Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

Revenues

v3.22.1
Revenues
 3 Months Ended
Mar. 31, 2022
Revenue Recognition [Abstract]  
Revenues

Note 4. Revenues

 

Disaggregation of Revenues

The following table presents the Company’s revenues disaggregated by geographical region (based on the Company’s customers’ locations) and revenue type for the three months ended March 31, 2022 and 2021:
  Three months ended March 31,
    2022     2021
  (U.S. $ in thousands)
Americas        
Systems $ 28,982     $ 21,357  
Consumables   31,354       28,211  
Service   38,231       32,545  
Total Americas   98,567       82,113  
         
EMEA        
Systems   15,076       9,698  
Consumables   17,825       12,803  
Service   7,153       6,417  
Total EMEA   40,055       28,918  
         
Asia Pacific        
Systems   10,458       8,825  
Consumables   9,377       9,430  
Service   4,972       4,903  
Total Asia Pacific   24,807       23,158  
         
Total Revenues $ 163,429     $ 134,189  

The following table presents the Company’s revenues disaggregated based on the timing of revenue recognition (at a specific point in time or over the course of time) for the three months ended March 31, 2022 and 2021:

 

  Three months ended March 31,
    2022     2021  
  (U.S. $ in thousands)
Revenues recognized in point in time from:      
Products $ 113,073   $ 90,324  
Services   12,492     10,601  
Total revenues recognized in point in time   125,565     100,925  
       
       
Revenues recognized over time from:      
Services   37,864     33,264  
Total revenues recognized over time   37,864     33,264  
       
Total Revenues $ 163,429   $ 134,189  

Contract Assets and Contract Liabilities

Contract assets are recorded when the Company’s right to consideration is conditional on constraints other than the passage of time. The Company had no material contract assets as of March 31, 2022 and December 31, 2021.
Contract liabilities include advance payments and billings in excess of revenue recognized, which are primarily related to advanced billings for service type warranty. Contract liabilities are presented under deferred revenue. The Company’s deferred revenue as of March 31, 2022 and December 31, 2021 was as follows:

 

    March 31, December 31,
      2022       2021  
    U.S. $ in thousands
Deferred revenue*   $ 74,363     $ 72,307  

*Includes $22.0 million and $21.1 million under long term deferred revenue in the Company's consolidated balance sheets as of March 31, 2022 and December 31, 2021, respectively.

Revenue recognized in 2022 that was included in deferred revenue balance as of December 31, 2021 was $17.6 million for the three months ended March 31, 2022.

Remaining Performance Obligations

Remaining Performance Obligations (“RPO“) represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of March 31, 2022, the total RPO amounted to $126 million. The Company expects to recognize $96.3 million of this RPO during the next 12 months, $18.3 million over the subsequent 12 months and the remaining $11.4 million thereafter.

Incremental Costs of Obtaining a Contract

Sales commissions earned mainly by the Company’s sales agents are considered incremental costs of obtaining a contract with a customer, as the Company expects the benefit of those commissions to be longer than one year. The majority of the sales commissions are not subject to capitalization, as the commission expense is recognized as the related revenue is recognized. Sales commissions for initial contracts related to the service type warranty are deferred and then amortized on a straight-line basis over the expected customer relationship period if the Company expects to recover those costs. Amortization expense is included in selling, general and administrative expenses in the consolidated statements of operations. As of March 31, 2022 and December 31, 2021, the deferred commissions amounted to $7.9 million and $7.4 million, respectively.