Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.22.2
Revenue Recognition
6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Disaggregation of Revenue
The following table provides information about disaggregated revenue from contracts with customers into the nature of the products and services, and geographic regions, and includes a reconciliation of the disaggregated revenue with reportable segments. The geographic regions that are tracked are the Americas (United States, Canada, and Latin America), EMEA (Europe, Middle East, and Africa), and APAC (Australia, New Zealand, Southeast Asia, and China).
Segment information is as follows (in thousands):
Three Months Ended June 30, 2022 Three Months Ended June 30, 2021
Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total
Major products and service:
       Product revenue $ 34,645  $ —  $ 34,645  $ 14,717  $ —  $ 14,717 
Research and development revenue 1,885  1,876  3,761  6,868  3,868  10,736 
Total revenues $ 36,530  $ 1,876  $ 38,406  $ 21,585  $ 3,868  $ 25,453 
Primary geographical markets:
Americas $ 2,307  $ 1,307  $ 3,614  $ 3,703  $ 2,141  $ 5,844 
EMEA 4,121  569  4,690  4,442  1,727  6,169 
APAC 30,102  —  30,102  13,440  —  13,440 
Total revenues $ 36,530  $ 1,876  $ 38,406  $ 21,585  $ 3,868  $ 25,453 
Six Months Ended June 30, 2022 Six Months Ended June 30, 2021
Performance Enzymes Novel Biotherapeutics Total Performance Enzymes Novel Biotherapeutics Total
Major products and service:
       Product revenue $ 65,335  $ —  $ 65,335  $ 24,943  $ —  $ 24,943 
Research and development revenue 4,294  4,117  8,411  10,872  7,670  18,542 
Total revenues $ 69,629  $ 4,117  $ 73,746  $ 35,815  $ 7,670  $ 43,485 
Primary geographical markets:
Americas $ 4,861  $ 2,486  $ 7,347  $ 6,574  $ 4,199  $ 10,773 
EMEA 7,186  1,631  8,817  8,979  3,471  12,450 
APAC 57,582  —  57,582  20,262  —  20,262 
Total revenues $ 69,629  $ 4,117  $ 73,746  $ 35,815  $ 7,670  $ 43,485 
Contract Balances
The following table presents balances of contract assets, unbilled receivables, contract costs, and contract liabilities (in thousands):
June 30, 2022 December 31, 2021
Contract assets $ 11,287  $ 4,557 
Unbilled receivables $ 8,543  $ 8,558 
Contract costs $ 36  $ 56 
Contract liabilities: deferred revenue $ 5,381  $ 6,335 
We had no asset impairment charges related to financial assets in the three and six months ended June 30, 2022 and 2021.
The increase in contract assets was primarily due to increases in product revenue from contracts subject to over time revenue recognition. The nominal decrease in unbilled receivables was primarily due to the timing of billings. The decrease in deferred revenue was primarily due to timing of recognition of revenue.
We recognized the following revenues (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
Revenue recognized in the period for: 2022 2021 2022 2021
Amounts included in contract liabilities at the beginning of the period:
     Performance obligations satisfied $ 441  $ 1,239  $ 1,413  $ 1,391 
Changes in the period:
Changes in the estimated transaction price allocated to performance obligations satisfied in prior periods (298) 4,306  (29) 4,336 
Performance obligations satisfied from new activities in the period - contract revenue 38,263  19,908  72,362  37,758 
Total revenues $ 38,406  $ 25,453  $ 73,746  $ 43,485 
Performance Obligations
The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting periods. The estimated revenue does not include contracts with original durations of one year or less, amounts of variable consideration attributable to royalties, or contract renewals that are unexercised as of June 30, 2022.
The balances in the table below are partially based on judgments involved in estimating future orders from customers subject to the exercise of material rights pursuant to respective contracts as of June 30, 2022 (in thousands):
Remainder of 2022
2023 2024
2025 and Thereafter
Total
Product revenue $ $ 67  $ 100  $ 2,876  $ 3,048 
Research and development revenue 1,019  1,292  15  2,333 
Total revenues $ 1,024  $ 1,359  $ 115  $ 2,883  $ 5,381