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REVENUE RECOGNITION
 6 Months Ended
Jul. 31, 2021
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
We derive our revenue primarily from providing customers the right to access our cloud-based solutions, the right to use our software for an indefinite or specified period of time, and related services and support based on when access or control of the software passes to our customers or the services are provided, in an amount that reflects the consideration we expect to be entitled to in exchange for such goods or services. Revenue is reported net of applicable sales and use tax, value-added tax and other transaction taxes imposed on the related transactions, including mandatory government charges that are passed through to our customers.

We determine revenue recognition through the following five steps:

•Identification of the contract, or contracts, with a customer
•Identification of the performance obligations in the contract
•Determination of the transaction price
•Allocation of the transaction price to the performance obligations in the contract
•Recognition of revenue when, or as, performance obligations are satisfied.

We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable.

Disaggregation of Revenue

The following table provides a disaggregation of our recurring and nonrecurring revenue. Recurring revenue is the portion of our revenue that we believe is likely to be renewed in the future. The recurrence of these revenue streams in future periods depends on a number of factors including contractual periods and customers' renewal decisions.

•Recurring revenue primarily consists of cloud revenue and initial and renewal support revenue.
◦Cloud revenue primarily consists of software as a service (“SaaS”) revenue and some optional managed services revenue.
◦SaaS revenue primarily consists of bundled SaaS (software with standard managed services) and unbundled SaaS (software licensing rights accounted for as term-based licenses whereby customers use our software with related support for a specified period of time). Unbundled SaaS can be deployed in the cloud either by us or a cloud partner.
◦Bundled SaaS revenue is recognized over time and unbundled SaaS revenue is recognized at a point in time, except for the related support which is recognized over time. Unbundled SaaS contracts are eligible for renewal after the initial fixed term, which in most cases is between a one- and three-year time frame.
•Nonrecurring revenue primarily consists of our perpetual licenses, hardware, installation services, and business advisory consulting and training services.

In order to conform with the presentation described above, unbundled SaaS revenue for the three and six months ended July 31, 2020 has been revised to reflect $2.3 million and $4.3 million, respectively, of unbundled SaaS support revenue which had previously been presented within support revenue.
Three Months Ended
July 31,		Six Months Ended
July 31,
(in thousands)2021202020212020
Recurring revenue:
Bundled SaaS revenue$42,940 $35,818 $82,249 $69,211 
Unbundled SaaS revenue33,444 12,411 57,727 19,906 
Optional managed services revenue16,872 14,328 33,330 28,460 
Total cloud revenue93,256 62,557 173,306 117,577 
Support revenue62,922 76,710 127,325 150,760 
Total recurring revenue156,178 139,267 300,631 268,337 
Nonrecurring revenue:
Perpetual revenue32,349 35,829 61,672 64,354 
Professional services revenue26,090 28,984 53,218 57,254 
Total nonrecurring revenue58,439 64,813 114,890 121,608 
Total revenue$214,617 $204,080 $415,521 $389,945 

Contract Balances

The following table provides information about accounts receivable, contract assets, and contract liabilities from contracts with customers:

(in thousands)July 31, 2021January 31, 2021
Accounts receivable, net$150,242 $206,157 
Contract assets, net$38,081 $36,716 
Long-term contract assets, net (included in other assets)$27,817 $17,210 
Contract liabilities$228,040 $261,033 
Long-term contract liabilities$16,571 $16,502 

We receive payments from customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets are rights to consideration in exchange for goods or services that we have transferred to a customer when that right is conditional on something other than the passage of time. The majority of our contract assets represent unbilled amounts related to multi-year unbundled SaaS contracts and arrangements where our right to consideration is subject to the contractually agreed upon billing schedule. We expect billing and collection of a majority of our contract assets to occur within the next twelve months and asset impairment charges related to contract assets were immaterial in the three and six months ended July 31, 2021 and 2020. There was one customer, an authorized global reseller of our solutions, that accounted for approximately 17% and 14% of our aggregated accounts receivable and contract assets at July 31, 2021 and January 31, 2021, respectively. Credit losses relating to this reseller have historically been immaterial.

Contract liabilities represent consideration received or consideration which is unconditionally due from customers prior to transferring goods or services to the customer under the terms of the contract. Revenue recognized during the six months ended July 31, 2021 and 2020 from amounts included in contract liabilities at the beginning of each period was $171.0 million and $161.9 million, respectively.

Remaining Performance Obligations

Transaction price allocated to remaining performance obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes contract liabilities and non-cancelable amounts that will be invoiced and recognized as revenue in future periods. The majority of our arrangements are for periods of up to three years, with a significant portion being one year or less.

We elected to exclude amounts of variable consideration attributable to sales- or usage-based royalties in exchange for a license of our IP from the remaining performance obligations. The timing and amount of revenue recognition for our remaining performance obligations is influenced by several factors, including seasonality, the timing of support renewals, the timing of delivery of software licenses, the average length of the contract terms, and foreign currency exchange rates.

The following table provides information about when we expect to recognize our remaining performance obligations:
(in thousands)July 31, 2021January 31, 2021
RPO:
Expected to be recognized within 1 year$378,422 $405,714 
Expected to be recognized in more than 1 year248,400 229,951 
Total RPO$626,822 $635,665