Revenue Recognition

3 Months Ended

Feb. 28, 2025

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, SaaS, and consulting and education. Information relating to revenue from external customers by revenue type is as follows:

 

	Three Months Ended
(in thousands)	February 28, 2025		February 29, 2024
Performance obligations transferred at a point in time:
Software licenses	$	58,445	$	64,100
Performance obligations transferred over time:
Maintenance	99,535		102,025
SaaS	69,410		5,571
Professional services	10,625		12,989
Total revenue	$	238,015	$	184,685

Geographic Revenue

In the following table, revenue attributed to North America includes sales to customers in the U.S. and Canada and sales to certain multinational organizations. Revenue from 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:

 

	Three Months Ended
(in thousands)	February 28, 2025		February 29, 2024
North America	$	154,646	$	107,282
EMEA	66,943		63,087
Latin America	5,052		4,668
Asia Pacific	11,374		9,648
Total revenue	$	238,015	$	184,685

No single customer, partner, or country outside the U.S. accounted for more than 10% of our total revenue for the three months ended February 28, 2025 or February 29, 2024.

Contract Balances

Unbilled Receivables and Contract Assets

As of February 28, 2025, billing of our long-term unbilled receivables is expected to occur as follows:

(in thousands)
2026	$	21,713
2027	8,703
Total	$	30,416

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 February 28, 2025 or November 30, 2024.

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 condensed 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 February 28, 2025, the changes in net deferred revenue were as follows:

(in thousands)
Balance, December 1, 2024	$	404,412
Billings and other	233,909
Revenue recognized that was deferred in prior periods	(147,219)
Revenue recognized from current period arrangements	(90,796)
Balance, February 28, 2025	$	400,306

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 February 28, 2025, transaction price allocated to remaining performance obligations was $478.3 million. We expect to recognize approximately 78% of the revenue within the next year and the remainder thereafter.

Deferred Contract Costs

Certain of our sales incentive programs 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 $5.9 million and $6.7 million as of February 28, 2025 and November 30, 2024, respectively, and are included in other current assets and other assets on our condensed consolidated balance sheets. Amortization of deferred contract costs is included in sales and marketing expense on our condensed consolidated statement of operations and was minimal in all periods presented.