Citrix 2014 Annual Report Download - page 48

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42
available during the term of the subscription, for which fees are recognized ratably over the term of the contract,
which is typically 12 to 24 months; and
• Our maintenance fees, which include technical support and hardware and software maintenance, and which are
recognized ratably over the contract term.
Professional services revenues are comprised of:
• Fees from consulting services related to implementation of our products, which are recognized as the services are
provided; and
• Fees from product training and certification, which are recognized as the services are provided.
Our SaaS revenues from our Mobility Apps products, which are recognized ratably over the contractual term, consist of
fees related to our mobility apps products including:
• Communications Cloud products, which primarily include GoToMeeting, GoToWebinar and GoToTraining;
• Documents Cloud products, which primarily include ShareFile and GoToMyPC; and
• Workflow Cloud products, which primarily includes GoToAssist.
Year Ended December 31, 2014
Compared to
2013
2013
Compared to
2012
2014 2013 2012
(In thousands)
Revenues:
Product and licenses $ 899,736 $ 891,630 $ 830,645 $ 8,106 $ 60,985
Software as a Service 651,562 582,872 511,323 68,690 71,549
License updates and maintenance 1,416,017 1,305,053 1,125,094 110,964 179,959
Professional Services 175,541 138,879 119,061 36,662 19,818
Total net revenues $ 3,142,856 $ 2,918,434 $ 2,586,123 $ 224,422 $ 332,311
Product and licenses
Product and licenses revenue increased during 2014 when compared to 2013 primarily due to increased sales of our
Delivery Networking products of $48.2 million, led by NetScaler, partially offset by a decrease in sales of our Workspace
Services solutions of $40.8 million, primarily XenDesktop and XenApp. These Product and licenses revenue results were
primarily due to the factors discussed in the Executive Summary Overview above. Product and licenses revenue increased
during 2013 when compared to 2012 primarily due to increased sales of our Delivery Networking products of $87.4 million,
led by NetScaler, partially offset by a decrease in sales of our Workspace Services solutions of $30.9 million, primarily
XenDesktop and XenApp. We currently target Product and licenses revenue to increase when comparing the first quarter of
2015 to the first quarter of 2014.
Software as a Service
Software as a Service revenue increased during 2014 when compared to 2013 primarily due to increased sales of our
Communications Cloud products of $46.6 million, led by GoToMeeting, and due to increased sales of our Documents Cloud
products of $22.9 million. Software as a Service revenue increased during 2013 when compared to 2012 primarily due to
increased sales of our Communications Cloud product of $45.4 million and due to increased sales of our Documents Cloud
products of $15.9 million. We currently target our Software as a Service revenue to increase when comparing the first quarter of
2015 to the first quarter of 2014.
License updates and maintenance
License updates and maintenance revenue increased during 2014 when compared to 2013 primarily due to an increase in
maintenance revenues of $68.9 million, primarily driven by increased sales of maintenance and support contracts across all of
our Enterprise and Service Provider division's products and an increase in renewals of our Subscription Advantage product of
$42.0 million. License updates and maintenance revenue increased during 2013 when compared to 2012 primarily due to an
increase in maintenance revenues of $100.3 million, primarily driven by increased sales of maintenance and support contracts
across all of our Enterprise and Service Provider division's products and an increase in sales and renewals of our Subscription
Advantage product of $79.7 million. We currently are targeting that License updates and maintenance revenue will increase
when comparing the first quarter of 2015 to the first quarter of 2014.