Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2021

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

3. Revenue from contracts with customers

Disaggregation of revenue

The Company disaggregates its software revenue by type of performance obligation and timing of revenue recognition as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Term licenses	$	57,624	$	43,260	$	142,558	$	112,641
Perpetual licenses		9,008		7,758		20,469		15,920
Maintenance		30,549		28,885		60,243		57,093
Professional software services		2,377		1,930		5,829		4,622
Software related services		7,481		5,444		15,579		12,378
Client engineering services		10,268		9,640		20,945		23,518
Other		2,605		1,644		4,452		3,852
Total revenue	$	119,912	$	98,561	$	270,075	$	230,024

The Company derived approximately 10% of its total revenue through indirect sales channels for the six months ended June 30, 2021 and 2020.

Costs to obtain a contract

As of June 30, 2021, and December 31, 2020, respectively, capitalized costs to obtain a contract were $4.7 million and $3.7 million recorded in Prepaid and other current assets and $0.5 million and $0.6 million recorded in Other long-term assets. Sales commissions were $1.9 million and $3.5 million, respectively, for the three and six months ended June 30, 2021, and $1.0 million and $1.6 million, respectively for the three and six months ended June 30, 2020. Sales commissions were included in Sales and marketing expense in the Company’s consolidated statement of operations.

Contract assets

As of June 30, 2021, contract assets were $6.0 million included in Accounts receivable, and $2.8 million included in Prepaid expenses and other current assets. As of December 31, 2020, contract assets were $6.7 million included in Accounts receivable, $1.4 million included in Prepaid expenses and other current assets, and $1.3 million included in Other long-term assets.

Deferred revenue

Approximately $60.3 million of revenue recognized during the six months ended June 30, 2021, was included in deferred revenue at the beginning of the year.

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted revenue not yet recognized was $128.5 million and $117.9 million as of June 30, 2021 and 2020, respectively. The Company expects to recognize approximately 84% of the contracted revenue over the next 12 months and the remainder thereafter.