REVENUE RECOGNITION |
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REVENUE RECOGNITION | Revenue Disaggregation of Revenue The following tables set forth the revenue geographic information for each period (in thousands):
The following table provides amounts of contract assets and deferred revenue from contracts with customers (in thousands):
Contract assets are recorded for contract consideration not yet invoiced but for which the performance obligations are completed. Contract assets, net of allowances for credit losses, are included in other current assets or other assets in the Company's consolidated balance sheets, depending on if their reduction will be recognized during the succeeding twelve-month period or beyond. The change in contract assets was primarily driven by billing customers for amounts that had previously been recognized in revenue but not yet billed. During the three months ended June 30, 2025 and 2024, the Company recognized revenues of approximately $16.5 million and $15.5 million that were included in deferred revenue at the beginning of the fiscal year, respectively. Remaining Performance Obligations The Company's subscription terms typically range from one year to five years. Contract revenue from the remaining performance obligations that had not yet been recognized as of June 30, 2025 was approximately $755.0 million. This amount excludes contracts with an original expected length of less than one year. The Company expects to recognize revenue on approximately 83% of the remaining performance obligations over the next 24 months and approximately 17% over the remainder of the subscription period. For purposes of this disclosure, the Company excludes contracts with an original expected length of less than one year. Deferred Contract Acquisition Costs Deferred sales commissions are considered incremental and recoverable costs of acquiring customer contracts. Amortization of deferred contract acquisition costs for the three months ended June 30, 2025 and 2024 was approximately $9.0 million and $9.8 million, respectively. There were no material write-offs during the three months ended June 30, 2025 and 2024. The following table provides amounts of deferred contract acquisition costs from contracts with customers (in thousands):
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