Deferred Revenue and Performance Obligations

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Deferred Revenue and Performance Obligations

Deferred Revenue and Performance Obligations

Revenues recognized during the three months ended September 30, 2021 and 2020 from amounts included in deferred revenue as of June 30, 2021 and June 30, 2020 were $1.3 billion and $1.0 billion, respectively.

Revenues recognized during the nine months ended September 30, 2021 and 2020 from amounts included in deferred revenue as of December 31, 2020 and December 31, 2019 were $2.6 billion and $1.9 billion, respectively.

Remaining Performance Obligations

Transaction price allocated to remaining performance obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancelable amounts that will be invoiced and recognized as revenues in future periods. RPO excludes contracts that are billed in arrears, such as certain time and materials contracts, as we apply the “right to invoice” practical expedient under relevant accounting guidance.

As of September 30, 2021, the total non-cancelable RPO under our contracts with customers was $9.7 billion and we expect to recognize revenues on approximately 51% of these RPO over the following 12 months, with the balance to be recognized thereafter.