Revenue Recognition and Deferred Costs |
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| Revenue Recognition and Deferred Costs | 3. Revenue recognition and deferred costs Revenue recognition The Company’s source of revenue consists of subscription solutions fees and partner and services fees. These services allow customers to access the Company’s subscription solutions over the contract period. The customer is not allowed to take possession of the solutions or transfer the solutions. The Company’s revenue arrangements do not contain general rights of refund in the event of cancellations. Disaggregation of revenue The following table disaggregates revenue by major source:
Revenue by geographic region was as follows:
Revenue by geographical region is determined based on the region of the Company’s contracting entity, which may be different than the region of the customer. Revenue attributed to the United States was approximately 75 percent for the three months ended September 30, 2026 and 76 percent for the three months ended September 30, 2025. For the nine months ended September 30, 2026 and 2025, revenue attributed to the United States was approximately 76 percent. Revenue attributed to EMEA was approximately 13 percent for the three and nine months ended September 30, 2026 and approximately 12 percent for the three and nine months ended September 30, 2025. No single region, other than the United States and EMEA, represented more than ten percent of total revenue during the three and nine months ended September 30, 2026 and 2025. Deferred commissions The Company amortizes certain sales commissions costs that are considered incremental and recoverable costs of obtaining a contract with a customer. The portion of capitalized costs expected to be amortized during the succeeding twelve-month period is recorded in current assets as deferred commissions, and the remainder is recorded in deferred commissions, net of current portion reflected on the condensed consolidated balance sheets. The Company did not recognize an impairment of deferred commissions for the three and nine months ended September 30, 2026 and 2025. Sales commissions of $1.5 million and $1.2 million were deferred for the three months ended September 30, 2026 and 2025, respectively; and $3.3 million and $3.4 million were deferred for the nine months ended September 30, 2026 and 2025, respectively. Deferred commission amortization expense was $1.5 million and $2.3 million for the three months ended September 30, 2026 and 2025, respectively; and $5.2 million and $7.4 million for the nine months ended September 30, 2026 and 2025, respectively. |
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