Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2022

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 March 31,
	2022		2021
Term licenses and other (1)	$	94,045	$	84,934
Perpetual licenses		12,124		11,461
Maintenance		33,337		29,694
Professional software services (1)		1,391		3,452
Software related services		9,061		8,098
Client engineering services		8,012		10,677
Other		1,811		1,847
Total revenue	$	159,781	$	150,163

(1) Term licenses and other includes hardware revenue of $0.7 million for the three months ended March 31, 2022, and was reported in License revenue. Professional software services includes hardware revenue of $1.7 million for the three months ended March 31, 2021, and was reported in Maintenance and other services revenue.

The Company derived approximately 12.2% and 9.9% of its total revenue through indirect sales channels for the three months ended March 31, 2022 and 2021, respectively.

Costs to obtain a contract

As of March 31, 2022, and December 31, 2021, respectively, capitalized costs to obtain a contract were $4.9 million and $4.5 million recorded in Prepaid and other current assets and $0.3 million and $0.4 million recorded in Other long-term assets. Sales commissions were $2.1 million and $1.6 million for the three months ended March 31, 2022 and 2021, respectively, and were included in Sales and marketing expense in the Company’s consolidated statement of operations.

Contract assets

As of March 31, 2022, and December 31, 2021, respectively, contract assets were $4.8 million and $3.8 million included in Accounts receivable, and $3.4 million and $2.3 million included in Prepaid expenses and other current assets.

Deferred revenue

Approximately $44.4 million of revenue recognized during the three months ended March 31, 2022, 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 $148.7 million and $121.2 million as of March 31, 2022 and 2021, respectively. Of the amount recorded as of March 31, 2022, the Company expects to recognize approximately 76% over the next 12 months and the remainder thereafter.