Revenue

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue

3.REvenue

Disaggregation of Revenue—The Company provides disaggregation of revenue based on type of service as it believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

The following table summarizes revenue by type of service for the three and six months ended June 30, 2024 and 2023 (in thousands):

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Software subscriptions	$	223,014	$	202,851	$	441,083	$	399,108
Other		9,604		8,859		18,772		17,522
Total revenues	$	232,618	$	211,710	$	459,855	$	416,630

Transaction Price Allocated to the Remaining Performance Obligations—Remaining performance obligations represent 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. As of June 30, 2024, approximately $1,600 million of revenue is expected to be recognized from remaining performance obligations in the amount of approximately $642 million during the following twelve months, and approximately $958 million thereafter. The estimated revenues do not include unexercised contract renewals. The remaining performance obligations exclude future transaction revenue where revenue is recognized as the services are rendered and in the amount to which the Company has the right to invoice.

Deferred Revenue—Revenue recognized for the three months ended June 30, 2024 from amounts in deferred revenue as of March 31, 2024 was $41.3 million. Revenue recognized for the three months ended June 30, 2023 from amounts in deferred revenue as of March 31, 2023 was $39.1 million. Revenue recognized for the six months ended June 30, 2024 from amounts in deferred revenue as of December 31, 2023 was $39.9 million. Revenue recognized for the six months ended June 30, 2023 from amounts in deferred revenue as of December 31, 2022 was $34.6 million.

Contract Assets and Liabilities—The opening and closing balances of the Company’s receivables, contract assets and contract liabilities from contracts with customers are as follows (in thousands):

	June 30,		December 31,
	2024		2023
Accounts receivables—Net of allowances	$	120,932	$	102,365
Deferred contract costs		19,427		17,900
Long-term deferred contract costs		21,666		22,302
Other assets (accounts receivable, non-current)		16,138		15,198
Deferred revenues		45,988		43,567
Other liabilities (deferred revenues, non-current)		2,113		1,373

A summary of the activity impacting deferred revenue balances during the three and six months ended June 30, 2024 and 2023 is presented below (in thousands):

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Balance at beginning of period	$	47,560		$	41,422		$	44,940		$	36,479
Revenue recognized1		(117,797	)		(111,533	)		(233,209	)		(214,718	)
Additional amounts deferred1		118,338			111,314			236,370			219,442
Balance at end of period	$	48,101		$	41,203		$	48,101		$	41,203
Classified as:
Current	$	45,988		$	40,064		$	45,988		$	40,064
Non-current		2,113			1,139			2,113			1,139
Total deferred revenue	$	48,101		$	41,203		$	48,101		$	41,203

1 Amounts include total revenue deferred and recognized during each respective period.

A summary of the activity impacting the deferred contract costs during the three and six months ended June 30, 2024 and 2023 is presented below (in thousands):

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2024			2023			2024			2023
Balance at beginning of period	$	40,153		$	37,551		$	40,202		$	36,717
Costs amortized		(5,322	)		(4,637	)		(10,571	)		(9,423	)
Additional amounts deferred		6,262			3,437			11,462			9,057
Balance at end of period	$	41,093		$	36,351		$	41,093		$	36,351
Classified as:
Current	$	19,427		$	16,871		$	19,427		$	16,871
Non-current		21,666			19,480			21,666			19,480
Total deferred contract costs	$	41,093		$	36,351		$	41,093		$	36,351