Deferred Revenue and Performance Obligations

3 Months Ended

Apr. 30, 2022

Revenue from Contract with Customer [Abstract]

Deferred Revenue and Performance Obligations

Deferred Contract CostsDeferred contract costs, which primarily consist of deferred sales commissions, were $43.4 million and $42.8 million as of April 30, 2022 and January 31, 2022, respectively. Amortization expense for deferred contract costs was $4.5 million and $3.3 million for the three months ended April 30, 2022 and 2021, respectively. There was no impairment charge related to the costs capitalized for the periods presented.Deferred Revenue and Performance Obligations

The following table presents the changes to the Company’s deferred revenue:

	Three Months Ended April 30,
	2022		2021
	(in thousands)
Deferred revenue, beginning of period	$	170,224	$	129,972
Billings	81,600		59,675
Deferred revenue assumed in the Catalytic acquisition	856		—
Revenue recognized	(85,371)		(63,591)
Deferred revenue, end of period	$	167,309	$	126,056

For the three months ended April 30, 2022 and 2021, the majority of revenue recognized was from the deferred revenue balances at the beginning of each quarter.

As of April 30, 2022, future estimated revenue related to performance obligations for cloud-hosted and term-license software subscriptions with terms of more than one year that are unsatisfied or partially unsatisfied at the end of the reporting periods was approximately $141.4 million. 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 one year.