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

Revenues

v3.24.2.u1
Revenues
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2024
and 2023:
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
(U.S. $ in thousands) (U.S. $ in thousands)
Americas
Systems $ 14,054  $ 28,975  $ 32,047  $ 50,161 
Consumables 36,182  33,757  71,724  66,329 
Service 33,252  39,463  66,525  75,785 
Total Americas 83,488  102,195  170,296  192,275 
EMEA
Systems 9,800  12,054  19,523  23,456 
Consumables 19,945  17,910  41,115  36,821 
Service 7,308  6,920  14,888  14,487 
Total EMEA 37,053  36,884  75,526  74,764 
Asia Pacific
Systems 5,125  7,284  10,294  15,148 
Consumables 8,488  9,132  18,087  18,168 
Service 3,887  4,256  7,888  8,773 
Total Asia Pacific 17,500  20,672  36,269  42,089 
Total Revenues $ 138,041  $ 159,751  $ 282,091  $ 309,128 
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, 2024 and 2023:
Three Months Ended June 30, six months ended June 30, 2024
2024 2023 2024 2023
(U.S. $ in thousands) (U.S. $ in thousands)
Revenues recognized in point in time from:
Products $ 93,594  $ 109,112  $ 192,790  $ 210,083 
Services 12,847  14,156  26,619  27,847 
Total revenues recognized in point in time 106,441  123,268  219,409  237,930 
Revenues recognized over time from:
Services 31,600  36,483  62,682  71,198 
Total revenues recognized over time 31,600  36,483  62,682  71,198 
Total Revenues $ 138,041  $ 159,751  $ 282,091  $ 309,128 
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, 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 June 30, 2024 and December 31, 2023 was as follows:
June 30, December 31,
2024 2023
U.S. $ in thousands
Deferred revenue * $ 69,794  $ 76,265 
*Includes $18.9 million and $23.7 million under long-term deferred revenue in the Company's consolidated balance sheets as of June 30, 2024 and December 31, 2023, respectively.
Revenue recognized in 2024 that was included in deferred revenue balance as of December 31, 2023 was $14.5 million and $33.1 million  for the three and six months ended June 30, 2024, respectively.
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, 2024, the total RPO amounted to $98.3 million. The Company expects to recognize $68.0 million of this RPO during the next 12 months, $14.7 million over the subsequent 12 months and the remaining $15.6 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 June 30, 2024 and December 31, 2023, the deferred commissions amounted to $10.3 million and $10.3 million, respectively.