Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Disaggregation of Revenues

The Company’s revenues consist of the following:

	Three Months Ended
	March 31,
	2023		2022
Subscriptions:
Enterprise subscriptions (1)	$	103,904	$	81,827
SELECT subscriptions	63,343		66,598
Term license subscriptions	110,598		92,808
Subscriptions	277,845		241,233
Perpetual licenses	9,547		10,205
Subscriptions and licenses	287,392		251,438
Services:
Recurring	4,178		4,701
Other	22,841		19,378
Services	27,019		24,079
Total revenues	$	314,411	$	275,517

(1)Enterprise subscriptions includes revenue attributable to Enterprise 365 (“E365”) subscriptions of $94,331 and $68,598 for the three months ended March 31, 2023 and 2022, respectively.

The Company recognizes perpetual licenses and the term license component of subscriptions as revenue when either the licenses are delivered or at the start of the subscription term. For the three months ended March 31, 2023 and 2022, the Company recognized $158,024 and $125,225 of license related revenues, respectively, of which $148,477 and $115,020, respectively, were attributable to the term license component of the Company’s subscription based commercial offerings recorded in Subscriptions in the consolidated statements of operations.

The Company derived 7% of its total revenues through channel partners for the three months ended March 31, 2023 and 2022.

Revenue from external customers is attributed to individual countries based upon the location of the customer. Revenues by geographic region are as follows:

	Three Months Ended
	March 31,
	2023		2022
Americas (1)	$	168,345	$	154,260
Europe, the Middle East, and Africa (“EMEA”)	92,832		77,480
Asia-Pacific (“APAC”)	53,234		43,777
Total revenues	$	314,411	$	275,517

(1)Americas includes the United States (“U.S.”), Canada, and Latin America (including the Caribbean). Revenue attributable to the U.S. totaled $127,450 and $116,133 for the three months ended March 31, 2023 and 2022, respectively.

Contract Assets and Contract Liabilities

	March 31, 2023		December 31, 2022
Contract assets	$	535	$	575
Deferred revenues	250,747		243,073

As of March 31, 2023 and December 31, 2022, the Company’s contract assets relate to performance obligations completed in advance of the right to invoice and are included in Prepaid and other current assets in the consolidated balance sheets. Contract assets were not impaired as of March 31, 2023 and December 31, 2022.

Deferred revenues consist of billings made or payments received in advance of revenue recognition from subscriptions and services. The timing of revenue recognition may differ from the timing of billings to users.

For the three months ended March 31, 2023, $95,979 of revenues that were included in the December 31, 2022 deferred revenues balance were recognized. There were additional deferrals of $101,577, which were primarily related to new billings and acquisitions. For the three months ended March 31, 2022, $97,005 of revenues that were included in the December 31, 2021 deferred revenues balance were recognized. There were additional deferrals of $94,522, which were primarily related to new billings and acquisitions.

As of March 31, 2023 and December 31, 2022, the Company has deferred $17,753 and $17,338, respectively, related to portfolio balancing exchange rights which is included in Deferred revenues in the consolidated balance sheets.

Remaining Performance Obligations

The Company’s contracts with customers include amounts allocated to performance obligations that will be satisfied at a later date. As of March 31, 2023, amounts allocated to these remaining performance obligations are $250,747, of which the Company expects to recognize approximately 94% over the next 12 months with the remaining amount thereafter.