Revenues

9 Months Ended

Sep. 30, 2021

Revenue Recognition [Abstract]

Revenues

Note 4. Revenues

Disaggregation of Revenues

The following table presents the Company’s revenues disaggregated by geographical region (based on the Company's customers' locations) and revenue type for the three and nine months ended September 30, 2021 and 2020:

	Three months ended September 30,				Nine months ended September 30,
		2021		2020		2021		2020
	(U.S. $ in thousands)				(U.S. $ in thousands)
Americas
Products	$	65,610	$	52,827	$	172,961	$	145,871
Service		37,962		33,770		105,673		106,000
Total Americas		103,572		86,597		278,634		251,871
EMEA
Products		26,896		17,245		75,223		53,735
Service		7,165		6,003		20,279		17,348
Total EMEA		34,061		23,248		95,502		71,083
Asia Pacific
Products		16,382		13,476		51,333		40,991
Service		4,994		4,571		14,734		14,477
Total Asia Pacific		21,376		18,047		66,067		55,468
Total Revenues	$	159,009	$	127,892	$	440,203	$	378,422

The following table presents the Company’s revenues disaggregated based on the timing of revenue recognition (at a specific point in time or over the course of time) for the three and nine months ended September 30, 2021 and 2020:

	Three months ended September 30,				Nine months ended September 30,
		2021		2020		2021		2020
	(U.S. $ in thousands)				(U.S. $ in thousands)
Revenues recognized in point in time from:
Products	$	108,888	$	83,548	$	299,517	$	240,597
Services		12,056		10,387		33,781		29,809
Total revenues recognized in point in time		120,944		93,935		333,298		270,406
Revenues recognized over time from:
Services		38,065		33,957		106,905		108,016
Total revenues recognized over time		38,065		33,957		106,905		108,016
Total Revenues	$	159,009	$	127,892	$	440,203	$	378,422

Contract Assets and Contract Liabilities

Contract assets are recorded when the Company's right to consideration is conditional on constraints other than the passage of time. The Company had no material contract assets as of September 30, 2021 and December 31, 2020.

Contract liabilities include advance payments and billings in excess of revenue recognized, which are primarily related to advanced billings for service type warranty. Contract liabilities are presented under deferred revenues. The Company's deferred revenues as of September 30, 2021 and December 31, 2020 were as follows:

		September 30, 2021	December 31, 2020
	U.S. $ in thousands
Deferred revenue*		67,084	63,392

*Includes $18 million and $14.2 million under long term deferred revenue in the Company's consolidated balance sheets as of September 30, 2021 and December 31, 2020, respectively.

Revenue recognized in 2021 that was included in deferred revenue balance as of December 31, 2020 was $9.7 million and $41.8 million for the three and nine months ended September 30, 2021.

Remaining Performance Obligations

Remaining Performance Obligations (“RPO“) represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of September 30, 2021, the total RPO amounted to $121.4 million. The Company expects to recognize $102.1 million of this RPO during the next 12 months, $10.8 million over the subsequent 12 months and the remaining $8.6 million thereafter.

Incremental Costs of Obtaining a Contract

Sales commissions earned mainly by the Company’s sales agents are considered incremental costs of obtaining a contract with a customer, as the Company expects the benefit of those commissions to be longer than one year. The majority of the sales commissions are not subject to capitalization, as the commission expense is recognized as the related revenue is recognized. Sales commissions for initial contracts related to the service type warranty are deferred and then amortized on a straight-line basis over the expected customer relationship period if the Company expects to recover those costs. Amortization expense is included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive loss. As of September 30, 2021 and December 31, 2020, the deferred commissions amounted to $6.6 million and $5 million, respectively.