Deferred Revenue and Performance Obligations

6 Months Ended

Jul. 31, 2019

Revenue from Contract with Customer [Abstract]

Deferred Revenue and Performance Obligations

Deferred Contract Costs

Deferred contract costs, which primarily consist of deferred sales commissions, were $20.7 million and $17.5 million as of July 31, 2019 and January 31, 2019, respectively. Amortization expense for the deferred costs was $1.8 million and $1.0 million for the three months ended July 31, 2019 and 2018, respectively, and $3.4 million and $1.8 million for the six months ended July 31, 2019 and 2018, respectively. There was no impairment charge related to the costs capitalized for the periods presented.

Deferred Revenue and Performance Obligations

During the three months ended July 31, 2019 and 2018, the Company recognized $28.8 million and $17.9 million of revenue, respectively, which were included in the deferred revenue balance as of April 30, 2019 and 2018, respectively.

During the six months ended July 31, 2019 and 2018, the Company recognized $46.7 million and $26.5 million of revenue, respectively, which was included in the deferred revenue balance as of January 31, 2019 and 2018, respectively.

As of July 31, 2019 and January 31, 2019, future estimated revenue related to performance obligations for subscriptions with terms of more than one year that are unsatisfied or partially unsatisfied at the end of the reporting periods was approximately $60.1 million and $43.6 million, respectively. The Company expects to satisfy the substantial majority of these unsatisfied performance obligations over the next 24 months and the remainder thereafter. The Company applied the optional exemption for subscriptions with terms of less than a one year.