Revenue

9 Months Ended

Sep. 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 nine months ended September 30, 2024 and 2023 (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Software subscriptions	$	229,425	$	212,497	$	670,335	$	611,582
Other		9,056		8,650		28,001		26,195
Total revenues	$	238,481	$	221,147	$	698,336	$	637,777

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 September 30, 2024, approximately $1,512 million of revenue is expected to be recognized from remaining performance obligations in the amount of approximately $636 million during the following twelve months, and approximately $876 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 September 30, 2024 from amounts in deferred revenue as of June 30, 2024 was $42.8 million. Revenue recognized for the three months ended September 30, 2023 from amounts in deferred revenue as of June 30, 2023 was $37.1 million. Revenue recognized for the nine months ended September 30, 2024 from amounts in deferred revenue as of December 31, 2023 was $41.1 million. Revenue recognized for the nine months ended September 30, 2023 from amounts in deferred revenue as of December 31, 2022 was $34.7 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):

	September 30,		December 31,
	2024		2023
Accounts receivables—Net of allowances	$	129,606	$	102,365
Deferred contract costs		19,707		17,900
Long-term deferred contract costs		21,396		22,302
Other assets (accounts receivable, non-current)		16,451		15,198
Deferred revenues		46,577		43,567
Other liabilities (deferred revenues, non-current)		1,770		1,373

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

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Balance at beginning of period	$	48,101		$	41,203		$	44,940		$	36,479
Revenue recognized1		(120,315	)		(109,109	)		(353,523	)		(323,827	)
Additional amounts deferred1		120,561			110,934			356,930			330,376
Balance at end of period	$	48,347		$	43,028		$	48,347		$	43,028
Classified as:
Current	$	46,577		$	41,885		$	46,577		$	41,885
Non-current		1,770			1,143			1,770			1,143
Total deferred revenue	$	48,347		$	43,028		$	48,347		$	43,028

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 nine months ended September 30, 2024 and 2023 is presented below (in thousands):

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Balance at beginning of period	$	41,093		$	36,351		$	40,202		$	36,717
Costs amortized		(5,651	)		(4,705	)		(16,222	)		(14,128	)
Additional amounts deferred		5,661			4,927			17,123			13,984
Balance at end of period	$	41,103		$	36,573		$	41,103		$	36,573
Classified as:
Current	$	19,707		$	16,994		$	19,707		$	16,994
Non-current		21,396			19,579			21,396			19,579
Total deferred contract costs	$	41,103		$	36,573		$	41,103		$	36,573