Quarterly report [Sections 13 or 15(d)]

Revenue, Contract Assets, Contract Liabilities and Remaining Performance Obligations

v3.25.3
Revenue, Contract Assets, Contract Liabilities and Remaining Performance Obligations
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue, Contract Assets, Contract Liabilities and Remaining Performance Obligations
3.
Revenue, Contract Assets, Contract Liabilities and Remaining Performance Obligations

The Company recognizes revenue for certain long-term contracts using the percentage-of-completion method, measured on a cost-to-cost basis. From time to time, the Company revises its estimates of total costs for these contracts. Changes in estimated total costs for contracts using the percentage-of-completion method resulted in revenue reductions of $553 and $1,417 for the three and nine month ended September 30, 2025, respectively.

Disaggregation of Revenue

Revenue from subscription-based contracts was $8,913 and $42,995, or 70% and 77% of total revenue, for the three and nine months ended September 30, 2025, respectively, and was $20,200 and $57,959, or 71% and 65% of total revenue, for the three and nine months ended September 30, 2024, respectively. Revenue from non-subscription-based contracts was $3,757 and

$12,733, or 30% and 23% of total revenue, for the three and nine months ended September 30, 2025, respectively, and was $8,368 and $30,833, or 29% and 35% of total revenue, for the three and nine months ended September 30, 2024, respectively.

The following revenue disaggregated by geography, derived from billing addresses, was recognized:

 

 

Three Months Ended September 30, 2025

 

 

Nine Months Ended September 30, 2025

 

Americas (1)

 

$

7,806

 

 

 

62

%

 

$

33,970

 

 

 

61

%

EMEA(2)

 

 

3,999

 

 

 

31

%

 

 

18,203

 

 

 

33

%

Asia Pacific

 

 

865

 

 

 

7

%

 

 

3,555

 

 

 

6

%

Total

 

$

12,670

 

 

 

100

%

 

$

55,728

 

 

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2024

 

 

Nine Months Ended September 30, 2024

 

Americas (1)

 

$

14,304

 

 

 

50

%

 

$

50,864

 

 

 

57

%

EMEA(2)

 

 

12,334

 

 

 

43

%

 

 

31,729

 

 

 

36

%

Asia Pacific

 

 

1,930

 

 

 

7

%

 

 

6,199

 

 

 

7

%

Total

 

$

28,568

 

 

 

100

%

 

$

88,792

 

 

 

100

%

Revenue from individual geographic regions that represent less than 10% of total revenue for the periods presented are not separately disclosed.

(1)
U.S. represented 52% of total revenue for each of the three and nine months ended September 30, 2025, and 44% and 42% of total revenue for the three and nine months ended September 30, 2024, respectively. Canada represented 15% of total revenue for the nine months ended September 30, 2024.
(2)
United Kingdom represented 11% of total revenue for each of the nine months ended September 30, 2025 and 2024. Belgium represented 11% of total revenue for the three months ended September 30, 2025. France represented 16% of total revenue for the three months ended September 30, 2024.

Contract Assets

As of September 30, 2025 and December 31, 2024, the Company reported contract assets were $3,950 and $785, respectively, which were reported as contract assets on the condensed consolidated balance sheets.

Changes in contract assets for the nine months ended September 30, 2025 and 2024 were as follows:

 

2025

 

 

2024

 

Balance as of January 1

 

$

785

 

 

$

4,917

 

Contract assets recorded during the period

 

 

4,667

 

 

 

3,967

 

Reclassified to accounts receivable

 

 

(1,573

)

 

 

(4,724

)

Other

 

 

71

 

 

 

(12

)

Balance as of September 30

 

$

3,950

 

 

$

4,148

 

Contract Liabilities

As of September 30, 2025, the Company reported total contract liabilities of $49,646, consisting of $28,006 classified as the current portion of contract liabilities and $21,640 included in other long-term liabilities on the condensed consolidated balance sheets. As of December 31, 2024, total contract liabilities were $45,526, of which $22,037 was classified as the current portion of contract liabilities and $23,489 was included in other long-term liabilities on the condensed consolidated balance sheets.

Changes in contract liabilities for the nine months ended September 30, 2025 and 2024 were as follows:

 

2025

 

 

2024

 

Balance as of January 1

 

$

45,526

 

 

$

49,101

 

Contract liabilities recorded during the period

 

 

21,508

 

 

 

33,650

 

Revenue recognized during the period

 

 

(18,398

)

 

 

(33,202

)

Other

 

 

1,010

 

 

 

231

 

Balance as of September 30

 

$

49,646

 

 

$

49,780

 

 

Remaining Performance Obligations

The Company has performance obligations associated with commitments in customer contracts for future services that have not yet been recognized as revenue. These commitments for future services exclude (i) contracts with an original term of one year or less, and (ii) cancellable contracts. As of September 30, 2025, the amount not yet recognized as revenue from these commitments was $223,113.

The Company expects to recognize its remaining performance obligations as of September 30, 2025, over the following periods:

 

 

September 30, 2025

 

1 to 12 months

 

$

76,585

 

 

 

34

%

13 to 24 months

 

 

58,255

 

 

 

26

%

25 to 36 months

 

 

36,714

 

 

 

17

%

37 to 48 months

 

 

22,142

 

 

 

10

%

Remaining

 

 

29,417

 

 

 

13

%

Total

 

$

223,113

 

 

 

100

%