Revenue

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

In accordance with ASC 606, Revenue From Contracts With Customers, revenue is recognized upon transfer of control of promised products and/or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products and services. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. See Note 10, Segment Information, for additional information, including disaggregation of revenue based on primary solution category.

Total receivables represent amounts billed and amounts earned that are to be billed in the future (i.e., accrued receivables). Included in accrued receivables are services, software as a service ("SaaS"), and platform as a service ("PaaS") revenues earned in the current period but billed in the following period, and amounts due under multi-year software license arrangements with extended payment terms for which the Company has an unconditional right to invoice and receive payment subsequent to invoicing.

Total receivables, net is comprised of the following (in thousands):

	March 31, 2023		December 31, 2022
Billed receivables	$	153,420	$	218,611
Allowance for doubtful accounts	(3,179)		(3,779)
Billed receivables, net	150,241		214,832
Current accrued receivables, net	192,524		188,949
Long-term accrued receivables, net	270,332		297,818
Total accrued receivables, net	462,856		486,767
Total receivables, net	$	613,097	$	701,599

One customer accounted for 10.5% and 10.1% of the Company's consolidated receivables balance as of March 31, 2023 and December 31, 2022, respectively.

Deferred revenue includes amounts due or received from customers for software licenses, maintenance, services, and/or SaaS and PaaS services in advance of recording the related revenue.

Changes in deferred revenue were as follows (in thousands):

Balance, December 31, 2022	$	81,536
Deferral of revenue	31,518
Recognition of deferred revenue	(21,465)
Foreign currency translation	49
Balance, March 31, 2023	$	91,638

Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This does not include:

•Revenue that will be recognized in future periods from capacity overages that are accounted for as a usage-based royalty.

•SaaS and PaaS revenue from variable consideration that will be recognized in accordance with the ‘right to invoice’ practical expedient or meets the allocation objective.

Revenue allocated to remaining performance obligations was $651.4 million as of March 31, 2023, of which the Company expects to recognize approximately 50% over the next 12 months and the remainder thereafter.

During the three months ended March 31, 2023 and 2022, revenue recognized by the Company from performance obligations satisfied in previous periods was not significant.