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

Revenues

v3.23.3
Revenues
 9 Months Ended
Sep. 30, 2023
Revenue [Abstract]  
Revenues

Note 5. 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, 2023 and 2022:

  Three months ended September 30, Nine months ended September 30,
    2023     2022   2023   2022
  (U.S. $ in thousands) (U.S. $ in thousands)
Americas                
Systems $ 30,545     $ 34,869   $ 80,706   $ 96,719  
Consumables   33,471       33,303     99,800     99,319  
Service   37,809       39,281     113,594     117,207  
Total Americas   101,825       107,453     294,100     313,245  
                 
EMEA                
Systems   14,967       11,811     38,423     41,648  
Consumables   18,654       13,666     55,475     45,759  
Service   6,980       5,983     21,467     19,320  
Total EMEA   40,601       31,460     115,365     106,727  
                 
Asia Pacific                
Systems   5,978       9,626     21,126     31,319  
Consumables   9,655       8,861     27,823     26,166  
Service   4,074       4,792     12,847     14,767  
Total Asia Pacific   19,707       23,279     61,796     72,252  
                 
Total Revenues $ 162,133     $ 162,192   $ 471,261   $ 492,224  

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, 2023 and 2022:

  Three months ended September 30,   Nine months ended September 30,
    2023       2022       2023       2022  
  (U.S. $ in thousands)   (U.S. $ in thousands)
Revenues recognized in point in time from:              
Products $ 113,270     $ 112,133     $ 323,353     $ 340,927  
Services   13,303       13,519       41,150       39,158  
Total revenues recognized in point in time   126,573       125,652       364,503       380,085  
               
Revenues recognized over time from:              
Services   35,560       36,540       106,758       112,139  
Total revenues recognized over time   35,560       36,540       106,758       112,139  
               
Total Revenues $ 162,133     $ 162,192     $ 471,261     $ 492,224  

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 September 30, 2023 and December 31, 2022.

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 September 30, 2023 and December 31, 2022 were as follows:

  September 30, 2023   December 31, 2022
  U.S. $ in thousands
Deferred revenue* $ 80,310     $ 75,434  

*Includes $28.5 million and $25.2 million under long-term deferred revenue in the Company's consolidated balance sheets as of September 30, 2023 and December 31, 2022, respectively.

Revenue recognized in 2023 that was included in deferred revenue balance as of December 31, 2022 was $8.8 million and $36.7 million for the three and nine months ended September 30, 2023.

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, 2023, the total RPO amounted to $93.5 million. The Company expects to recognize $61.8 million of this RPO during the next 12 months, $19.9 million over the subsequent 12 months and the remaining $11.7 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, 2023 and December 31, 2022, the deferred commissions amounted to $9.8 million and $9.6 million, respectively.