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Revenue from Contracts with Customers | 6 Months Ended
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Jun. 30, 2024
Revenue from Contract with Customer [Abstract] |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following tables present the Company’s revenues disaggregated by major products and services, geographical region and timing of revenue recognition. Revenue by major products and services
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2024 |  | 2023 |  | 2024 |  | 2023
Subscription | $ | 29,642 |  |  | $ | 22,985 |  |  | $ | 69,636 |  |  | $ | 52,941 |
Maintenance and support | 10,232 |  |  | 11,603 |  |  | 20,802 |  |  | 22,764 |
Professional services and other (1) | 1,311 |  |  | 1,499 |  |  | 3,013 |  |  | 3,123 |
Hardware products | 19,739 |  |  | 19,646 |  |  | 32,316 |  |  | 34,512 |
Total Revenue | $ | 60,924 |  |  | $ | 55,733 |  |  | $ | 125,767 |  |  | $ | 113,340 |
(1) Professional services and other includes perpetual software licenses revenue, which was approximately 1% of total revenue for both the three and six months ended June 30, 2024 and approximately 1% of total revenue for both the three and six months ended June 30, 2023. Revenue by location of customer for the Three and Six Months Ended June 30, 2024 and 2023 We classify our sales by customer location in three geographic regions: 1) EMEA, which includes Europe, Middle East and Africa; 2) the Americas, which includes North, Central, and South America; and 3) Asia Pacific (APAC), which includes Australia, New Zealand, and India. The breakdown of revenue in each of our major geographic areas was as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands, except percentages) | 2024 |  | 2023 |  | 2024 |  | 2023
Revenue |  |  |  |  |  |  |
EMEA | $ | 25,194 |  |  | $ | 26,539 |  |  | $ | 57,036 |  |  | $ | 54,359 |
Americas | 21,099 |  |  | 18,331 |  |  | 42,443 |  |  | 38,829 |
APAC | 14,631 |  |  | 10,863 |  |  | 26,288 |  |  | 20,152 |
Total revenue | $ | 60,924 |  |  | $ | 55,733 |  |  | $ | 125,767 |  |  | $ | 113,340 |
% of Total Revenue |  |  |  |  |  |  |
EMEA | 41 | % |  | 48 | % |  | 45 | % |  | 48 | %
Americas | 35 | % |  | 33 | % |  | 34 | % |  | 34 | %
APAC | 24 | % |  | 19 | % |  | 21 | % |  | 18 | %
Timing of revenue recognition
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2024 |  | 2023 |  | 2024 |  | 2023
Products and licenses transferred at a point in time | $ | 32,438 |  |  | $ | 30,583 |  |  | $ | 70,236 |  |  | $ | 63,729 |
Services transferred over time | 28,486 |  |  | 25,150 |  |  | 55,531 |  |  | 49,611 |
Total Revenue | $ | 60,924 |  |  | $ | 55,733 |  |  | $ | 125,767 |  |  | $ | 113,340 |
Contract balances The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers as of June 30, 2024 and December 31, 2023:
| June 30, |  | December 31,
(In thousands) | 2024 |  | 2023
Receivables, inclusive of trade and unbilled | $ | 43,799 |  |  | $ | 64,387 |
Contract Assets (current and non-current) | $ | 6,864 |  |  | $ | 5,322 |
Contract Liabilities (Deferred Revenue current and non-current) | $ | 59,302 |  |  | $ | 73,483 |
Contract assets relate primarily to multi-year term license arrangements and the remaining contractual billings. These contract assets are transferred to receivables when the right to bill occurs over a 2- to 5-year period. The contract liabilities primarily relate to the advance consideration received from customers for subscription and maintenance services. Revenue is recognized for these services over time. As a practical expedient, the Company does not adjust the promised amount of consideration for the effects of a significant financing component when it is expected, at contract inception, that the period between the Company's transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. Extended payment terms are not typically included in contracts with customers. Revenue recognized during the six months ended June 30, 2024 included $48.2 million that was included on the December 31, 2023 consolidated balance sheet in contract liabilities. Deferred revenue decreased in the same period due to timing of annual renewals. Transaction price allocated to the remaining performance obligations Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations that are unsatisfied, or partially unsatisfied, as of the end of the period. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2024:
(In thousands) | 2024 |  | 2025 |  | 2026 |  | Beyond 2026 |  | Total
Future revenue related to current unsatisfied performance obligations | $ | 31,071 |  |  | $ | 38,266 |  |  | $ | 21,380 |  |  | $ | 7,377 |  |  | $ | 98,094 |
The Company applies practical expedients and does not disclose information about remaining performance obligations (a) that have original expected durations of one year or less, or (b) where revenue is recognized as invoiced. Costs of obtaining a contract The Company incurs incremental costs related to commissions, which can be directly tied to obtaining a contract. The Company capitalizes commissions associated with certain new contracts and amortizes the costs over a period of up to 7 years, which is the determined benefit period based on the transfer of goods or services. The Company determined the period of benefit by taking into consideration the customer contracts, its technology and other factors, including customer attrition. Commissions are earned upon invoicing to the customer. For contracts with multiple year payment terms, because the commissions that are payable after year 1 are payable based on continued employment, they are expensed when incurred. Commissions and amortization expense are included in “Sales and Marketing” expense in the condensed consolidated statements of operations. As a practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period for the assets that the Company otherwise would have recognized is one year or less. These costs are included in “Sales and Marketing” expense in the condensed consolidated statements of operations. The following tables provide information related to the capitalized costs and amortization recognized in the current and prior period:
(In thousands) | June 30, 2024 |  | December 31, 2023
Capitalized costs to obtain contracts, current | $ | 3,892 |  |  | $ | 3,503 |
Capitalized costs to obtain contracts, non-current | $ | 11,126 |  |  | $ | 10,766 |
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2024 |  | 2023 |  | 2024 |  | 2023
Amortization of capitalized costs to obtain contracts | $ | 942 |  |  | $ | 754 |  |  | $ | 1,826 |  |  | $ | 1,485 |

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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 -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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