Revenue Recognition

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

(15) Revenue Recognition

The following table disaggregates the Company’s revenue by geography which provides information as to the major source of revenue. North America includes United States and Canada and International aggregates international revenues excluding Canada. The majority of the Company’s North America revenue is generated in the United States (in thousands):

	Three Months Ended March 31,
Primary Geographic Markets	2024		2023
North America	$	85,689	$	82,067
International		25,740		26,201
Total	$	111,429	$	108,268

The following table presents the Company’s revenues disaggregated by revenue source (in thousands):

	Three Months Ended March 31,
	2024		2023
Subscription services	$	105,316	$	98,785
Professional services		5,261		5,929
Software licenses and other		852		3,554
Total	$	111,429	$	108,268

Contract Assets

Contract assets arise when the Company has earned revenue on a contract with a customer prior to billing. Any contract assets that may arise are recorded in other assets on the Company’s condensed consolidated balance sheets net of an allowance for credit losses.

Contract Liabilities

The Company’s contract liabilities consist of advance payments and deferred revenue. The Company’s contract liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. The Company classifies advance payments and deferred revenue as current or noncurrent based on the timing of when it expects to recognize revenue. Generally, all contract liabilities are expected to be recognized within one year and are included in deferred revenue on the Company’s condensed consolidated balance sheets. The noncurrent portion of deferred revenue is included and separately disclosed on the Company’s condensed consolidated balance sheets.

Deferred Costs

Current deferred costs, which primarily consist of deferred sales commissions, were $18.8 million and $20.0 million as of March 31, 2024 and December 31, 2023, respectively. Noncurrent deferred costs, which primarily consist of deferred sales commissions, were $27.6 million and $26.6 million as of March 31, 2024 and December 31, 2023, respectively. During the three months ended March 31, 2024 and 2023, amortization expense for the deferred costs was $4.9 million and $4.5 million, respectively. There was no impairment loss in relation to the costs capitalized for the three months ended March 31, 2024 and the year ended December 31, 2023, respectively.

Deferred Revenue

During the three months ended March 31, 2024 and 2023, $94.7 million and $90.6 million, respectively, of subscription services, license and other revenue was recognized and was included in the deferred revenue balances at the beginning of the respective period.

During the three months ended March 31, 2024 and 2023, $0.5 million and $2.6 million, respectively, of professional services revenue was recognized and was included in the deferred revenue balances at the beginning of the respective period.

Remaining Performance Obligations

As of March 31, 2024, approximately $488.4 million of revenue is expected to be recognized from remaining performance obligations for subscription and other contracts. The Company expects to recognize revenue on approximately $302.3 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.

As of March 31, 2024, approximately $9.6 million of revenue is expected to be recognized from remaining performance obligations for professional services contracts. The Company expects to recognize revenue on approximately $8.6 million of these remaining professional services performance obligations over the next 12 months, with the balance recognized thereafter.