Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes revenue:



	Three Months Ended						Nine Months Ended
(in thousands, except percentages)	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Revenue:
Lease licenses	$	70,693		$	43,202		$	239,953		$	148,795
Perpetual licenses	66,451			65,901			190,734			201,501
Software licenses	137,144			109,103			430,687			350,296
Maintenance	193,189			171,463			559,768			500,962
Service	13,566			8,852			39,209			26,946
Maintenance and service	206,755			180,315			598,977			527,908
Total revenue	$	343,899		$	289,418		$	1,029,664		$	878,204

Direct revenue, as a percentage of total revenue	76.8		%	75.5		%	75.9		%	76.1		%
Indirect revenue, as a percentage of total revenue	23.2		%	24.5		%	24.1		%	23.9		%

The Company’s software licenses revenue is recognized up front, while maintenance and service revenue is generally recognized over the term of the contract.

Deferred Revenue

Deferred revenue consists of billings made or payments received in advance of revenue recognition from customer agreements. The timing of revenue recognition may differ from the timing of billings to customers. Payment terms vary by the type and location of customer and the products or services offered. The time between invoicing and when payment is due is not significant.

The changes in deferred revenue, inclusive of both current and long-term deferred revenue, during the nine months ended September 30, 2019 and 2018 were as follows:



(in thousands)	2019			2018
Beginning balance – January 1	$	343,174		$	299,730
Acquired deferred revenue	3,266			2,470
Deferral of revenue	991,524			868,522
Recognition of revenue	(1,029,664		)	(878,204		)
Currency translation	(4,985		)	(6,065		)
Ending balance – September 30	$	303,315		$	286,453

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, and includes both deferred revenue and backlog. The Company's backlog represents installment billings for periods beyond the current quarterly billing cycle. Revenue recognized during the nine months ended September 30, 2019 and 2018 included amounts in deferred revenue and backlog at the beginning of the period of $409.1 million and $334.4 million, respectively.

Total revenue allocated to remaining performance obligations as of September 30, 2019 will be recognized as revenue as follows:



(in thousands)
Next 12 months	$	445,934
Months 13-24	122,932
Months 25-36	52,090
Thereafter	29,431
Total revenue allocated to remaining performance obligations	$	650,387