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Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 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 Ended
March 31,
20252024
Subscriptions:
Enterprise subscriptions (1)
$150,478 $127,527 
SELECT subscriptions62,160 63,541 
Term license subscriptions129,680 116,021 
Subscriptions342,318 307,089 
Perpetual licenses10,792 9,512 
Subscriptions and licenses353,110 316,601 
Services:
Recurring3,155 3,814 
Other14,277 17,348 
Services17,432 21,162 
Total revenues$370,542 $337,763 
(1)Enterprise subscriptions are primarily revenues attributable to Enterprise 365 (“E365”) subscriptions of $146,904 and $123,036 for the three months ended March 31, 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 March 31, 2025 and 2024, the Company recognized $201,038 and $176,309 of license related revenues, respectively, of which $190,246 and $166,797, 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 Ended
March 31,
20252024
Americas (1)
$198,975 $184,193 
Europe, the Middle East, and Africa (“EMEA”)
107,005 94,714 
Asia-Pacific (“APAC”)
64,562 58,856 
Total revenues$370,542 $337,763 
(1)Americas includes the U.S., Canada, and Latin America (including the Caribbean). Revenue attributable to the U.S. totaled $153,029 and $138,252 for the three months ended March 31, 2025 and 2024, respectively.
The Company derived 6% and 7% of its total revenues through channel partners for the three months ended March 31, 2025 and 2024, respectively.
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 March 31, 2025 and December 31, 2024, unbilled accounts receivable were $170,242 and $159,924, respectively.
Contract Balances
As of March 31, 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 March 31, 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 the Company’s deferred revenues are due to our 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 three months ended March 31, 2025, $104,622 of revenues that were included in the December 31, 2024 deferred revenues balance were recognized. There were additional deferrals of $98,003 for the three months ended March 31, 2025, which were primarily related to new billings. For the three months ended March 31, 2024, $105,678 of revenues that were included in the December 31, 2023 deferred revenues balance were recognized. There were additional deferrals of $96,617 for the three months ended March 31, 2024, which were primarily related to new billings.
As of March 31, 2025 and December 31, 2024, the Company deferred $19,831 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 March 31, 2025, amounts allocated to these remaining performance obligations are $260,651, of which the Company expects to recognize approximately 94% over the next 12 months with the remaining amount thereafter.