The Company’s significant accounting policies are discussed in Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes to these policies during the three months ended March 31, 2025. The following describes the impact of certain policies.

The Company separates revenue into subscription and non-subscription categories to disaggregate the revenue that is term-based and renewable from the revenue that is one-time in nature. Revenue from subscription and non-subscription contractual arrangements were as follows:


	Three Months Ended March 31,
		2025		2024
		(in thousands)
SaaS subscription and support and maintenance		$	155,628	$	142,406
On-premise subscription		8,596		5,947
Subscription revenue		164,224		148,353
Professional services		3,397		3,706
Perpetual licenses		—		64
Non-subscription revenue		3,397		3,770
Total revenue		$	167,621	$	152,123

Contract liabilities consist of customer billings in advance of revenue being recognized. The Company invoices its customers for subscription, support and maintenance, and services in advance. Changes in contract liabilities, including revenue earned during the period from the beginning contract liability balance and new deferrals of revenue during the period, were as follows:


	Three Months Ended March 31,
		2025		2024
		(in thousands)
Balance, beginning of the period		$	385,709	$	373,432

Revenue earned		(135,468)		(125,166)
Deferral of revenue		130,185		118,771
Other (1)		(1,332)		(2,534)
Balance, end of the period		$	379,094	$	364,503

There were no significant changes to our contract assets and liabilities during the three months ended March 31, 2025 and 2024 outside of our sales activities.

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancelable amounts to be invoiced. As of March 31, 2025, the Company

had $552.2 million of remaining performance obligations, with 69% expected to be recognized as revenue over the succeeding 12 months, and the remainder generally expected to be recognized over the three years thereafter.

Sales commissions, as well as associated payroll taxes and retirement plan contributions (together, “contract costs”), that are incremental to the acquisition of customer contracts are capitalized using a portfolio approach as deferred contract costs in the condensed consolidated balance sheets when the period of benefit is determined to be greater than one year.

The Company periodically reviews these deferred contract costs to determine whether events or changes in circumstances have occurred that could affect the period of benefit of these deferred contract costs. There were no impairment losses recorded during the three months ended March 31, 2025 or 2024.


Balance Sheet Classification	March 31, 2025		December 31, 2024
	(in thousands)
Other current assets	$	6,420	$	6,418
Other assets	19,220		19,216
Capitalized cloud computing implementation costs, gross	25,640		25,634
Less: accumulated amortization	(4,274)		(2,669)
Capitalized cloud computing implementation costs, net	$	21,366	$	22,965

The Company’s strategic investments consist of non-marketable equity and debt instruments in privately held companies. The investments are recorded at cost, less any impairment, and included in other assets on the condensed consolidated balance sheets. As of March 31, 2025 and December 31, 2024, the balance of strategic investments was $8.5 million and $5.4 million, respectively. The Company evaluates its strategic investments quarterly for impairment. During the three months ended March 31, 2025 and 2024, there were no changes in the carrying value of the Company’s strategic investments.

In December 2024, the FASB issued ASU No. 2024-04, Debt – Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments to clarify the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The standard is effective for annual reporting periods beginning after December 15, 2025 and interim reporting periods within those annual reporting periods and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the effect the standard will have on its condensed consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update requires companies to disclose additional information about certain expenses in the notes to the financial statements. The standard is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after

December 15, 2027 and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the effect the standard will have on disclosures within its condensed consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update requires companies to disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. This update also requires disclosure of disaggregated information related to income taxes paid. This standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied on a prospective basis with the option to apply the guidance retrospectively. The Company is currently evaluating the effect the standard will have on disclosures within its condensed consolidated financial statements.