3. Revenue Recognition

Disaggregation of Revenue

The following table presents revenue by category:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

 

(in thousands, except percentages)

 

Self-managed subscription

 

$

288,529

 

 

 

54

%

 

$

260,519

 

 

 

61

%

 

$

230,560

 

 

 

66

%

Subscription

 

 

259,485

 

 

 

49

 

 

 

238,934

 

 

 

56

 

 

 

210,867

 

 

 

60

 

License

 

 

29,044

 

 

 

5

 

 

 

21,585

 

 

 

5

 

 

 

19,693

 

 

 

6

 

SaaS

 

 

243,311

 

 

 

46

 

 

 

167,969

 

 

 

39

 

 

 

119,326

 

 

 

34

 

Total subscription revenue

 

$

531,840

 

 

 

100

%

 

$

428,488

 

 

 

100

%

 

$

349,886

 

 

 

100

%

 

The following table summarizes revenue by region based on the shipping address of customers:

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
 of Revenue

 

 

 

(in thousands, except percentages)

 

United States

 

$

316,493

 

 

 

60

%

 

$

258,911

 

 

 

60

%

 

$

215,605

 

 

 

62

%

Israel

 

 

16,424

 

 

 

3

 

 

 

12,275

 

 

 

3

 

 

 

9,332

 

 

 

3

 

Rest of world

 

 

198,923

 

 

 

37

 

 

 

157,302

 

 

 

37

 

 

 

124,949

 

 

 

35

 

Total subscription revenue

 

$

531,840

 

 

 

100

%

 

$

428,488

 

 

 

100

%

 

$

349,886

 

 

 

100

%

 

Contract Balances

Of the $274.2 million, $214.1 million and $175.7 million of deferred revenue recorded as of December 31, 2024, 2023 and 2022, respectively, the Company recognized $249.6 million, $201.6 million and $158.3 million as revenue during the years ended December 31, 2025, 2024, and 2023, respectively.

Remaining Performance Obligation

The Company’s remaining performance obligations represent contracted revenue that has not yet been recognized. It includes deferred revenue and non-cancelable amounts that will be invoiced and recognized in future periods and excludes usage-based fees from SaaS subscriptions in excess of minimum usage commitments from the remaining performance obligations. As of December 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $565.7 million, which consists of billed considerations of $342.0 million and unbilled considerations of $223.7 million, that the Company expects to recognize as revenue. As of December 31, 2025, the Company expects to recognize 65% of its remaining performance obligations as revenue over the next 12 months, and the remainder thereafter.

Cost to Obtain a Contract

Amortization of deferred contract acquisition costs was $19.9 million, $14.4 million, and $10.2 million for the years ended December 31, 2025, 2024, and 2023, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 14, 2025
2023Feb 15, 2024
2022Feb 9, 2023
2021Feb 11, 2022
2020Feb 12, 2021

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.