REVENUE (Notes)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

Disaggregated Revenue and Geography Information

Through the evaluation of the discrete financial information that is regularly reviewed by the chief operating decision makers (our chief executive officer and chief financial officer), we have determined that we have one reportable segment.

The following table is a summary of our revenues by type for the three and six months ended June 30, 2021 and 2020 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Products and solutions net revenues	$	37,178	$	27,635	$	70,445	$	62,346
Subscription services	21,508		16,427		46,376		30,385
Maintenance	30,443		30,570		60,295		62,364
Professional services, training and other services	5,747		4,649		12,124		10,639
Total net revenues	$	94,876	$	79,281	$	189,240	$	165,734

The following table sets forth our revenues by geographic region for the three and six months ended June 30, 2021 and 2020 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenues:
United States	$	41,587	$	32,886	$	81,058	$	68,976
Other Americas	4,629		5,886		9,809		11,336
Europe, Middle East and Africa	34,094		28,706		70,617		61,941
Asia-Pacific	14,566		11,803		27,756		23,481
Total net revenues	$	94,876	$	79,281	$	189,240	$	165,734

Contract Asset

Contract asset activity for the six months ended June 30, 2021 and 2020 was as follows (in thousands):

	June 30, 2021		June 30, 2020
Contract asset at beginning of year	$	18,579	$	19,494
Revenue in excess of billings	27,282		13,155
Customer billings	(24,033)		(14,403)
Contract asset at end of period	$	21,828	$	18,246

Deferred Revenue

Deferred revenue activity for the six months ended June 30, 2021 and 2020 was as follows (in thousands):

	June 30, 2021		June 30, 2020
Deferred revenue at beginning of period	$	99,259	$	97,901
Billings deferred	46,686		39,334
Recognition of prior deferred revenue	(54,362)		(51,512)
Deferred revenue at end of period	$	91,583	$	85,723

A summary of the significant performance obligations included in deferred revenue is as follows (in thousands):

	June 30, 2021
Product	$	5,302
Subscription	6,467
Maintenance contracts	71,266
Implied PCS	7,031
Professional services, training and other	1,517
Deferred revenue at June 30, 2021	$	91,583

Remaining Performance Obligations

For transaction prices allocated to remaining performance obligations, we apply practical expedients and do not disclose quantitative or qualitative information for remaining performance obligations (i) that have original expected durations of one year or less and (ii) where we recognize revenue equal to what we have the right to invoice and that amount corresponds directly with the value to the customer of our performance to date.

Historically, for many of our products, we had an ongoing practice of making when-and-if-available software updates available to customers free of charge for a period of time after initial sales to customers. The expectation created by this practice of providing free Software Updates represents an implied obligation of a form of post-contract customer support (“Implied PCS”) which represents a performance obligation. While we have ceased providing Implied PCS on new product offerings, we continue to provide Implied PCS for older products that were predominately sold in prior years. Revenue attributable to Implied PCS performance obligations is recognized over time on a ratable basis over the period that Implied PCS is expected to be provided, which is typically six years. We have remaining performance obligations of $7.0 million attributable to Implied PCS recorded in deferred revenue as of June 30, 2021. We expect to recognize revenue for these remaining performance obligations of $1.6 million for the remainder of 2021 and $2.2 million, $1.5 million, $1.0 million and $0.5 million for the years ending December 31, 2022, 2023, 2024, and 2025, respectively, and $0.2 million thereafter.

As of June 30, 2021, we had approximately $45.1 million of transaction price allocated to remaining performance obligations for certain enterprise agreements that have not yet been fully invoiced. Approximately $38.9 million of these performance obligations were unbilled as of June 30, 2021. Remaining performance obligations represent obligations we must deliver for specific products and services in the future where there is not yet an enforceable right to invoice the customer. Our remaining performance obligations do not include contractually committed minimum purchases that are

common in our strategic purchase agreements with resellers since our specific obligations to deliver products or services is not yet known, as customers may satisfy such commitments by purchasing an unknown combination of current or future product offerings. While the timing of fulfilling individual performance obligations under the contracts can vary dramatically based on customer requirements, we expect to recognize the $45.1 million in roughly equal installments through 2026.

Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations due to contract breach, contract amendments, and changes in the expected timing of delivery.