v3.25.0.1
Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Disaggregation of Revenue
The following table summarizes revenue:
Year Ended December 31,
(in thousands, except percentages)202420232022
Revenue:
Subscription lease licenses$948,831 $786,050 $687,665 
Perpetual licenses315,085 302,698 301,313 
Software licenses1,263,916 1,088,748 988,978 
Maintenance1,209,217 1,103,523 1,004,245 
Service71,676 77,678 72,330 
Maintenance and service1,280,893 1,181,201 1,076,575 
Total revenue$2,544,809 $2,269,949 $2,065,553 
Direct revenue, as a percentage of total revenue75.2 %73.9 %76.1 %
Indirect revenue, as a percentage of total revenue24.8 %26.1 %23.9 %

Our software licenses revenue is recognized up front, while maintenance and service revenue is recognized over the term of the contract.
Deferred Revenue
Deferred revenue consists of billings made or payments received in advance of revenue recognition from customer agreements. The timing of revenue recognition may differ from the timing of billings to customers. Payment terms vary by the type and location of customer and the products or services offered. The time between invoicing and when payment is due is not significant.
The changes in deferred revenue, inclusive of both current and long-term deferred revenue, during the years ended December 31, 2024 and 2023 were as follows:
(in thousands)20242023
Beginning balance – January 1$479,754 $435,758 
Acquired deferred revenue— 8,030 
Deferral of revenue2,617,131 2,305,294 
Recognition of deferred revenue(2,544,809)(2,269,949)
Currency translation(15,771)621 
Ending balance – December 31$536,305 $479,754 

Total revenue allocated to remaining performance obligations as of December 31, 2024 will be recognized as revenue as follows:
(in thousands) 
Next 12 months$1,029,144 
Months 13-24419,744 
Months 25-36206,327 
Thereafter63,052 
Total revenue allocated to remaining performance obligations$1,718,267 
Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes both deferred revenue and backlog. Our backlog represents deferred revenue associated with installment billings for periods beyond the current quarterly billing cycle and committed contracts with start dates beyond the end of the current period. Revenue recognized during the years ended December 31, 2024 and 2023 included amounts in deferred revenue and backlog at the beginning of the period of $897.4 million, of which $457.5 million was in deferred revenue, and $846.3 million, of which $414.0 million was in deferred revenue, respectively.