Revenue Recognition

12 Months Ended

Nov. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Timing of Revenue Recognition

Our revenues are derived from licensing our products, and from related services, which consist of maintenance, hosting services, SaaS and consulting and education. Information relating to revenue from external customers by revenue type is as follows:

	Fiscal Year Ended
(in thousands)	November 30, 2024		November 30, 2023		November 30, 2022
Performance obligations transferred at a point in time:
Software licenses	$	249,331	$	220,789	$	188,336
Performance obligations transferred over time:
Maintenance	410,556		401,501		362,335
Services	93,522		72,149		51,342
Total revenue	$	753,409	$	694,439	$	602,013

Geographic Revenue

In the following table, revenue attributed to the United States includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from Canada, EMEA, Latin America and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows:

	Fiscal Year Ended
(in thousands)	November 30, 2024		November 30, 2023		November 30, 2022
United States	$	421,890	$	380,672	$	310,917
Canada	25,105		30,998		30,237
EMEA	245,287		222,862		207,707
Latin America	20,305		21,112		18,053
Asia Pacific	40,822		38,795		35,099
Total revenue	$	753,409	$	694,439	$	602,013

No single customer, partner, or country outside of the U.S. has accounted for more than 10% of our consolidated revenue in any year presented.

Contract Balances

Unbilled Receivables and Contract Assets

The timing of revenue recognition may differ from the timing of customer billing. When revenue is recognized prior to billing and the right to the amount due from customers is conditioned only on the passage of time, we record an unbilled receivable on our consolidated balance sheets. Our multi-year term license arrangements, which are typically billed annually, result in revenue recognition in advance of billing and the recognition of unbilled receivables.

As of November 30, 2024, billing of our long-term unbilled receivables is expected to occur as follows:

(in thousands)
2026	$	24,708
2027	4,185
Total	$	28,893

Contract assets arise when revenue is recognized in excess of billings and the right to the amount due from customers is conditioned on something other than the passage of time, such as the completion of a related performance obligation. We did not have any net contract assets as of November 30, 2024 or 2023.

Deferred Revenue

Deferred revenue is recorded when revenue is recognized subsequent to customer invoicing. Deferred revenue expected to be recognized as revenue more than one year subsequent to the balance sheet date is included in long-term liabilities on the consolidated balance sheets. Our net deferred revenue balance is primarily made up of deferred maintenance and deferred revenue related to our SaaS offerings.

As of November 30, 2024, the changes in net deferred revenue were as follows:

(in thousands)
Balance, December 1, 2022	$	282,440
Billings and other	673,919
Acquired from business combinations	33,116
Revenue recognized	(694,439)
Balance, November 30, 2023	$	295,036
Billings and other	766,626
Acquired from business combinations	96,159
Revenue recognized that was deferred in prior periods	(270,965)
Revenue recognized from current period arrangements	(482,444)
Balance, November 30, 2024	$	404,412

Transaction price 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. As of November 30, 2024, transaction price allocated to remaining performance obligations was $488.5 million. We expect to recognize approximately 77% of the revenue within the next year and the remainder thereafter.

Deferred Contract Costs

Deferred contract costs, which include certain sales incentive programs, are incremental and recoverable costs of obtaining a contract with a customer. Incremental costs of obtaining a contract with a customer are recognized as an asset if the expected benefit of those costs is longer than one year. We have applied the practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs include a large majority of our sales incentive programs as we have determined that annual compensation is commensurate with annual sales activities.

Certain of our sales incentive programs do meet the requirements to be capitalized. Depending upon the sales incentive program and the related revenue arrangement, such capitalized costs are amortized over the longer of (i) the product life, which is generally three to five years; or (ii) the term of the related revenue contract. We determined that a three to five year product life represents the period of benefit that we receive from these incremental costs based on both qualitative and quantitative factors, which include customer contracts, industry norms, and product upgrades. Total deferred contract costs were $6.7 million, $7.6 million, and $8.8 million as of November 30, 2024, 2023, and 2022, respectively, and are included in other current assets and other assets on our consolidated balance sheets. Amortization of deferred contract costs is included in sales and marketing expense on our consolidated statement of operations and was minimal in all periods presented.