Stratasys Ltd. Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

The following table present the Company’s revenues disaggregated by geographical region (based on the Company's customers’ location) and revenue type for the years ended December 31, 2023, 2022 and 2021:


	Year Ended December, 31
	2023		2022		2021
	(U.S. $ in thousands)
Americas
Systems	$	108,998	$	130,959	$	124,311
Consumables	132,820		130,775		121,245
Service	147,952		153,694		142,767
Total Americas	389,770		415,428		388,323


EMEA
Systems	51,617		53,527		42,077
Consumables	75,468		61,703		61,192
Service	28,857		26,430		27,027
Total EMEA	155,942		141,660		130,296


Asia Pacific
Systems	27,031		40,106		33,110
Consumables	37,807		35,054		35,623
Service	17,048		19,235		19,867
Total Asia Pacific	81,886		94,395		88,600

Total Revenues	$	627,598	$	651,483	$	607,219

The following table present the Company’s revenues disaggregated based on the timing of revenue recognized for the years ended December 31, 2023, 2022 and 2021:


	Year Ended December, 31
	2023		2022		2021
	(U.S. $ in thousands)
Revenues recognized in point in time from:
Products	$	433,741	$	452,124	$	417,557
Services	54,362		53,152		46,049
Total revenues recognized in point in time	488,103		505,276		463,606


Revenues recognized over time from:

Services	139,495		146,207		143,613
Total revenues recognized over time	139,495		146,207		143,613

Total Revenues	$	627,598	$	651,483	$	607,219

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 December 31, 2023 and 2022.

Contract liabilities include advance payments and billings in excess of revenue recognized. Contract liabilities are presented under deferred revenues. The Company's deferred revenues as of December 31, 2023 and 2022 were as follows:


	December, 31
	2023		2022
	U.S. $ in thousands
Deferred revenue (*)	$	76,265	$	75,434

*Includes $23.7 million and $25.2 million under long term deferred revenue in the Company's consolidated balance sheets as of December 31, 2023 and December 31, 2022, respectively.

Revenue recognized in 2023 and 2022 that was included in deferred revenue balance as of January 1, 2023 and 2022 was $48.9 million and $44.0 million, respectively.

Remaining Performance Obligations

Remaining Performance Obligations (“RPO”) represents 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 December 31, 2023 and 2022 the total RPO amounted to $100.5 million and $104.6 million, respectively. The Company expects to recognize $64.7 million of this RPO during the next 12 months, $20.1 million over the subsequent 12 months and the remaining $15.7 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 (generally 5 years) if the Company expects to recover those costs. The Company determined the period of benefit by taking into consideration customer contracts including renewals, the technology and other factors. Amortization expense is included in selling, general and administrative expenses in the consolidated statements of operations. As of December 31, 2023 and 2022, the deferred commission amounted to $10.3 million and $9.6 million, respectively and presented under Other current assets and Other non-current assets.