Disaggregation of Revenue

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

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 March 31, 2024	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Subscriptions:
SaaS	$	—	$	148,784	$	148,784
Transaction-based fees	—		164,459		164,459
Maintenance	—		117,218		117,218
Professional services	—		64,806		64,806
Software licenses and royalties	8,100		634		8,734
Hardware and other	8,358		—		8,358
Total	$	16,458	$	495,901	$	512,359

For the three months ended March 31, 2023	Products and services transferred at a point in time		Products and services transferred over time		Total
Revenues
Subscriptions:
SaaS	$	—	$	121,915	$	121,915
Transaction-based fees	—		158,550		158,550
Maintenance	—		115,130		115,130
Professional services	—		60,929		60,929
Software licenses and royalties	9,281		849		10,130
Hardware and other	5,199		—		5,199
Total	$	14,480	$	457,373	$	471,853

Recurring Revenues

The majority of our revenues are 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 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 March 31, 2024	Enterprise Software		Platform Technologies		Corporate		Totals
Recurring revenues	$	291,208	$	139,253	$	—	$	430,461
Non-recurring revenues	71,822		10,076		—		81,898
Intercompany	6,171		—		(6,171)		—
Total revenues	$	369,201	$	149,329	$	(6,171)	$	512,359

For the three months ended March 31, 2023	Enterprise Software		Platform Technologies		Corporate		Totals
Recurring revenues	$	258,495	$	137,100	$	—	$	395,595
Non-recurring revenues	64,766		11,492		—		76,258
Intercompany	5,083		—		(5,083)		—
Total revenues	$	328,344	$	148,592	$	(5,083)	$	471,853

Deferred Revenue and Performance Obligations

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

	March 31, 2024		December 31, 2023
Enterprise Software	$	531,212	$	589,295
Platform Technologies	32,690		39,597
Corporate	7,969		4,313
Totals	$	571,871	$	633,205

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

	Three months ended March 31, 2024
Balance as of December 31, 2023	$	633,205
Deferral of revenue	274,562
Recognition of deferred revenue	(335,896)
Balance as of March 31, 2024	$	571,871

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 March 31, 2024, was $2.02 billion, of which we expect to recognize approximately 45% as revenue over the next 12 months and the remainder thereafter.

Deferred Commissions

Sales 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 generally three to seven years. Deferred commissions were $49.0 million and $49.2 million as of March 31, 2024, and December 31, 2023, respectively. Amortization expense was $4.8 million and $4.3 million for the three months ended March 31, 2024, and 2023, 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.