Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Disaggregation of Revenue

The following table summarizes revenue:

	Year Ended December 31,
(in thousands, except percentages)	2024			2023			2022
Revenue:
Subscription lease licenses	$	948,831		$	786,050		$	687,665
Perpetual licenses	315,085			302,698			301,313
Software licenses	1,263,916			1,088,748			988,978
Maintenance	1,209,217			1,103,523			1,004,245
Service	71,676			77,678			72,330
Maintenance and service	1,280,893			1,181,201			1,076,575
Total revenue	$	2,544,809		$	2,269,949		$	2,065,553
Direct revenue, as a percentage of total revenue	75.2		%	73.9		%	76.1		%
Indirect revenue, as a percentage of total revenue	24.8		%	26.1		%	23.9		%

Our software licenses revenue is recognized up front, while maintenance and service revenue is recognized over the term of the contract.

Deferred Revenue

Deferred revenue consists of billings made or payments received in advance of revenue recognition from customer agreements. The timing of revenue recognition may differ from the timing of billings to customers. Payment terms vary by the type and location of customer and the products or services offered. The time between invoicing and when payment is due is not significant.

The changes in deferred revenue, inclusive of both current and long-term deferred revenue, during the years ended December 31, 2024 and 2023 were as follows:

(in thousands)	2024		2023
Beginning balance – January 1	$	479,754	$	435,758
Acquired deferred revenue	—		8,030
Deferral of revenue	2,617,131		2,305,294
Recognition of deferred revenue	(2,544,809)		(2,269,949)
Currency translation	(15,771)		621
Ending balance – December 31	$	536,305	$	479,754

Total revenue allocated to remaining performance obligations as of December 31, 2024 will be recognized as revenue as follows:

(in thousands)
Next 12 months	$	1,029,144
Months 13-24	419,744
Months 25-36	206,327
Thereafter	63,052
Total revenue allocated to remaining performance obligations	$	1,718,267

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes both deferred revenue and backlog. Our backlog represents deferred revenue associated with installment billings for periods beyond the current quarterly billing cycle and committed contracts with start dates beyond the end of the current period. Revenue recognized during the years ended December 31, 2024 and 2023 included amounts in deferred revenue and backlog at the beginning of the period of $897.4 million, of which $457.5 million was in deferred revenue, and $846.3 million, of which $414.0 million was in deferred revenue, respectively.