Revenue from Contracts with Customers

9 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

2. Revenue from Contracts with Customers

Receivables, Contract Assets and Contract Liabilities

(in thousands)	June 30, 2023		September 30, 2022
Short-term and long-term receivables	$	844,941	$	870,962
Contract assets	$	17,826	$	21,096
Deferred revenue	$	650,427	$	520,333

During the nine months ended June 30, 2023, we recognized $457.0 million of revenue that was included in Deferred revenue as of September 30, 2022. In addition, Deferred revenue increased by $97.8 million as a result of the acquisition of ServiceMax. The remainder of the change was driven by additional deferrals, primarily from new billings.

Our multi-year, non-cancellable on-premises subscription contracts provide customers with an annual right to exchange software within the subscription with other software. As of June 30, 2023 and September 30, 2022, our total revenue liability was $25.2 million and $34.2 million, respectively, primarily associated with the annual right to exchange on-premises subscription software.

Remaining Performance Obligations

Our contracts with customers include transaction price amounts allocated to performance obligations that will be satisfied and recognized as revenue at a later date. As of June 30, 2023, the transaction price amounts include performance obligations of $650.4 million recorded in Deferred revenue and $1,246.5 million that are not yet recorded in the Consolidated Balance Sheets. We expect to recognize approximately 58% of the total $1,896.9 million over the next 12 months, with the remaining amount thereafter.

Disaggregation of Revenue

(in thousands)	Three months ended				Nine months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Recurring revenue(1)	$	498,410	$	415,197	$	1,407,662	$	1,273,032
Perpetual license		8,251		8,203		30,417		26,211
Professional services		35,681		39,074		112,354		126,179
Total revenue	$	542,342	$	462,474	$	1,550,433	$	1,425,422

(1)Recurring revenue is comprised of on-premises subscription, perpetual support, SaaS, and cloud services revenue.

Our international revenue is presented based on the location of our customer. Revenue for the geographic regions in which we operate is presented below.

(in thousands)	Three months ended				Nine months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Americas	$	278,329	$	193,043	$	761,617	$	608,924
Europe		173,559		176,419		549,835		561,690
Asia Pacific		90,454		93,012		238,981		254,808
Total revenue	$	542,342	$	462,474	$	1,550,433	$	1,425,422