Disaggregation of Revenue

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Deferred CommissionsSales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial contracts are deferred and then amortized commensurate with the recognition of associated revenue over a period of benefit that we have determined to be three to seven years. Deferred commissions were $33.6 million and $32.3 million as of June 30, 2021, and December 31, 2020, respectively. Amortization expense was $3.1 million and $6.1 million for the three and six months ended June 30, 2021, respectively, and $2.9 million and $5.9 million for the three and six ended June 30, 2020, respectively. There were no indicators of impairment in relation to the costs capitalized for the periods presented. Deferred commissions have been included with prepaid expenses for the current portion and non-current other assets for the long-term portion in the accompanying condensed consolidated balance sheets. Amortization expense related to deferred commissions is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income.Disaggregation of RevenueThe tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows.

Timing of Revenue Recognition

Timing of revenue recognition by revenue category during the period is as follows:

For the three months ended June 30, 2021
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	14,755	$	2,849	$	17,604
Subscriptions	—		199,558		199,558
Software services	—		53,337		53,337
Maintenance	—		119,621		119,621
Appraisal services	—		6,265		6,265
Hardware and other	7,690		—		7,690
Total	$	22,445	$	381,630	$	404,075

For the three months ended June 30, 2020
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	14,468	$	2,557	$	17,025
Subscriptions	—		85,638		85,638
Software services	—		43,654		43,654
Maintenance	—		116,760		116,760
Appraisal services	—		4,696		4,696
Hardware and other	3,318		—		3,318
Total	$	17,786	$	253,305	$	271,091

For the six months ended June 30, 2021
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	26,813	$	5,724	$	32,537
Subscriptions	—		302,037		302,037
Software services	—		100,977		100,977
Maintenance	—		238,733		238,733
Appraisal services	—		12,730		12,730
Hardware and other	11,863		—		11,863
Total	$	38,676	$	660,201	$	698,877

For the six months ended June 30, 2020
	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Software licenses and royalties	$	30,534	$	5,228	$	35,762
Subscriptions	—		167,361		167,361
Software services	—		95,787		95,787
Maintenance	—		231,125		231,125
Appraisal services	—		10,459		10,459
Hardware and other	7,138		—		7,138
Total	$	37,672	$	509,960	$	547,632

Recurring Revenue

The majority of our revenue is comprised of revenues from maintenance and subscriptions, which we consider to be recurring revenue. Virtually all of our on-premises software clients contract with us for maintenance and support, which provides us with a significant source of recurring revenue. We generally provide maintenance and support for our on-premises clients under annual, or in some cases, multi-year contracts. The contract terms for subscription arrangements range from one to 10 years but are typically contracted for initial periods of three to five years, providing a significant source of recurring revenues on an annual basis. We consider all other revenue categories to be non-recurring revenues.

Recurring revenues and non-recurring revenues recognized during the period are as follows:

For the three months ended June 30, 2021
	Enterprise Software		Appraisal and Tax		NIC		Corporate		Totals
Recurring revenues	$	208,417	$	17,326	$	93,436	$	—	$	319,179
Non-recurring revenues	63,479		12,835		5,643		2,939		84,896
Intercompany	5,605		16		0		(5,621)		—
Total revenues	$	277,501	$	30,177	$	99,079	$	(2,682)	$	404,075

For the three months ended June 30, 2020
	Enterprise Software		Appraisal and Tax		NIC		Corporate		Totals
Recurring revenues	$	186,464	$	15,934	$	—	$	—	$	202,398
Non-recurring revenues	56,882		11,811		—		—		68,693
Intercompany	4,533		2		—		(4,535)		—
Total revenues	$	247,879	$	27,747	$	—	$	(4,535)	$	271,091

For the six months ended June 30, 2021
	Enterprise Software		Appraisal and Tax		NIC		Corporate		Totals
Recurring revenues	$	413,031	$	34,303	$	93,436	$	—	$	540,770
Non-recurring revenues	123,212		26,313		5,643		2,939		158,107
Intercompany	10,866		31		—		(10,897)		—
Total revenues	$	547,109	$	60,647	$	99,079	$	(7,958)	$	698,877

For the six months ended June 30, 2020
	Enterprise Software		Appraisal and Tax		NIC		Corporate		Totals
Recurring revenues	$	367,949	$	30,537	$	—	$	—	$	398,486
Non-recurring revenues	121,573		27,571		—		2		149,146
Intercompany	8,534		20		—		(8,554)		—
Total revenues	$	498,056	$	58,128	$	—	$	(8,552)	$	547,632

Deferred Revenue and Performance Obligations

Total deferred revenue, including long-term, by segment is as follows:

	June 30, 2021		December 31, 2020
Enterprise Software	$	442,822	$	422,742
Appraisal and Tax	37,419		36,945
NIC	2,719		—
Corporate	1,590		1,691
Totals	$	484,550	$	461,378

Changes in total deferred revenue, including long-term, were as follows:

	Six months ended June 30, 2021
Balance as of December 31, 2020	$	461,378
Deferral of revenue	569,106
Recognition of deferred revenue	(545,934)
Balance as of June 30, 2021	$	484,550

Transaction Price Allocated to the Remaining Performance Obligations

The aggregate amount of transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized (“backlog”), which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Backlog as of June 30, 2021, was $1.63 billion, of which we expect to recognize approximately 47% as revenue over the next 12 months and the remainder thereafter.