

Balance—March 31, 2022

 

 

 

 

$

 

 

 

146,578,434

 

 

$

1

 

 

$

1,262,283

 

 

 

(2,747,938

)

 

$

(4,701

)

 

$

(1,864

)

 

$

(527,034

)

 

$

728,685

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance—December 31, 2020

 

 

75,305,400

 

 

$

462,293

 

 

 

43,049,228

 

 

$

 

 

$

126,408

 

 

 

(2,747,938

)

 

$

(4,701

)

 

$

20

 

 

$

(343,551

)

 

$

(221,824

)

Issuance of common stock upon exercise of options

 

 

 

 

 

 

 

 

2,891,926

 

 

 

 

 

 

8,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,564

 

Vesting of early exercise stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21

 

Stock compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,810

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,810

 

Change in unrealized gain on marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

3

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(18,663

)

 

 

(18,663

)

Balance—March 31, 2021

 

 

75,305,400

 

 

$

462,293

 

 

 

45,941,154

 

 

$

 

 

$

140,803

 

 

 

(2,747,938

)

 

$

(4,701

)

 

$

23

 

 

$

(362,214

)

 

$

(226,089

)

See notes to unaudited condensed consolidated financial statements.

5


Table of Contents

 

 

COURSERA, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(38,268

)

 

$

(18,663

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

4,182

 

 

 

2,931

 

Stock-based compensation

 

 

21,978

 

 

 

5,284

 

Amortization or accretion of marketable securities

 

 

510

 

 

 

177

 

Other

 

 

2,119

 

 

 

98

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

(19,997

)

 

 

5,041

 

Prepaid expenses and other assets

 

 

(11,467

)

 

 

260

 

Operating lease right-of-use assets

 

 

1,271

 

 

 

1,345

 

Accounts payable and accrued expenses

 

 

(6,670

)

 

 

(3,032

)

Accrued compensation and other liabilities

 

 

(1,815

)

 

 

(4,330

)

Operating lease liabilities

 

 

(1,557

)

 

 

(1,582

)

Deferred revenue

 

 

11,457

 

 

 

8,124

 

Net cash used in operating activities

 

 

(38,257

)

 

 

(4,347

)

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of marketable securities

 

 

(180,552

)

 

 

 

Proceeds from maturities of marketable securities

 

 

 

 

 

82,500

 

Purchases of property, equipment, and software

 

 

(400

)

 

 

(307

)

Capitalized internal-use software costs

 

 

(3,544

)

 

 

(3,985

)

Purchases of content assets

 

 

(617

)

 

 

(170

)

Net cash (used in) provided by investing activities

 

 

(185,113

)

 

 

78,038

 

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

6,947

 

 

 

8,564

 

Payment of deferred offering costs

 

 

(295

)

 

 

(4,061

)

Payment of tax withholding on vesting of restricted stock units

 

 

(2,625

)

 

 

 

Net cash provided by financing activities

 

 

4,027

 

 

 

4,503

 

Net (decrease) increase in cash, cash equivalents, and restricted cash

 

 

(219,343

)

 

 

78,194

 

Cash, cash equivalents, and restricted cash—Beginning of period

 

 

582,719

 

 

 

82,426

 

Cash, cash equivalents, and restricted cash—End of period

 

$

363,376

 

 

$

160,620

 

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents, and restricted cash:

 

 

 

 

 

 

Cash and cash equivalents

 

$

361,315

 

 

$

158,072

 

Restricted cash

 

 

2,061

 

 

 

2,548

 

Total cash, cash equivalents, and restricted cash

 

$

363,376

 

 

$

160,620

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid for income taxes

 

$

808

 

 

$

530

 

Supplemental disclosure of noncash investing and financing activities:

 

 

 

 

 

 

Stock-based compensation capitalized as internal-use software costs

 

$

1,249

 

 

$

526

 

Unpaid deferred offering costs

 

$

 

 

$

2,182

 

 

See notes to unaudited condensed consolidated financial statements.

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Table of Contents

 

COURSERA, INC. AND SUBSIDIARIES

NOTES TO ConDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(In thousands, except share and per share data)

1.
ORGANIZATION AND DESCRIPTION OF BUSINESS

Description of Business

Coursera, Inc., a Delaware public benefit corporation, together with its subsidiaries (“Coursera”, the “Company”, “we”, “us” or “our”), is an online learning platform that connects learners, educators, and institutions with the goal of providing world-class educational content that is affordable, accessible, and relevant. We combine content, data, and technology into a platform that is customizable and extensible to both individual learners and institutions. We partner with leading university and industry partners (“educator partners”) to bring quality higher education to a broad range of individuals, businesses, organizations, and governments. We also sell directly to institutions, including employers, colleges and universities, organizations, and governments, to enable their employees, students, and citizens to gain critical skills aligned to the job markets of today and tomorrow. Our corporate headquarters is located in Mountain View, California.

2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation—The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and following the requirements of the Securities and Exchange Commission (“SEC”), for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, that are necessary for a fair statement of the Company’s financial information. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any other interim period or for any other future year. The balance sheet as of December 31, 2021 has been derived from audited consolidated financial statements at that date but does not include all information required by GAAP for annual consolidated financial statements.

These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 3, 2022.

Principles of Consolidation—The unaudited condensed consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Segment Information—The Company defines its segments as those operations the chief operating decision maker (“CODM”), determined to be the Chief Executive Officer of the Company, regularly reviews to allocate resources and assess performance. For the three months ended March 31, 2022 and 2021, the Company operated under three segments: Consumer, Enterprise, and Degrees. The Company continually monitors and reviews its segment reporting structure in accordance with Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting, to determine whether any changes have occurred that would impact its reportable segments. For further information on the Company’s segment reporting, see Note 15 “Segment and Geographic Information.”

Use of Estimates—The preparation of these unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company evaluates its estimates, including those related to the fair value of common stock and stock-based awards; period of benefit for capitalized commissions; internal-use software costs; useful lives of long-lived assets; the carrying value of operating lease right-of-use assets; valuation of intangible assets and income tax expense, including the valuation of deferred tax assets and liabilities, among others.

 

Summary of Significant Accounting Policies

There have been no significant changes to the Company’s significant accounting policies as of and for the three months ended March 31, 2022 as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 3, 2022.

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Concentration of Credit Risk—Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, and marketable securities. The Company invests only in high-credit-quality instruments and maintains its cash equivalents and marketable securities in fixed-income securities. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits.

For purposes of assessing concentration of credit risk and significant customers, a group of customers under common control or customers that are affiliates of each other are regarded as a single customer. For the three months ended March 31, 2022 and 2021, the Company did not have any customers that accounted for more than 10% of the Company’s revenue. As of March 31, 2022, the Company had one customer that accounted for 22% of its net accounts receivable balance that has since been collected within typical business terms. As of December 31, 2021, no customer accounted for more than 10% of the Company’s net accounts receivable balance.

New Accounting Pronouncements Recently Adopted

 

Coursera is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until those standards apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, the unaudited condensed consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.

 

The JOBS Act does not preclude an emerging growth company from early adopting new or revised accounting standards. We early adopted Accounting Standards Update (“ASU”) 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, effective July 1, 2021. The Company expects to use the extended transition period for any other new or revised accounting standards during the period for which the Company remains an emerging growth company.

In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC Topic 740, Income Taxes, related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill and the allocation of consolidated income taxes to separate financial statements of entities not subject to income tax. Upon adoption, certain aspects of this standard are applied retrospectively for all periods presented while other aspects are applied on a modified retrospective basis through a cumulative-effect adjustment to accumulated deficit as of the beginning of the fiscal year of adoption. We adopted ASU 2019-12 effective January 1, 2022, and the adoption did not have a material impact on our unaudited condensed consolidated financial statements and related disclosures.

New Accounting Pronouncements Not Yet Adopted

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses, which provides new authoritative guidance with respect to the measurement of credit losses on financial instruments. This update changes the impairment model for most financial assets and certain other instruments by introducing a current expected credit loss (“CECL”) model. The CECL model is a forward-looking approach based on expected losses rather than incurred losses, requiring entities to estimate and record losses expected over the remaining contractual life of an asset. The guidance will be effective for the Company in 2023 and early adoption beginning in 2019 is permitted. The Company is currently evaluating the impact of adopting this guidance on the consolidated financial statements and related disclosures.

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3. REVENUE RECOGNITION

Contract BalancesThe Company’s contract assets and liabilities as of March 31, 2022, December 31, 2021, and January 1, 2021 were as follows:

 

 

 

March 31,
2022

 

 

December 31,
2021

 

 

January 1,
2021

 

 

Contract assets:

 

 

 

 

 

 

 

 

 

 

Billed accounts receivable, net of allowance for doubtful accounts

 

$

44,532

 

 

$

22,286

 

 

$

39,976

 

 

Unbilled accounts receivable

 

 

9,653

 

 

 

12,110

 

 

 

745

 

 

Total contract assets

 

$

54,185

 

 

$

34,396

 

 

$

40,721

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract liabilities:

 

 

 

 

 

 

 

 

 

 

Deferred revenue

 

$

109,945

 

 

$

98,488

 

 

$

80,642

 

 

Total contract liabilities

 

$

109,945

 

 

$

98,488

 

 

$

80,642

 

 

 

Revenue recognized during the three months ended March 31, 2022 and 2021 that was included in the deferred revenue balances at the beginning of the year was $47,160 and $37,522, respectively.

Remaining Performance Obligations—Remaining performance obligations represent future promises to transfer goods or services under noncanc