Annual report pursuant to Section 13 and 15(d)

Revenues

v3.22.1
Revenues
12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Revenues consist of service revenue and surcharge revenue. Service revenue represents fees charged to customers for performing screening and compliance services. Surcharge revenue consists of fees charged to customers for obtaining data required to fulfill the Company’s screening and performance obligations from federal, state and local jurisdictions, and certain commercial data providers. 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 5%, 7%, and 7% of the Company’s revenues for the years ended December 31, 2021, 2020, and 2019, respectively.
Disaggregated revenues were as follows:
Year Ended December 31,
2021 2020 2019
(in thousands)
Revenues
Service revenue $ 541,458  $ 404,812  $ 499,820 
Surcharge revenue 188,598  135,412  147,734 
Total revenue $ 730,056  $ 540,224  $ 647,554 
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 on the Company’s platform to enable the customers to request and access completed background screening reports. Contract implementation costs and the related amortization are recorded in other non-current assets on the Company’s consolidated balance sheets and in cost of services in the Company’s consolidated statements of operations, respectively. Amortization of contract implementation costs included in cost of services was $3.8 million, $3.0 million and $2.2 million for the years ended December 31, 2021, 2020, and 2019. See Note 4 — 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, 2021 $ 3,919  1,073  (708) $ 4,284 
Year ended December 31, 2020 $ 3,499  930  (510) $ 3,919 
Year ended December 31, 2019 $ 3,617  469  (587) $ 3,499