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

Revenues

v3.22.2.2
Revenues
 9 Months Ended
Sep. 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 nine months ended September 30, 2022 and 2021:

  

  Three months ended September 30, Nine months ended September 30,
    2022     2021   2022   2021
  (U.S. $ in thousands) (U.S. $ in thousands)
Americas                
Systems $ 34,869     $ 34,136   $ 96,719   $ 82,546  
Consumables   33,303       31,474     99,319     90,415  
Service   39,281       37,962     117,207     105,673  
Total Americas   107,453       103,572     313,245     278,634  
                 
EMEA                
Systems   11,811       10,214     41,648     30,393  
Consumables   13,666       16,682     45,759     44,830  
Service   5,983       7,165     19,320     20,279  
Total EMEA   31,460       34,061     106,727     95,502  
                 
Asia Pacific                
Systems   9,626       7,926     31,319     24,781  
Consumables   8,861       8,456     26,166     26,552  
Service   4,792       4,994     14,767     14,734  
Total Asia Pacific   23,279       21,376     72,252     66,067  
                 
Total Revenues $ 162,192     $ 159,009   $ 492,224   $ 440,203  

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 nine months ended September 30, 2022 and 2021:

  

  Three months ended September 30,   Nine months ended September 30,
    2022       2021       2022       2021  
  (U.S. $ in thousands)   (U.S. $ in thousands)
Revenues recognized at point in time from:              
Products $ 112,133     $ 108,888     $ 340,927     $ 299,517  
Services   13,519       12,056       39,158       33,781  
Total revenues recognized at point in time   125,652       120,944       380,085       333,298  
               
               
Revenues recognized over time from:              
Services   36,540       38,065       112,139       106,905  
Total revenues recognized over time   36,540       38,065       112,139       106,905  
               
Total Revenues $ 162,192     $ 159,009     $ 492,224     $ 440,203  

  

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 September 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 September 30, 2022 and December 31, 2021 were as follows:

  

  September 30, 2022   December 31, 2021
  U.S. $ in thousands
Deferred revenue* $ 72,316     $ 72,307  
 

*Includes $23.6 million and $21.1 million under long-term deferred revenue in the Company's consolidated balance sheets as of September 30, 2022 and December 31, 2021, respectively.

Revenue recognized in 2022 that was included in deferred revenue balance as of December 31, 2021 was $10.6 million and $41.1 million for the three and nine months ended September 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 September 30, 2022, the total RPO amounted to $103.6 million. The Company expects to recognize $77.5 million of this RPO during the next 12 months, $14.9 million over the subsequent 12 months and the remaining $11.2 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 September 30, 2022 and December 31, 2021, the deferred commissions amounted to $8.9 million and $7.4 million, respectively.