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Revenue from Contracts with Customers
 9 Months Ended
Sep. 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 EndedNine Months Ended
September 30,September 30,
2025202420252024
Subscriptions:
Enterprise subscriptions (1)
$157,543 $135,667 $459,680 $391,039 
SELECT subscriptions67,246 64,607 196,690 191,796 
Term license subscriptions119,504 102,965 363,693 324,937 
Subscriptions344,293 303,239 1,020,063 907,772 
Perpetual licenses10,913 11,274 31,898 31,649 
Subscriptions and licenses355,206 314,513 1,051,961 939,421 
Services:
Recurring3,547 3,387 11,170 11,241 
Other16,796 17,273 47,066 52,611 
Services20,343 20,660 58,236 63,852 
Total revenues$375,549 $335,173 $1,110,197 $1,003,273 
(1)Enterprise subscriptions are primarily revenues attributable to Enterprise 365 (“E365”) subscriptions of $156,759 and $133,347 for the three months ended September 30, 2025 and 2024, respectively, and $453,829 and $382,013 for the nine months ended September 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 September 30, 2025 and 2024, the Company recognized $191,109 and $166,035 of license related revenues, respectively, of which $180,196 and $154,761, 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, 2025 and 2024, the Company recognized $576,488 and $504,802 of license related revenues, respectively, of which $544,590 and $473,153, 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 EndedNine Months Ended
September 30,September 30,
2025202420252024
Americas (1)
$196,345 $175,609 $589,379 $536,112 
Europe, the Middle East, and Africa (“EMEA”)
107,887 95,343 320,306 285,922 
Asia-Pacific (“APAC”)
71,317 64,221 200,512 181,239 
Total revenues$375,549 $335,173 $1,110,197 $1,003,273 
(1)Americas includes the U.S., Canada, and Latin America (including the Caribbean). Revenue attributable to the U.S. totaled $154,148 and $139,338 for the three months ended September 30, 2025 and 2024, respectively, and $462,535 and $416,600 for the nine months ended September 30, 2025 and 2024, respectively.
The Company derived 6% of its total revenues through channel partners for the three months ended September 30, 2025 and 2024, and 6% and 7% of its total revenues through channel partners for the nine months ended September 30, 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 September 30, 2025 and December 31, 2024, unbilled accounts receivable were $180,188 and $159,924, respectively.
Contract Balances
As of September 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 September 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 nine months ended September 30, 2025, $223,141 of revenues that were included in the December 31, 2024 deferred revenues balance were recognized. There were additional deferrals of $197,856 for the nine months ended September 30, 2025, which were primarily related to new billings. 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.
As of September 30, 2025 and December 31, 2024, the Company deferred $19,862 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 September 30, 2025, amounts allocated to these remaining performance obligations are $252,728, of which the Company expects to recognize approximately 93% over the next 12 months with the remaining amount thereafter.