v3.25.2
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Disaggregation of Revenues
The Company’s revenues consist of the following:
Three Months EndedSix Months Ended
June 30,June 30,
2025202420252024
Subscriptions:
Enterprise subscriptions (1)
$151,659 $127,845 $302,137 $255,372 
SELECT subscriptions67,284 63,648 129,444 127,189 
Term license subscriptions114,509 105,951 244,189 221,972 
Subscriptions333,452 297,444 675,770 604,533 
Perpetual licenses10,193 10,863 20,985 20,375 
Subscriptions and licenses343,645 308,307 696,755 624,908 
Services:
Recurring4,468 4,040 7,623 7,854 
Other15,993 17,990 30,270 35,338 
Services20,461 22,030 37,893 43,192 
Total revenues$364,106 $330,337 $734,648 $668,100 
(1)Enterprise subscriptions are primarily revenues attributable to Enterprise 365 (“E365”) subscriptions of $150,166 and $125,630 for the three months ended June 30, 2025 and 2024, respectively, and $297,070 and $248,666 for the six months ended June 30, 2025 and 2024, respectively.
The Company recognizes perpetual licenses and the term license component of subscriptions as revenue when either the licenses are delivered or at the start of the subscription term. For the three months ended June 30, 2025 and 2024, the Company recognized $184,341 and $162,458 of license related revenues, respectively, of which $174,148 and $151,595, respectively, were attributable to the term license component of the Company’s subscription‑based commercial offerings recorded in Subscriptions in the consolidated statements of operations. For the six months ended June 30, 2025 and 2024, the Company recognized $385,379 and $338,767 of license related revenues, respectively, of which $364,394 and $318,392, respectively, were attributable to the term license component of the Company’s subscription‑based commercial offerings recorded in Subscriptions in the consolidated statements of operations.
Revenue from external customers is attributed to individual countries based upon the location of the customer. Revenues by geographic region are as follows:
Three Months EndedSix Months Ended
June 30,June 30,
2025202420252024
Americas (1)
$194,059 $176,310 $393,034 $360,503 
Europe, the Middle East, and Africa (“EMEA”)
105,414 95,865 212,419 190,579 
Asia-Pacific (“APAC”)
64,633 58,162 129,195 117,018 
Total revenues$364,106 $330,337 $734,648 $668,100 
(1)Americas includes the U.S., Canada, and Latin America (including the Caribbean). Revenue attributable to the U.S. totaled $155,358 and $139,010 for the three months ended June 30, 2025 and 2024, respectively, and $308,387 and $277,262 for the six months ended June 30, 2025 and 2024, respectively.
The Company derived 6% of its total revenues through channel partners for both the three and six months ended June 30, 2025 and 7% of its total revenues through channel partners for both the three and six months ended June 30, 2024.
Unbilled Accounts Receivable
Unbilled accounts receivable represent amounts that are unbilled due to agreed-upon contractual terms in which billing occurs subsequent to revenue recognition, and are included in Accounts receivable in the consolidated balance sheets. As of June 30, 2025 and December 31, 2024, unbilled accounts receivable were $174,012 and $159,924, respectively.
Contract Balances
As of June 30, 2025 and December 31, 2024, the Company’s contract assets relate to performance obligations completed in advance of the right to invoice and are included in Prepaid and other current assets in the consolidated balance sheets. Contract assets were not material as of June 30, 2025 or December 31, 2024.
Deferred revenues consist of billings made or payments received in advance of revenue recognition from subscriptions and services. The primary changes in deferred revenues are due to the Company’s performance under the contracts and new billings made or payments received in advance of revenue recognition from subscriptions and services. The satisfaction of performance obligations typically lags behind payments received under revenue from contracts with customers.
For the six months ended June 30, 2025, $175,935 of revenues that were included in the December 31, 2024 deferred revenues balance were recognized. There were additional deferrals of $163,049 for the six months ended June 30, 2025, which were primarily related to new billings. For the six months ended June 30, 2024, $165,042 of revenues that were included in the December 31, 2023 deferred revenues balance were recognized. There were additional deferrals of $152,734 for the six months ended June 30, 2024, which were primarily related to new billings.
As of June 30, 2025 and December 31, 2024, the Company deferred $19,905 and $18,540, respectively, related to portfolio balancing exchange rights which is included in Deferred revenues in the consolidated balance sheets.
Remaining Performance Obligations
The Company’s contracts with customers include amounts allocated to performance obligations that will be satisfied at a later date. As of June 30, 2025, amounts allocated to these remaining performance obligations are $264,818, of which the Company expects to recognize approximately 93% over the next 12 months with the remaining amount thereafter.