Segment Disclosure

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Disclosure

Segment Disclosure

We develop and globally market engineering simulation software. As defined by the accounting guidance for segment reporting, we operate as one segment. Our Chief Operating Decision Maker (CODM) is Ajei Gopal, President and Chief Executive Officer. The financial information provided to and used by the CODM assists in making operational decisions and allocating resources, such as the allocation of personnel. The annual budgeting process is the primary mechanism used to make these decisions. The financial information also helps in making performance assessments using budgeted versus actual results. The profit and loss measure reviewed by the CODM is net income. Segment disclosures, including significant segment expenses, are detailed below:

	Year Ended December 31,
(in thousands)	2024		2023		2022
Revenue	$	2,544,809	$	2,269,949	$	2,065,553
Salaries	(620,815)		(581,027)		(511,776)
Stock-based compensation	(270,900)		(221,891)		(168,128)
Incentive compensation(1)	(219,557)		(194,025)		(195,524)
Amortization	(112,308)		(103,502)		(85,094)
Depreciation	(30,929)		(29,002)		(29,468)
Interest income	51,131		19,588		5,717
Interest expense	(47,849)		(47,145)		(22,726)
Other segment expenses, net(2)	(575,544)		(520,807)		(483,239)
Income tax provision	(142,346)		(91,726)		(51,605)
Net income	$	575,692	$	500,412	$	523,710

(1) Incentive compensation includes bonuses and commissions.

(2) Other segment expenses, net consists primarily of other headcount-related expenses, IT maintenance and software hosting costs, acquisition-related costs and consulting and professional fees.

The measure of segment assets is reported on the consolidated balance sheet as total assets. The measure of expenditures for long-lived assets is reported on the consolidated statements of cash flows as capital expenditures.