XML 25 R9.htm IDEA: XBRL DOCUMENT v3.21.2
Revenues
9 Months Ended
Oct. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Disaggregation of Revenue
Subscription and Support Revenue by the Company's Service Offerings
Subscription and support revenues consisted of the following (in millions):
 Three Months Ended October 31,Nine Months Ended October 31,
 2021202020212020
Sales $1,538 $1,311 $4,403 $3,835 
Service 1,658 1,376 4,764 3,931 
Platform and Other (1)1,277 844 3,159 2,439 
Marketing and Commerce1,006 804 2,856 2,264 
Data900 750 2,647 2,031 
$6,379 $5,085 $17,829 $14,500 
(1) Slack revenues are included in Platform and Other
Total Revenue by Geographic Locations
Revenues by geographical region consisted of the following (in millions):
 Three Months Ended October 31,Nine Months Ended October 31,
 2021202020212020
Americas$4,638 $3,758 $13,044 $10,724 
Europe1,581 1,149 4,299 3,253 
Asia Pacific644 512 1,823 1,458 
$6,863 $5,419 $19,166 $15,435 
Revenues by geography are determined based on the region of the Company's contracting entity, which may be different than the region of the customer. Americas revenue attributed to the United States was approximately 94 percent during the three and nine months ended October 31, 2021 and 96 percent during the three and nine months ended October 31, 2020. No other country represented more than ten percent of total revenue during the three and nine months ended October 31, 2021 and 2020.
Contract Balances
Contract Assets
The Company records a contract asset when revenue recognized on a contract exceeds the billings. Contract assets were $744 million as of October 31, 2021 as compared to $477 million as of January 31, 2021, and are included in prepaid expenses and other current assets and deferred tax assets and other assets, net on the condensed consolidated balance sheets. Impairments of contract assets were immaterial during the three and nine months ended October 31, 2021 and 2020.
Unearned Revenue
Unearned revenue represents amounts that have been invoiced in advance of revenue recognition and is recognized as revenue when transfer of control to customers has occurred or services have been provided. The unearned revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription agreements. The unearned revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size and new business linearity within the quarter.
The change in unearned revenue was as follows (in millions):
Three Months Ended October 31,Nine Months Ended October 31,
2021202020212020
Unearned revenue, beginning of period$11,067 $8,711 $12,607 $10,662 
Billings and other (1)5,810 4,561 16,019 12,498 
Contribution from contract asset97 66 267 125 
Revenue recognized over time(6,511)(5,103)(18,070)(14,594)
Revenue recognized at a point in time(352)(316)(1,096)(841)
Unearned revenue from business combinations389 73 
Unearned revenue, end of period$10,116 $7,923 $10,116 $7,923 
(1) Other includes, for example, the impact of foreign currency translation.
The majority of revenue recognized for these services is from the beginning of period unearned revenue balance.
Revenue recognized over time primarily includes Cloud Services revenue which is generally recognized over time, professional services revenue which is generally recognized ratably or as delivered, training revenue that is primarily recognized as delivered and software support and updates revenue which is generally recognized ratably.
Revenue recognized at a point in time substantially consists of on-premises software licenses.
Remaining Performance Obligation
Remaining performance obligation represents contracted revenue that has not yet been recognized and includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to the remaining performance obligation is based on SSP. Remaining performance obligation is influenced by several factors, including seasonality, the timing of renewals, the timing of software license deliveries, average contract terms and foreign currency exchange rates. Remaining performance obligation is also impacted by acquisitions. Unbilled portions of the remaining performance obligation denominated in foreign currencies are revalued each period based on the period end exchange rates. Unbilled portions of the remaining performance obligation are subject to future economic risks, including bankruptcies, regulatory changes and other market factors.
The Company excludes amounts related to performance obligations from professional services contracts that are billed and recognized on a time-and-materials basis.
The majority of the Company's noncurrent remaining performance obligation is expected to be recognized in the next 13 to 36 months.
Remaining performance obligation consisted of the following (in billions):
 CurrentNoncurrentTotal
As of October 31, 2021 (1)$18.8 $17.5 $36.3 
As of January 31, 2021$18.0 $18.1 $36.1 
(1) Includes approximately $900 million of remaining performance obligation related to the Slack acquisition.