v3.25.1
Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Disaggregation of Revenue
The following table summarizes revenue:
Three Months Ended
(in thousands, except percentages)March 31,
2025		March 31,
2024
Revenue:
Subscription lease licenses$96,919 $94,800 
Perpetual licenses63,036 65,521 
Software licenses159,955 160,321 
Maintenance324,392 289,340 
Service20,544 16,944 
Maintenance and service344,936 306,284 
Total revenue$504,891 $466,605 
Direct revenue, as a percentage of total revenue69.1 %66.5 %
Indirect revenue, as a percentage of total revenue30.9 %33.5 %

Our software license revenue is recognized up front, while maintenance and service revenue is recognized over the term of the contract.
Deferred Revenue
Deferred revenue consists of billings made or payments received in advance of revenue recognition from customer agreements. The timing of revenue recognition may differ from the timing of billings to customers. Payment terms vary by the type and location of customer and the products or services offered. The time between invoicing and when payment is due is not significant.
The changes in deferred revenue, inclusive of both current and long-term deferred revenue, during the three months ended March 31, 2025 and 2024 were as follows:
(in thousands)20252024
Beginning balance – January 1$536,305 $479,754 
Deferral of revenue482,903 448,381 
Recognition of revenue(504,891)(466,605)
Currency translation6,841 (6,929)
Ending balance – March 31$521,158 $454,601 

Total revenue allocated to remaining performance obligations as of March 31, 2025 will be recognized as revenue as follows:
(in thousands) 
Next 12 months$1,001,515 
Months 13-24401,781 
Months 25-36169,768 
Thereafter54,679 
Total revenue allocated to remaining performance obligations$1,627,743 

Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes both deferred revenue and backlog. Our backlog represents deferred revenue associated with installment billings for periods beyond the current quarterly billing cycle and committed contracts with start dates beyond the end of the current period. Revenue recognized during the three months ended March 31, 2025 and 2024 included amounts in deferred revenue and backlog at the beginning of the period of $351.8 million and $292.8 million, respectively.