Subscription revenue increased by $17.0 million, or 69%, to $41.5 million for the
year ended December 31, 2020, from $24.5 million for the year ended December 31, 2019. Of the $17.0 million increase, approximately $8.7 million was attributable to the higher volume of subscription plans from additional new
subscribers during the year ended December 31, 2020 and approximately $8.3 million was attributable to additional sales to existing customers during that period.
License revenue increased by $3.5 million, or 100%, to $3.5 million for the year ended December 31, 2020, from nil for the year
ended December 31, 2019. The increase was primarily attributable to the launch of our data licensing business and the license of spatial data to customers for the year ended December 31, 2020. We did not generate license revenue during the year
ended December 31, 2019.
Services revenue increased by $4.8 million, or 168%, to $7.7 million for the year ended
December 31, 2020, from $2.9 million for the year ended December 31, 2019. The increase was primarily attributable to increased sales of capture services and add-on services, primarily driven by our
investment in growing our capture services business and the increase in the number of our subscribers during the year ended December 31, 2020.
Product revenue increased by $14.5 million, or 78%, to $33.1 million for the year ended December 31, 2020, from
$18.6 million for the year ended December 31, 2019. The increase was primarily attributable to the significant growth in the number of capture devices shipped during the period. Product revenue was also driven by the stay-at-home orders issued by governments around the world in response to the COVID-19 pandemic as consumers increasingly adopted
online technologies.
For further information related to the impact of COVID-19, please see
Business Impact of COVID-19.
Cost of Revenue
Total cost of revenue increased by $14.1 million, or 59%, to $37.9 million for the year ended December 31, 2020, from
$23.8 million for the year ended December 31, 2019. The increase was primarily attributable to an increase in subscription services provided and capture devices sold.
Cost of subscription revenue increased by $3.9 million, or 51%, to $11.5 million for the year ended December 31, 2020, from
$7.6 million for the year ended December 31, 2019. The increase was primarily attributable to an increase in costs related to hosting and delivery services for our platform to support the growth of subscription services provided.
Cost of license revenue did not fluctuate significantly year over year.
Cost of services revenue increased by $3.7 million, or 156%, to $6.1 million for the year ended December 31, 2020, from
$2.4 million for the year ended December 31, 2019. The increase was primarily attributable to an increase in volume and cost related to capture services sold.
Cost of products revenue increased by $6.4 million, or 46%, to $20.3 million for the year ended December 31, 2020, from
$13.9 million for the year ended December 31, 2019. The increase was primarily attributable to increased costs related to materials to support the higher demand for capture devices, as well as increased direct labor, and manufacturing overhead
to support the increased volume of capture devices sold.
Gross Profit and Gross Margin
Gross profit increased by $25.8 million, or 116%, to $47.9 million for the year ended December 31, 2020, from $22.1 million
for the year ended December 31, 2019. Gross margin increased to 56% during the year ended December 31, 2020 compared to 48% during the year ended December 31, 2019. The increase was primarily driven by the composition of revenue. Subscription and
license revenue have had a positive effect on our total gross margin given their higher gross margins compared the gross margins of product and services revenue.