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

Revenues

v3.22.2
Revenues
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2022 and 2021:

 

  Three months ended June 30, Six months ended June 30,
    2022     2021   2022   2021
  (U.S. $ in thousands) (U.S. $ in thousands)
Americas                
Systems $ 32,868     $ 27,053   $ 61,850   $ 48,410  
Consumables   34,662       30,730     66,016     58,941  
Service   39,695       35,166     77,926     67,711  
Total Americas   107,225       92,949     205,792     175,062  
                 
EMEA                
Systems   14,760       10,481     29,837     20,179  
Consumables   14,268       15,345     32,093     28,148  
Service   6,184       6,697     13,337     13,114  
Total EMEA   35,212       32,523     75,267     61,441  
                 
Asia Pacific                
Systems   11,235       8,031     21,693     16,856  
Consumables   7,928       8,665     17,305     18,095  
Service   5,003       4,837     9,975     9,740  
Total Asia Pacific   24,166       21,533     48,973     44,691  
                 
Total Revenues $ 166,603     $ 147,005   $ 330,032   $ 281,194  

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 and six months ended June 30, 2022 and 2021:

 

  Three months ended June 30,   Six months ended June 30,
    2022       2021       2022       2021  
  (U.S. $ in thousands)   (U.S. $ in thousands)
Revenues recognized in point in time from:              
Products $ 115,721     $ 100,305     $ 228,794     $ 190,629  
Services   13,147       11,124       25,639       21,725  
Total revenues recognized in point in time   128,868       111,429       254,433       212,354  
               
               
Revenues recognized over time from:              
Services   37,735       35,576       75,599       68,840  
Total revenues recognized over time   37,735       35,576       75,599       68,840  
               
Total Revenues $ 166,603     $ 147,005     $ 330,032     $ 281,194  

 

Contract Assets and Contract Liabilities

Contract assets are recorded when the Company's right to consideration is conditioned on constraints other than the passage of time. The Company had no material contract assets as of June 30, 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 revenues. The Company's deferred revenues as of June 30, 2022 and December 31, 2021 were as follows:

 

  June 30, 2022   December 31, 2021
  U.S. $ in thousands
Deferred revenue* $ 72,238     $ 72,307  
 

*Includes $22.7 million and $21.1 million under long-term deferred revenue in the Company's consolidated balance sheets as of June 30, 2022 and December 31, 2021, respectively.

Revenue recognized in 2022 that was included in deferred revenue balance as of December 31, 2021 was $12.9 million and $30.5 million for the three and six months ended June 30, 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 June 30, 2022, the total RPO amounted to $112.7 million. The Company expects to recognize $89.5 million of this RPO during the next 12 months, $16.2 million over the subsequent 12 months and the remaining $6.9 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 and comprehensive loss. As of June 30, 2022 and December 31, 2021, the deferred commissions amounted to $8.4 million and $7.4 million, respectively.