Annual report pursuant to Section 13 and 15(d)

Revenues

v3.22.4
Revenues
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Revenues consist of service revenue and surcharge revenue. Service revenue consists of fees charged to customers for services provided by the Company. Surcharge revenue consists of fees charged to customers for obtaining data from federal, state and local jurisdictions, and certain commercial data providers required to fulfill the Company’s performance obligations. These fees are generally charged to the Company’s customers at cost. Revenue is recognized when the Company satisfies its obligation to complete the service and delivers the screening report to the customer.
No customer accounted for more than 3%, 5%, and 7% of the Company’s revenues for the years ended December 31, 2022, 2021, and 2020, respectively.
Disaggregated revenues were as follows:
Year Ended December 31,
2022 2021 2020
(in thousands)
Revenues
Service revenues $ 577,796  $ 541,458  $ 404,812 
Surcharge revenues 228,872  188,598  135,412 
Total revenues $ 806,668  $ 730,056  $ 540,224 
Contract Implementation Costs
Contract implementation costs represent incremental set up costs to fulfill contracts with customers, including, for example, salaries and wages incurred to onboard customers onto the Company’s platform to enable the customers to request and access completed background screening reports. Contract implementation costs, net of accumulated amortization are recorded in other non-current assets on the Company’s consolidated balance sheets and amortization expense is recorded in cost of services (exclusive of depreciation and amortization) in the Company’s consolidated statements of operations. Amortization of contract implementation costs included in cost of services (exclusive of depreciation and amortization) was $4.5 million, $3.8 million and $3.0 million for the years
ended December 31, 2022, 2021, and 2020. See Note 3 — Prepaid Expenses and Other Current Assets, and Other Non-Current Assets for contract implementation costs included in the Company’s consolidated balance sheets.
Allowance for Doubtful Accounts
The activity in the Company’s allowance for doubtful accounts was as follows:
Balance Beginning of Period Charged to Expense Deductions Balance End of Period
(in thousands)
Year ended December 31, 2022 $ 4,284  $ 1,929  $ (401) $ 5,812 
Year ended December 31, 2021 $ 3,919  $ 1,073  $ (708) $ 4,284 
Year ended December 31, 2020 $ 3,499  $ 930  $ (510) $ 3,919