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Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
The following tables present the Company’s revenues disaggregated by major products and services, geographical region and timing of revenue recognition.
Revenue by major products and services
Three Months Ended March 31,
(In thousands)20242023
Subscription$39,994 $29,956 
Maintenance and support10,571 11,161 
Professional services and other (1)1,702 1,624 
Hardware products12,576 14,866 
Total Revenue$64,843 $57,607 
(1) Professional services and other includes perpetual software licenses revenue, which was approximately 1% of total revenue for both the three months ended March 31, 2024 and 2023.
Revenue by location of customer
We classify our sales by customer location in three geographic regions: 1) EMEA, which includes Europe, Middle East and Africa; 2) the Americas, which includes North, Central, and South America; and 3) Asia Pacific (APAC), which includes Australia, New Zealand, and India. The breakdown of revenue in each of our major geographic areas was as follows:
Three Months Ended March 31,
(In thousands, except percentages)20242023
Revenue
EMEA$31,842 $27,820 
Americas21,344 20,498 
APAC11,657 9,289 
Total revenue$64,843 $57,607 
% of Total Revenue
EMEA49 %48 %
Americas33 %36 %
APAC18 %16 %
Timing of revenue recognition
Three Months Ended March 31,
(In thousands)20242023
Products and licenses transferred at a point in time$37,798 $33,146 
Services transferred over time27,045 24,461 
Total Revenue$64,843 $57,607 
Contract balances
The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers as of March 31, 2024 and December 31, 2023:
March 31,December 31,
(In thousands)20242023
Receivables, inclusive of trade and unbilled$32,382 $64,387 
Contract Assets (current and non-current)$5,607 $5,322 
Contract Liabilities (Deferred Revenue current and non-current)$59,489 $73,483 
Contract assets relate primarily to multi-year term license arrangements and the remaining contractual billings. These contract assets are transferred to receivables when the right to bill occurs over a 2- to 5-year period. The contract liabilities primarily relate to the advance consideration received from customers for subscription and maintenance services. Revenue is recognized for these services over time.
As a practical expedient, the Company does not adjust the promised amount of consideration for the effects of a significant financing component when it is expected, at contract inception, that the period between the Company's transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. Extended payment terms are not typically included in contracts with customers.
Revenue recognized during the three months ended March 31, 2024 included $30.4 million that was included on the December 31, 2023 consolidated balance sheet in contract liabilities. Deferred revenue decreased in the same period due to timing of annual renewals.
Transaction price allocated to the remaining performance obligations
Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations that are unsatisfied, or partially unsatisfied, as of the end of the period. The following
table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2024:
(In thousands)202420252026Beyond 2026Total
Future revenue related to current unsatisfied performance obligations$38,656 $28,253 $15,586 $5,162 $87,657 
The Company applies practical expedients and does not disclose information about remaining performance obligations (a) that have original expected durations of one year or less, or (b) where revenue is recognized as invoiced.
Costs of obtaining a contract
The Company incurs incremental costs related to commissions, which can be directly tied to obtaining a contract. The Company capitalizes commissions associated with certain new contracts and amortizes the costs over a period of up to 7 years, which is the determined benefit period based on the transfer of goods or services. The Company determined the period of benefit by taking into consideration the customer contracts, its technology and other factors, including customer attrition. Commissions are earned upon invoicing to the customer. For contracts with multiple year payment terms, because the commissions that are payable after year 1 are payable based on continued employment, they are expensed when incurred. Commissions and amortization expense are included in “Sales and Marketing” expense in the condensed consolidated statements of operations.
As a practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period for the assets that the Company otherwise would have recognized is one year or less. These costs are included in “Sales and Marketing” expense in the condensed consolidated statements of operations.
The following tables provide information related to the capitalized costs and amortization recognized in the current and prior period:
(In thousands)March 31, 2024December 31, 2023
Capitalized costs to obtain contracts, current$3,644 $3,503 
Capitalized costs to obtain contracts, non-current$10,740 $10,766 
Three Months Ended March 31,
(In thousands)20242023
Amortization of capitalized costs to obtain contracts$884 $731