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Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2024
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 EndedNine Months Ended
September 30,September 30,
2024202320242023
Subscriptions:
Enterprise subscriptions (1)
$135,667 $111,318 $391,039 $318,896 
SELECT subscriptions64,607 63,406 191,796 190,834 
Term license subscriptions102,965 96,027 324,937 298,109 
Subscriptions303,239 270,751 907,772 807,839 
Perpetual licenses11,274 11,887 31,649 33,152 
Subscriptions and licenses314,513 282,638 939,421 840,991 
Services:
Recurring3,387 3,606 11,241 12,733 
Other17,273 20,368 52,611 64,048 
Services20,660 23,974 63,852 76,781 
Total revenues$335,173 $306,612 $1,003,273 $917,772 
(1)Enterprise subscriptions includes revenue attributable to Enterprise 365 (“E365”) subscriptions of $133,347 and $107,681 for the three months ended September 30, 2024 and 2023, respectively, and $382,013 and $301,260 for the nine months ended September 30, 2024 and 2023, 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 September 30, 2024 and 2023, the Company recognized $166,035 and $147,340 of license related revenues, respectively, of which $154,761 and $135,453, 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 nine months ended September 30, 2024 and 2023, the Company recognized $504,802 and $444,186 of license related revenues, respectively, of which $473,153 and $411,034, 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.
The Company derived 6% and 8% of its total revenues through channel partners for the three months ended September 30, 2024 and 2023, respectively, and 7% of its total revenues through channel partners for the nine months ended September 30, 2024 and 2023.
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 EndedNine Months Ended
September 30,September 30,
2024202320242023
Americas (1)
$175,609 $162,367 $536,112 $489,548 
Europe, the Middle East, and Africa (“EMEA”)95,343 86,956 285,922 263,232 
Asia-Pacific (“APAC”)
64,221 57,289 181,239 164,992 
Total revenues$335,173 $306,612 $1,003,273 $917,772 
(1)Americas includes the U.S., Canada, and Latin America (including the Caribbean). Revenue attributable to the U.S. totaled $139,338 and $129,510 for the three months ended September 30, 2024 and 2023, respectively, and $416,600 and $384,807 for the nine months ended September 30, 2024 and 2023, respectively.
Unbilled Revenues
Unbilled revenues represent revenues that have not yet been billed to customers due to timing differences in usage and billing cycles, and are included in Accounts receivable in the consolidated balance sheets. As of September 30, 2024 and December 31, 2023, unbilled revenues were $159,172 and $129,494, respectively.
Contract Balances
As of September 30, 2024 and December 31, 2023, 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 September 30, 2024 or December 31, 2023.
Deferred revenues consist of billings made or payments received in advance of revenue recognition from subscriptions and services. The timing of revenue recognition may differ from the timing of billings to users. As of September 30, 2024 and December 31, 2023, total deferred revenues on the consolidated balance sheets were $241,111 and $269,647, respectively.
For the nine months ended September 30, 2024, $211,782 of revenues that were included in the December 31, 2023 deferred revenues balance were recognized. There were additional deferrals of $182,880 for the nine months ended September 30, 2024, which were primarily related to new billings. For the nine months ended September 30, 2023, $183,335 of revenues that were included in the December 31, 2022 deferred revenues balance were recognized. There were additional deferrals of $169,368 for the nine months ended September 30, 2023, which were primarily related to new billings.
As of September 30, 2024 and December 31, 2023, the Company has deferred $19,241 and $18,269, 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 September 30, 2024, amounts allocated to these remaining performance obligations are $241,111, of which the Company expects to recognize approximately 93% over the next 12 months with the remaining amount thereafter.