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Summary of significant accounting policies | 9 Months Ended
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Sep. 30, 2023
Accounting Policies [Abstract] |
Summary of significant accounting policies | Summary of significant accounting policies The Company’s significant accounting policies are discussed in Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes to these policies during the three and nine months ended September 30, 2023. The following describes the impact of certain policies. Revenue recognition The Company applies ASC 606 and follows a five-step model to determine the appropriate amount of revenue to be recognized in accordance with ASC 606. Disaggregation of Revenue The Company separates revenue into subscription and non-subscription categories to disaggregate the revenue that is term-based and renewable from the revenue that is one-time in nature. Revenue from subscription and non-subscription contractual arrangements were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (in thousands)
SaaS subscription and support and maintenance | $ | 133,626 |  |  | $ | 112,351 |  |  | $ | 380,954 |  |  | $ | 312,992 |
On‑premise subscription | 4,895 |  |  | 6,173 |  |  | 15,388 |  |  | 17,140 |
Subscription revenue | 138,521 |  |  | 118,524 |  |  | 396,342 |  |  | 330,132 |
Professional services | 3,956 |  |  | 5,216 |  |  | 12,594 |  |  | 14,187 |
Perpetual licenses | 148 |  |  | 817 |  |  | 990 |  |  | 4,134 |
Non‑subscription revenue | 4,104 |  |  | 6,033 |  |  | 13,584 |  |  | 18,321 |
Total revenue | $ | 142,625 |  |  | $ | 124,557 |  |  | $ | 409,926 |  |  | $ | 348,453 |
Contract Balances Contract liabilities consist of customer billings in advance of revenue being recognized. The Company invoices its customers for subscription, support and maintenance, and services in advance. Changes in contract liabilities, including revenue earned during the period from the beginning contract liability balance and new deferrals of revenue during the period, were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (in thousands)
Balance, beginning of the period | $ | 355,051 |  |  | $ | 316,952 |  |  | $ | 346,150 |  |  | $ | 282,128 |
Acquisitions | 3,230 |  |  | — |  |  | 3,230 |  |  | — |
Revenue earned | (114,780) |  |  | (96,542) |  |  | (250,724) |  |  | (199,357) |
Deferral of revenue | 127,803 |  |  | 120,820 |  |  | 272,274 |  |  | 258,459 |
Other (1) | (1,550) |  |  | — |  |  | (1,176) |  |  | — |
Balance, end of the period | $ | 369,754 |  |  | $ | 341,230 |  |  | $ | 369,754 |  |  | $ | 341,230 |
(1) Includes contract assets netted against contract liabilities on a contract-by-contract basis. There were no significant changes to our contract liabilities during the three and nine months ended September 30, 2023 and 2022 outside of our sales activities. Remaining Performance Obligations Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and noncancellable amounts to be invoiced. As of September 30, 2023, the Company had $477.4 million of remaining performance obligations, with 72% expected to be recognized as revenue over the succeeding 12 months, and the remainder generally expected to be recognized over the three years thereafter. Deferred Contract Costs Sales commissions, as well as associated payroll taxes and retirement plan contributions (together, contract costs), that are incremental to the acquisition of customer contracts are capitalized using a portfolio approach as deferred contract costs in the condensed consolidated balance sheets when the period of benefit is determined to be greater than one year. Total amortization of contract costs was $5.6 million and $4.2 million for the three months ended September 30, 2023 and 2022, respectively, and $15.6 million and $12.1 million for the nine months ended September 30, 2023 and 2022, respectively. The Company periodically reviews these deferred contract costs to determine whether events or changes in circumstances have occurred that could affect the period of benefit of these deferred contract costs. There were no impairment losses recorded during the three and nine months ended September 30, 2023 and 2022.

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- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483426/235-10-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//235/tableOfContent + Details
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