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Revenue Recognition | 6 Months Ended
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Jun. 30, 2020
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table presents a summary of revenue:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in thousands) | 2020 |  | 2019 |  | 2020 |  | 2019
Subscription revenue | $ | 92,010 |  |  | $ | 69,370 |  |  | $ | 178,400 |  |  | $ | 134,107 |
Perpetual license and maintenance revenue | 12,179 |  |  | 13,553 |  |  | 25,598 |  |  | 27,080 |
Professional services and other revenue | 3,020 |  |  | 2,461 |  |  | 5,859 |  |  | 4,498 |
Revenue | $ | 107,209 |  |  | $ | 85,384 |  |  | $ | 209,857 |  |  | $ | 165,685 |
Concentrations We sell and market our products and services through our field sales force that works closely with our channel partners, which includes a network of distributors and resellers, in developing sales opportunities. We use a two-tiered channel model whereby we sell our products and services to our distributors, which in turn sell to resellers, which then sell to end-users. We derived 91% of revenue through our channel network in the three and six months ended June 30, 2020 and 90% of revenue in the three and six months ended June 30, 2019. One of our distributors accounted for 43% of revenue in each of the three and six months ended June 30, 2020 and 2019. That same distributor accounted for 40% of accounts receivable at June 30, 2020 and December 31, 2019. Contract Balances We generally bill our customers in advance and accounts receivable are recorded when we have the right to invoice the customer. Contract liabilities consist of deferred revenue and include customer billings and payments received in advance of performance under the contract. In the three months ended June 30, 2020 and 2019 and the six months ended June 30, 2020 and 2019, we recognized revenue of $99.5 million, $78.3 million, $175.0 million and $136.7 million, respectively, that was included in the deferred revenue balance at the beginning of each of the respective periods. Remaining Performance Obligations At June 30, 2020, the future estimated revenue related to unsatisfied performance obligations was $378.2 million, of which approximately 74% is expected to be recognized as revenue over the succeeding twelve months, and the remainder is expected to be recognized over the four years thereafter. Deferred Commissions The following summarizes the activity of deferred incremental costs of obtaining a contract:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in thousands) | 2020 |  | 2019 |  | 2020 |  | 2019
Beginning balance | $ | 70,742 |  |  | $ | 59,811 |  |  | $ | 72,265 |  |  | $ | 59,434 |
Capitalization of contract acquisition costs | 8,892 |  |  | 8,608 |  |  | 15,013 |  |  | 15,234 |
Amortization of deferred contract acquisition costs | (7,866 | ) |  | (6,553 | ) |  | (15,510 | ) |  | (12,802 | )
Ending balance | $ | 71,768 |  |  | $ | 61,866 |  |  | $ | 71,768 |  |  | $ | 61,866 |

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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=121604090&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=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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