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REVENUE RECOGNITION

12 Months Ended

Dec. 31, 2022

REVENUE RECOGNITION

REVENUE RECOGNITION

2.REVENUE RECOGNITION

Disaggregation of revenue

The table reflects revenue by major source for the following periods:

​

​	​	​	​	​	​	​	​	​
​	For the Year ended December 31,
​	​	2022		2021			2020
Software subscriptions:	​		​	​		​	​
Software licenses	$	246,577	​	$	231,371	​	$	229,744
Cloud subscriptions	​	168,896	​	​	127,044	​	​	87,019
Software subscriptions	​	415,473	​	​	358,415	​	​	316,763
Services		76,151	​		67,133	​		57,902
Total revenues	$	491,624	​	$	425,548	​	$	374,665

​

Contract balances

Timing of revenue recognition may differ from the timing of invoicing customers. A receivable is recorded in the consolidated balance sheets when customers are billed related to revenue to be collected and recognized for subscription agreements as there is an unconditional right to invoice and receive payment in the future related to these subscriptions. A receivable and related revenue may also be recorded in advance of billings to the extent services have been performed and the Company has a right under the contract to bill and collect for such performance. Subscription-based customers are generally invoiced annually at the beginning of each annual subscription period. The Company’s payment terms typically range from 30-60 days. Accounts receivable is presented net of an allowance for potentially uncollectible accounts and estimated cancellations of software license and cloud-based subscriptions (the “allowance”) of $9,554 and $9,151 at December 31, 2022 and 2021, respectively. The allowance is adjusted for expected credit losses based on management’s assessment of collectability after considering factors including the age of each outstanding invoice, collection history of customers, current and forecasted economic conditions as well as estimated cancellations.

The beginning and ending balances of accounts receivable, net of allowance, are as follows:

​

​	​	​	​	​	​	​
​	​	​	2022		2021
Balance, beginning of period	​	$	76,929	​	$	77,159
Balance, end of period	​		102,885	​		76,929
Increase (decrease), net	​	$	25,956	​	$	(230)

​

A contract liability is recorded as deferred revenue on the consolidated balance sheets when customers are billed in advance of performance obligations being satisfied, and revenue is recognized after invoicing ratably over the subscription period or over the amortization period of material rights. Deferred revenue is reflected net of a related deferred allowance for subscription cancellations (the “deferred allowance”) of $7,133 and $6,537 at December 31, 2022 and 2021, respectively. The deferred allowance represents the portion of the allowance for subscription cancellations associated with deferred revenue.

The beginning and ending balances of and changes to the allowance and the deferred allowance are as follows:

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For the year ended December 31,

​

​

2022

​

2021

​

2020

​

Balance

​

Net Change

Balance

​

Net Change

Balance

​

Net Change

Allowance balance, January 1,

​

$

(9,151)

​

​

$

(8,592)

​

​

$

(7,515)

​

Allowance balance, December 31,

​

(9,554)

​

​

(9,151)

​

​

(8,592)

​

Change in allowance

​

​

​

$

403

​

​

​

$

559

​

​

​

$

1,077

Deferred allowance balance, January 1,

​

6,537

​

​

6,432

​

​

5,614

​

Deferred allowance balance, December 31,

​

7,133

​

​

6,537

​

​

6,432

​

Change in deferred allowance

​

​

​

(596)

​

​

​

(105)

​

​

​

(818)

Net amount charged to revenues

​

​

​

$

(193)

​

​

​

$

454

​

​

​

$

259

​

The amount of revenue recognized during the years ended December 31, 2022, 2021 and 2020 that was included in the opening deferred revenue balance of the same fiscal year was $237,344, $207,560, and $191,745, respectively.

The portion of deferred revenue expected to be recognized in revenue beyond one year is included in deferred revenue, net of current portion in the consolidated balance sheets. The tables provide information about the balances of and changes to deferred revenue for the following periods:

​

​	​	​	​	​	​
​	As of December 31,
​	2022		​	2021
Balances:	​		​	​
Deferred revenue, current	$	268,847	​	$	237,344
Deferred revenue, non-current		10,289	​		11,666
Total deferred revenue	$	279,136	​	$	249,010

​

​	​	​	​	​	​	​	​	​
​	For the year ended December 31,
​	2022		​	2021		​	2020
Changes to deferred revenue:	​			​			​
Beginning balance	$	249,010	​	$	222,262	​	$	205,791
Additional amounts deferred		521,750	​		452,296	​		391,136
Revenues recognized		(491,624)	​		(425,548)	​		(374,665)
Ending balance	$	279,136	​	$	249,010	​	$	222,262

​

Deferred revenue at December 31, 2022 will be recognized as follows for all future years:

​

​	​	​	​
Year Ending December 31,		​	​
2023	​	$	268,847
2024	​		9,928
2025	​		361
Total	​	$	279,136

​

Contract costs

Deferred sales commissions earned by the Company’s sales force and certain sales incentive programs and vendor referral agreements are considered incremental and recoverable costs of obtaining a contract with a customer. An asset is recognized for these incremental contract costs and reflected as deferred commissions in the consolidated balance sheets. These contract costs are amortized on a straight-line basis over a period consistent with the transfer of the associated product and services to the customer, which is generally three years. Amortization of these costs are included in selling

and marketing expense in the consolidated statements of comprehensive loss. The Company periodically reviews these contract assets to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these assets. There were no impairment losses recorded for the periods presented.

The changes to contract cost balances as of and for the following periods are:

​

​	​	​	​	​	​	​	​	​	​
​	​	For the year ended December 31,
​	​	2022		​	2021		​	2020
Deferred commissions:		​			​			​
Beginning balance	​	$	12,555	​	$	11,743	​	$	11,196
Additions	​		13,913	​		10,018	​		8,291
Amortization	​		(11,005)	​		(9,206)	​		(7,744)
Ending balance	​	$	15,463	​	$	12,555	​	$	11,743

​

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- References

No definition available.

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- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

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-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

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-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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