Revenue

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Disaggregation of Revenue

The following table presents a summary of revenue:

	Three Months Ended March 31,
(in thousands)	2024		2023
Subscription revenue	$	197,635	$	171,098
Perpetual license and maintenance revenue	12,156		12,181
Professional services and other revenue	6,170		5,560
Revenue	$	215,961	$	188,839

Concentrations

We sell and market our products and services through our field sales force that works closely with our channel partners, which includes a network of distributors and resellers, in developing sales opportunities. We use a two-tiered channel model whereby we sell our products and services to our distributors, which in turn sell to resellers, which then sell to end-users. Revenue derived through our channel network comprised 93% of revenue in the three months ended March 31, 2024 and 2023. One of our distributors accounted for 34% of revenue in the three months ended March 31, 2024 and 37% of revenue in the three months ended March 31, 2023. That same distributor accounted for 32% of accounts receivable at March 31, 2024 and December 31, 2023.

Contract Balances

We generally bill our customers in advance and accounts receivable are recorded when we have the right to invoice the customer. Contract liabilities consist of deferred revenue and include customer billings and payments received in advance of performance under the contract. In the three months ended March 31, 2024 and 2023, we recognized revenue of $201.0 million and $174.0 million, respectively, that was included in the deferred revenue balance at the beginning of the respective periods.

Remaining Performance Obligations

At March 31, 2024, the future estimated revenue related to unsatisfied performance obligations was $742.4 million, of which $572.9 million is expected to be recognized as revenue over the next twelve months, and the remainder is expected to be recognized over the four years thereafter.

Deferred Commissions

The following summarizes the activity of deferred incremental costs of obtaining a contract:

	Three Months Ended March 31,
(in thousands)	2024		2023
Beginning balance	$	121,953	$	111,508
Capitalization of contract acquisition costs	9,035		8,907
Amortization of deferred contract acquisition costs	(13,373)		(12,035)
Ending balance	$	117,615	$	108,380