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Deferred Commissions
6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Deferred Commissions Disaggregation of Revenue
The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenues 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, 2023Products and services transferred at a point in timeProducts and services transferred over timeTotal
Revenues
Subscriptions:
SaaS$— $131,456 $131,456 
Transaction-based fees— 166,333 166,333 
Maintenance— 116,539 116,539 
Professional services— 66,420 66,420 
Software licenses and royalties8,793 986 9,779 
Hardware and other13,752 — 13,752 
Total$22,545 $481,734 $504,279 
For the three months ended June 30, 2022Products and services transferred at a point in timeProducts and services transferred over timeTotal
Revenues
Subscriptions:
SaaS$— $109,505 $109,505 
Transaction-based fees— 146,311 146,311 
Maintenance— 116,815 116,815 
Professional services— 71,937 71,937 
Software licenses and royalties12,683 2,326 15,009 
Hardware and other9,108 — 9,108 
Total$21,791 $446,894 $468,685 
For the six months ended June 30, 2023Products and services transferred at a point in timeProducts and services transferred over timeTotal
Revenues
Subscriptions:
SaaS$— $258,051 $258,051 
Transaction-based fees— 320,203 320,203 
Maintenance— 231,670 231,670 
Professional services— 127,349 127,349 
Software licenses and royalties18,074 1,835 19,909 
Hardware and other18,951 — 18,951 
Total$37,025 $939,108 $976,133 
For the six months ended June 30, 2022Products and services transferred at a point in timeProducts and services transferred over timeTotal
Revenues
Subscriptions:
SaaS$— $211,287 $211,287 
Transaction-based fees— 289,972 289,972 
Maintenance— 233,844 233,844 
Professional services— 141,952 141,952 
Software licenses and royalties26,752 4,763 31,515 
Hardware and other16,222 — 16,222 
Total$42,974 $881,818 $924,792 
Recurring Revenues
The majority of our revenue is comprised of revenues from subscriptions and maintenance, which we consider to be recurring revenues. Subscriptions revenue primarily consists of revenues derived from our SaaS arrangements and transaction-based fees, which relate to digital government services, e-filing transactions, and payment processing. The contract terms for subscription arrangements range from one to 10 years but are typically contracted for initial periods of three to five years. Virtually all of our on-premises software clients contract with us for maintenance and support, which provides us with a significant source of recurring revenues. That maintenance and support is generally provided under annual, or in some cases, multi-year contracts. 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, 2023Enterprise
Software
Platform TechnologiesCorporateTotals
Recurring revenues$264,507 $149,821 $— $414,328 
Non-recurring revenues71,116 11,464 7,371 89,951 
Intercompany6,852 — (6,852)— 
Total revenues$342,475 $161,285 $519 $504,279 
For the three months ended June 30, 2022Enterprise
Software
Platform TechnologiesCorporateTotals
Recurring revenues$239,454 $133,177 $— $372,631 
Non-recurring revenues70,774 21,670 3,610 96,054 
Intercompany5,342 — (5,342)— 
Total revenues$315,570 $154,847 $(1,732)$468,685 
For the six months ended June 30, 2023Enterprise
Software
Platform TechnologiesCorporateTotals
Recurring revenues$523,003 $286,921 $— $809,924 
Non-recurring revenues135,882 22,956 7,371 166,209 
Intercompany11,935 — (11,935)— 
Total revenues$670,820 $309,877 $(4,564)$976,133 
For the six months ended June 30, 2022Enterprise
Software
Platform TechnologiesCorporateTotals
Recurring revenues$470,465 $264,638 $— $735,103 
Non-recurring revenues145,160 40,919 3,610 189,689 
Intercompany10,931 — (10,931)— 
Total revenues$626,556 $305,557 $(7,321)$924,792 
Deferred Revenue and Performance Obligations
Total deferred revenue, including long-term, by segment is as follows:
June 30, 2023December 31, 2022
Enterprise Software$536,663 $533,902 
Platform Technologies28,591 33,691 
Corporate1,750 2,982 
Totals$567,004 $570,575 
Changes in total deferred revenue, including long-term, were as follows:
Six months ended June 30, 2023
Balance as of December 31, 2022$570,575 
Deferral of revenue662,311 
Recognition of deferred revenue(665,882)
Balance as of June 30, 2023$567,004 
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, 2023, was $1.90 billion, of which we expect to recognize approximately 46% as revenue over the next 12 months and the remainder thereafter.
Deferred CommissionsSales commissions earned by our salesforce 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 generally three to seven years. Deferred commissions were $44.9 million and $43.8 million as of June 30, 2023, and December 31, 2022, respectively. Amortization expense was $4.3 million and $8.6 million for the three and six months ended June 30, 2023, respectively, and $3.7 million and $7.2 million for the three and six months ended 2022, 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 sales and marketing expense in the accompanying condensed consolidated statements of income.