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Deferred Revenue and Performance Obligations
9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Deferred Revenue and Performance Obligations 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 September 30, 2023Products and services transferred at a point in timeProducts and services transferred over timeTotal
Revenues
Subscriptions:
SaaS$— $138,509 $138,509 
Transaction-based fees— 156,681 156,681 
Maintenance— 117,484 117,484 
Professional services— 61,126 61,126 
Software licenses and royalties9,946 608 10,554 
Hardware and other10,330 — 10,330 
Total$20,276 $474,408 $494,684 
For the three months ended September 30, 2022Products and services transferred at a point in timeProducts and services transferred over timeTotal
Revenues
Subscriptions:
SaaS$— $109,912 $109,912 
Transaction-based fees— 144,434 144,434 
Maintenance— 117,338 117,338 
Professional services— 71,818 71,818 
Software licenses and royalties19,068 1,201 20,269 
Hardware and other9,420 — 9,420 
Total$28,488 $444,703 $473,191 
For the nine months ended September 30, 2023Products and services transferred at a point in timeProducts and services transferred over timeTotal
Revenues
Subscriptions:
SaaS$— $387,022 $387,022 
Transaction-based fees— 486,422 486,422 
Maintenance— 349,154 349,154 
Professional services— 188,475 188,475 
Software licenses and royalties28,020 2,443 30,463 
Hardware and other29,281 — 29,281 
Total$57,301 $1,413,516 $1,470,817 
For the nine months ended September 30, 2022Products and services transferred at a point in timeProducts and services transferred over timeTotal
Revenues
Subscriptions:
SaaS$— $312,734 $312,734 
Transaction-based fees— 442,870 442,870 
Maintenance— 351,182 351,182 
Professional services— 213,770 213,770 
Software licenses and royalties45,820 5,964 51,784 
Hardware and other25,643 — 25,643 
Total$71,463 $1,326,520 $1,397,983 
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. These revenues are considered recurring because revenues from these sources are expected to recur in similar annual amounts for the term of our relationship with the client. Transaction-based fees are generally the result of multi-year contracts with our clients that result in fees generated by payment transactions and digital government services and are collected on a recurring basis during the contract term. 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. 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 September 30, 2023Enterprise
Software
Platform TechnologiesCorporateTotals
Recurring revenues$277,497 $135,177 $— $412,674 
Non-recurring revenues70,315 11,736 (41)82,010 
Intercompany5,943 — (5,943)— 
Total revenues$353,755 $146,913 $(5,984)$494,684 
For the three months ended September 30, 2022Enterprise
Software
Platform TechnologiesCorporateTotals
Recurring revenues$246,823 $124,861 $— $371,684 
Non-recurring revenues75,515 23,843 2,149 101,507 
Intercompany5,541 — (5,541)— 
Total revenues$327,879 $148,704 $(3,392)$473,191 
For the nine months ended September 30, 2023Enterprise
Software
Platform TechnologiesCorporateTotals
Recurring revenues$800,498 $422,100 $— $1,222,598 
Non-recurring revenues206,197 34,692 7,330 248,219 
Intercompany17,878 — (17,878)— 
Total revenues$1,024,573 $456,792 $(10,548)$1,470,817 
For the nine months ended September 30, 2022Enterprise
Software
Platform TechnologiesCorporateTotals
Recurring revenues$717,287 $389,499 $— $1,106,786 
Non-recurring revenues220,676 64,762 5,759 291,197 
Intercompany16,472 — (16,472)— 
Total revenues$954,435 $454,261 $(10,713)$1,397,983 
Deferred Revenue and Performance Obligations
Total deferred revenue, including long-term, by segment is as follows:
September 30, 2023December 31, 2022
Enterprise Software$563,766 $533,902 
Platform Technologies34,373 33,691 
Corporate3,027 2,982 
Totals$601,166 $570,575 
Changes in total deferred revenue, including long-term, were as follows:
Nine months ended September 30, 2023
Balance as of December 31, 2022$570,575 
Deferral of revenue1,023,931 
Recognition of deferred revenue(993,340)
Balance as of September 30, 2023$601,166 
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 September 30, 2023, was $1.95 billion, of which we expect to recognize approximately 47% 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 $46.4 million and $43.8 million as of September 30, 2023, and December 31, 2022, respectively. Amortization expense was $5.0 million and $13.6 million for the three and nine months ended September 30, 2023, respectively, and $4.1 million and $11.2 million for the three and nine months ended September 30, 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.