Deferred Revenue and Performance Obligations

9 Months Ended

Oct. 31, 2019

Revenue Recognition and Deferred Revenue [Abstract]

Deferred Revenue and Performance Obligations

Deferred Revenue and Performance Obligations

Of the beginning deferred revenue balance for the respective periods, we recognized $178.2 million and $311.2 million of subscription services revenue during the three and nine months ended October 31, 2019, respectively, and $142.7 million and $240.4 million during the three and nine months ended October 31, 2018, respectively. Professional services revenue recognized in the same periods from deferred revenue balances at the beginning of the respective periods was immaterial.

Transaction Price Allocated to the Remaining Performance Obligations

Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancelable amounts that will be invoiced and recognized as revenues in future periods. We applied the practical expedient in accordance with ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606) to exclude the amounts related to professional services contracts as these contracts generally have a remaining duration of one year or less. Revenue from remaining performance obligations for professional services contracts as of October 31, 2019 was immaterial.

As of October 31, 2019, approximately $567.5 million of revenue is expected to be recognized from remaining performance obligations for subscription services contracts. We expect to recognize revenue on approximately $418.6 million of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.