v3.25.1
REVENUE
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Disaggregated Revenue
The following table shows revenue by product and services groups (in thousands):
Three Months Ended
March 31,
20252024
Licensing, support and maintenance$15,335 $11,739 
Variable royalties1,167 818 
Other30 390 
Total$16,532 $12,947 
Contract Balances
The following table provides information about accounts receivable, net, contract assets and deferred revenue (in thousands):
As of
March 31,
2025		December 31,
2024
Accounts receivable, net$10,268 $20,608 
Contract assets, current portion
$106 $167 
Deferred revenue$73,724 $75,622 
The Company recognized revenue of $13.5 million and $10.7 million for the three months ended March 31, 2025 and 2024, respectively, that was included in the deferred revenue balance at the beginning of the respective periods. Contract assets, current are included in prepaid expenses and other current assets and contract assets.
As of March 31, 2025, non-cancelable contracted but unsatisfied or partially satisfied performance obligations that have not yet been recognized is $85.6 million which includes deferred revenue, amounts that will be invoiced and recognized as revenues in future periods and Flexible Spending Accounts (FSA) commitments, from customers where actual product selection and quantities of specific products are to be determined by customers at a future period. The Company expects to recognize $45.3 million of this balance over the next 12 months and the remainder thereafter. FSA commitments amounted to $4.4 million and $2.3 million as of March 31, 2025 and December 31, 2024, respectively. The Company has elected to exclude the potential future royalty receipts from these amounts.
Costs of Obtaining a Contract with a Customer
Incremental costs of obtaining a contract with a customer consist primarily of direct sales commissions incurred upon execution of the contract. These costs are required to be capitalized under ASC 340-40, Other Assets and Deferred Costs—Contracts With Customers, and amortized over the license term. As direct sales commissions paid for term extensions are commensurate with the amounts paid for initial contracts, the deferred incremental costs for initial contracts and for term extensions are recognized over the respective contract terms. Total capitalized direct commission costs were as follows (in thousands):
As of
March 31,
2025		December 31,
2024
Short-term commission capitalized in prepaid expenses and other current assets$2,306 $2,311 
Long-term commission capitalized in other assets1,673 1,789 
Total$3,979 $4,100 
Amortization of capitalized sales commissions was $0.8 million and $0.9 million for the three months ended March 31, 2025 and 2024, respectively, and are included in sales and marketing expense in the unaudited condensed consolidated statements of operations.