Revenues

6 Months Ended

Jun. 30, 2024

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 six months ended June 30, 2024

and 2023:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(U.S. $ in thousands)				(U.S. $ in thousands)
Americas
Systems	$	14,054	$	28,975	$	32,047	$	50,161
Consumables	36,182		33,757		71,724		66,329
Service	33,252		39,463		66,525		75,785
Total Americas	83,488		102,195		170,296		192,275

EMEA
Systems	9,800		12,054		19,523		23,456
Consumables	19,945		17,910		41,115		36,821
Service	7,308		6,920		14,888		14,487
Total EMEA	37,053		36,884		75,526		74,764

Asia Pacific
Systems	5,125		7,284		10,294		15,148
Consumables	8,488		9,132		18,087		18,168
Service	3,887		4,256		7,888		8,773
Total Asia Pacific	17,500		20,672		36,269		42,089

Total Revenues	$	138,041	$	159,751	$	282,091	$	309,128

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 six months ended June 30, 2024 and 2023:


	Three Months Ended June 30,				six months ended June 30, 2024
	2024		2023		2024		2023
	(U.S. $ in thousands)				(U.S. $ in thousands)
Revenues recognized in point in time from:
Products	$	93,594	$	109,112	$	192,790	$	210,083
Services	12,847		14,156		26,619		27,847
Total revenues recognized in point in time	106,441		123,268		219,409		237,930

Revenues recognized over time from:
Services	31,600		36,483		62,682		71,198
Total revenues recognized over time	31,600		36,483		62,682		71,198

Total Revenues	$	138,041	$	159,751	$	282,091	$	309,128

Contract Assets and Contract Liabilities

Contract assets are recorded when the Company's right to consideration is conditioned on constraints other than the passage of time. The Company had no material contract assets as of June 30, 2024 and December 31, 2023.

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 revenue. The Company's deferred revenue as of June 30, 2024 and December 31, 2023 was as follows:


	June 30,		December 31,
	2024		2023
	U.S. $ in thousands
Deferred revenue *	$	69,794	$	76,265

*Includes $18.9 million and $23.7 million under long-term deferred revenue in the Company's consolidated balance sheets as of June 30, 2024 and December 31, 2023, respectively.

Revenue recognized in 2024 that was included in deferred revenue balance as of December 31, 2023 was $14.5 million and $33.1 million for the three and six months ended June 30, 2024, respectively.

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 June 30, 2024, the total RPO amounted to $98.3 million. The Company expects to recognize $68.0 million of this RPO during the next 12 months, $14.7 million over the subsequent 12 months and the remaining $15.6 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. As of June 30, 2024 and December 31, 2023, the deferred commissions amounted to $10.3 million and $10.3 million, respectively.