Revenue from Contracts with Customers

12 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

3. Revenue from Contracts with Customers

Receivables, Contract Assets, and Contract Liabilities

(in thousands)	September 30,
	2024		2023
Short-term and long-term receivables	$	1,062,052	$	997,490
Contract asset	$	14,410	$	16,465
Deferred revenue	$	775,274	$	681,550

As of September 30, 2024, $14.4 million of our contract assets are expected to be transferred to receivables within the next 12 months and therefore are included in Other current assets. As of September 30, 2023, $16.1 million of our contract asset balance was included in Other current assets with the remainder included in Other assets.

Approximately $12.3 million of the September 30, 2023 contract asset balance was transferred to receivables during the year ended September 30, 2024 as a result of the right to payment becoming unconditional. Additions to contract asset of approximately $10.2 million primarily related to revenue recognized in the period, net of billings. There were no impairments of contract assets in the year ended September 30, 2024.

During the year ended September 30, 2024, we recognized $645.5 million of revenue that was included in deferred revenue as of September 30, 2023. There were additional deferrals of $738.2 million, primarily related to new billings. For subscription contracts, we generally invoice customers annually.

Costs to Obtain or Fulfill a Contract

We recognize an asset for the incremental costs of obtaining a contract with a customer if the benefit of those costs is expected to be longer than one year. These deferred costs (primarily commissions) are amortized proportionately related to revenue over 5 years, which is generally longer than the term of the initial contract because of anticipated renewals as commissions for renewals are not commensurate with commissions related to our initial contracts. As of September 30, 2024 and September 30, 2023, deferred costs of $42.5 million and $41.8 million, respectively, were included in Other current assets and $76.4 million and $78.7 million, respectively, were included in Other assets. Amortization expense related to costs to obtain a contract with a customer was $52.0 million, $53.4 million, and $50.9 million in the years ended September 30, 2024, 2023, and 2022, respectively. There were no substantial impairments of the contract cost asset in the years ended September 30, 2024 and 2023.

Remaining Performance Obligations

Our contracts with customers include transaction price amounts allocated to performance obligations that will be satisfied and recognized as revenue at a later date. As of September 30, 2024, the transaction price amounts include additional performance obligations of $775.3 million recorded in deferred revenue and $1,494.0 million that are not yet recorded in the Consolidated Balance Sheets. Of the total $2,269.3 million, we expect to recognize approximately 57% over the next 12 months, 25% over the next 13 to 24 months, and the remaining amount thereafter.

Disaggregation of Revenue

(in thousands)	Year ended September 30,
	2024		2023		2022
Recurring revenue(1)	$	2,134,030	$	1,907,918	$	1,736,188
Perpetual license		32,196		38,640		34,065
Professional services		132,246		150,495		163,094
Total revenue	$	2,298,472	$	2,097,053	$	1,933,347

(1)Recurring revenue is comprised of on-premises subscription, perpetual support, SaaS, and hosting services revenue.

We report revenue by the following two product groups:

(in thousands)	Year ended September 30,
	2024		2023		2022
Product lifecycle management (PLM)	$	1,459,078	$	1,330,316	$	1,137,016
Computer-aided design (CAD)		839,394		766,737		796,331
Total revenue	$	2,298,472	$	2,097,053	$	1,933,347

We license products to customers worldwide. Our sales and marketing operations outside the United States are conducted principally through our international sales subsidiaries throughout Europe and the Asia Pacific region. Our international revenue is presented based on the location of our customer. Revenue for the geographic regions in which we operate is presented below.

(in thousands)	Year ended September 30,
	2024		2023		2022
Americas(1)	$	1,087,929	$	1,023,273	$	895,095
Europe(2)		859,387		753,796		714,216
Asia Pacific		351,156		319,984		324,036
Total revenue	$	2,298,472	$	2,097,053	$	1,933,347

(1)Includes revenue in the United States totaling $1,057.3 million, $993.8 million, and $864.7 million for 2024, 2023 and 2022, respectively.

(2)Includes revenue in Germany totaling $330.5 million, $292.0 million, and $318.5 million for 2024, 2023 and 2022, respectively.