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Deferred Revenue and Performance Obligations
9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Deferred Revenue and Performance Obligations Disaggregation of Revenue
The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenues and cash flows.
Timing of Revenue Recognition
Timing of revenue recognition by revenue category during the period is as follows:
For the three months ended September 30, 2022Products and services transferred at a point in timeProducts and services transferred over timeTotal
Revenues
Software licenses and royalties$19,068 $1,201 $20,269 
Subscriptions— 254,346 254,346 
Professional services— 63,180 63,180 
Maintenance— 117,338 117,338 
Appraisal services— 8,638 8,638 
Hardware and other9,420 — 9,420 
Total$28,488 $444,703 $473,191 
For the three months ended September 30, 2021Products and services transferred at a point in timeProducts and services transferred over timeTotal
Revenues
Software licenses and royalties$19,170 $3,503 $22,673 
Subscriptions— 252,942 252,942 
Professional services— 54,624 54,624 
Maintenance— 117,833 117,833 
Appraisal services— 7,146 7,146 
Hardware and other4,655 — 4,655 
Total$23,825 $436,048 $459,873 
For the nine months ended September 30, 2022Products and services transferred at a point in timeProducts and services transferred over timeTotal
Revenues
Software licenses and royalties$45,820 $5,964 $51,784 
Subscriptions— 755,604 755,604 
Professional services— 187,802 187,802 
Maintenance— 351,182 351,182 
Appraisal services— 25,968 25,968 
Hardware and other25,643 — 25,643 
Total$71,463 $1,326,520 $1,397,983 
For the nine months ended September 30, 2021Products and services transferred at a point in timeProducts and services transferred over timeTotal
Revenues
Software licenses and royalties$45,983 $9,227 $55,210 
Subscriptions— 554,979 554,979 
Professional services— 155,601 155,601 
Maintenance— 356,566 356,566 
Appraisal services— 19,876 19,876 
Hardware and other16,518 — 16,518 
Total$62,501 $1,096,249 $1,158,750 
Recurring Revenues
The majority of our revenue is comprised of revenues from maintenance and subscriptions, which we consider to be recurring revenues. Virtually all of our on-premises software clients contract with us for maintenance and support, which provides us with a significant source of recurring revenues. That maintenance and support is generally provided under annual, or in some cases, multi-year contracts. Subscriptions revenue primarily consists of revenues derived from our SaaS arrangements and transaction-based fees, which relate to digital government services, e-filing transactions, and payment processing. Total subscriptions revenue derived from transaction-based fees included in total recurring revenues was $148.9 million and $454.3 million for the three and nine months ended September 30, 2022, respectively, and $171.2 million and $317.7 million for the three and nine months ended September 30, 2021, respectively. The contract terms for subscription arrangements range from one to 10 years but are typically for initial periods of three to five years. We consider all other revenue categories to be non-recurring revenues.
Recurring revenues and non-recurring revenues recognized during the period are as follows:
For the three months ended September 30, 2022Enterprise
Software
Platform TechnologiesCorporateTotals
Recurring revenues$246,823 $124,861 $— $371,684 
Non-recurring revenues75,515 23,843 2,149 101,507 
Intercompany5,541 — (5,541)— 
Total revenues$327,879 $148,704 $(3,392)$473,191 
For the three months ended September 30, 2021Enterprise
Software
Platform TechnologiesCorporateTotals
Recurring revenues$216,321 $154,454 $— $370,775 
Non-recurring revenues74,072 14,938 88 89,098 
Intercompany5,142 — (5,142)— 
Total revenues$295,535 $169,392 $(5,054)$459,873 
For the nine months ended September 30, 2022Enterprise
Software
Platform TechnologiesCorporateTotals
Recurring revenues$717,287 $389,499 $— $1,106,786 
Non-recurring revenues220,676 64,762 5,759 291,197 
Intercompany16,472 — (16,472)— 
Total revenues$954,435 $454,261 $(10,713)$1,397,983 
For the nine months ended September 30, 2021Enterprise
Software
Platform TechnologiesCorporateTotals
Recurring revenues$637,551 $273,994 $— $911,545 
Non-recurring revenues211,214 32,964 3,027 247,205 
Intercompany16,039 — (16,039)— 
Total revenues$864,804 $306,958 $(13,012)$1,158,750 
Deferred Revenue and Performance Obligations
Total deferred revenue, including long-term, by segment is as follows:
September 30, 2022December 31, 2021
Enterprise Software$497,511 $479,048 
Platform Technologies31,329 29,705 
Corporate2,866 1,814 
Totals$531,706 $510,567 
Changes in total deferred revenue, including long-term, were as follows:
Nine months ended September 30, 2022
Balance as of December 31, 2021$510,567 
Deferral of revenue940,919 
Recognition of deferred revenue(919,780)
Balance as of September 30, 2022$531,706 
Transaction Price Allocated to the Remaining Performance Obligations
The aggregate amount of transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized (“backlog”), which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Backlog as of September 30, 2022, was $1.88 billion, of which we expect to recognize approximately 46% as revenue over the next 12 months and the remainder thereafter.
Deferred CommissionsSales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial contracts are deferred and then amortized commensurate with the recognition of associated revenue over a period of benefit that we have determined to be generally three to seven years. Deferred commissions were $42.6 million and $38.1 million as of September 30, 2022, and December 31, 2021, respectively. Amortization expense was $4.1 million and $11.2 million for the three and nine months ended September 30, 2022, respectively, and $3.5 million and $9.6 million for the three and nine months ended September 30, 2021, respectively. There were no indicators of impairment in relation to the costs capitalized for the periods presented. Deferred commissions have been included with prepaid expenses for the current portion and non-current other assets for the long-term portion in the accompanying condensed consolidated balance sheets. Amortization expense related to deferred commissions is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of income.