Revenue From Contracts with Customers |
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| Revenue From Contracts with Customers | 9. Revenue From Contracts with Customers We primarily derive revenue from subscription fees and related professional services, as well as through sale of software licenses with associated maintenance and professional services. We sell subscriptions and software licenses directly to customers and indirectly through channel partners with arrangements that are non-cancelable and non-refundable. Our subscription arrangements do not provide customers with the right to take possession of the software supporting the solutions and, as a result, are accounted for as service arrangements. Subscription revenue is recognized ratably over the contract term when the cloud-based software is made available to customers. Software license revenue is generally sold as bundled arrangements that include the rights to a software license and maintenance and cloud-based software in some cases. For software licenses sold with maintenance and professional services, revenue from the software license is recognized when the software is made available to the customer and maintenance revenue is recognized as support and updates are provided, which is generally ratably over the contract term. Professional services revenue is comprised of fees charged for services ranging from product configuration, data migration, systems integration, and training. We recognize professional services revenues as services are performed. We record revenue net of sales or value-added taxes. Disaggregation of Revenue The following table summarizes revenue by our product and service offerings during the periods presented (in thousands):
See Note 10 for revenue by geographic location. Unbilled Receivables, Deferred Revenue and Remaining Performance Obligations Unbilled receivables primarily represent revenue recognized in excess of billings from non-cancellable multi-year contract arrangements. As of June 30, 2025 and December 31, 2024, we had $7.3 million and $6.3 million of unbilled receivables, respectively. Unbilled receivables are included within accounts receivable, net on the condensed consolidated balance sheets. Deferred revenue consists of customer billings in excess of revenue being recognized. As of June 30, 2025 and December 31, 2024, non-current deferred revenue of $3.5 million and $3.9 million, respectively, was included in other liabilities on the condensed consolidated balance sheet. Revenue recognized during the three months ended June 30, 2025 and 2024 from amounts included in deferred revenue at the beginning of these periods was $152.1 million and $127.8 million, respectively. Revenue recognized during the six months ended June 30, 2025 and 2024 from amounts included in deferred revenue at the beginning of these periods was $243.8 million and $202.3 million, respectively. The aggregate balance of remaining performance obligations as of June 30, 2025 was $568.9 million. We expect to recognize $414.3 million of the balance as revenue in the next 12 months and the remainder thereafter. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Deferred Contract Acquisition Costs The change in the balance of deferred contract acquisition costs during the periods presented is as follows (in thousands):
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