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

Revenues

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Revenues
 3 Months Ended
Mar. 31, 2024
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, 2024 and 2023:
Three Months Ended March 31,
2024 2023
(U.S. $ in thousands)
Americas
Systems $ 17,993  $ 21,186 
Consumables 35,542  32,572 
Service 33,273  36,322 
Total Americas 86,808  90,080 
EMEA
Systems 9,723  11,402 
Consumables 21,170  18,911 
Service 7,580  7,567 
Total EMEA 38,473  37,880 
Asia Pacific
Systems 5,169  7,864 
Consumables 9,599  9,036 
Service 4,001  4,517 
Total Asia Pacific 18,769  21,417 
Total Revenues $ 144,050  $ 149,377 
 
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, 2024 and 2023:
Three Months Ended March 31,
2024 2023
Revenues recognized in point in time from: (U.S. $ in thousands)
Products $ 99,196  $ 100,971 
Services 13,773  13,691 
Total revenues recognized in point in time 112,969  114,662 
Revenues recognized over time from:
Services 31,081  34,715 
Total revenues recognized over time 31,081  34,715 
$ 144,050  $ 149,377 
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, 2024 and December 31, 2023.
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, 2024 and December 31, 2023 was as follows:
March 31, December 31,
2024 2023
U.S. $ in thousands
Deferred revenue (*) $ 73,673  $ 76,265 
*Includes $19.1 million and $23.7 million under long term deferred revenue in the Company's consolidated balance sheets as of March 31, 2024 and December 31, 2023, respectively.
Revenue recognized in 2024 that was included in deferred revenue balance as of December 31, 2023 was $18.6 million for the three months ended March 31, 2024.
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, 2024, the total RPO amounted to $100.0 million. The Company expects to recognize $67.2 million of this RPO during the next 12 months, $16.8 million over the subsequent 12 months and the remaining $16.0 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, 2024 and December 31, 2023, the deferred commissions amounted to $10.4 million and $10.3 million, respectively.