Revenue and Performance Obligations

6 Months Ended

Jul. 31, 2023

Disaggregation of Revenue [Abstract]

Revenue and Performance Obligations

5. Revenue and Performance Obligations

Disaggregation of revenue

The following table presents revenue by category (in thousands, except percentages):

	Three Months Ended July 31,								Six Months Ended July 31,
	2023				2022				2023				2022
	Amount		% of Total Revenue		Amount		% of Total Revenue		Amount		% of Total Revenue		Amount		% of Total Revenue
License	$	16,724	12	%	$	15,338	13	%	$	31,882	11	%	$	25,682	12	%
Support	103,997		72		84,257		75		$	205,910	74		163,465		76
Cloud-hosted services	18,372		13		10,637		9		$	34,916	12		19,469		9
Total subscription revenue	139,093		97		110,232		97		272,708		97		208,616		97
Professional services and other	4,153		3		3,631		3		8,521		3		6,144		3
Total revenue	$	143,246	100	%	$	113,863	100	%	$	281,229	100	%	$	214,760	100	%

The following table summarizes the revenue by region based on the billing address of customers who have contracted to use the Company's products and services (in thousands, except percentages):

	Three Months Ended July 31,								Six Months Ended July 31,
	2023				2022				2023				2022
	Amount		% of Total Revenue		Amount		% of Total Revenue		Amount		% of Total Revenue		Amount		% of Total Revenue
United States	$	100,057	70	%	$	83,402	73	%	$	198,614	71	%	$	156,192	73	%
Rest of the world	43,189		30		30,461		27		82,615		29		58,568		27
Total	$	143,246	100	%	$	113,863	100	%	$	281,229	100	%	$	214,760	100	%

No other country, outside of the United States, exceeded 10% of total revenue during the periods presented.

Contract Balances

Changes in deferred revenue and unbilled accounts receivable were as follows (in thousands):

	Three Months Ended July 31,				Six Months Ended July 31,
	2023		2022		2023		2022
Balance, beginning of period	$	276,414	$	219,928	$	302,244	$	223,289
Deferred revenue billings including reclassification to deferred revenue from customer deposits	160,210		121,434		273,256		219,528
Recognition of revenue, net of change in unbilled accounts receivable*	(143,183)		(114,550)		(282,059)		(216,005)
Balance, end of period	$	293,441	$	226,812	$	293,441	$	226,812
* Reconciliation to revenue reported per consolidated statements of operations:
Revenue billed as of the end of the period	$	143,183	$	114,550	$	282,059	$	216,005
Increase (decrease) in total unbilled accounts receivable	63		(687)		(830)		(1,245)
Revenue reported per consolidated statements of operations	$	143,246	$	113,863	$	281,229	$	214,760

Unbilled accounts receivable represents revenue recognized on contracts for which billings have not yet been presented to customers because the amounts were earned but not contractually billable as of the balance sheet date. The unbilled accounts receivable balance is due within one year. As of July 31, 2023 and January 31, 2023, unbilled accounts receivable of approximately $4.1 million and $4.9 million, respectively, were included in accounts receivable on the Company’s condensed consolidated balance sheets.

Remaining Performance Obligations (RPOs)

The typical stated customer contract term is one year but can range up to three years. RPOs include both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods. As of July 31, 2023 and January 31, 2023, the Company had $682.5 million and $647.1 million, respectively, of remaining performance obligations, which is comprised of product and services revenue not yet delivered. As of July 31, 2023 and January 31, 2023, the Company expected to recognize approximately 58% and 58%, respectively, of its remaining performance obligations as revenue over the next 12 months and the remainder thereafter.

RPOs exclude customer deposits, which are refundable pre-paid amounts that are expected to be recognized as revenue in future periods. These balances are included in customer deposits in the condensed consolidated balance sheets and are classified as current because contractually customers can cancel these obligations with 30 days written notice. The customer deposit balance is amortized to revenue over the term of the underlying contract as the customer’s right to cancel expires. If no contracts with customers are cancelled, the existing customer deposit balance will be

recognized to revenue over the remaining stated term of the underlying contract which may be over the next 12 months or longer as follows (in thousands):

	As of
	July 31, 2023		January 31, 2023
Within the next 12 months	$	21,412	$	22,657
After the next 12 months	4,152		4,042
Total	$	25,564	$	26,699