Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Disaggregation of Revenue

The following table summarizes revenue:

	Three Months Ended						Six Months Ended
(in thousands, except percentages)	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Revenue:
Lease licenses	$	129,794		$	113,209		$	194,871		$	158,083
Perpetual licenses	85,028			56,132			152,555			99,088
Software licenses	214,822			169,341			347,426			257,171
Maintenance	218,297			203,179			431,971			403,667
Service	13,535			13,141			30,483			29,808
Maintenance and service	231,832			216,320			462,454			433,475
Total revenue	$	446,654		$	385,661		$	809,880		$	690,646
Direct revenue, as a percentage of total revenue	75.4		%	78.1		%	73.8		%	76.2		%
Indirect revenue, as a percentage of total revenue	24.6		%	21.9		%	26.2		%	23.8		%

Our 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 six months ended June 30, 2021 and 2020 were as follows:

(in thousands)	2021		2020
Beginning balance – January 1	$	388,810	$	365,274
Acquired deferred revenue	746		1,405
Deferral of revenue	777,714		661,790
Recognition of revenue	(809,880)		(690,646)
Currency translation	(5,792)		(1,635)
Ending balance – June 30	$	351,598	$	336,188

Total revenue allocated to remaining performance obligations as of June 30, 2021 will be recognized as revenue as follows:

(in thousands)
Next 12 months	$	597,173
Months 13-24	177,100
Months 25-36	83,608
Thereafter	69,218
Total revenue allocated to remaining performance obligations	$	927,099

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes both deferred revenue and backlog. Our backlog represents installment billings for periods beyond the current

quarterly billing cycle. Revenue recognized during the six months ended June 30, 2021 and 2020 included amounts in deferred revenue and backlog at the beginning of the period of $373.7 million and $343.9 million, respectively.