REVENUE
Contract Balances
The following table presents the Company’s contract liabilities and certain information related to this balance as of March 31, 2025 (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | March 31, 2025 | | March 31, 2024 | | March 31, 2023 |
Accounts receivable, net | | $ | 52,502 | | | $ | 67,788 | | | $ | 72,464 | |
| Deferred revenue | | $ | 113,923 | | | $ | 116,687 | | | $ | 115,302 | |
| Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period | | $ | 74,048 | | | $ | 76,304 | | | $ | 83,113 | |
Remaining Performance Obligations
Total remaining performance obligations (“RPO”) which is contracted but not recognized revenue was $138.0 million as of March 31, 2025. RPO consists of both deferred revenue and non-cancelable amounts that are expected to be invoiced and recognized as revenue in future periods and excludes variable consideration related to sales-based royalties.
Remaining performance obligations consisted of the following (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | Current | | Non-Current | | Total |
| As of March 31, 2025 | | $ | 97,013 | | | $ | 41,010 | | | $ | 138,023 | |
Deferred revenue primarily consists of amounts invoiced and paid but not recognized as revenue including performance obligations pertaining to subscription services. The table below reflects our deferred revenue as of March 31, 2025 (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Deferred revenue by period |
| (in thousands) | Total | | 1 year or less | | 1 – 3 Years | | 3 year or greater | | |
| Service revenue | $ | 94,462 | | | $ | 65,498 | | | $ | 23,342 | | | $ | 5,622 | | | |
| Subscription revenue | 19,461 | | | 9,578 | | | 7,918 | | | 1,965 | | | |
| Total | $ | 113,923 | | | $ | 75,076 | | | $ | 31,260 | | | $ | 7,587 | | | |
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.