v3.25.1
Incremental Costs to Obtain a Contract with a Customer
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Incremental Costs to Obtain a Contract with a Customer Incremental Costs to Obtain a Contract with a Customer
Deferred costs associated with obtaining customer contracts, specifically commission and incentive payments, as of March 31, 2025 and December 31, 2024 were as follows (in thousands):

March 31,
2025		December 31,
2024
Deferred costs included in prepaid expenses and other current assets$53,902 $72,391 
Deferred costs included in other assets79,867 58,996 
Total deferred costs$133,769 $131,387 

Information related to incremental costs to obtain a contract with a customer for the three months ended March 31, 2025 and 2024 were as follows (in thousands):

 For the Three Months
Ended March 31,
20252024
Amortization expense related to deferred costs
$13,789 $14,363 
Incremental costs capitalized
14,301 19,342 

Amortization expense related to deferred costs is primarily included in sales and marketing expense in the interim condensed consolidated statements of income.
Revenue from Contracts with Customers
The Company sells its services through a sales force located both domestically and internationally. Revenue derived from operations outside of the U.S. is determined based on the country in which the sale originated. Other than the U.S., no single country accounted for 10% or more of the Company’s total revenue for any reported period. Revenue by geography included in the Company’s interim condensed consolidated statements of income for the three months ended March 31, 2025 and 2024 was as follows (in thousands):

For the Three Months
Ended March 31,
20252024
U.S.$528,739 $512,347 
International486,400 474,623 
Total revenue$1,015,139 $986,970 

The Company reports its revenue in three solution categories: security, delivery and cloud computing. Security includes solutions that are designed to protect business online by keeping infrastructure, websites, applications, APIs, networks and users safe. Delivery includes solutions that are designed to enable business online, including media delivery and web and mobile performance. Cloud computing includes compute, storage, networking, database and container management services. Revenue by solution category included in the Company’s interim condensed consolidated statements of income for the three months ended March 31, 2025 and 2024 was as follows (in thousands):

For the Three Months
Ended March 31,
20252024
Security$530,695 $490,681 
Delivery318,988 351,758 
Cloud computing165,456 144,531 
Total revenue$1,015,139 $986,970 

Most security, delivery and cloud computing services represent obligations that are satisfied over time as the customer simultaneously receives and consumes the services provided by the Company. Accordingly, the majority of the Company's revenue is recognized over time, generally ratably over the term of the arrangement due to consistent monthly usage commitments that expire each period. Any usage over a given commitment is recognized in the period in which the units are
served. A small percentage of the Company's contracts are satisfied at a point in time, such as one-time professional services contracts, integration services and most license sales where the primary obligation is delivery of the license at the start of the term. In these cases, revenue is recognized at a point in time of delivery or satisfaction of the performance obligation.

During the three months ended March 31, 2025 and 2024, the Company recognized $69.3 million and $60.5 million of revenue that was included in deferred revenue as of December 31, 2024 and 2023, respectively.

As of March 31, 2025, the aggregate amount of remaining performance obligations from contracts with customers was $4.3 billion. The Company expects to recognize approximately 60% of its remaining performance obligations as revenue over the next 12 months and approximately 35% over the next two to three years, with the remaining thereafter. Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. This consists of future committed revenue for monthly, quarterly or annual periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced in prior periods for which the related performance obligations have not been satisfied. It excludes estimates of variable consideration, such as usage-based contracts with no committed contract, as well as anticipated renewed contracts. Revenue recognized during the three months ended March 31, 2025 and 2024, related to performance obligations satisfied in previous periods was not material.