Costs to Obtain and Fulfill a Contract

3 Months Ended

Apr. 30, 2022

Revenue from Contract with Customer [Abstract]

Costs to Obtain and Fulfill a Contract

Costs to Obtain and Fulfill a Contract

Deferred Commissions—Total deferred commissions as of April 30, 2022 and January 29, 2022 was $120.0 million and $117.8 million, respectively.

The following table provides the amounts capitalized and amortized for the Company’s commission costs for the periods presented (in thousands):

	Three Months Ended
	April 30, 2022		May 1, 2021
Capitalized commission costs	$	14,437	$	14,178
Amortization expense	12,179		11,338

Connected Devices—Total connected device costs, which the Company also refers to as IoT device costs, current and non-current as of April 30, 2022 and January 29, 2022 was $210.1 million and $193.8 million, respectively.

The following table provides the amounts capitalized and amortized for the Company’s connected device costs for the periods presented (in thousands):

	Three Months Ended
	April 30, 2022		May 1, 2021
Capitalized connected device costs	$	30,033	$	27,066
Amortization expense	13,720		7,906

Deferred Revenue and Remaining Performance ObligationsRevenue Recognition—Subscription revenue is generated from subscriptions to access the Company’s Connected Operations Cloud. Subscription agreements contain multiple service elements for one or more of the Company’s cloud-based Applications via mobile app(s) or a website that enable data collection and provide access to the cellular network, generally one or more wireless gateways, cameras, sensors and other devices (collectively, “connected devices” or “IoT devices”), support services delivered over the term of the arrangement and warranty coverage. The Company’s Connected Operations Cloud and the related connected device access points are highly interdependent and interrelated, and represent a combined performance obligation, which is recognized over the related subscription period.

Other revenue is generally recognized at a point in time and is earned through the sale of replacement gateways, sensors and cameras, as well as related shipping and handling fees, credit card processing fees, and professional services.

Revenue consists of the following (in thousands):

	Three Months Ended
	April 30, 2022		May 1, 2021
Subscription revenue	$	140,727	$	85,430
Other revenue	1,918		2,301
Total revenue	$	142,645	$	87,731

Deferred Revenue—The following table provides the deferred revenue balances and revenue recognized from beginning deferred revenue balances for the periods presented (in thousands):

	Three Months Ended
	April 30, 2022		May 1, 2021
Deferred revenue, beginning of period	$	313,686	$	249,572
Deferred revenue, end of period	329,858		265,479
Revenue recognized in the period from beginning deferred revenue balance	134,518		94,986

Remaining Performance Obligations (“RPO”)—RPO represents the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods.

As of April 30, 2022, the Company’s RPO was $1,101.1 million. The Company expects to recognize revenue of approximately $533.8 million over the next 12 months, with the remaining balance recognized thereafter.

Concentrations of Significant Customers and Credit Risk—No customer accounted for greater than 10% of the Company’s total revenue for the three months ended April 30, 2022 and May 1, 2021.

There were no customers that individually represented greater than 10% of the Company’s accounts receivable as of April 30, 2022 and January 29, 2022.