Comparison of the years ended December 31, 2021 and 2020 Revenue (Dollars in thousands) Year Ended December 31, Period-To-Period Change 2021 2020 2021 vs. 2020 Amount Amount Amount Percentage Software-as-a-service related $ 60,402 $ 72,198 $ (11,796) (16.3)% Maintenance 1,717 677 1,040 153.6 % Professional services 507 86 421 489.5 % Total software-related revenues 62,626 72,961 (10,335) (14.2)% Other 23 211 (188) (89.1)% Total net revenue $ 62,649 $ 73,172 $ (10,523) (14.4)% Total revenue decreased $10.5 million, or 14.4%, from $73.2 million for the year ended December 31, 2020 to $62.6 million for the year ended December 31, 2021. The total decline in revenue was driven primarily by a decrease in our SaaS revenue. The decrease in SaaS revenue was primarily attributable to a decrease of $7.6 million in Statement of Works ("SOWs") on professional implementation services that became fully amortized as of December 31, 2020, and two customer contracts that ended in June 2020 and June 2021, which contributed to a $2.4 million and $3.8 million decrease, respectively. These decreases were partially offset by a $1.4 million increase in other SaaS revenues and higher revenues of $1.2 million from our Eviti platform driven by an expansion in covered lives on our largest customer. Maintenance and professional services revenue increased $1.5 million due to a full year of revenues recognized on the acquisition of OpenNMS in July 2020. We believe that significant opportunities exist for expanded cross-selling across our products and across our existing customer base, including Eviti, NaviNet, and OpenNMS customer bases. Cost of Revenue (Dollars in thousands) Year Ended December 31, Period-To-Period Change 2021 2020 2021 vs. 2020 Amount Amount Amount Percentage Software-as-a-service related $ 21,503 $ 23,056 $ (1,553) (6.7)% Maintenance 1,174 361 813 225.2 % Professional services 14 16 (2) (12.5)% Amortization of developed technologies 4,988 4,755 233 4.9 % Total software-related cost of revenue 27,679 28,188 (509) (1.8)% Other 128 1,038 (910) (87.7)% Total cost of revenue $ 27,807 $ 29,226 $ (1,419) (4.9)% Cost of revenue decreased $1.4 million, or 4.9%, from $29.2 million in the year ended December 31, 2020 to $27.8 million for the year ended December 31, 2021. The decrease in cost of revenue was primarily driven by a decrease in our SaaS solutions. The decrease in SaaS related cost of revenue was primarily attributable to lower amortization of internal-use software of $1.2 million as internally developed assets became fully amortized, and $1.0 million decrease in personnel costs driven by higher capitalization of labor costs for the development of internal-use software. These decreases were partially offset by an increase in software and licensing costs of $0.3 million. - 83 -
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